Proposal for a COUNCIL DECISION concerning the conclusion on behalf of the European Community of an agreement for international cooperation in research and development in the domain of Intelligent Manufacturing Systems between the European Community and Australia, Canada, Japan, the United States of America, Norway and Switzerland
Date: 1996-10-04
Institutions: European Commission
Subjects: competitiveness, computer assisted manufacturing, industrial cooperation, international agreement, research and development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  04.10.1996 
COM(96) 468  final 

96/0235  (CNS) 

Proposal  for a 

COUNCIL  DECISION 

concerning  the  conclusion  on  behalf  of  the  European  Community  of  an  agreement 
for  international  cooperation  in  research  and  development  in  the  domain  of 
Intelligent  Manufacturing  Systems  between  the  European  Community  and 
Australia, Canada, Japan, the United States of America, Norway and  Switzerland 

(presented  by the  Commission) 

EXPLANATORY  MEMORANDUM 

The background to the present proposal is set out in the explanatory note attached. 

1. 

In the  proposal, the  Council  is requested  to  approve  and  authorise  the  signature  of 
the attached  agreement  on international  cooperation  in research  and development  in 
the  domain  of  Intelligent  Manufacturing  Systems  with  the  third  countries  of 
Australia, Canada, Japan, the United  States of America, Norway and  Switzerland, to 
be  implemented  by  an  exchange  of  letters.  The  agreement  would  establish  the 
principles  of  cooperation  in research  and  development  in the  domain  of  Intelligent 
Manufacturing  Systems  between  legal  entities  from  the  Community  and  legal 
entities from the third countries.  For legal entities  from  the Community,  the multi-
the  Information  Technologies 
in  particular, 
annual  Framework  Programme, 
Programme  and the Industrial  and Material Technologies  Programme, would  be the 
relevant financing  programmes. 

The  rules  proposed  for  allocation,  dissemination  and  protection  of  intellectual 
property  rights  arising from  the cooperation  follow  the guiding principles  set  out  in 
the  Joint  Declaration  of  the  Council  and  the  Commission  of  26  June  1992 
(COM(92) 202 final). 

2.  As  regards  the  means  and  modalities  of  implementation  of  IMS  within  the 
Community,  the conditions  set  out  in  Annex  2  of the  Council  decision  5168/95  of 
10 March  1995 will apply. 

Therefore the Commission invites the Council: 

to approve the agreement; and, 

to  authorise  the  Commission  to  sign  the  agreement  on  behalf  of  the 
Community. 

The  agreement  will  take  effect  on the  first  day  of the  month  following  the  date  on 
which all Participants will have accepted the agreement. 

d 

ANNEX 

Research  into  Intelligent  Manufacturing  Systems  (IMS)  is  currently  being  carried 
out  world-wide  on  a  substantial  scale  but  largely  on  a  national  or  regional  basis. 
There can be added value from collaborating with partners from countries or regions 
where there  is  complementary  expertise.  A  pooling  of  ideas  and  human  resources 
can  bring  about  a  general  improvement  in  the  level  of  manufacturing  efficiency 
world-wide.  Such  collaboration,  provided  it  takes  place  within  an  equitable 
framework,  can  accelerate  pre-normative  efforts,  influence  directions  of  basic  and 
applied  research  so  that  they  focus  on  issues  of  global  impact  and  industrial 
relevance, and have beneficial  spin-offs  for all sizes of companies, including  SMEs, 
by facilitating  their entry into new markets. 

A  two-year  industry-driven  feasibility  study  was  initiated  in  February  1992  to 
explore the possibilities  of international  collaborative research  in IMS.  Participants 
to the feasibility  study were Australia, Canada, the EC, five  of the EFTA1 countries, 
Japan and the USA.  The results of the feasibility  study proved that, under  reciprocal 
terms  and  conditions,  tft!ere  is  added  value  in  such  cooperation.  The  International 
Steering Committee, which was set up to guide and implement the feasibility  study, 
included  in  its  final  report  recommendations  for  a  follow-up  programme.  The 
results of  a subsequent  survey  of industrial  opinion  in Europe  indicated  support  for 
the IMS model of collaboration. 

On  8  September  1994,  the  Commission  requested  a  mandate  to  negotiate  an 
agreement  for  international  cooperation  in  the  field  of  Intelligent  Manufacturing 
Systems  with  the  third  countries  concerned  (SEC(94)  1255).  On  10 March  1995, 
the  Council  authorised  the  Commission  to  negotiate  the  agreement  in  question 
(5168/95) and approved a set of negotiation directives with the view to concluding  a 
scientific  and  technical  agreement.  The  Community's  negotiation  position  had  to 
take  full  account  of  the  European  Community's  policies,  in  particular  its  RTD 
policy.  The  Community's  particular  objective  would  be to  strengthen  the  scientific 
and technological  basis of the Community's  industry  and to encourage  it to  become 
more competitive at international level. 

'Austria, Finland, Norway, Sweden and  Switzerland 

3 

The  negotiations  resulted  in  the  attached  agreement,  to  be  implemented  by  an 
Exchange  of  Letters  between  the  European  Community  and  Australia,  Canada, 
Japan,  the  United  States  of  America,  Norway  and  Switzerland.  The  agreement 
would  record 
international 
the  common  understanding  on  the  principles  of 
cooperation  on  research  and  development  activities  in  the  domain  of  IMS  and 
includes a description  of: 

Objective; 
Technical themes for IMS cooperation; 
Forms and means of cooperation; 
Dissemination and utilisation of  information; 
Financing; 
Implementation of IMS ; 
Duration; and, 
Implementation of IMS in Europe. 

As  regards  the  means  and  modalities  of  implementation  of  IMS  within  the 
Community,  the  conditions  set  out  in Annex  2  of the  Council  decision  5168/95  of 
10 March  1995 will apply. 

</ 

COUNCIL  DECISION 

of... 

concerning  the  conclusion  on  behalf  of the  European  Community  of  an  agreement 
for  international  cooperation  in  research  and  development  in  the  domain  of 
Intelligent  Manufacturing  Systems  between  the  European  Community  and 
Australia, Canada, Japan, the United States of America, Norway and  Switzerland 

THE  COUNCIL  OF THE EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article  130m,  in  conjunction  with  Article  228(2),  first  sentence,  and  the  first 
subparagraph  of Article 228(3) thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European  Parliament, 

WHEREAS  international  cooperation  in the domain of intelligent manufacturing  systems 
will  strengthen  the  scientific  and technological  bases  of the  Community  in  industry  and 
will contribute to the competitivity of Community  industry; 

WHEREAS  a two-year  feasibility  study  on  international  collaboration  in  the  domain  of 
intelligent manufacturing  systems proved that there is added value in such  cooperation; 

WHEREAS  the  Council  has  authorised  the  Commission  to  negotiate  an  agreement  with 
Australia, Canada, Japan, the United  States of America, Norway and  Switzerland; 

WHEREAS  an  agreement  in  the  form  of  an  exchange  of  letters  was  reached  with  the 
third countries: 

Has decided as  follows: 

Article 1 

The Agreement  for  international  cooperation  in research  and development  in the  domain 
of  Intelligent  Manufacturing  Systems  between  the  European  Community  and  Australia, 
Canada,  Japan,  the  United  States  of  America,  Norway  and  Switzerland  is  hereby 
approved.  The text of the agreement is attached to this Decision. 

Article 2 

The President  of  the  Council  is hereby  authorised  to designate  the person  empowered  to 
sign the Agreement referred to in Article  1  in order to bind the Community. 

Done at Brussels, 

For the Council, 

The President 

S 

Principles  of international  cooperation on research and development  activities 
in the domain of Intelligent Manufacturing  Systems 
between the European  Community 
and the  United States of America,  Japan, Australia,  Canada, 
and the EFT A countries of Norway and Switzerland 

(Title, greeting) 

I  refer  to  discussions  that  have  taken  place  concerning  international  cooperation  on 
research  and  development  activities  in the domain  of Intelligent  Manufacturing  Systems 
(IMS)  between  the  Participants,  i.e.  the  European  Community,  and  the  United  States  of 
America, Japan, Australia, Canada, and the EFTA countries of Norway and  Switzerland. 

The  purpose  of  this  letter  is  to  record  the  common  understanding  reached  on  the 
principles of cooperation on IMS.  The letter complements the Terms of Reference  (ToR) 
developed by the International  Steering Committee at the end of the IMS feasibility  study 
in  1994 and modifies  Article VIII of the ToR and Article  1.13 of Appendix 2 of the  ToR 
as indicated below.  The ToR, and the Appendices to the ToR, are annexed to this letter. 

1.  Objective 

Participants  will  encourage  and  facilitate  cooperation  between  entities  -  established 
within their territories  (within  the territories  of its Member  States  in the case of the 
European  Community)  - in the domain of Intelligent  Manufacturing  Systems.  Such 
cooperation  should  ensure  a  balance  of  benefits  and  contributions,  be  of  industrial 
relevance and be based on the principle of mutual interest and understanding. 

2.  Technical  Themes for  IMS  Cooperation 

The cooperation will initially cover the following five technical themes: 

(a) 

total product life cycle issues; 

(b) 

process issues; 

(c) 

strategy/planning/design  tools; 

(d) 

human/organisational/social  issues; and, 

(e) 

virtual/extended  enterprise issues.  • 

Other  themes  within  the  scope  of  IMS  may  be  envisaged,  however,  it  should  be 
ensured  that  new  technical  themes  are  consistent  with  government  policies  and 
industrial priorities of the participating regions. 

Q 

3.  Forms and Means of Cooperation 

Cooperation  will  involve  participation  in  projects  by  entities,  in  accordance  with 
procedures  adopted  in  common  for  the  creation  and  operation  of  international 
consortia and may  include visits, training and exchanges of scientists, engineers  and 
other  appropriate  personnel  for  purposes  relevant  to  the  successful  implementation 
and completion of the projects. 

