Regional Autonomous Open-Logistics Open-Manufacturing

Gateway to Michigans Revitalization: Sustainable Catalyst for National Economic Empowerment

Author: Jeffrey Adik, Founder, Intraduce, LLC, 248.705.7900, jadik@intraduce.com, www.intraduce.com

Sustainable Jobs Opportunity

(note: does not reflect tech development or new vehicle production)

1)

Regional Inefficiencies Freeze Billions in Cash

x = x = = x Regional Work-in-Progress (Est.) 1st Yr. WIP Reduction (Forecast) Value of Freed Cash Flow Auto Industry Labor as % COGS Freed Cash Flow Avail for Labor Avg. Industry Salary (2009 BEA) Industry FTE Jobs Financed Auto Industry Multiplier (CAR) $ 70,000,000,000 10% $ 7,000,000,000 25% $ 1,750,000,000 $ 58,000 30,172 7.6 229,310 (10,000)

= Jobs Created (from freed cash) - Displaced Truck Drivers (BEA)

Total NET Jobs Created

219,310
2)

Metropolitan Detroit (& Michigan) form a Birds-Eye View a) Infrastructure & Capacity: i) Most high-tech mfg anywhere in the country ii) Transportation R&D Global Center of Gravity rd iii) Most Engineers per Capita, 3 most (qty) across US iv) Graduates more than 10,000 Engineers/year b) Existing Sense-of-Urgency, Immediate Need, 2014 Target Pilot: i) MI Jobs: one of highest unemployment rate states ii) Real-estate: residential & commercial demand desperate iii) Infrastructure: transportation & social services need funding iv) Revenue sources: must emerge for State & City of Detroit v) Long-term survival: need plan to sustain thru economic cycles vi) Autonomy: emerging fast-growth, high-tech & SYNERGISTIC Connected, Autonomous Vehicles Unite Regional Logistics & JIT Mfg a) Enables regional JIT mfg, w/efficient, integrated value chain: i) Unites broad variety of types of mfg activities and assets ii) Lean, open mfg, 6, exch-rate trends augment value opp iii) High-predictability, high-efficiency increases justifiable value iv) Incremental yr/ovr/yr improvements continually benefiting b) Higher inventory turns lift, lower avg inventory frees cash c) Open-Logistics, integrated mfg are ideal autonomy pilot d) Open-Log/Mfg as collection of customers accelerates standards e) Govt opportunities will emerge as pricing becomes clear f) Prelim targets established using on-line ROI templates g) Targets: DoD, DoT, DHS, DoA, DoE, SBA, DoC, NASA,
EPA, USPS, FEMA, NOAH, GPSS, NIH, FCC, others

Fig 1. Metro-Detroit: satellite view (note lighter shade visible industry corridors)

h) 3)

Pilot is catalyst for standards development & cost reductions

Implementation Approach a) Integrate open-mfg & logistics using autonomous vehicles i) Leverage Rail-Right-of-Way / Negotiate access (RROW) ii) Connect mfg, & logistics activities flexible integrated RROW iii) Establish fixed, per-mile use fees AND fixed % tax rate b) Supporting criteria: i) ~90% Detroit mfg. is within mile of rail-right-of-way (RROW) ii) RROW is isolated & easily supports new Intelligent Roads iii) Regional Open-Log/Mfg flexibility/density attracts new mfg to region st iv) RROW: ISOLATED from roads, easy for 1 gen autonomy v) RROW: has priority over all other surface transportation vi) Autonomy is 6 Ready for continuous improvement Incremental Feedback System: a)

Fig 2. Metro-Detroit Heavy Industry & Manufacturing Assets are highlighted

4)

inventory turns cash-on-hand access to capital

efficiency stock price

inventory levels corporate value

R&D, innovation leadership

b)

Autonomous Open-Logistics, Open-Mfg, across SE Michigan Region: i) Creates a global-first-mover advantage, and establishes direction ii) Snowballing incremental improvements enhance all opportunities iii) Incremental economic advantages vs. traditional manual systems iv) Quantifiable bottom-line impact, including: (1) Increased org value & industry health w/higher inv. turns (2) Short time-to-market, quick reactions, <WIP in supply-chain
2011 Intraduce, LLC | All Rights Reserved

Fig 3. Regional Rail-Right-Of-Way integrates nearly all Heavy Industry & Mfg