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Creating a Globally Competitive Manufacturing Environment in the US Christopher Ruud June 2012

Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

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Page 1: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Creating a Globally Competitive Manufacturing Environment in the US

Christopher Ruud

June 2012

Page 2: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

How Do We Compete In A Global Marketplace?

Copyright © 2011, Cree, Inc. pg. 2

Page 3: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Key Themes

• Managing Innovation in an Emerging Technology

Environment • Synchronizing Product Lifecycle Management

with State-of-the-Art Manufacturing Technologies • Design for Manufacturability and Assembly in the

US • Understanding the Myths and Realities of

Offshore Manufacturing

Copyright © 2011, Cree, Inc. pg. 3

Page 4: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Homegrown Vision

Copyright © 2011, Cree, Inc. pg. 4

Page 5: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Managing Innovation in an Emerging Technology Environment

Be Flexible Shorter product lifecycles More product introductions

Copyright © 2011, Cree, Inc. pg. 5

Page 6: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Reliable LED Luminaire Performance

• Requires Effective Thermal Management

Page 7: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Reliable LED Luminaire Performance

• Requires Effective Optical Design and Control

Page 8: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Synchronizing Product Lifecycle Management with State-of-the-Art Manufacturing Technologies

Copyright © 2011, Cree, Inc. pg. 9

Page 9: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Copyright © 2011, Cree, Inc. pg. 10

Pre-May 2007

Pre-LED – 30 years of history

Page 10: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

LED – 5 Years of Product Innovation

Copyright © 2011, Cree, Inc. pg. 11

May 2007 (Lightfair)

First Manufacturer to Launch a Full Line of LED Luminaires Under BetaLED® Product Brand Name

Page 11: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Design for Manufacturability and Assembly in the US

Copyright © 2011, Cree, Inc. pg. 12

Page 12: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Advanced Manufacturing

New 21st Century Production Technology

Page 13: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

State of the Art Manufacturing & Quality Processes

Copyright © 2011, Cree, Inc. pg. 15

LED Luminaire Assembly (Two Step Process) – Light Engine Assembly – General Luminaire Assembly

Page 14: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Our Value

Copyright © 2011, Cree, Inc. pg. 20

Invest in Quality Control

Page 15: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

State of the Art Manufacturing and Quality Processes

Copyright © 2011, Cree, Inc. pg. 26

DeltaGuard® Finishing

Page 16: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

5000 Hour Comparison

Page 17: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Our Results

Copyright © 2011, Cree, Inc. pg. 29

Flexible Inventory

Page 18: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Myths and Realities of Offshore Manufacturing

30

Page 19: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Cree Acquires Ruud Lighting, Inc. to Accelerate the LED Lighting Revolution Addition of BetaLED® Product Line Strengthens Leadership Position in LED Lighting and Components

31

August 17, 2011

Page 20: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Cree’s Ruud Lighting Subsidiary Announces 208,000-Square-Foot Facility Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc., will hold a groundbreaking ceremony today to highlight a 208,000-square-foot expansion to its manufacturing facility.

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November 15, 2011

Page 21: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

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208,000-Square-Foot Facility Expansion

Page 22: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

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Proven America (Meets ARRA)

Page 23: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Summary

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Page 24: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

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This

Page 25: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

37

This

To This

Page 26: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

City of Los Angeles LED Program

Skyglow from the City of Los Angeles, California

Photo courtesy of City of Los Angeles/Bureau of Street Lighting

Page 27: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

We Must Provide Value

Copyright © 2011, Cree, Inc. pg. 39

Page 28: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,

Questions?

Copyright © 2011, Cree, Inc. pg. 40

Page 29: Creating a Globally Competitive Manufacturing …...Expansion to Create 469 Full-time Jobs Over the Next Four Years Cree, Inc.’s Ruud Lighting subsidiary, based in Racine, Wisc.,