4.  Dissemination  and Utilisation of  Information 

Intellectual property rights (IPR) resulting from  projects carried out within IMS  will 
be  subject  to  the  IMS  IPR  provisions  given  in  Appendix  2  of  the  ToR.  This 
Appendix  will  be  amended  in  Article  1.13  to  reflect  that  Austria,  Finland  and 
Sweden are members of the European Union. 

5.  Financing 

Financing  of cooperative activities will be subject  to the availability  of funds  and to 
the  applicable  laws  and  regulations,  policies  and  programmes  of  the  participating 
regions. 

Each Participant will cover its own participation. 

Each  Participant  will  contribute  - in funding  or  in kind  - in  an  equitable  manner  to 
the execution of the functions  and the costs of the Inter regional  secretariat. 

6. 

Implementation  of IMS 

the  Participants  appointed 

the  International  Steering 
Representatives  of 
Committee  (ISC) will  act as the liaison between the ISC and their  respective  public 
administrations/governments.  The  representatives  of  the  Participants  will  monitor 
the implementation  with respect to the purpose, principles and programme  structure 
of  IMS  and  they  will  have  a  facilitating  role. 
In  addition,  they  will  have  the 
following  functions: 

to 

facilitate  good cooperation between the regional secretariats; 

exchange  of 
programmes relevant to the cooperation; 

information  on 

local  practices, 

laws,  regulations  and 

facilitate  participation  of 
in  the  IMS 
programme.  In particular  this would  include  access to  an  electronic  partner 
search facility  and an electronic register of expressions of interest; and, 

SMEs  directly  and  indirectly 

present 
recommendations  of the ISC for the admission of new Participants. 

government/public 

administrations 

for 

to 

decision 

the 

The  Participants  will  organise,  manage  or  designate  their  respective  Regional 
Secretariats. 
In  particular,  the  Regional  Secretariats  will  include  the  following 
responsibilities: 

facilitate  the  timely  selection  of  projects  at  regional  level,  according  to  the 
rules and procedures in force  in the Participant's region; 

^ 

assist in consortium  formation  within and across respective regions; and, 

work with regional infrastructure  groups to facilitate  IMS. 

--

7.  Duration 

The  IMS  programme  will  have  a  duration  of  ten  years,  each  Participant  may 
withdraw at any time subject to twelve month's notice.  The Participants will  review 
the principles  of their cooperation five years  after  its launch  in order to  see whether 
it  should  be  continued,  modified  or  terminated.  This  replaces  Article  VIII  of  the 
ToR. 

8. 

Implementation  of IMS in Europe 

The  European  Community  and  Switzerland  and  Norway  reserve  the  option  to  act 
together  as  a  single  European  Region,  to  be  represented  by  a  combined  delegation 
on  the  International  Steering  Committee  and  to  be  supported  by  a  single  European 
IMS  Secretariat. 

The Commission of the European Community will provide the necessary  support  for 
its Regional  Secretariat. 

This  letter,  together  with  its  acceptance  by  the  Participants,  complements  and  modifies 
the ToR and records the common understanding  on the principles of cooperation on IMS. 
I would be pleased to receive your early confirmation  of this understanding. 

(ending) 

Terms  of  reference  for  a  program  for  international  cooperation  in  advanced 
manufacturing 

I. 

PURPOSE 

This  document  sets  forth  the  Terms  of  Reference  for  the  Participants  in  the  Intelligent 
Manufacturing  Systems  (IMS)  Program  for  international  cooperation  in  research  and 
development  in  intelligent  manufacturing  systems.  These  Terms  of  Reference  are  not 
intended to create obligations under international or domestic law. 

II.  OBJECTIVES 

Objectives of the IMS Program are as follows: 

A. 

to enable greater sophistication  in manufacturing  operations; 

B. 

to improve the global  environment; 

C. 

D. 

to  improve  the  efficiency  with  which  renewable  and  non-renewal  resources  are 
used; 

to create new products and conditions which significantly  improve the quality of  life 
for users; 

E. 

to improve the quality  of the manufacturing  environment; 

F. 

to  develop  a  recognized  and  respected  discipline  of  manufacturing  which  will 
encourage the transfer  of knowledge to future  generations; 

G. 

to respond effectively  to the globalization of  manufacturing; 

H. 

to enlarge and open markets around the world; and, 

I. 

the  advancement  of  manufacturing  professionalism  worldwide  by  providing  global 
recognition and establishing  an educational discipline for  manufacturing. 

In achieving  its objectives, the IMS Program should be a catalytic agent  for: 

A.  Global  manufacturing  cooperation  involving  large  and  small  companies,  users  and 

suppliers, universities, and governments; 

B.  The  dissemination  of  the  results  of  significant  manufacturing 

improvements 

worldwide; 

C.  The  development  of  global  manufacturing  recommendations  for  standards  through 

cooperative work on pre-standardization  topics; 

D.  The  assessment  and  selection  of  priorities  for  global  cooperation  in  manufacturing 

process  development; 

E.  The  dissemination,  understanding,  and  application  of  consistent  guidelines, 
provisions  and  model  agreements  that  respect  intellectual  property  rights  (IPR)  of 
Participants and project  consortium partners. 

III.  BACKGROUND 

Six  Participants  took  part  in  the  Feasibility  Study  to  define  the  IMS  Program.  The 
Participants are: 

Australia; 

Canada; 

The European Community (EC); 

The  participating  European  Free  Trade  Association  Countries  (EFTA):  Austria, 
Finland, Sweden, Norway and  Switzerland; 

Japan; and, 

The United  States. 

The EC and the EFTA countries acted together as a single European Region. 

The  Participants  completed  the  Feasibility  Study  as  defined  under  the  Terms  of 
Reference  for  the  Feasibility  Study  on  International  Collaboration 
in  Advanced 
Manufacturing. 

The International  Steering Committee  for the Feasibility  Study stated  in their final report 
that  the  Feasibility  Study  proved  an  international  cooperative  program  in  research  and 
development  in advanced  manufacturing  can be created  that is equitable  and  beneficially 
structured, and provides equitable and beneficial  outcomes. 

The  International  Steering  Committee  for  the  Feasibility  Study  in  its  final  report 
recommended  the  commencement  of  the  IMS  Program  and  proposed  a  management 
structure, technical themes, and intellectual property rights provisions for  it. 

IV.  PRINCIPLES 

Manufacturing  is  a  primary  generator  of  wealth  and  is  critical  to  establishing  a  sound 
economic basis for  economic growth. 

The need for excellence in manufacturing  operations has become critical as a result of the 
establishment of global markets. 

sio 

The  role  of  research  and  development  in  the  field  of  advanced  manufacturing  is 
increasingly  pivotal  to  manufacturing  operations.  Substantial  research  in  advanced 
manufacturing  is being carried out worldwide. 

Properly  managed  international  cooperation  in  research  and  development  in  advanced 
manufacturing  can help improve manufacturing  operations. 

International  cooperation  in advanced  manufacturing  should  proceed  upon the  following 
bases: 

A.  Contributions to, and benefits  from,  such cooperation are equitable and balanced; 

B.  Collaborative projects must have industrial relevance; 

C.  Collaborative  projects  are  carried  out  by  inter-regional,  geographically  distributed 

consortia; 

D.  Collaborative projects  can occur throughout the full  innovation cycle; 

E.  Results  of  collaborative  projects  are  shared  through  a  process  of  controlled 
information  diffusion  that  protects  and  equitably  allocates  any  intellectual  property 
rights created or furnished  during cooperation; and, 

F. 

IMS  project  activities  under  government  sponsorship  or  utilizing  government 
resources should not involve competitive research and development. 

V.  PROGRAM  STRUCTURE AND FUNDING 

is  an 

in  which  Participants  work 
The  IMS  Program 
facing 
to 
cooperatively 
manufacturing  worldwide  and  to  develop  advanced  manufacturing  technologies  and 
systems to benefit  humanity.  The scope of the IMS Program is as broad as practicable. 

international  cooperation 
industrial  competitiveness, 

solve  problems 

to  boost 

A.  The IMS Program  is governed by a management structure which consists  of: 

1. 

2. 

3. 

An International  IMS Steering Committee; 

An Inter-Regional  Secretariat; and, 

Regional  Secretariats. 

The  IMS  Program  will  include  projects  that  comply  with  the  Technical  Themes 
described  in Appendix  1. 

Project  partners  must  comply  with  the  IPR  Provisions  described  in  Appendix  2. 
The  IPR  Provisions  include  a  minimum  set  of  mandatory  requirements,  non-
mandatory provisions that need to be addressed, and optional provisions. 

B.  Funding for the Management  Structure 

AA 

1. 

2. 

3. 

4. 

Each Participant will fund  its own participation. 

_ 

Each  Participant  will  determine  the  method  by  which  its  own  participation 
will be  funded. 

Each Participant will contribute in an equitable manner in funding  or in kind 
to defray  the costs of operating the Inter-Regional  Secretariat. 

Each  Participant  will  be  responsible  for  supporting  its  own  delegation  and 
providing any necessary liability coverage. 

C.  Funding for the  Projects 

1. 

2. 

Each Participant will fund  its own participation. 

Each  Participant  will  determine  the  method  by  which  its  own  participation 
will be  funded. 

VI.  MANAGEMENT  STRUCTURE 

A. 

International  IMS  Steering  Committee.  The  IMS  Program  will  be  overseen  by  an 
International  IMS  Steering  Committee.  Members  must  be  eminent  representatives 
of  the  Participants' 
industrial,  academic,  or  governmental  sectors  who  are 
knowledgeable  of  manufacturing  issues.  Members  must  be  willing  and  able  to 
devote the necessary time and effort  involved in guiding the IMS  Program. 

1. 

Composition.  Two members and one observer from  each  Participant. 

The  total  number  of  members  and  observers  will  expand  as  additional 
Participants are admitted  according to the procedure spelled out in Section 9. 

