Manufacturing	Technology	Acceleration	Center	

Pilot	Projects

Request	for	Information

Date: August 2,	2013

California	Manufacturing	

Technology	Consulting®	CMTC
M-TAC	RFI	Comments

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California	Manufacturing	Technology	Consulting® (CMTC)	is	pleased	to	provide	comments	in	

response	to	the	RFI	on	Manufacturing	Technology	Acceleration	Centers	(M-TACs).		

In	2011,	the Next	Generation	Manufacturing	Study, prepared	by	the	Manufacturing	

Performance	Institute	surveying 826	manufacturers, indicated that	72% of	manufacturers	

believe	that	supply	chain	management	is	important	or	highly	important,	but	only	29% of	

manufacturers	are	near	or	at	world-class	status	in	supply	chain	management.		Small	

manufacturers	face even	larger	challenges.	Only	25%	of	small	manufacturers	(less	than	$10	

million	in	revenues)	are	near	or	at	world	class	status	for	supply	chain	management and	62.7%

of	these	small	manufacturers	surveyed	never	or	rarely	get	support	from	outside	resources	for	

supply	chain	development. To	achieve	world	class	status	and	improve	their	value	in	a	supply	

chain, SMMs	need	assistance	with	growth strategies,	implementing	new	technologies,	

workforce	development and	buy	in.	After	evaluating	this	information,	CMTC understands	the	

need	for	a	supply	chain	focused	program	like	M-TAC.	

In	evaluating	the	deployment	of	M-TAC,	the	MEP	system	has	the	capabilities	to	accomplish	the	

goals	outlined	in	the	Federal	Funding	Opportunity (FFO).	There	is	a	core	of	MEP	centers	that	

have	the	experience	and	capabilities	to	serve	as	M-TACs.	They	have	supply	chain	expertise,	a	

methodology	to	engage	supply	chains,	access	to	SMMs,	connectivity	to	the	MEP	system,

partnerships	to	enhance	the	delivery	of	tools	and	services, and	the	process	to	document	

outcomes.		

Having	an MEP	or	a	team	of	MEPs	serve	as	the	M-TACs	will:	1)	continue	to	provide	a	unified	

approach	to improving	SMM	performance; 2)	expand	the	expertise	and	value	of	the	MEP	

system;	3)	increase	the	number	of	SMMs	served	and	the	impact	generated		by	the	MEP

program;	4)	provide	a	consistent	message	to	SMMs	that	MEPs	are	the	“go	to”	organizations	for	

assistance;	and	5)	enhance	the	value	of	MEPs	to	States	as	they	consider	funding	advanced	

manufacturing	initiatives.		

CMTC’s responses	to	the	questions	outlined in	the	RFI	are	as	follows:

Questions	1:	What	are	the	specific	types	of	technology	transition	and	commercialization	tools	

and	services	that	should	be	provided	by	M-TACs?	Emphasis	is	on	the	alignment	of	these	tools	

and	services	with	the	most	pressing	needs	of	small	and	mid-sized	U.S.	manufacturers.

The	first	role	of	the	M-TACs	is to identify	the	technologies that	have	the greatest	“practical	

application”	to	Small	and	Medium-Sized	Manufacturers	(SMMs).	M-TACs	would	collaborate	

with OEMs,	industry	experts,	academia and	research	institutions	to	determine	the	types	of	

technologies	that	meet	the	most	pressing	needs	of	SMMs.	However,	several	areas	of	

technology	already	lend	themselves	to	solving	not	only	the	needs	of	the	SMMs	but	those	of	Top	
M-TAC	RFI	Comments

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Tier	companies as	well.	Top	Tier	companies	are	defined	as	OEMs,	first Tier	and companies	with	

at	least	four tiers	of	suppliers. Examples	of	the	types	of	technology that	have	immediate	

application are:

 Information	Technology – Sharing	of	information	up	and	down	the	supply	chain	is	

critical	to	creating	a	value	chain.	Research	conducted	by	the	MEP	tCAR	on	Supply	Chain	

Optimization	indicated: 1)	suppliers	do	not	have	direct	access	to	manufacturing	

information	systems; 2)	very	little	supplier	collaboration	occurs	with	Top	Tiers	in	new	

product	development; and	3)	Top	Tiers	have	limited	visibility	down	the	supply	chain.	

