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Engineering Globalization

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Title: Engineering Globalization


1
Engineering Globalization
  • Engineers Week Dinner
  • 2006
  • Dr. Timothy Greene

2
Tonights Topics
  • Impact of Engineering Globalization on Southwest
    Michigan
  • College of Engineering Applied Sciences
    accomplishments and direction

3
Engineering Globalization
  • Thesis
  • Engineering design has become a global commodity
  • Impact
  • Michigans engineering work can be sent anywhere
    in the world
  • Engineering work from anywhere in the
  • world can be sent to Michigan

4
Value of Technology
  • 85 of measured growth in U.S. income per capita
    is due to technology change

-Rising Above The Gathering Storm
5
Some Worrisome Indicators
  • Only 1 of 16 countries polled listed the US as
    the most attractive place in the world to lead a
    good life
  • Cost
  • For the first time, this most capable high-energy
    particles accelerator on Earth will, beginning in
    2007, reside outside the U.S.

-Rising Above The Gathering Storm
6
Worrisome Indicators High Technology
  • The U.S. is a net importer of high-technology
    products.
  • US global high-technology exports have fallen
    from 30 to 17 over 20 years
  • US trade balance in high-technology manufactured
    goods shifted from 33 billion (1990) to -24
    billion (2004).

-Rising Above The Gathering Storm
7
Worrisome Indicators Chemical Companies
  • Chemical companies closed 70 facilities in 2004
    and have tagged 40 more for shutdown.

US 1
-Rising Above The Gathering Storm
8
Worrisome Indicators Math Science Skills
  • About 1/3 of 4th graders and 1/5 of 8th graders
    lacked the competence to perform basic math
    computations.
  • US 12th graders recently performed below the
    international average for 21 countries on a
    general test of mathematics and science
  • In 1999, only 41 of US 8th graders received
    instruction from a teacher who specialized in
    mathematics lower than the international average
    of 71

-Rising Above The Gathering Storm
9
Worrisome IndicatorsLow-wage vs. High-wage
employers
Low wage
High wage
44 of new Jobs
29 of new Jobs
-Rising Above The Gathering Storm
10
Worrisome Indicators World-wide Undergraduate
Degrees in Science and Engineering
Japan 66
China 59
Germany 36
US 32
-Rising Above The Gathering Storm
11
Worrisome Indicators 2004 Graduates of
Engineering
China
India
US
-Rising Above The Gathering Storm
12
National Academy of Engineering Institute of
Medicine Committee on Prosperity in the Global
Economy of the 21st Century National Academy of
Science
  • Change
  • 10 actions federal policy makers could take
  • Enhance science technology in the US
  • Compete, prosper, and be secure in Global
    Community
  • Strategy for implementation

-Rising Above The Gathering Storm
13
Committee Findings
  • Report Rising Above the Gathering Storm
    Energizing and Employing America for a Brighter
    Economic Future
  • Having reviewed trends in US and abroad, the
    committee is concerned that scientific and
    technical building blocks of economic leadership
    are eroding at a time when many other nations are
    gathering strength

-Rising Above The Gathering Storm
14
Committee Findings (cont.)
  • 3. The US must prepare to preserve its strategic
    and economic security. Because other nations have
    the competitive advantage of a low-wage
    structure, the US must compete by optimizing its
    knowledge-based resources, particularly in
    science and technology, and sustain the most
    fertile environment for new and revitalized
    industries and the well-paying jobs they bring.

-Rising Above The Gathering Storm
15
Committee Recommendations
  • 10,000 Teachers, 10 Million Minds, and K-12
    Science and Mathematics Education
  • Recommendation A Increase Americas
  • talent pool by vastly improving
  • K-12 science and mathematics
  • education

-Rising Above The Gathering Storm
16
Committee Recommendations
  • Sowing the Seeds
  • Through Science and
  • Engineering Research
  • Recommendation B Sustain and strengthen the
    nations traditional commitment to long-term
    basic research that has the potential to be
    transformational to maintain the flow of new
    ideas that fuel the economy, provide security,
    and enhance the quality of life.

-Rising Above The Gathering Storm
17
Committee Recommendations
  • Best and Brightest in Science and
  • Engineering Higher Education
  • Recommendation C Make the U.S. the most
    attractive setting in which to study and perform
    research so that we can develop, recruit, and
    retain the best and brightest students,
    scientists, and engineers from within the U.S.
    and throughout the world.

