Tier Production
System		 Core
Business		 Market
Scope		 Supply
Chain		 Intellectual
Property
upwards arrow 1
(OEM)		 Final
Integration/
Testing		 Technology/
Product Concept
Product Development
(Proof of Concept)
Brand/Service		 Global Global Product
Technology
upwards arrow 2 Integration/
Assembly/
Fabrication		 Prototype
Development
Design Validation		 Global
Regional		 Global
Regional		 Technology
Process
upwards arrow 3 Sub-Assembly/
Integrated
Processing/
Fabrication		 Process Validation
Pre-Production
Planning		 Regional
Local		 Regional
Local		 Process
upwards arrow 4 Fabrication
Processing		 Production
Materials
Handling		 Local Local None

3. An Emphasis on Innovation, Design, Branding, Customer Service and Financing Activities

The pace of technological change and the intensity of global competition will mean that Canadian manufacturers will derive their revenue on the basis of differentiated products and services. Innovation, design, branding, customer service, and financing will be at the heart of value creation.

4. Lean Business Systems

The business of manufacturing will be focused on anticipating and meeting customer requirements - and it will require operating processes within companies and across supply chains that are aligned and extremely efficient in delivering customer value. Canadian manufacturers will have to aim at eliminating waste – activities that do not contribute to providing value to customers – throughout their own manufacturing operations, on an enterprise-wide level, as well as across supply chains and business networks.