Delegation  members  may  be  from  the  industrial,  academic  or  governmental 
sectors  of  each  Participant.  Strong  industrial  representation  is  encouraged. 
At  least  one of the two members  must be from  the  industrial  sector,  and  the 
head  of the delegation  must be non-governmental.  The  members  should  be 
appointed  for  a significant  term.  However,  observers  can  be  changed  as the 
need dictates. 

Each  Participant's  delegation  to  the  meetings  of  the  International  IMS 
Steering  Committee  may  be  accompanied  by  two  representatives  from  its 
designated Regional  Secretariat. 

2. 

3. 

The  International  IMS  Steering  Committee  will  reach  decisions  by 
consensus of the members. 

Chairmanship.  The chair  of the  International  IMS  Steering  Committee  will 
rotate among the six Participants.  Each term will  last for  two years.  During 
the  term  when  a  Participant  chairs,  that  Participant  also  is  responsible  for 
organizing  the  Inter-Regional  Secretariat.  Canada  will  chair  the  first  term. 
Australia will take the second term and serve as vice chair in the first term to 

si 9 

guarantee  continuity.  EFTA  will  take  the  third  term.  The  sequence  of 
subsequent  chairmanships  will  be  decided  during  the  third  year  after  the 
commencement of the IMS Program. 

4. 

Responsibilities. 
IMS  Steering  Committee  will 
recommend  policies and strategies for  undertaking, and for  the evolution  of, 
the IMS Program, including the matter of new Participants.  It will also: 

International 

The 

a. 

b. 

c. 

d. 

e. 

f. 

g. 

h. 

provide  overall  guidance,  set  strategic  priorities  and  oversee 
program  implementation, 

sponsor and approve new IMS documents, 

form  interim task forces or committees, e.g., for technical  or legal 
issues, if necessary, to accomplish its work, 

oversee the Inter-Regional  Secretariat, 

provide  international  promotion  for  IMS  and  for  manufacturing 
as a generic discipline, 

endorse projects as described in Section IX, 

ensure projects  and work undertaken under this Program are done 
in a manner  consistent  with  the purpose, principles  and  program 
structure agreed upon by the Participants, and, 

foster  communication  among  the  International  IMS  Steering 
Committee, the Inter-Regional  and Regional  Secretariats, and the 
project  consortium members. 

B. 

Inter-Regional  Secretariat.  The  Participant  which  chairs  the  International  IMS 
Steering Committee will be responsible for managing the Inter-Regional  Secretariat. 

The Inter-Regional  Secretariat will have responsibility to: 

1. 

2. 

3. 

4. 

5. 

6. 

provide  logistics for inter-regional proposals, 

maintain and distribute IMS meeting and other documents, 

provide 
International  IMS Steering Committee, 

logistics  for 

inter-regional  publicity  at  the  direction  of 

the 

educate new and prospective Participants, 

disseminate information  during, and upon the conclusion of,  projects, 

assist with inter-regional consortia formation,  and, 

w? 

7. 

organize  and  arrange  studies  and/or  work  as  requested  by  the  International 
IMS Steering  Committee. 

C.  Regional  Secretariats.  The  governments  and/or  the  public  administrations  and 
public  organizations  of  the  Participants  will  organise  and  manage  their  respective 
Regional  Secretariats in a manner they see fit. 

In  order  to  facilitate  the  IMS  Program,  the  Regional  Secretariats  will  have 
responsibility  to: 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

provide regional  logistics for inter-regional proposals, 

maintain  and  distribute  IMS meeting  and other documents  within  respective 
regions, 

provide logistics for regional meetings and promotion, 

disseminate  information  during  and  upon  the  conclusion  of  projects  within 
respective regions, 

assist in consortium formation  within and across respective regions, 

support  regional  delegations  in  attending  the  International  IMS  Steering 
Committee meetings, 

facilitate  regional  selections and reviews, and, 

work with regional  infrastructure  groups to facilitate the IMS Program. 

VII. COMMENCEMENT  OF THE IMS PROGRAM 

The IMS Program will commence upon: 

(1) 

the ratification  of the Terms of Reference  for the IMS Program by each Participant, 

(2) 

the appointment  of the members of the International  IMS Steering Committee, and, 

(3) 

the designation  of the Regional  Secretariats. 

VIII.  END OF THE IMS  PROGRAM 

The IMS Program will end on the tenth anniversary of the agreed commencement  date of 
the  program,  unless  in  the  seventh  year  of  the  program,  the  governments  and/or  the 
public administration  decide  differently. 

IX.  ADMISSION  OF NEW  PARTICIPANTS 

A.  The  government  and/or  public  administration  of  an applicant  region  will  first  have 

to comply with the Terms of Reference  for the IMS Program. 

if 

B.  After  ratification  of the  Terms  of  Reference  for  the  IMS  Program,  project  partners 
from  an  applicant  region  are  allowed  to  form  consortia  with  the  consent  of  other 
partners.  The  contributions  of  the  applicant  region's  partners  will  have  to  be 
carefully  monitored  over  a  period  of  time  to  build  up  a  profile  of  the  applicant 
region's participation. 

C.  After  this period  of time has elapsed  (possibly  a number of years), the  governments 
and/or  public  authorities  will  reach  a decision  based  on recommendations  from  the 
International  IMS  Steering  Committee on whether the applicant  region  would  have 
representation on the International IMS Steering Committee. 

X.  CONSORTIUM  FORMATION 

The Regional  Secretariats together  with the Inter-Regional  Secretariat  provide  assistance 
in forming  consortia for IMS projects. 

A.  Basic Consortium  Formation  Document 

The  Inter-Regional  Secretariat  and  the  Regional  Secretariats  together  will  develop, 
based  on  the  Terms  of  Reference  for  the  IMS  Program,  a  basic  document  that 
explains: 

the organization  of the program, 

the structure of operation and the aims, 

the requirements for project and consortium  selection, 

the technical themes, and, 

the evaluation and selection process and the supporting  criteria. 

B. 

International  Coordinating  Partner 

An  international  coordinating  partner  must  be  appointed  by  each  consortium.  The 
appointed  international  coordinating  partner  must  be  an  industrial  firm  with  the 
necessary  resources  to  lead  the  project  to  its  completion  and  a  demonstrated 
capacity  for  managing  complex  international  projects. 
International  coordinating 
partner duties include: 

1. 

2. 

3. 

4. 

5. 

Coordinate consortia  formation, 

Coordinate preparation of full  proposal and cooperation  agreements, 

Act  as  the  primary  contact  for  all  communication  between  the  consortium 
and the International  Steering Committee and Inter-Regional  Secretariat, 

Facilitate  successful  execution of the project,  and, 

Coordinate project review preparation and information  dissemination. 

4s 

C.  List of Interested Entities 

-

Within  a  region,  its  Regional  Secretariat  will  distribute  to  all  organizations  in  the 
industrial,  academic  and  governmental  sectors  identified  as  potential  project 
partners  the  basic  document,  the  domestic  funding  opportunities,  and  the  domestic 
agenda  for  the  IMS  Program.  The  Regional  Secretariat  will  compile  a  list  of 
interested  entities.  The  list must  include the area of  interest  and the capabilities  of 
each of the interested entities. 

D.  Exchange of Lists of Interested  Entities 

This  list will  be routinely  updated  and distributed  to  all  other regions  via the  Inter-
Regional  Secretariat.  The  Regional  Secretariat  also  collects  lists  of  interested 
entities  from  other  regions. 
It  forwards  a  list  of  interested  entities  from  other 
regions  to  those  domestic  entities  with  potential  similar  interests.  The  Regional 
Secretariat  cultivates  common  interests  between  domestic  and  foreign  entities,  and 
facilitates  the formation  of consortia. 

E.  Exchange of Proj ect Proposals 

Any  interested  entity  can submit preliminary  proposals to the regional  secretariat  to 
which it belongs for facilitating  formation  of international  consortia. 

The  regional  secretariat  will  distribute  these  proposals  to  all  interested  entities  on 
the list.  Based on the information,  potential partners can strive to form  international 
consortia. 

XI.  EVALUATION, SELECTION AND REVIEW OF PROJECTS 

Proposals  must  be  consistent  with  the  Principles,  the  structure  of  the  program  and  the 
IPR-Provisions set forth  in these Terms of Reference. 

A.  Project  Selection  Criteria 

1. 

2. 

3. 

4. 

5. 

Industrial relevance. 

Compliance  With the  Technical  Themes  in Appendix  1 as may  be  amended 
from  time to time by the International IMS Steering Committee. 

Scientific  and Technical  Merit. 

Adoption and Commercialization  Potential. 

Compliance  with  IPR  Provisions  in  Appendix  2  as  may  be  amended  from 
time to time by the International IMS Steering Committee. 

6. 

Value-added. 

sli 

B.  Consortium  Selection Criteria 

-~ 

1. 

Inter-Regional Distribution of Partners 

Consortium partners must be from  at least three Participants. 

2. 

Balanced Contributions and  Benefits 

The consortium partners .will show how the contributions to, and the  benefits 
from,  participation are equitable and balanced.  To this end, the contributions 
should  be  identified  by  type  (including  in-kind  contributions  such  as 
equipment,  facilities,  personnel,  documentation,  techniques  and  background 
intellectual property) and by value for each partner and group. 

3. 

Inter-Regional  Leadership 

The  inter-regional  consortium  must  appoint  the  international  consortium 
coordinator for the consortium. 

4. 

Dissemination of Results 

The  consortium  must  commit  to  and  submit  a  plan  to  disseminate  project 
results,  including  the  lessons  learned  in  forming  and  managing  IMS 
consortium,  and  non-proprietary  technical  results  permitted  by  the  IPR 
Provisions. 

C.  Project  Evaluation 

The proposal process consists of three stages. 

1. 

