Innovation Advantage Includes Memex Automation CEO David McPhail

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Innovation Advantage Includes Memex Automation CEO David McPhail, Innovation Advantage was put together by Canadian Plant magazine and Rogers Communications and shed some interesting light on the manufacturing industry.

Memex Automation was invited to participate as a supplier to the manufacturing industry, specifically David McPhail, President. Business Outlook 2011 – Innovation Advantage was put together by Canadian Plant magazine and Rogers Communications and shed some interesting light on the manufacturing industry. It is based on a survey of manufacturing companies as well as a roundtable discussion with senior executives of leading manufacturing companies.

Some interesting notes about this outlook:
 77% of manufacturers identified improving productivity as a major issue.
 86% identified innovation is an important aspect of their competitive strategies.
 Most panelists agree lean manufacturing is key to productivity improvement and innovation but adoption among survey respondents is just under half at 49%, suggesting there is much room for improvement here.
 91% of manufacturers have investment plans for 2011.
 Process improvement tops the list of priorities for 2011.
 Only about 40% of companies took advantage of the federal tax credit.
 Much discussion was had about applying tax credits towards improving manufacturing productivity, all as a competitive advantage.

A 10% improvement in Operational OEE can generate a 60+% improvement to EBIT, profitability – Financial OEE; representing $Millions to the bottom line profit to a company! An example business case created $5.6 million to profit for a manufacturer producing and selling $100 million per year by a 10% improvement in OEE (from the book: “Overall Equipment Effectiveness: A Powerful Production/Maintenance Tool for Increased Profits”, Robert C. Hansen, Pgs 47-56). The base business case of operating at a 60% OEE is compared to the same company operating at a 66% OEE. Firstly, comparing the reduction of direct labor's impact to operating income - a 21% improvement in EBIT. Secondly, comparing the impact of increased sales to operating income – a 62% improvement to EBIT.

About Memex Automation Inc.

Memex Automation Inc., (www.memex.ca), a unit of Astrix Networks Inc., was created to leverage the research and development of Memex Electronics, which was founded in 1992. Memex continues its tradition of serving the discrete manufacturing sector, supplying component hardware, memory upgrades, and visionary shop floor communication technology. Memex products allow a manufacturer to realize the impact of OEE Profitability.

Memex Automation
www.memex.ca
John Rattray
jrattray@astrixnet.com
1-866-573-3895