The	tCAR	Survey	also	indicated	that	Top	Tiers	wanted	to	increase	supplier	collaboration	

by increasing	the	effectiveness	of	their	ERP/MRP	systems. IT	(Control	Tower)	systems	

would	increase	supply	chain	visibility	and	foster	the	direct,	collaborative	efforts	

between	Top Tiers,	customers	and	suppliers	to	improve	supply chain	performance.

 Additive	Manufacturing	– 3D	Printing	has	made	significant	advancements in	

performance,	use	of	materials	and	affordability.	However,	most	SMMs,	while	aware	of	

additive	manufacturing, have	little	knowledge	of	how	it	can	be	practically	applied	to	

improving	their	company’s	value	as	a	supplier	and	contribute	to	their	competitiveness	in	

the	global	economy. Knowledge	transfer	is	a	requirement	for	SMMs	to	fully	utilize	the	

rapid	prototyping	and	speed	to	market	capabilities	of	additive	manufacturing.

 Smart	Manufacturing	Technology	– The	use	of	technology	to	gather	and	analyze	

performance	data	from	inside	and	outside	the	SMMs’ four	walls is	critical	to	optimizing	

their	performance	and	value	in	their	supply	chain.	Using	technology	to	monitor	and	

integrate	equipment,	quality,	output	and	financial	data in	real	time	will	provide	the	

necessary	information to	improve	performance	to	meet	best	in	class supply	chain	

standards,	foster	innovation, and	increase	supplier	value.

In	addition,	M-TACs	would	connect	with	academia	and	labs	to	make them	aware	of the	

technology	gaps facing	SMMs.	M-TACs	would	facilitate the	identification,	transfer	and	

commercialization	of	existing	and	emerging	technologies	to	meet	the	technology	needs	of	

SMMs.			

Question	1a:	How	would	M-TAC	services	complement	the	services	currently	offered	by	MEP	

Centers?

MEP	Centers	currently	offer	a broad	array	of	services	to	small	manufacturers, including,	but	not	

limited	to, process	improvements;	quality	systems;	business	systems;	workforce	development;	

product	development	and	testing;	innovation;	and	technology	implementation.	The	M-TAC	will	

provide	services	that	complement	MEP’s traditional	core	competencies with	capabilities	to	

engage	Top	Tier	and	their	suppliers	in	the	development	and	optimization	of	their	supply	chains.	
M-TAC	RFI	Comments

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The	M-TAC	would	expand	MEP	system	capabilities	to: 1)	target	and	gain	access	to	Top	Tier	

companies; 2)	develop	relationships	and	credibility	to	secure	supply	chain	projects; 3)	collect	

data	that	focuses	on	the	entire	supply	chain; and	4)	engage	Top	Tiers	in	a	supply	chain	

development	program leveraging	new	and	existing	MEP	tools,	technologies and	services to	

improve	SMMs supplier	value.

Question	2:	What	role	should	future	M-TACs	play	with	respect	to	supply	chain	needs?		How	

should	OEMs	participate?		How	can	industry	associations,	professional	societies,	and	other	

appropriate	national	organizations	participate?

M-TACs	should	have	a	significant	role	in	identifying	the	needs	and	challenges	of	supply	chains	

as	noted	above.	This	can	start	by	validating	the	needs	of	Top	Tiers	and	suppliers	as	outlined	in	

the	“Voice	of	the	Customer	Survey” conducted	by	the	MEP	tCAR	Supply	Chain	Optimization	

Team in	2011.	The	M-TACs	can	use,	in	conjunction	with	local	MEPs,	many	of	the	tools	and	

services	developed	by	the	tCAR, along	with	other	services	needed	by	the	MEP	system	to meet	

supply	chain	customer demands.	M-TACs, sharing	the	profile	of	a	high	potential	Top	Tier	

organization	in	need	of	assistance, would	coordinate	with	MEP	to	conduct	outreach	creating

demand	for	supply	chain	development	which	would	drive Top	Tiers	and their	local	suppliers to

MEP	for	assistance.		