Project  Abstract  Evaluation 

The  consortium  must  produce  an  abstract  of  the  planned  research.  This 
abstract  shall  be  submitted  to  the  Regional  Secretariats  for  initial  regional 
reviews.  Each  delegation  will  make  a recommendation  to  the  International 
IMS  Steering  Committee.  Proposers  of  unapproved  projects  will  be  given 
feedback  as to why they did not receive  support. 

2. 

Full Proposal  Evaluation 

The consortium must submit a final proposal using a standardized  format  for 
detailed  evaluation  by  all partners' regions.  The final proposal  shall  include 
the  formal  commitment  of  each  partner  to  the  Principles,  the  structure  and 
the  IPR  Provisions  of  the  IMS  Program,  including  a  signed  cooperation 
agreement including an IPR  agreement. 

AÏ 

3. 

Final Endorsement 

_ 

Final  endorsement  will  be  made  by  the  International  IMS  Steering 
Committee  based  on  the  regional  recommendations  and  the  submitted 
proposals. 

D.  Project  Review 

The  International  IMS  Steering  Committee  will  monitor  and  review  progress 
regularly.  To  facilitate  this, each  consortium  will  submit  a  summary  report  once  a 
year to the International  IMS Steering Committee, in a standardized  format. 

Any  region  may  review progress  of partner(s)  from  its region  at any  time  as it  sees 
fit. 

XII. ROLE  OF  IMS  VIS-A-VIS  SMALL  AND  MEDIUM-SIZED  ENTERPRISES 

(SMEs), UNIVERSITIES AND GOVERNMENT RESEARCH  INSTITUTES 

The Participants  individually  and the International  IMS Steering Committee will  develop 
mechanisms  to  enlist  SME's  directly  and  indirectly  in the  IMS  Program.  In  addition  to 
this, all regions should consider activities such as: 

A.  Clear and well documented  advice on IPR issues. 

B.  A "road map" of existing constraints in law or custom in the Participants' territories, 

and their practical  implications. 

C.  Help desks for  answering simple queries. 

D.  An electronic partner search facility  specifically  oriented to SMEs. 

E.  An  electronic  register  of  "expressions  of  interest"  by  SME's, which  are  looking  for 

opportunities to join existing or emerging project  clusters. 

F.  An ongoing  "case-book"  of IMS experiences with donations from  project teams. 

G.  Dissemination  events specifically  geared to various SME sectors. 

The  list  is not  exhaustive,  and  research  should  continue alongside  the evolving  program, 
to monitor the participation of SME's, and to identify  further  needs. 

The  items  listed  above  also  are  useful  for  encouraging  the  participation  of  universities 
and  government  research  institutes.  Harnessing  the  educational  role  of  universities  in 
dissemination  of  results  of  research  through  to  the  next  generation  of  practitioners  is 
necessary. 

XIII.  DISSEMINATION  OF RESULTS 

Dissemination  of  information  is  of  the  utmost  importance  and  is  required  in  the  IMS 
Program.  However,  all  information  dissemination  must comply  with  the IPR  Provisions 

/1X 

in  Appendix  2.  This  includes  the  dissemination  of  interim  and final project  technical 
results. 

Information  dissemination  will  occur  at the project,  regional,  and  inter-regional  levels. 
This  dissemination  might 
include  written  reports,  international  symposia,  and 
publications by members of the academic sector. 

j<3 

Technical themes  for  full  scale IMS program as proposed by ITC 

This  framework  of  themes  should  encourage  possible  project  applicants  to  develop 
proposals  which  show  a  clear  contribution  to  the  necessity  of  global  cooperation.  If  it 
is shown  in the project  proposal  that global cooperation could  solve these  themes  better 
than regional  efforts,  the project  should  get priority. 

Appendix  1 

1.  Total product life cycle issues 

Future general models of manufacturing  systems. 

Examples  for  that  theme  are  the  proposals  of  "agile  manufacturing",  "fractual 
factory",  "bionic manufacturing",  "holistic enterprise integration", etc. 

Intelligent  communication  network  systems 
manufacturing. 

for 

information  processes 

in 

To  understand  the  productivity  of  global  distribution  and  global  sourcing,  the 
communication networks and tools and their applications have to be improved. 

Environment protection, minimum use of energy and materials. 

Environment,  energy  and  materials  questions  have  reached  a  complexity  that  can 
only be handled via cooperation with a variety of specialists. Due to the fact that the 
in  different  regions  a  common 
conditions 
understanding  and  harmonized  views 
response  of  manufacturing 
the 
technologies to environment protection are necessary. 

in  that  field  are  very  different 
for 

• 

.  Recyclability  and  refurbishment. 

Up  to  now  it  is  nearly  impossible  to  recycle  a  product  of  one  region  in  another 
region.  In the longer term that situation may damage the free  trade between  regions 
very  much.  Therefore  methods  and  new  ideas  for  recyclability  that  are  globally 
accepted  should be developed under the IMS umbrella. 

Economic justification  methods. 

In  spite  of  the  efforts  of  the  manufacturing  scientists  the  speed  of  new  problems 
arrival  has  by  far  outranged  the  output  of  troubleshooting  ideas  and  their 
implementations  in  the  manufacturing  area.  Very  often  this  is  caused  by  non 
harmonized  assessment  and economic justifications  of new manufacturing  systems. 
Therefore  IMS  should  support projects  with the development  of clear  specifications 
for  monitoring  and  economic  justification  methods  that  can  lead  to  common 
understanding  in the evaluation of manufacturing  systems. 

to 

2.  Process  issues 

To  realise  the  needs  for  rapid  response  to  changing  requirements  and  to  saving  human 
and  material  resources  and  to  improving  working  conditions  for  employees  the 
following  themes  can be  identified. 

Clean manufacturing  processes that can minimise effects  on environment. 

Process emission minimised systems. 

Process disposal  minimised  systems. 

Factory (process) life-cycle  pre-assessed systems. 

Energy efficient  processes that can meet manufacturing  requirements with minimum 
consumption  of energy. 

Minimum consumption of energy. 

Integrated cycled process for less energy  consumption 

Modules of energy conservation type. 

Production management technology  of energy conservation type. 

Technology  innovation in manufacturing  processes. 

Methods  that  can  quickly  produce  different  products  through  "Rapid  Prototyping 
Methods". 

Manufacturing  processes  that  can  flexibly  respond  to changes  in labour  conditions, 
changes of products or materials. 

Improvement  in  the  flexibility  and  autonomy  of  processing  modules  that  compose 
manufacturing  systems. 

Open  distributed  systems  and  their  modules  that  can  match  both  unmanned,  man-
machine  mixed  and  labour  intensive  systems,  and  can  metamorphologically 
architect system components in correspondence with changes of products. 

Improvement  in interaction or harmony among various components and functions  of 
manufacturing. 

Pen infrastructure  for  manufacturing. 

Inter-connected 
modules. 

information  systems  such  as  "remote  ID"  among  respective 

ÎA 

3 

Strategy/Planning/Design tools 

-

Manufacturing  takes  place  in  a  global  economy.  How  and  where  raw  materials  are 
transformed  is  a  strategic  decision.  The  decision  is  complicated  in  terms  of  what  to 
make and  where to make or buy  it,  in what  is becoming  a single global  economy. 

Many  of 
today's  manufacturing  organisations  are  designed  using  vertical  and 
hierarchical  structures.  The  move  towards  hetrarchical  structures  is  and  will  continue 
to  require  major  changes  in  organisations,  systems  and  work  practices.  We  need 
methodologies  and  tools  to  help  us  to  define  appropriate  manufacturing  strategies  and 
to design appropriate  organisations  and business/work  processes. 

Methods  and  tools  to  support  business  process  re-engineering.  Modelling  tools  to 
support  the analyses  and development  of manufacturing  strategies. 

Design  support  tools  to  support  planning  in an extended  enterprise  or  virtual  enterprise 
environment. 

4  Human/Organisation/Social  issues 

Promotion and development projects  for improved image of  manufacturing. 

Manufacturing  engineers  tend to be at the bottom  of the pay  scale relevant  to  other 
engineers,  and  the  profession  as  a  whole  has  a  lower  stature.  Therefore  ITC 
considers  as  projects  globally  recognised,  strong  professional  societies  and 
educational  institutions  for  the  promotion  of  manufacturing  as  a  discipline.  These 
proposals 
to  promote 
manufacturing. 

international  organisations 

the  creation  of 

include 

Improved capability of manufacturing  workforce/education,  training. 

Engineering  education  has  often  tended  to  emphasise  theory  over  process. 
In 
addition,  basic  education  has  not  always  met  the  needs  of  industry,  producing 
graduates  with  often  inadequate  skills.  This  has  led  to  industries  that  are  poor  at 
turning  innovation  into  successful  products.  This necessitates  a change  in priorities 
and  closer  ties  between  industry  and  educational  institutions.  As  well,  changes  in 
system  organisation  means  that  training  within  companies  is  a  continuous  process 
which seeks to update the skills and increase the potential of employees - the crucial 
elements in any  system. 

Autonomous  offshore  plants  (integration  of  supplementary  business  functions  in 
subsidiaries) 

Offshore  plants  were  originally  meant  to  increase  market  share  and  decrease 
production  costs:  development  of  the  transplant  labour  forces  were  a  secondary 
consideration.  However,  giving  more  autonomy  to  these  plants  enables  them  to 
react  more flexibly  to changing  conditions  in the areas where they  are based,  and  is 
consistent with organisational  ideas of decentralisation, empowerment  and hierarchy 
It  also  serves  to  contribute  to  domestic  development  in  the  countries 
flattening. 

1? 

where  the  plants  are  located  and  further  the  IMS  goal  of  spreading  widely-basic 
manufacturing  knowledge. 

Corporate Technical Memory - keeping, developing, accessing. 