-Rising Above The Gathering Storm
18
Committee Recommendations
  • Incentives for Innovation
  • and the Investment Environment
  • Recommendation D Ensure that the U.S. is the
    premier place in the world to innovate invest in
    downstream activities such as manufacturing and
    marketing and create high-paying jobs that are
    based on innovation by modernizing the patent
    system, realigning tax policies to encourage
    innovation, and ensuring affordable broadband
    access

-Rising Above The Gathering Storm
19
Off-shoring Issues
  • Is it simply moving work to where these are
  • Cheaper hourly costs
  • Cheaper benefit costs
  • Fewer safety requirements
  • Fewer union problems
  • Fewer taxes
  • Or is it moving work to where
  • Customer growth is
  • Diversification
  • 24/7 service
  • Highly motivated trained work force

20
Off-shoring Truths
  • Companies have long ago dropped national
    loyalties
  • Board of Directors have become truly
    internationalized
  • Growth markets are in developing countries
  • The new best universities are not in the U.S.
  • Companies that offshore are growing in both
    revenues and profits faster than those who have
    not

21
Off-shoring Truths (cont.)
  • Companies that offshore have seen
  • Increased customer responsiveness (closer to the
    customers)
  • Increased quality
  • Decreased material costs(closer to the suppliers)
  • Nearly every process can be bought offshore

22
What can not be off-shored
  • Face to face customer service
  • Face to face supplier relationships
  • On site design and engineering
  • Construction engineering
  • Consulting on site
  • Sales engineering
  • (on site problem solving)

23
A New Approval to Off-shoring
  • Off-shore companies are buying U.S. companies to
    get the face to face relationships
  • Tata Technologies (2,000 Indian engineers
    automotive design) recently bought Incat
    International (700 U.S. engineers Novi,
    Michigan) currently having 100 engineers for U.S.
    office

-Business Week 1/30/06
24
Proctor Gamble
  • CEO Alan Lafley wants 50 of all new Proctor
    Gamble products to come from outside U.S. by 2010
    versus 20 now.

-Business Week 1/30/06
25
General Electric
  • 19,000 back office process workers spun off into
    GenPact in 2004 saved 30 to 40 in back office
    process labor costs after the first year.

-Business Week 1/30/06
26
DuPont
  • 60,000 employees in 70 nations need HR services
    (records, payroll, benefits, etc.)
  • Outsourced services to Convergys Corp. and expect
    to save 20 in processing costs in year one and
    30 in year two

-Business Week 1/30/06
27
Areas where companies are looking to outsource
work process
Human Resources 13 Billion
Engineering 27 Billion
Logistics Procurement 179 Billion
Info Tech 90 Billion
Analytics 12 Billion
Finance Accounting 14 Billion
Manufacturing 170 Billion
Customer Care 41 Billion
-Business Week 1/30/06
28
Five Offshore Practices That Pay Off
  • Go offshore for the right reasons
  • Choose your model carefully
  • Get your people on board
  • Be prepared to invest time and effort
  • Treat your partners as equals

-Business Week 1/30/06
29
Leading Companies in the Off-shoring
Outsourcing World
Call Centers
Software Development
Business Services
-Business Week 1/30/06
30
To Where Are Companies Outsourcing?
-Business Week 1/30/06
31
Outsourcing to Africa
  • South Africa has over 500 call centers
  • Lufthansa
  • General Electric
  • Cairo-based Xceed Contact Center
  • Microsoft
  • General Motors
  • Oracle
  • Carretour

-Business Week 1/30/06
32
Engineering Research and Americas Future
Meeting the Challenges of a Global Economy (2005)
  • http//www.nap.edu/books/0309096421/html/index.htm
    l

33
Engineering Research The Engine of Innovation
  • American success has been based on the
    creativity, ingenuity, and courage of innovators,
    and innovation will continue to be critical to
    U.S. success in the twenty-first century.

-Engineering Research and Americas Future
34
How Do You Slow Off-shoring?
  • Innovation!
  • Those entities lead in innovation
  • control the market

35
Examples of Recent Innovation
  • Transistors Integrated Circuits
  • Computerization Mass communication
  • Cell Phones Internet
  • Electromagnetic Radiation Radios
    X-rays,
  • Fiber Optics, Cell Phones, MRI, Micro Waves, etc.

36
U.S. Status in Innovation
  • The US must be an innovation-driven nation that
    can capitalize on advances in life sciences,
    physical sciences, and engineering
  • The US risks becoming a consumer of innovations
    developed elsewhere rather than a leader.