Industry	associations,	professional	societies	and	other	appropriate	national	organizations	could	

participate	in	five ways: 1)	offering assistance	in identifying	the	needs	of	various	supply	chains,

especially	with	a	sector	focus; 2)	providing access	to	Top Tier	and	local	suppliers;	3)	developing	

standards	to	evaluate	supply chain	and	supplier	performance;	4)	increasing awareness	of	the	

M-TAC	capabilities	to	Top	Tiers	and	suppliers;	and	5)	using supplier	standards	to	create	a	

national	supply	chain excellence	award program.

Question	3:	Is	there	a	particular	long-term	scalable	and	financially	sustainable	business	model	

that	should	be	implemented	by	future	M-TACs	that	will	enable	small	and	mid-sized	U.S.	

manufacturers	to	effectively	access	and	benefit	from	the	technology	transition	and	

commercialization	assistance	and	other	resources	they	need?

A	sustainable	model	can	be	developed	using	the	existing	MEP	network.	An MEP	center	led	

collaborative	of	other	MEP	centers	and	partners capable	of	delivering	M-TAC	requirements

should	be	selected	 to focus	the MEP	system,	associations	and	professional	organizations on:	1)	

identifying	Top	Tiers	desirous	of	developing	a	value	chain; 2)	coordinating	the	engagement	of	

Top	Tiers; 3)	providing	expertise	to	local	MEPs to	build	credibility	with	Top	Tiers; 4)	facilitating	

the	development	of	supply	chain	strategies and	use	of	new	technologies;	5)	conducting	supplier	

development workshops	with	Top	Tiers using local	MEP	personnel; and	6)	coordinating	supplier	

development projects	with	local	MEPs	to	optimize	supply	chains.	Because	supply	chains	are	not	
M-TAC	RFI	Comments

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bound	by	states	or	nations,	M-TACs would	be	the	catalyst	to	move	MEP	expertise	from	supplier	

to	supply	chain	development.

There	are	a	number	of	financial	and	implementation	efficiencies using	the	existing	MEP	Center	

network	including: 1) existing	infrastructure	and	capabilities	to	serve	manufacturers	and	supply	

chains;	2) leveraging expertise	and	tools	developed	by the Supply	Chain	Optimization	tCAR;	3)	

nationwide access	to	Top	Tiers	and	suppliers;	4)	reporting; and	5)	reduction	in	overall	start-up	

costs.	Each	of	these	will	substantially	increase	the	probability	for	a	successful M-TAC	program.	

Using	a	network	of	60	MEPs	and	more	than a	thousand	manufacturing	practitioners	contribute	

to	a	sustainable	and	scalable	business	model.

Questions	3a:	Because	of	the	programmatic	connection	to	the	NIST	MEP	Program,	M-TACs	

may	require	cost	share.		Are	there	cost	share	models	for	future	M-TACs	that	promote	scale	up	

to	reach	nationally	dispersed	clusters	of	small	and	med-sized	manufacturers?		If	so,	what	are	

those	models,	and	why	might	they	be	successful?

The	M-TAC	program	should	not	require	cost	share.		Cost	share	would	significantly	limit	MEP	

center	participation	reducing	the	system’s	ability	to conduct Top	Tiers	and supplier	outreach,	

build broad	base	collaboratives	(with	industry	associations,	societies	and	national	

organizations), and	deliver	services. In	addition,	if	the	award	was	given	to	a	non-MEP	

organization	and	required	cost	share,	this	would	create	competition	between	MEPs	and	the	MTACs for	cost	share	from	partners.	The	M-TACs would	definitely	approach	existing	MEP	partners

for	cost	share jeopardizing	existing	MEP	cost	share	partnerships.		