Often  in  a  manufacturing  enterprise  knowledge  and  sources  of  information  are 
isolated  or  locked.  "Organisational  Learning"  is  a  strategy  for  translating  such 
knowledge  into  a  framework  or  a  model  that  leads  to  better  decision  making  and 
could be an important theme within IMS. 

Appropriate performance  measures for new paradigms. 

New  paradigms  of  manufacturing  must  offer  superiority  in  performance  from  the 
points  of  view  of  Costs,  Quality,  Delivery  and  Flexibility.  The  first  three  are 
familiar  performance  criteria  used  for  mass  production,  while  flexibility  is  a  key 
attribute  of  new  paradigm  manufacturing.  To  increase  the  acceptance  of  new 
paradigms performance  evaluation methods should be developed. 

5  Virtual/Extended  Enterprise issues 

The  extended  enterprise  is  an  expression  of  the  market  driven  requirement  to  embrace 
external  resources  in  the  enterprise  without  owning  them.  Core  business  focus  is  the 
route  to  excellence  but  product/service  delivery  requires  the  amalgam  of  multiple 
world  class  capabilities.  Changing  markets  require  a fluctuating  mix  of  resources.  The 
extended  enterprise,  which  can  be 
in  customisable, 
reconfigurable  manufacturing  resource,  is  the  goal.  The  process  is  applicable  even 
within  large  organisations  as  they  increasingly  metamorphasise  into  umbrellas  for 
smaller  units/focused  factories. 

the  ultimate 

likened 

to 

The  operation  of  the  extended  enterprise  requires  take  up  of  communications  and 
database  technologies  which  are  near  to  the  current  state  of  the  art.  However,  the 
main challenge  is organisational  rather  than technological. 

Research  and  Development  opportunities  in this area are: 

methodologies  to  determine  and  support  information  processes  and  logistics  across 
the value chain in the extended  enterprise. 

architecture  (business, functional  and technical) to support engineering  co-operation 
across the value chain, e.g., concurrent engineering across the extended  enterprise. 

methods  and  approaches  to  assign  cost/liability/risk  and  reward  to  elements  of  the 
extended  enterprise. 

team working across individual units within the extended enterprise. 

V 

Appendix 2 

Intellectual  property  rights provisions  for research and development  projects 

Objectives 

These provisions  lay down mandatory  requirements  as well  as recommended  principles 
for  PARTNERS  which  wish  to  participate  in  a  PROJECT  conducted  within  the 
Intelligent  Manufacturing  Systems  Program  (IMS PROGRAM).  The objectives  of  these 
provisions  are  to  provide  adequate  protection  for  intellectual  property  rights  used  in 
and  generated  during  joint  research  and  development  PROJECTS  under  the  IMS 
PROGRAM  while  ensuring: 

(a) 

that  contributions  and  benefits  by  PARTICIPANTS,  from  cooperation  in  such 
PROJECTS, are equitable and balanced; 

(b) 

(c) 

that  the  proper  balance  is  struck  between  the  need  for  flexibility  in  PARTNERS' 
negotiations  and  the  need  for  uniformity  of  procedure  among  PROJECTS  and 
among PARTNERS; and, 

that the results  of the research will  be shared by the PARTNERS  through  a process 
that  protects  and  equitably  allocates  any  intellectual  property  rights  created  or 
furnished  during the co-operation. 

Article  1: 

Definitions 

1.1  ACCOUNTING.  The  sharing  of  any  consideration  such  as  royalties  or  other 
license  fees  by  one  PARTNER  with  another  PARTNER  when  the  first  PARTNER 
which  solely  or jointly  owns  FOREGROUND  discloses,  licenses  or  assigns  it  to  a 
third party. 

1.2  AFFILIATE.  Any  legal  entity  directly  or  indirectly  owned  or  controlled  by,  or 
owning  or  controlling,  or  under  the  same ownership  or control  as, any  PARTNER. 
Common  ownership  or  control  through  government  does  not  in  itself  create 
AFFILIATE  status. 

Ownership or control shall exist through the direct or indirect: 

(a) 

(b) 

ownership of more than  50% of the nominal value of the issued  equity  share 
capital, or 

ownership  of  more  than  50% of the  shares  entitling  the  holders  to  vote  for 
the  election  of directors  or persons performing  similar  functions,  or right  by 
any  other  means  to elect  or appoint  directors, or persons  performing  similar 
functions,  who have a majority  vote, or 

(c) 

ownership  of  50%  of  the  shares,  and  the  right  to  control  management  or 
operation of the company through contractual provisions. 

yv 

1.3  BACKGROUND:  All  information  and  INTELLECTUAL  PROPERTY  RIGHTS 
except  BACKGROUND  RIGHTS  owned  or  controlled  by  a  PARTNER  or  its 
AFFILIATE and which are not FOREGROUND. 

1.4  BACKGROUND  RIGHTS:  Patents  for  inventions  and design and utility  models, 
and  applications  therefor  as  soon  as  made  public,  owned  or  controlled  by  a 
PARTNER  or  its  AFFILIATES,  a license  for  which  is necessary  for  the work  in a 
PROJECT  or  for  the  commercial  exploitation  of  FOREGROUND,  and  which  are 
not FOREGROUND. 

1.5  CONFIDENTIAL  INFORMATION:  All  information  which  is  not  made 
generally  available and which is only made available  in confidence  by law or under 
written confidentiality  agreements. 

1.6  CONSORTIUM:  Three or more GROUPS which have agreed to carry  out jointly 

a PROJECT. 

1.7  COOPERATION  AGREEMENT:  The one or more signed  agreements  among  all 

PARTNERS  in a CONSORTIUM concerning the conduct of the PROJECT. 

1.8  FOREGROUND:  All  information  and  INTELLECTUAL  PROPERTY  RIGHTS 
first created, conceived, invented or developed  in the course of work in a PROJECT. 

1.9  GROUP:  All  PARTNERS  in  a  given  PROJECT  from  the  geographic  area  of  a 

PARTICIPANT. 

1.10  IMS PROGRAM:  The Intelligent Manufacturing  Systems Program. 

1.11 INTELLECTUAL  PROPERTY  RIGHTS:  All  rights  defined  by  Article  2(viii) 
of the Convention  Establishing  the World Intellectual  Property  Organization  signed 
at  Stockholm  on  July  14,  19671,  excluding  trademarks,  service  marks  and 
commercial names and designations. 

1.12  NON-PROFIT  INSTITUTIONS:  Any  legal  entity,  either  public  or  private, 
established  or organized  for purposes other than profit-making,  which does not itself 
commercially  exploit  FOREGROUND. 

1.13 PARTICIPANT:  Australia,  Canada,  the  EC,  the  group  of  participating  EFTA 
Japan  and  the 
countries  (Austria,  Finland,  Norway,  Sweden  and  Switzerland), 
U.S.A.  and  any  other  country  or  geographic  region  whose  participation  in the  IMS 
PROGRAM  may be approved  in the manner determined by the PARTICIPANTS. 

1.14 PARTNER:  Any  legal  or natural  person  participating  as a contracting  party  to the 

COOPERATION  AGREEMENT for a given PROJECT. 

'See Appendix 3 

IS 

1.15  PROJECT: 

Any 

research  and  development  project  carried  out  _by  a 

CONSORTIUM within the IMS PROGRAM. 

1.16  SUMMARY  INFORMATION:  A description  of the objectives,  status and  results 

of a PROJECT which does not disclose CONFIDENTIAL  INFORMATION. 

Article 2:  Mandatory  Provisions 

Each  COOPERATION  AGREEMENT  must  contain  substantive  terms  and  conditions 
that are  fully  consistent with each of the provisions  2.1  through 2.13  in this  Article  and 
the  definitions  used  in  each  COOPERATION  AGREEMENT  shall  be  those  specified 
in Article  1 of this  document. 

Where  a  PROJECT  or  a  potential  PARTNER  or  its  AFFILIATES  is  subject  to 
government  requirements,  whether  by  law  or  agreement,  and  such  requirements  will 
affect  rights  or  obligations  pursuant  to  the  COOPERATION  AGREEMENT,  the 
potential  PARTNER  shall  disclose  to  the  other  PARTNERS  all  such  requirements  of 
which  it  is  aware  prior  to  signing  the  COOPERATION  AGREEMENT.  PARTNERS 
must  ensure  that  ownership,  use,  disclosure  and  licensing  of  FOREGROUND  will 
comply  with  these  mandatory  provisions  if  the  PROJECT  is  subject  to  government 
requirements. 

PARTNERS  will,  at  the  outset  of  a  PROJECT,  promptly  notify  one  another  of  their 
AFFILIATES  which  will  be  involved  in  the  performance  of  the  PROJECT,  and  will 
notify  one  another  of  any  changes  in  the  AFFILIATES  so  involved  during  the  life  of 
the  PROJECT.  At  the  time  of  entering  into  a  COOPERATION  AGREEMENT,  and 
immediately  after  new  legal  entities  have  come  to  meet  the  AFFILIATE  definition, 
PARTNERS  may  exclude  AFFILIATES  from  the  rights  and  obligations  set  forth  in 
these provisions  in accordance  with the terms  of the COOPERATION  AGREEMENT. 

Written  Agreement 

2.1  PARTNERS  shall  enter  into  a  written  COOPERATION  AGREEMENT  that 

governs their participation in a PROJECT consistent with this document. 

Ownership 

2.2  FOREGROUND  shall  be  owned  solely  by  the  PARTNER  or  jointly  by  the 

PARTNERS  creating it. 

2.3  A  PARTNER  which  is  the  sole  owner  of  FOREGROUND  may  disclose  and  non-
exclusively  license that FOREGROUND  to third parties without ACCOUNTING  to 
any other  PARTNER. 

2.4  A  PARTNER  which  is  a joint  owner  of  FOREGROUND  may  disclose  and  non-
exclusively  license that FOREGROUND  to third parties without  the consent  of and 
without  ACCOUNTING  to  any  other  PARTNER,  unless  otherwise  agreed  in  the 
COOPERATION  AGREEMENT. 