-Engineering Research and Americas Future
37
Trends in Innovation
  • A large and growing imbalance in federal research
    funding engineering physical science vs.
    biomedical life science
  • Increased emphasis on applied RD in industry and
    government-funded research at the expense of
    fundamental long-term research

-Engineering Research and Americas Future
38
Trends in Innovation (cont.)
  • 3. Growing uncertainty about the ability of the
    US to attract and retain gifted science and
    engineering students from abroad
  • 4. Erosion of the engineering research
    infrastructure due to inadequate investment over
    many years

-Engineering Research and Americas Future
39
Imbalance in the Research Innovation Portfolio
40
Recommendations
  • The federal RD portfolio be enhanced by
    increasing funding for research in engineering
    physical science
  • Long-term basic engineering research should be
    reestablished as a priority for US industry. The
    federal government should design and implement
    tax incentives and other policies to stimulate
    industry investment in long-term engineering
    research

-Engineering Research and Americas Future
41
Recommendations (cont.)
  • 3. Federal state government and industry should
    invest in upgrading and expanding laboratories,
    equipment, and information technologies and
    meeting other infrastructural needs of research
    universities and schools of engineering to ensure
    that the national capacity to conduct world-class
    engineering research is sufficient to address the
    technical challenges.
  • 4. Considering the importance of technological
    innovation to the nation, a major effort should
    be made to increase participation of US students
    in engineering.

-Engineering Research and Americas Future
42
Recommendations (cont.)
  • 5. All participants and stakeholders in the
    engineering community should place higher
    priority on encouraging women underrepresented
    minorities to pursue careers in engineering.
  • 6. A major federal fellowship-traineeship program
    in strategic areas (e.g. energy info-, nano-,
    and biotechnology knowledge services, etc.)
    should be established to ensure that the supply
    of next generation scientists and engineers is
    adequate.

-Engineering Research and Americas Future
43
Recommendations (cont.)
  • 7. Immigration policies and practices should be
    streamlined to restore the flow of talented
    students, engineers, and scientists worldwide
    into US universities and industry.
  • 8. Links between industry and research
    universities should be expanded and strengthened.
  • 9. Multidisciplinary discovery-innovation
    institutes should be established on the campuses
    of research universities to link fundamental
    scientific discoveries with technological
    innovations to create products, processes, and
    services.

-Engineering Research and Americas Future
44
The Final Solution
  • In a global, knowledge-driven economy,
    technological innovation the transformation of
    knowledge into products, processes, and services
    is critical to competitiveness, long-term
    productivity growth, and the generation of
    wealth.

-Engineering Research and Americas Future
45
  • Highlights of what the College of Engineering has
    accomplished and the colleges direction

46
CEAS Vision
  • A scholarly community dedicated to excellence
    through student-centered education and research
    emphasizing professional practice in engineering
    and applied science

Robo-Bronco
47
Number of Bachelor Graduates
48
Masters Enrollment
CS Moved to CEAS
49
Ph.D. Enrollment
CS Moved to CEAS
50
Research Award Dollars
51
CEAS Cornerstones
Engagement
Innovation
Globalization
Leadership
52
Engagement
  • Definition
  • Experience based learning
  • Involving students with their profession as they
    learn
  • Faculty members and staff who are active in their
    professions
  • Purpose
  • Produce job ready graduates with the ability to
    grow in their profession

53
Examples of Engagement
  • Senior Design Conference
  • Real world examples and applied problems used in
    classes
  • Student design-build competitions
  • Sunseeker 6th in the Nation
  • SAE Formula One Race Car
  • ASCE Concrete Canoe
  • AIChE Chemical Car

54
Examples of Engagement(continued)
55
Examples of Engagement (continued)
  • CEAS Learning Communities
  • Cooperative Education Internships
  • Student and faculty research
  • Student and faculty Professional societies
  • Faculty leadership in local, regional, and
    national positions
  • Student conferences National and international
    conferences

56
Examples of Engagement (continued)
  • Laboratory extensive curricula
  • Volunteer projects
  • Habitat for Humanity
  • Rockets program
  • Intel Science and Engineering Fair (hosted)
  • Etc.
  • Industry plant tours
  • Industry visits to campus
  • Faculty and alumni mentoring
  • NSF REU programs

57
Innovation
  • Definition
  • The discovery, application, and dissemination of
    new knowledge
  • Purpose
  • Move the profession and society forward by
    providing engineers, scientists and technologists
    with new capabilities
  • Opportunity to add resources to the college.
  • Faculty development assuring we are technically
    current

58
Technology Curve
Basic Research
Applied Research
Technology Transfer (Application of New
Technology)
Use (Deployment, Training, Service)

Technology Maturity Level
CEAS
Time to Technology Maturity
59
Research Foci
  • Advanced Vehicle and Development Simulation
  • Product Design and Manufacturing
  • Life Sciences and Biotechnical
  • Engineering Education

60
Globalization
  • Definition
  • If engineering knowledge can be digitized, it can
    be moved and performed anywhere in the world.
  • Companies now look for engineering and technology
    solutions world wide.
  • Purpose
  • Our graduates must be prepared to work in a
    global engineering and applied sciences industry.
  • Our faculty work in global disciplines.