There	is	precedence	to	not	requiring	cost	share. There	are	programmatic	connections	to	the	

NIST	MEP	Program	that	do	not	require	cost	share.		An	example	is	the	“T-CAR”	grant	program	

authorized	in	the	America	COMPETES	Act (PL110-69).	Funding	was	subsequently	provided	for	

this	authorized	program	via	MEP’s	annual	appropriation	without	a	special	designation	in	the	

appropriations	law.		“Unless	the	underlying	law	prohibits	it,	the	Congress	may	also	extend	the	

program,	simply	by	providing	new	appropriations.”1		Since	appropriations	for	the	T-CAR	

program	was	not	specifically	included	in	the	FY10-FY13	Appropriations	bills,	yet	was	funded,	

existing	precedent	exists	to	use	part	of	MEP’s	overall	appropriation	for	the	M-TAC	program	

using	T-CAR	authority	as	a	basis.	Through	the	T-CAR	authorization,	Centers	(or	collaboration	of	

Centers), can	apply	to	expand	existing	operations	to	provide	such	services	using	the	existing	

infrastructure,	metric	system	and	partners	in	place.	

																																																												 1 http://www.appropriations.senate.gov/about-budget-process.cfm
M-TAC	RFI	Comments

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Question	4:	How	should	an	M-TAC’s	performance	and	impact	be	evaluated?		What	are	

appropriate	measures	of	success	for	future	M-TACs?		Please	explain	your	response	including	

the	value	of	performance	measure	to	business	growth.

M-TAC	success	should	be based	on	SMMs using	new	capabilities and	technologies,	developed	

as	part	of	an M-TAC	engagement, to	expand	their business	using	their	improved	value	as	a	

supplier	and their	increased	ability	to	gain	access	and	integration	into	another	supply	chain.	MTAC	engagements will lead	to	SMMs’ growth	and	jobs.	M-TAC	performance	metric	categories	

are	already	included	in	the	existing	MEP	client	survey.	M-TAC	project	impact	would	be	captured	

via	the	MEP	client survey	including new	business,	investment,	cost	savings,	and	jobs resulting	

from	SMMs performance	improvements. Using	the	existing	MEP	survey	would	eliminate	any	

new administrative	burden	and	expense for	a	separate	M-TAC	evaluation	process.	This	would	

allow	more	funding	to	be	used	for	projects	to improve	supplier	and	supply	chain	performance.

Question	5:	Are	there	any other	critical	issues	that	NIST	MEP	should	consider	in	its	strategic	

planning	for	future	M_TAC	investments	that	are	not	covered	by	the	first	four	questions?		Is	so,	

please	address	those	issues	here	and	explain	your	response.

M-TAC	Capabilities	- M-TAC	awards should	be	given	to	organizations	that	are	focused	on	SMMs	

with	a	specialty	in	supply	chain	optimization.	M-TAC	recipients	should	have	the	capability	to	

expand	the	program	by	collaborating with	research	consortia,	institutions	and/or	organizations	

with	a	technical	expertise	in	key industry	clusters.	The	success	of	the	M-TAC	program	will	be

driven	by	an	organization	that	can	successfully	outreach	to	both	Top	Tiers and	SMMs.	The	

optimum	M-TAC	would	also	have: 1)	experience	engaging	Top	Tiers; 2)	capabilities	to	develop	

supply	chain	strategies; 3)	ability	to	identify	supply	chain	constraints; 4)	processes	and	tools	to	

provide	supplier	development; 5)	skill	to	source	suppliers; and	6)	supply	chain	optimization	

tools	and	technologies	to	convert	supply	chains	to	value	chains.

Overall structure – An MEP	center leading	a collaboration	of	centers meeting	the	capability	

criteria	outlined above	would hold	the	cooperative	agreement	and implement	the	M-TAC

program. These	centers	would	reach	out	to	gain access	to	new	technologies	and	staff	with

expertise	in	an	industry	sector	or	cluster to	augment	skills	necessary	to	be	successful.		M-TACs	

would	operate	with	three	goals:

1. Improve Supply	Chain	Knowledge	Based – Identify supply	chain	needs and	the	

technology	necessary	to	provide	solutions.

2. Engage	Top	Tiers	to	Optimize	Supply	Chains – Develop	supply	chain	optimization	

strategies and	implement	improvements throughout	Top	Tier	supply	chains.			

3. Enhance	Supplier	Value	to	Supply	Chains – Establish pathways for SMMs to	build	

capabilities	to	increase	value	in	an	existing	supply	chain	or	to	enter	new	supply	chains.