1C 

2.5  A  PARTNER  may  assign 

its 
BACKGROUND,  BACKGROUND  RIGHTS  and  FOREGROUND  to third  parties 
without the consent of and without ACCOUNTING to any other PARTNER. 

its  sole  and/or  joint  ownership 

interests  4n 

PARTNERS  who  assign  any  of  their  rights  to  BACKGROUND  RIGHTS  or 
FOREGROUND  must  make  each  assignment  subject  to  the  COOPERATION 
AGREEMENT  and  must  require  each  assignee  to  agree  in  writing  to  be  bound  to 
the  assignor's  obligations  under  the  COOPERATION  AGREEMENT  in  respect  of 
the assigned  rights. 

Dissemination  of  Information 

2.6  SUMMARY  INFORMATION  shall  be  available  to  all  PARTNERS  in  other 

PROJECTS and to the committees formed  under the IMS PROGRAM. 

2.7  The CONSORTIUM will make available at the end of the PROJECT a public report 

setting out SUMMARY INFORMATION  about the PROJECT. 

License  Rights 

Foreground 

2.8  Each  PARTNER  and  its  AFFILIATES  may  use  FOREGROUND,  royalty-free,  for 
research  and  development  and 
for  commercial  exploitation.  Commercial 
exploitation  includes the rights to use, make, have made, sell and import.  However, 
in exceptional  circumstances, 

(a) 

(b) 

PARTNERS  may  agree  in  their  COOPERATION  AGREEMENT  to  pay  a 
royalty  to  PARTNERS  which  are  NON-PROFIT  INSTITUTIONS  for 
commercial  exploitation  of FOREGROUND  which is solely  owned by  such 
NON-PROFIT INSTITUTIONS; and 

PARTNERS  may  agree  in  their  COOPERATION  AGREEMENT  to  pay  a 
royalty  to  PARTNERS  which  are  NON-PROFIT  INSTITUTIONS  for 
commercial  exploitation  of  FOREGROUND  which  is  jointly  owned  with 
such NON-PROFIT INSTITUTIONS, provided such royalties are both  small 
and  consistent  with  the principle  that  contributions  and  benefits  in the  IMS 
PROGRAM must be balanced and equitable. 

2.9  A  non-owning  PARTNER  and  its  AFFILIATES  may  not  disclose  or  sub-license 
FOREGROUND  to  third  parties  except  that  each  PARTNER  or  its  AFFILIATES 
may, in the normal course of business: 

(a) 

disclose  FOREGROUND 
manufacturing,  having manufactured,  importing or selling products; 

in  confidence  solely  for 

the  purposes  of 

(b) 

sub-license any software  forming part of FOREGROUND  in object  code;  or 

U 

(c) 

engage  itself  in the rightful  provision  of products  or  services that  inherently 
disclose the FOREGROUND. 

Background 

2.10 A  PARTNER  in  a  PROJECT  may,  but  is  not  obligated  to,  supply  or  license  its 

BACKGROUND to other PARTNERS. 

2.11 PARTNERS  and  their  AFFILIATES  may  use  another  PARTNER'S  or 

its 
AFFILIATES'  BACKGROUND  RIGHTS  solely  for  research  and  development  in 
the  PROJECT  without  additional  consideration,  including,  but  not  limited  to, 
financial  consideration. 

2.12 PARTNERS  and  their  AFFILIATES  must  grant  to  other  PARTNERS  and  their 
AFFILIATES  a  license  of  BACKGROUND  RIGHTS  on  normal  commercial 
conditions  when  such  license  is  necessary  for  the  commercial  exploitation  of 
FOREGROUND  unless: 

(a) 

(b) 

the  owning  PARTNER  or  its  AFFILIATE  is  by  reason  of  law  or  by 
contractual  obligation  existing  before  signature  of  the  COOPERATION 
AGREEMENT  unable  to  grant  such  licenses  and  such  BACKGROUND 
RIGHTS  are  specifically  identified  in the  COOPERATION  AGREEMENT; 
or 

the  PARTNERS  agree, 
the  exclusion  of 
BACKGROUND  RIGHTS  specifically  identified  in  the  COOPERATION 
AGREEMENT. 

in  exceptional  cases,  on 

Survival  of  Rights 

2.13 The COOPERATION  AGREEMENT shall specify  that the rights and obligations of 
PARTNERS  and AFFILIATES  concerning FOREGROUND, BACKGROUND  and 
BACKGROUND  RIGHTS  shall  survive  the  natural  expiration  of  the  term  of  the 
COOPERATION  AGREEMENT. 

Article 3:  Provisions  that  need to be addressed  in the  Cooperation  Agreement 

PARTNERS  shall  address  each  of  the  following  items  in  their  COOPERATION 
AGREEMENT: 

Publication of  Results 

3.1  PARTNERS  shall  address  the  issue  of the  consent  required,  if  any,  from  the  other 
than 

the  PROJECT  other 

PARTNERS  for  publication  of  the  results  from 
SUMMARY  INFORMATION. 

3.2  PARTNERS  shall  address  the  issue  of  whether  PARTNERS  which  are  NON 
PROFIT  INSTITUTIONS  may,  for  academic  purposes,  publish  FOREGROUND 

they  solely  own,  provided 

which 
FOREGROUND  are taken in accordance with Articles 3.3 and 3.4. 

that  adequate  procedures  for  protecting 

Protection  of  Foreground 

3.3  PARTNERS  shall  identify  the  steps  they  will  take  to  seek  legal  protection  of 
FOREGROUND  by  means  of  INTELLECTUAL  PROPERTY  RIGHTS  and  upon 
making  an  invention  shall  notify  other  PARTNERS  in  the  same  PROJECT  in  a 
timely  manner  of  the  protection  sought  and  provide  a  summary  description  of  the 
invention. 

3.4  PARTNERS  shall  address the issue of prompt  notification  of all other  PARTNERS 
in  the  same  PROJECT  and,  upon  request  and  on  mutually  agreed  conditions, 
disclosure  of  the  invention  and  reasonably  cooperate  in  such  protection  being 
undertaken  by  another  PARTNER  in  the  same  PROJECT  in  the  event  and  to  the 
extent that  a PARTNER  or PARTNERS  which own FOREGROUND  do not  intend 
to seek such protection. 

Confidential  Information 

3.5  PARTNERS  shall  identify 

the  measures  they  will  take  to  ensure  that  any 
PARTNER  which  has  received  CONFIDENTIAL  INFORMATION  only  uses  or 
discloses  this  CONFIDENTIAL  INFORMATION  by  itself  or  its  AFFILIATES  as 
far  as permitted  under the conditions under which it was supplied. 

Dispute  Settlement  and Applicable  Laws 

3.6  PARTNERS  shall  agree in their  COOPERATION  AGREEMENT  on the manner  in 

which disputes will be settled. 

3.7  PARTNERS  shall agree in their COOPERATION  AGREEMENT  on the law which 

will govern the COOPERATION  AGREEMENT. 

Article 4:  Optional  Provisions 

PARTNERS  may,  but  are  not  required  to  address  each  of  the  following  provisions  in 
their  COOPERATION  AGREEMENT: 

AFFILIATE  PROVISIONS 

ANTITRUST/COMPETITION  LAW  ISSUES 

CANCELLATION  AND  TERMINATION 

EMPLOYER/EMPLOYEE  RELATIONSHIPS 

EXPORT  CONTROLS  AND  COMPLIANCE 

FIELD  OF  THE  AGREEMENT 

J? 

INTENT  OF  THE  PARTIES 

LICENSING  PARTNERS  IN  OTHER  PROJECTS 

LICENSOR'S  LIABILITY  ARISING  FROM  LICENSEE'S  USE  OF 
LICENSED  TECHNOLOGY 

LOANED  OR ASSIGNED  EMPLOYEES  AND RESULTING  RIGHTS 

NEW  PARTNERS  AND  WITHDRAWAL  OF  PARTNERS  FROM 
PROJECTS 

POST COOPERATION  AGREEMENT  BACKGROUND 

PROTECTION, 
REGARDING  CONFIDENTIAL  INFORMATION 

AND 

USE 

NON-DISCLOSURE 

OBLIGATIONS 

RESIDUAL  INFORMATION 

ROYALTY  RATES  FOR BACKGROUND  RIGHT  LICENSES 

SOFTWARE  SOURCE  CODE 

TAXATION 

TERM/DURATION  OF  AGREEMENT 

There  are  likely  to  be  other  provisions  the  PARTNERS  will  need  to  put  into  their 
COOPERATION  AGREEMENTS  depending  on  the  particular  circumstances  of  their 
PROJECT.  PARTNERS  should  seek  their  own  expert  advice  on  this  and  note  that  no 
additional  terms  may  conflict  with Articles  1 and 2 of these provisions. 

2^ 

Appendix 3 

Convention establishing the World Intellectual Property Organization  (Stockholm, 
14 July 1967) 

Article 2(viii) defines  Intellectual Property to include: 

"...the  rights  to  literary,  artistic  and  scientific  works;  performances  of  performing 
artists;  phonograms,  and  broadcasts;  inventions  in  all  fields  of  human  endeavour; 
scientific  discoveries;  industrial  designs;  trademarks,  servicemarks,  and  commercial 
names  and  designations;  protection  against  unfair  competition;  and  all  other  rights 
resulting  from  intellectual  activity  in  the  industrial,  scientific,  literary  or  artistic 
fields." 

?  / 

Sir, 

I acknowledge receipt of your letter of... which reads as follows: 

Principles  of international  cooperation on research and development  activities 
in the domain of Intelligent Manufacturing  Systems 
between the European Community 
and the  United States of America, Japan, Australia,  Canada, 
and the EFTA countries of Norway and Switzerland 

(Title, greeting) 

I  refer  to  discussions  that  have  taken  place  concerning  international  cooperation  on 
research  and  development  activities  in the domain  of Intelligent  Manufacturing  Systems 
(IMS)  between  the  Participants,  i.e.  the  European  Community,  and  the  United  States  of 
America, Japan, Australia, Canada, and the EFTA countries of Norway and  Switzerland. 

