1 / 16

Overview of MIT's Production in the Innovation Economy (PIE) Initiative

Overview of MIT's Production in the Innovation Economy (PIE) Initiative. October 27, 2011 6 th Annual LMP Manufacturing Summit. Prof . Olivier de Weck deweck@mit.edu. Presentation Outline. Personal Observations on Manufacturing

emilie
Download Presentation

Overview of MIT's Production in the Innovation Economy (PIE) Initiative

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Overview of MIT's Production in the Innovation Economy (PIE) Initiative October 27, 2011 6th Annual LMP Manufacturing Summit Prof. Olivier de Weck deweck@mit.edu

  2. Presentation Outline • Personal Observations on Manufacturing • MIT Production in the Innovation Economy (PIE) Study – Overview • 1: Scan of Advanced Manufacturing Technologies • 2: Early Production Decisions in Startup Firms • Discussion

  3. Personal Observations on Manufacturing Superplastic Forming versus High-Speed Machining Swiss F/A-18 Program Experience Flexibility in Component Manufacturing Understanding Cost Drivers Globalization and Supply Chains Product Families and Platforms Variety and Intermediate Volumes Hauser D., de Weck O.L., “Flexibility in component manufacturing systems: evaluation framework and case study”, Journal of Intelligent Manufacturing, 18(3), 421-432, June 2007

  4. Top 15 Countries in Manufacturing In 2010 China and US traded places

  5. What future for manufacturing in the U.S.? • Productivity drives it down the road that agriculture has already taken • Labor costs (and other costs) drive it to Asia • The example of other advanced industrial countries (Germany, Japan ...) • Do new industries (e.g. clean-tech, smart medical devices) require closer integration of R&D, production and operations? • Will the finance model for IT (VCs) work for these new industries? • Do we have the skills and productive capabilities needed for these new industries in the U.S.? • Why should we care?

  6. PIE Overview • MIT’s President Susan Hockfield initiates the project in late 2010 • Model: Made in America Study (1986-1989) • The MIT Commission on Industrial Productivity • PIE is asking: How can the U.S. create more value from innovation? • Three Phase Study; Interim Report, Spring 2012 • $3M budget mainly foundations (CCNY, Kauffman) and gifts • Co-Chairs: Suzanne Berger, Phillip Sharp; Olivier de Weck, Exec. Director; 18 leading MIT faculty and the head of the MIT Corp. • Cross Disciplinary: engineering, science, economics, political science, management, biology

  7. PIE Study Architecture Government Policy R&D investment capital, labor, skills 7 Innovation Economy Economy Innovation Production job growth job growth Regional clusters 4 Regional clusters Services 1 3 Income distribution Income distribution Entrepreneurship Entrepreneurship labor relations labor relations scale-up / scale-down challenge 6 5 2 manufacturing- related services non-manufacturing services X Study Module

  8. 20 labs interviewed Module 1: Internal Scan at MIT (Summer 2011) Mix of Product and Process Innovations Nano-materials Bio-manufacturing Pharmaceuticals Batteries Robotics Solar/Sustainable Supply Chains Nano-engineered Surfaces (K. Varanasi, MechE) MEMS Compliant Actuators (Culpepper, LMP) Electro spray Thrusters (Lozano, AA) Nano-spinning of polymers (G. Rutledge, ChemE) Rodney Brooks CSAIL – Humanoid Robotics Robotics for Composite Layup (J. Shah, AA) Layer-by-Layer Assy of Bio-materials (R. Cohen, ChemE) Continuous Manufacturing of Pharmaceuticals (B. Trout, ChemE) RFID-technology Auto-ID Sarma (MechE), Williams(CEE,ESD) Nanophosphate Li-Ion Batteries ( YM Chiang, DMSE) Liquid Metal Batteries (Don Sadoway, DMSE) Continuous Flow Batteries (YMC) Organic Photovoltaic's (Bulovic/Gleason) EECS, Silicon-Ribbon PV cells Alumnimum Recycling under comp. uncertainty J. Clark, R. Kirchain (MSL)

  9. Initial Trends from MIT and U.S. University Scan Jonté Craighead (UROP) conducted a web-survey of other U.S. Universities • Development of new materials and surfaces at the micro- and nano-scale • Reducing CAPEX requirements for manufacturing of high quality objects in small batch sizes with high levels of “niche” customization • Improving efficiency of existing manufacturing with less energy use and waste • Increased use of smart automation during manufacturing, but also advanced robots as a product • Enabling technologies that might create new manufacturing ecosystems (ion thrusters, grid storage, thin film solar cells) • New differentiators for success besides cost are customization, design, and service • Role of the internet in creating an open eco-system for design, example: (http://www.mfg.com) Too much happening at MIT to be complete – will conduct a campus wide survey (similar to MITEI) to elicit from the bottom-up who is doing what related to adv. manufacturing

  10. What is Advanced Manufacturing? Traditional Manufacturing (20th century) finished products raw materials from nature Assembly parts Fabrication raw materials from nature Material Design Integrated solutions services software Bundling Advanced Manufacturing (21th century) synthetic materials finished products Assembly parts Fabrication continuous recovered materials Recycling Advanced Manufacturing is the creation of integrated solutions that require the production of physical artifacts coupled with valued-added services and software, potentially exploiting custom-designed and recycled materials.

  11. Module 2: Innovation Pathways to Production – Research Questions • What are the strategic decisions made by entrepreneurial firms at as they move from invention/innovation to early production stages? • For the initial set of production capabilities are these developed in-house, via a contracting or licensing relationship, or with a large strategic partner, e.g. in the form of a joint venture? • What are the key factors shaping these decisions? • How stable are early production decisions typically? Do they freeze downstream production configurations or are they often overturned as new opportunities arise? • Data set of 228 MIT Startups between 1997-2010 (TLO)

  12. Pathways to Production • Initial guess at a decision tree/taxonomy

  13. Summary and Discussion • U.S. Manufacturing is critical to our future • Renewed interest in manufacturing at the national scale (PCAST, AMP) and at MIT • MIT has launched the PIE Study as a major initiative • Empirical study to establish better understanding of link between upstream innovation, manufacturing and global markets • How do we impact “manufacturing” education in a positive way? • Expect initial recommendations in early 2012 http://web.mit.edu/pie

  14. Backup Charts

  15. Comparison of Advanced Manufacturing Technologies / Promising areas mentioned in recent mfg reports *PCAST mentions that these technologies are subject to potential “market failure” Conclusion: There is a lot of similarity amongst reports in terms of what research areas are considered to be important in advanced manufacturing, but what should be included in advanced manufacturing scope?

  16. Typical profile of successful growth firm Later scale-up Revenue ($M) # employees [FTE] Initial scale-up 1,000 maturation 100 plateau 5 1 10 15 Year negative cash-flow

More Related