61
Examples of Globalization
  • How we might teach it
  • Certificate in globalization
  • Faculty-led tours
  • Study abroad
  • Faculty and student exchanges (visiting scholars)
  • International conferences (attended or sponsored)
  • Examples within classes
  • Twinning
  • University to university agreements
  • Foreign language minors

62
Leadership
  • Definition
  • Excellent communication skills
  • Excellent teamwork skills
  • Ability to lead others and be led by others
  • Ability to lead at work, in the profession and in
    the community
  • Excellent professional ethics and morals
  • Understand the issues including environmental,
    economic, social, political, safety, and diversity

63
Leadership
  • Purpose
  • To graduate engineers, technologists, and applied
    scientists who are and will continue to be
    leaders in their profession and community.
  • To ensure our faculty continue to be leaders in
    their profession and community.

64
CEAS Katrina Fund Raiser
65
CEAS Mission
  • To educate our learning community for life-long
    excellence in responsible professional
    leadership. (Engagement and Leadership)
  • To increase knowledge through collaborative
    discovery, integration, application, and
    teaching. (Research)
  • To serve as a resource and partner to our
    constituents. (Globalization, Leadership,
    Research, and Engagement)
  • To prepare job-ready graduates for the global
    market. (Engagement and Leadership)

66
Committee Recommendations and Actions (cont.)
  • Action A-1 Annually recruit 10,000 science
    mathematics teachers by awarding 4-year
    scholarships and thereby educating 10 million
    minds
  • Action A-2 Strengthen the skills of 250,000
    teachers through training and education programs
    at summer institutes, in masters programs, etc.
  • Action A-3 Enlarge the pipeline by increasing
    the number of students who take AP and IB science
    mathematics courses.

-Rising Above The Gathering Storm
67
Committee Recommendations and Actions (cont.)
  • Action B-1 Increase the federal investment in
    long-term basic research by 10 a year over the
    next 7 years.
  • Action B-2 Provide new research grants of
    500,000 each annually, payable over 5 years, to
    200 of our most outstanding early-career
    researchers.
  • Action B-3 Institute a National Coordination
    Office for Research Infrastructure to manage a
    centralized research-infrastructure fund of 500
    million per year over the next 5 years.
  • Action B-4 Allocate at least 8 of the budgets
    of federal research agencies to discretionary
    funding.

-Rising Above The Gathering Storm
68
Committee Recommendations and Actions (cont.)
  • Action B-5 Create in the Department of Energy
    (DOE) an organization like the Defense Advanced
    Research Projects Agency (DARPA) called the
    Advanced Research Projects Agency-Energy
    (ARPA-E).
  • Action B-6 Institute a Presidential Innovation
    Award to stimulate scientific and engineering
    advances in the national interest.

-Rising Above The Gathering Storm
69
Committee Recommendations and Actions (cont.)
  • Action C-1 Increase the number and proportions
    of US citizens who earn physical-sciences,
    life-sciences, engineering, and mathematics
    bachelors degrees by providing 25,000 new 4-year
    competitive undergraduate scholarships each year
    to US citizens attending US institutions.
  • Action C-2 Increase the number of US citizens
    pursuing graduate study in areas of national
    need by funding 5,000 new graduate fellowships
    each year.
  • Action C-3 Provide a federal tax credit to
    encourage employers to make continuing education
    available (either internally or through colleges
    and universities) to practicing scientists and
    engineers.

-Rising Above The Gathering Storm
70
Committee Recommendations and Actions (cont.)
  • Action C-4 Continue to improve visa processing
    for international students and scholars
  • Action C-5 Provide a 1-year automatic visa
    extension to international students who receive
    doctorates, or the equivalent in science,
    technology, engineering, mathematics, or other
    fields of national need at qualified US
    institutions to remain on the U.S. to seek
    employment. If these students are offered jobs by
    U.S.-based employers and pass a security
    screening test, they should be provided automatic
    work permits and expedited residence status.

-Rising Above The Gathering Storm
71
Committee Recommendations and Actions (cont.)
  • Action C-6 Institute a new skills based,
    preferential immigration option.
  • Action C-7 Reform the current system of deemed
    exports

-Rising Above The Gathering Storm
72
Committee Recommendations and Actions (cont.)
  • Action D-1 Enhance intellectual-property
    protection for the 21st century global economy
  • Action D-2 Enact a stronger research and
    development tax credit to encourage private
    investment in innovation
  • Action D-3 Provide tax incentives for U.S.-based
    innovation
  • Action D-4 Ensure ubiquitous broadband Internet
    access.

-Rising Above The Gathering Storm
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