The  purpose  of  this  letter  is  to  record  the  common  understanding  reached  on  the 
principles of cooperation on IMS.  The letter complements the Terms of Reference  (ToR) 
developed  by the International  Steering Committee at the end of the IMS feasibility  study 
in  1994 and modifies  Article VIII of the ToR and Article  1.13  of Appendix  2 of the  ToR 
as indicated below.  The ToR, and the Appendices to the ToR, are annexed to this letter. 

1.  Objective 

Participants  will  encourage  and  facilitate  cooperation  between  entities  -  established 
within their  territories  (within  the territories  of  its Member  States  in the case  of the 
European  Community)  - in the domain of Intelligent  Manufacturing  Systems.  Such 
cooperation  should  ensure  a  balance  of  benefits  and  contributions,  be  of  industrial 
relevance and be based on the principle of mutual interest and understanding. 

2.  Technical Themes for IMS Cooperation 

The cooperation will initially cover the following five technical themes: 

(a) 

total product life cycle issues; 

(b) 

(c) 

(d) 

process issues; 

strategy/planning/design  tools; 

human/organisational/social  issues; and, 

(e) 

virtual/extended  enterprise issues. 

1? 

Other  themes  within  the  scope  of  IMS  may  be  envisaged,  however,  it  should  be 
ensured  that  new  technical  themes  are  consistent  with  government  policies  and 
industrial priorities of the participating regions. 

3.  Forms and Means of Cooperation 

Cooperation  will  involve  participation  in  projects  by  entities,  in  accordance  with 
procedures  adopted  in  common  for  the  creation  and  operation  of  international 
consortia and may include visits, training and exchanges of scientists, engineers  and 
other  appropriate  personnel  for  purposes  relevant  to the  successful  implementation 
and completion of the projects. 

4.  Dissemination and Utilisation of  Information 

Intellectual  property rights (IPR) resulting  from  projects carried out within  IMS  will 
be  subject  to  the  IMS  IPR  provisions  given  in  Appendix  2  of  the  ToR.  This 
Appendix  will  be  amended  in  Article  1.13  to  reflect  that  Austria,  Finland  and 
Sweden are members of the European Union. 

5.  Financing 

Financing  of cooperative  activities will be subject to the availability  of funds  and  to 
the  applicable  laws  and  regulations,  policies  and  programmes  of  the  participating 
regions. 

Each Participant will cover its own participation. 

Each  Participant  will  contribute  - in funding  or  in kind  - in an  equitable  manner  to 
the execution of the functions  and the costs of the Inter regional  secretariat. 

6. 

Implementation of IMS 

the  Participants  appointed 

Representatives  of 
the  International  Steering 
Committee  (ISC) will  act as the liaison between the ISC and their  respective  public 
administrations/governments.  The  representatives  of  the  Participants  will  monitor 
the implementation  with respect to the purpose, principles and programme  structure 
of  IMS  and  they  will  have  a  facilitating  role. 
In  addition,  they  will  have  the 
following  functions: 

to 

facilitate  good cooperation between the regional secretariats; 

exchange  of 
programmes relevant to the cooperation; 

information  on 

local  practices, 

laws,  regulations  and 

facilitate  participation  of 
in  the  IMS 
programme.  In particular  this would  include  access to an  electronic  partner 
search facility  and an electronic register of expressions of interest; and, 

SMEs  directly  and  indirectly 

present 
recommendations  of the ISC for the admission of new Participants. 

government/public 

administrations 

for 

to 

decision 

the 

Is 

The  Participants  will  organise,  manage  or  designate  their  respective  Regional 
Secretariats. 
In  particular,  the  Regional  Secretariats  will  include  the  following 
responsibilities: 

-

facilitate  the  timely  selection  of  projects  at  regional  level,  according  to  the 
rules and procedures in force  in the Participant's region; 

assist in consortium formation  within and across respective regions; and, 

work with regional infrastructure  groups to facilitate  IMS. 

7.  Duration 

The  IMS  programme  will  have  a  duration  of  ten  years,  each  Participant  may 
withdraw at any time  subject  to twelve month's notice.  The Participants  will  review 
the principles  of their  cooperation five years after  its launch  in order to  see  whether 
it  should  be  continued,  modified  or  terminated.  This  replaces  Article  VIII  of  the 
ToR. 

8. 

Implementation  of IMS in Europe 

The  European  Community  and  Switzerland  and  Norway  reserve  the  option  to  act 
together  as  a  single  European  Region,  to  be  represented  by  a  combined  delegation 
on  the  International  Steering  Committee  and  to  be  supported  by  a  single  European 
IMS  Secretariat. 

The Commission of the European Community will provide the necessary  support  for 
its Regional  Secretariat. 

This  letter,  together  with  its  acceptance  by  the  Participants,  complements  and  modifies 
the ToR and records the common understanding  on the principles of cooperation  on IMS. 
I would  be pleased to receive your early confirmation  of this understanding. 

(ending) 

I  have  the  honour  to  confirm  that  my  Government  is  in  agreement  with  the  contents  of 
vour  letter. 

(end) 

2  "I 

FINANCIAL  STATEMENT 

1.  TITLE OF  OPERATION 

Agreement  for  international  cooperation  in  research  and  development  in  the  domain  of 
Intelligent  Manufacturing  Systems  with  the  third  countries  of  Australia,  Canada,  Japan, 
the United  States of America and the EFTA countries of Norway and  Switzerland. 

2.  BUDGET HEADING  INVOLVED 

B6-7113 (Information  Technologies), B6-7121 (Industrial Materials Technology). 

3.  LEGAL  BASIS 

• 

• 

• 

• 

• 

Article  130i and Article  130m of the Treaty on European Union. 

Council  Decision  No  1110/04/EC  concerning  the  fourth  framework  programme  of 
Community  activities  in  the  field  of  research,  technological  development  and 
demonstration  (1994 to  1998). 

Council  Decision  No  94/802/EC  on  the  specific  programme  of  research  and 
technological  development,  including  demonstration,  in  the  field  of  information 
technologies  (1994-1998). 

Council  Decision  No  94/5 71/EC  on  the  specific  programme  for  research  and 
technological  development,  including  demonstrations  in  the  field  of  industrial  and 
materials technology  (1994-1998). 

Decision No. 616/96/EC of the European Parliament and of the Council of 25 March 
framework 
1996  adapting  Decision  No.  1110/94/EC  concerning 
programme  of  the  European  Community  activities  in  the  field  of  research  and 
technological  development  and  demonstration  (1994  to  1998)  following 
the 
accession  of  the  Republic  of  Austria,  the  Republic  of  Finland  and  the  Kingdom  of 
Sweden to the European Union. 

the  fourth 

4.  DESCRIPTION  OF  OPERATION 

4.1  General  description  of operation 

(i) 

(ii) 

to contribute to the competitivity  of European  industry  by  improving 
its  flexibility; 
to  strengthen  the  scientific  and  technological  base  of  European 
industry; 

i  r 

(iii) 
(iv) 

to contribute to the quality of life by addressing global problems; 
to  enable  international  cooperation  in  the  domain  of  intelligent 
manufacturing  systems. 

The  technological  domain  depends  largely  on  developments  in  Information 
and Manufacturing  Technology  and includes the development  of modules  and 
technologies  for  intelligent,  flexible  and  clean  manufacturing  and  their 
application. 

4.2  Duration 

10 years  - the extension  of the agreement  on the  Community  side  beyond  the 
Fourth  Framework  Programme  will  be  subject  to  a  favourable  decision  from 
the  Commission. 
the  Legislative  Authority  acting  on  a  proposal  from 
Withdrawal  is subject to  12 months notice. 

4.3  Target  population 

Industrial  organisations,  universities  and  research  institutes  of  the  European 
Union  and similar organisations  in Australia,  Canada,  the participating  EFTA 
countries, Japan and the US. 

5.  CLASSIFICATION  OF EXPENDITURE OR REVENUE 

Non-compulsory  expenditure/differentiated  appropriations. 

6.  TYPE OF EXPENDITURE OR REVENUE 

Studies/subsidies 

In principle, the direct activities will be  100%  funded. 

The  concerted  activities  may  qualify  for  a  contribution  of  up  to  100%  of  the 
coordination costs. 

Subsidy  for joint financing with other sources in the public and/or private  sector: 

The shared-cost activities comprising RTD projects  will qualify  for  a contribution  of 
not more than 50%. 

Universities  and  other  research  centres  participating  in  RTD  projects  and  unable  to 
substantiate  their  total  costs  in  sufficient  detail  for  the  Commission,  based  on  an 
analytical accounting system, will qualify  for  100% funding  of the additional  costs. 

Other  shared-cost  activities  (for  example,  networks,  training,  feasibility  awards  or 
accompanying  measures)  will  qualify  for  up  to  100% of  the  additional  costs  or  of 
the costs of the measure. 

i r 

Staff,  administrative and operating costs: 

These  also cover  the  costs of personnel  covered  by the  Staff  Regulations  and  other  staff, 
studies,  meetings  of  experts,  conferences  and  congresses,  information  and  publications, 
administrative, technical  and operating costs, and certain other internal  infrastructure  and 
operating costs for attainment of the objective of the activity of which they are an integral 
part. 

7.  FINANCIAL  IMPACT 

7.1  Method of estimating total cost of operations 

The  yearly  cost  of  the  IMS  agreement  consists  of  two  parts,  i.e.  the 
Community's  contribution  to  the  execution  of  the  functions  and  the  costs  of 
.  the  Inter-Regional  Secretariat  (1RS), and the  costs  related  to  execution  of  the 

European IMS Secretariat (EIS). 

