SECTION I: OPERATING YEAR OUTCOMES

Element I: Center Client Level Activities by Type of Company

Year

Small
Establishment
(< 20
employees)

Rura
l

Start-Up

Transformat
ional
Clients

Other
Mfgrs.

Total
Unique
Mfgrs.
Served

20

21

50

Over 3
YRS
2015-4

A. Client Activity levels with a Focus on small, rural, and emerging small
and mid-sized enterprises SMEs
In establishing these targets, the MTC has assumed no double counting (ie, a
rural client is not categorized also as a small, rural, etc.). A major ecosystem
initiative, the creation of an Advanced Manufacturing Center of Excellence in
Southwest Virginia, is a key workforce development initiative for the MTC.
Working with the SW VA Alliance for Manufacturing, the MTC is supporting the
development and delivery of advanced curriculum to build a pipeline of precision
machinists, welders and mechanics. The initiative is a collaboration with the
CCAM, the Commonwealth Center for Advanced Manufacturing. Beginning in the
fall of 2015, the highly selective VA Business Growth Program for Small
Advanced Manufacturers (VA BGP) starts up in southern and southwest VA.
Designed to serve companies with as few as 15 employees, this program is our
key initiative to improve market penetration with < 50 employee companies. A
third way to improve small, rural and emerging mfg. client activities is
scholarships for those companies to attend our tech transfer outreach events,
Provided a site assessment and issued a proposal to create a manufacturing
plan for Micronic Technologies - a new high-tech start-up SME with 10
employees located in Wise County VA
Proposal made and accepted to provide 6 sigma training for Aeroprobe a
small high-tech SME with 30 employees located in Blacksburg, VA

free of charge.

B. Transformational Clients
By working with our partner, GENEDGE, the MTC is working to provide
transformational services to companies in southwest Virginia using the
CoreValue assessment to drive strategic initiatives to grow the business.
1

Leadership from the Chief Executive/Owner is a requirement for entry into this
program. The Chief Executive/Owner is coached throughout the project by a
program manager and lead project manager. Utilizing GENEDGEs new IP for
Innovation and Growth Services, the MTC will enhance our transformational
services capabilities. These include strong strategic planning, market research,
diversification, prototyping and lean product development capabilities. The
focus for our transformational clients is top line growth. Our lean services
continues to provide bottom line growth opportunities for small companies. For
larger businesses, a collaborative effort with GENEDGE will provide leadership in
the area of Supply Chain Optimization which allows for transformation of entire
value chains. We believe this resourcefulness will allow for greater impact on
the client corner office and expect that our transformational client count will
increase over the next three years.

Bondcote in Pulaski VA completed DMEP phase 1 including a CORE value

assessment and completed multiple tasks/initiatives identified during the
assessment with great success. Bondcote has applied for further funding in
DMEP phase 2.
PBE in Tazewell completed the CORE assessment leading to the
identification of multiple improvement opportunities. PBE applied for and
won approval of funding from the DMEP program. We are now awaiting their
final acceptance to move forward with the project.
ELEMENT II: Top and Bottom Line Growth

Year

Top-Line
Growth

Bottom-Line
Growth

Total
Direct
Client
Effort

Over 3
YRS

25%

75%

100%

2015-4

A. Engagement in Top Line Growth

We will use our sharking process to build a pipeline of new potential

customers. We research these industries periodically to stay current with the
challenges and opportunities facing each segment. Our business plan is
structured to provide services to small to medium sized businesses in a standard
fee for service model. Enhanced 3rd party project management is a priority for
the MTC. Trusted advisor model is used by delivery team. Our enhanced
commercialization process will accelerate the time to market cycle and improve
MTC partnered with Genedge to complete industry studies and create plans
for bold steps leading to top line growth from new products and/or new
markets for existing products for Bondcote.
We will be doing the same for Aeroprobe in Blacksburg and International
Textiles in Salem in conjunction with Genedge.

the return on investment for top line growth clients.

B. Engagement in Bottom Line Growth
Lean for small business has been designed as a core part of VA BGP. The MTC
will continue to work with the community colleges as a partner and provide
services outlined in the Memorandum of Agreement between the MTC and the
five consortium colleges in southwest Virginia. Quality services for the new ISO
standard are seeing strong interest and should continue to see growth through
2018. Our E3 and pollution prevention program is strong throughout the state
of Virginia. Funding for this program is provided through a grant with the
Environmental Protection Agency. For the areas not covered in the MTC service
region, we work cooperatively with GENEDGE to provide E3 assessments and
pollution prevention assistance. This program has been in place since 1994
which allows the MTC to provide a unique service to businesses throughout the
state. Supply chain optimization business development is now increasing with
larger primes, and the MTC working with GENEDGE fully intends to land contracts
to support a couple of those prospects in supply chain optimization efforts.

Lean, Six Sigma, QMS, and E3 continue to be popular services with our
clients. We have completed multiple E3 assessments in the MTC service
region, Southside VA, and the Shenandoah Valley.

C. Making New Technologies Available

Our partner, GENEDGE, has a broad based multi-faceted technology deployment
initiative involving multiple partners including the Department of Defense, UVA,
VA Tech, and the Virginia Secretary of Technology. We will work to identify
manufacturers in our region who can benefit from these services and
technologies and work with GENEDGE to give these manufacturers access to
these new technologies.
MTC assisted in the hiring of a new Project Manager located on the Virginia
Tech campus with the expectation that the relationship between Virginia
Tech and industry will be enhanced.

D. Key Initiatives
The key initiatives for the Manufacturing Technology Center will be Sustainability,
Continuous Improvement, and Workforce.
Sustainability We will provide expanded services in the area of environmental
and energy conservation. Plans include utilizing existing staff and expanding
support to new clients. We will plan for twenty-four reportable client projects
during the three year reporting period.
Continuous Improvement We will continue to provide services in the areas
of Lean Manufacturing, Six Sigma Process Improvement, A3 Problem Solving and
Quality Systems Implementation. Plans include utilizing existing staff and third
party providers for these activities. We will plan for thirty-six reportable client
projects during the three year reporting period.
Work Force We will expand our network of partnerships to effectively promote
the tools and services needs to foster the development of progressive managers
and entrepreneurial CEO. The MTC will provide training and skill development for
the entire manufacturing operation. Plans include utilizing existing staff for
these activities. We will plan for 10 reportable client projects during the three
year reporting period.

E. Board
The MTC Advisory Board is comprised of representatives from the five
consortium colleges, four members at large, and three industry representatives
from each college region.

Element III: Performance Measures

A. Strategic Metrics
Metric

Year 1

Year 2

Year 3

$85,000

$90,000

$95,000

Number of clients
served

20

26

30

CORE score

80

82

85

Year 1

Year 2

Year 3

Total revenue

B. Operating Metrics
Metric

Gross bookings

$85,000

$90,000

$95,000

Gross billings

$75,000

$80,000

$85,000

Net billings

$65,000

$70,000

$75,000

$2,500,000

$3,250,000

$3,750,000

20

26

30

Client impact
estimates
# of manufacturers
served

Performance Levels

SECTION II BUDGET NARRATIVE AND FINANCIAL PLAN

A. YEAR 1 Budget (cash basis)
See Excel worksheet
Budget Narrative

Financial Plan Quality