The  contribution  to  the  execution  of  the  1RS  is  established  at  280,000ECU 
and will  be similar for the years following.  The contribution  would  be  1/3  of 
the total operating costs of the 1RS estimated as follows: 

personnel  of  1RS  (including  travel,  administrative  support  and 
overhead) estimated at 504,000ECU; 

conferences  estimated at  168,000ECU; 

promotion estimated at 42,000ECU; 

other costs, including studies, estimated at  126,000ECU. 

The  costs related  to the EIS is established  at 302,500ECU and  will  be  similar 
for the y ears, fol lowing.  The estimate is as follows: 

mission  for  experts  to  attend  international  meetings  estimated  at  15 
international trips @ 3,500ECU  for a total of 52,500ECU; 

service and assistance contracts:  100 mandays @ 600ECU/day  giving 
atotalof60,000ECU; 

meetings  with  participation  of  external  experts:  8  x  15  x  750ECU 
giving a total of 90,000ECU; 

results  reporting/awareness  events:  3 x 25,000ECU  giving  a total  of 
75,000ECU; 

miscellaneous:  25,000ECU. 

the 
The  Commission's  staff  and  administrative  expenditure  related 
implementation  of  IMS  will  be  within  the  maximum  amounts  foreseen  for 
staff  and  administrative  expenditure  of  the  IT  and  the  IMT  specific 
programmes. 

to 

<\Or 

No  extra  staff  to administer  the  IMS  agreement  is  foreseen. 

Cost  forecasts  beyond  the  Fourth  Framework  Programme  might  be  subject  to 
modifications  in view  of the extension  of the agreement  (see  4.2). 

7.2 

Itemised  breakdown  of  costs 

Commitment  appropriations  ECU  million  (at current  prices) 

Breakdown 

Year 
n 

n+1 

n+2 

n+3 

n+4 

Total 

n+5 
and 
sub. 
years 

Inter-Regional 
Secretariat 

European IMS 
Secretariat 

0,280 

0,280  0,280  0,280  0,280  1,400  2,800 

0,302 

0,302  0,302  0,302  0,302 

1,510  3,020 

Total 

0,582 

0,582  0,582  0,582  0,582  2,910  5,820 

7.3  Operational  expenditure  for  studies,  experts,  etc.  included  in  Part  B  of 

the  budget 

Commitment  appropriations  ECU  million  (at  current  prices^ 

Year 
n 

n+1 

n+2 

n+3 

n+4 

Total 

n+5 
and 
sub. 
years 

Studies 

0,042 

0,042  0,042  0,042  0,042  0,210  0,420 

Meetings 
of  experts 

Conferences 
and congresses 

0,142 

0,142  0,142  0,142  0,142  0,710 

1,420 

0,056 

0,056  0,056  0,056  0,056  0,280  0,560 

Information  and 
publications 

0,075 

0,075  0,075  0,075  0,075  0,375  0,750 

Total 

0,315 

0,315  0,315  0,315  0,315 

1,575 

3,150 

The  annual  costs  of  0.315MECU  is  part  of  the  annual  costs  of  0.582MECU 
referred  to  in  7.2. 

^9 

7.4 

Schedule of commitment and payment  appropriations 

ECU million 

Year 
n 

n+1 

n+2 

n+3 

n+4 

Total 

n+5 
and 
sub. 
years 

Commitment 
appropriations 

Payment 
appropriations 

Yearn 
n+1 
n+2 
n+3 
n+4 
n+5 
and sub. years 

0,582 

0,582  0,582  0,582  0,582  2,910  5,820 

0,400 
0,182 

" 

0,400 
0,182  0,400 

0,182  0,400 

0,182  0,400 

0,400 
0,582 
0,582 
0,582 
0,582 

0,182  2,910  3,092 

Total 

0,582 

0,582  0,582  0,582  0,582  2,910  5,820 

The  commitments  and  payments  will  be  shared  on  a  50:50  basis  between  IT 
(B6-7113)andIMT(B6-7121). 

8.  WHAT ANTI-FRAUD  MEASURES ARE PLANNED? 

Numerous  administrative  and  financial  controls  have  been  introduced  at  every  stage  of 
the procedure for  awarding and implementing research contracts. These include: 

Prior to conclusion  of the contract: 

Shortlisting  of the proposals  on the  basis  of their  scientific  merit  and  of  how 
realistic  the  research  costs  are, considering  the  nature,  duration  and  potential 
impact of the project; 

Analysis  of  the  financial  data  submitted  by  the  proposers  in  the  negotiation 
form. 

After signature  of the contract: 

Examination  of  the  statements  of  expenditure  before  and  after  payment  at 
various levels (financial  controller and scientific  manager); 

On-the-spot  inspections  of  the  supporting  documents  to  detect  any  errors  or 
other  irregularities'. To tighten up these controls, the Commission  has set  up a 

n  O 

central audit unit which  is responsible  for  all the inspections.  The  inspections 
are carried  out either by members of the audit unit or, under their  supervision, 
by  firms  of  auditors  with  which  the  Commission  has  concluded  framework 
contracts. 

9.  ELEMENTS  OF COST-EFFECTIVENESS  ANALYSIS 

9.1 

Specific  and quantifiable  objectives; target  population 

Overall objectives  at European level are: 

to  enable  international  cooperation  in  the  domain  of  intelligent 
manufacturing  systems 
to  contribute  to  the  quality  of  life  by  addressing  global  problems 
related to the environment, health and  safety 
to  strengthen  the  scientific  and  technological  base  of  European 
industry 
to contribute to the competitivity  of European  industry  by  improving 
its  flexibility 

In general, an international  IMS would aim: 

to enable greater sophistication in manufacturing  operations 
to improve the global  environment 
to  improve  the  efficiency  with  which  renewable  and  non-renewable 
resources are used 
to  create  new  products  and  conditions  which  significantly  improve 
the quality of life  for users 
to improve the quality of the manufacturing  environment 
to  develop  a  recognised  and  respected  discipline  of  manufacturing 
which will encourage the transfer  of knowledge to future  generations 
to respond effectively  to the globalisation of  manufacturing 
the  advancement  of  manufacturing  professionalism  world-wide  by 
providing  global 
recognition  and  establishing  an  educational 
discipline for  manufacturing 

and be a catalytic agent  for: 

involving 

large  and  small 

the  results  of  significant  manufacturing 

global  manufacturing  cooperation 
companies, users and suppliers, universities and  governments 
the  dissemination  of 
improvements  world-wide 
the  development  of  global  manufacturing  recommendations  for 
standards through cooperative work on pre-standardisation  topics 
the  assessment  and  selection  of  priorities  for  global  cooperation  in 
manufacturing  process development 
the  dissemination,  understanding  and  application  of  consistent 
guidelines, provisions  and model  agreements  that  respect  intellectual 
property rights (IPR) of Participants and project  consortium partners. 

Qo 

9.2  Grounds for the operation 

Manufacturing  is a primary  generator of wealth and is critical to establishing a 
sound economic basis for growth. 

The need  for  excellence  in manufacturing  operations  has become  critical  as a 
result of the establishment of global markets. 

The role  of research  and  development  in the field of advanced  manufacturing 
is  increasingly  pivotal  to  manufacturing  operations.  Substantial  research  in 
advanced manufacturing  is being carried out world-wide. 

Properly  managed  international  cooperation  in  research  and  development  in 
advanced manufacturing  can help improve manufacturing  operations. 

9.3  Monitoring and evaluation  of the operation 

9.3.1  Relevant criteria 

Performance  indicators selected (process criteria) 

from 

industry,  particularly  small 

number  of organisations  participating  in the  agreement 
majority  of  participants 
businesses 
number of new collaborative  partnerships 
number  and  impact  of  the  technical  results  obtained  by  the 
projects  and other  activities 
demonstrations  at conferences  and  international  exhibitions 
publication  of  articles  and  other  scientific  and/or 
reports. 

technical 

9.3.2  Details and frequency  of planned evaluation 

is  evaluated  at  least  once  a  year,  with 

each  project 
the 
cooperation  of  outside  experts  against  criteria  including  valued 
added,  cost effectiveness  and  impact. 
the  initiative  as  a  whole  is  regularly  evaluated  by  panels  of 
independent  experts  against  metrics  that  will  be  established  at 
the  launch of the  initiative. 

9.3.3  Assessment of the results obtained from  the activities in progress 

In the  now  completed  feasibility  study,  six test  cases  were  carried  out  in  the 
period  1993  to  1994.  The  results  of  the  test  cases  were  reviewed  at 
international  and  European  level.  The  main  results  are  summarised  as 
follows: 

Through  the  test  cases,  the  viability  of  setting  up  international,  consortia, 
including  a  strong  awareness  of  the  overheads,  communication  tools  and 
cultural  requirements  in the process has been proven. 

^ 

Tlirough  the  test  cases,  the  framework  for  international  collaboration  was 
thoroughly tested and valuable feedback  obtained. 

Cultural  (technical  and  managerial)  and  language  barriers  were  overcome. 
Cultural diversity added to the success of the test cases. 

The test cases were industry led and the results were relevant to industry. 

European participants involved in test cases have gained considerable  insights 
into  the  work  methods,  mechanisms  and  approaches  used  by  the  other  IMS 
regions  in  manufacturing.  European  companies  have  been  impressed  by  the 
openness  of  their  international  partners,  in  particular  those  in  Japan,  where 
they were able to place their personnel in industrial  laboratories and have used 
the  feasibility  study  to  identify  potential  partners  for  longer-term  industrial 
collaboration. 

10.  ADMINISTRATIVE  EXPENDITURE (Part A of the Budget) 

None. 

u? 

ISSN 0254-1475 

COM(96) 468 final 

DOCUMENTS 

EN 

11  is 

Catalogue number  :  CB-C0-96-477-EN-C 

ISBN 92-78-09267-3 

Office  for Official  Publications of the European  Communities 

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