SMART Prosperity Now Program Overview
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1 SMART Prosperity Now Program Overview
2 Overview SMART Advanced Technologies for Global Growth (ATGG)! Program Overview Assessment Funding Project Funding! Eligibility! How to Apply! SMART Criteria! SMART Process! Timelines
3 Program Overview! SMART Advanced Technologies for Global Growth is a program built around two components; an assessment component and project funding component.! The assessment component will further help companies assess the current state of operations and understand the barriers they face in the global competitive market. The findings from this assessment will allow companies to implement a project under the SMART ATGG project funding component.! Through the project funding component, companies can apply for capital investment projects that focus on improving productivity through adapting or adopting advanced technologies.
4 Assessment Funding! Companies participating in an advanced technology assessment will be eligible for funding up to 50% of eligible costs to a maximum non-repayable contribution of $15,000.! Assessments will be undertaken by qualified professionals (QSP) who will examine current manufacturing performance of a company and recommend how advanced technologies could be implemented to significantly improve the company's efficiencies and capabilities.! Companies must complete an application and submit a proposal from the qualified service provider (QSP) that outlines the assessment process, scope, timelines, cost of consulting fees including travel costs.! Notes: An approval for an assessment does not guarantee that a project will then qualify for funding This must be for future work and not for any assessments that have been previously done by the applicant. A final copy of the report must be submitted to SMART for approval and any final payment. All agreements for the assessment are between the applicant company and the QSP. The applicant company is responsible for making payments to the QSP. SMART will not make direct payments to the QSP.
5 Project Funding! Eligible projects must focus on improving productivity through adapting or adopting advanced technologies. Projects will be eligible for funding of up to 35% of eligible costs to a maximum contribution of $100,000.! To be eligible for SMART ATGG funding, eligible applicants must be exporters, planning to export, or selling into a value chain leading to exports.! Projects must clearly articulate how the project will adapt or adopt advanced technologies.! All applications must include a business case outline to identify why this project is necessary and how it will impact the current business.! A combined maximum non-repayable contribution per SME under the SMART ATGG program is limited to $100,000.! Previously approved applicants are eligible to apply for this new program.
6 Eligible Companies! Must be a manufacturer based in Southern Ontario per the census map! Must be an incorporated business (federally or provincially) continuously for 2 years or more and demonstrate financial stability.! Must have 15 FTE employees (minimum per facility) and 1,000 FTE employees maximum (combined facilities) in southern Ontario.! Demonstrate they are engaged in international markets (i.e. companies that export, are going to export, or are selling in a value chain leading to export.! Propose a project that focuses on adapting or adopting advanced technologies.
7 Eligible Projects! The following definitions are based on a Statistics Canada survey completed in 2007 and are meant to provide a framework for determining advanced technology investment. Advanced technologies continue to develop at a rapid pace. Advanced technology refers to a new technology that performs a new function or improves some function significantly better than commonly used technologies. Advanced technology includes information and communications technology (ICT) such as computer and network hardware, and software. Technology is broadly defined to include the technical means and know-how required to produce a product or service. It takes the form of equipment, materials, processes, methods, blue prints and knowledge.
8 Advanced Technology Definitions! Productivity assessments and projects that focus on adopting advanced technology, materials and processes, defined as follows: Design, Engineering and Virtual Manufacturing Technologies primarily including software or equipment technologies such as Computer Aided Design (CAD), Computer Aided Engineering (CAE), Computer Aided Manufacturing (CAM), modeling and simulation technologies, technologies for systems engineering, and rapid prototyping (3D printing). Processing, Fabrication and Assembly primarily including equipment and technologies that support advanced fabrication. Examples include Flexible Manufacturing Cells (FMC), Flexible Manufacturing Systems (FMS), Micro Electro Mechanical Systems (MEMs), reconfigurable systems lasers, e-beams, plasma Cutters and Sputters, robots, high speed machining technologies, injection molding, precision die casting, metal spraying. Inspection primarily including equipment and technologies that support inspection and testing. Examples include automated vision-based or sensor-based systems. Communications, Logistics and Supply Chains includes software and equipment technologies to support communications expansion within plants, buildings, enterprises or supply chains. Examples include LANs, internets, extranets (to manage suppliers, sub-contractors or customers), customer relationship management systems (CRMs), warehouse management system (WMS), Advanced Planning and Scheduling (APS), and Transportation Management. Automated Material Handling includes software and equipment technologies to support parts identification and tracking, automated storage and retrieval. Integration and Control includes software and equipment technologies to support manufacturing integration and control within plants and/ or operations. Examples include multi-axis machines, adaptive machine control (haptic or forced), process control software, supervisory control and data acquisition software and computer integrated manufacturing. Development and Implementation of Advanced Technologies or Product Development - the development and implementation of new technology (software or equipment) to support operational productivity or new product development. Manufacturing and control management primarily includes software or advanced practices to support improved manufacturing management. Examples include electronic work management, distribution resource planning (DRP), lean manufacturing, just-in-time manufacturing, manufacturing resource planning (MRPII) and enterprise resource planning (ERP). Quality management - primarily includes software, practices, and certifications to support advanced management. May be tied to equipment required to support certification. Examples include business certification (i.e. ISO), Statistical Process Control (SPC), Total Quality Management (TQM), six sigma and kaizen. Others other advanced technologies, including equipment, software and practices, that support advanced manufacturing. Examples include competitive technology intelligence (CIT), benchmarking, sustainable development strategy (incorporating advanced technologies), product data management (PDM) and product life cycle management (PLM), geometrics and geospatial technologies, remote sensing, the use of biotechnologies or nanotechnologies. pg. 8
9 Eligible Project Costs! Eligible costs include all expenses directly related to the project and deemed reasonable and necessary for its execution. This is an example of eligible costs and not an exhaustive list. Costs should be reviewed with your program advisor to avoid disappointment.! Costs may include: Plant equipment purchases, including software and equipment technologies that support manufacturing processes; Installation and commissioning of new equipment; Consulting Fees directly related and necessary to the project implementation. (industry standard rates only); Eligible costs must be for arm's-length purchases. pg. 9
10 Non-Eligible Project Costs The costs below can be included in your budget outline but will not be considered eligible for funding. This is an example of non eligible costs and not an exhaustive list. Costs should be reviewed with your program advisor.! Costs of land, building or vehicle purchase;! Refinancing;! Costs of intangible assets such as goodwill, whether capitalized or expensed;! Depreciation or amortization expenses;! Interest on invested capital, bonds, debentures, or mortgages;! Bond discount;! Losses on investments, bad debts and any other debts;! Fines or penalties;! Costs related to litigation;! Non-incremental wages;! Fees for administrators, including payments to any member or officer of the Board of Directors;! Travel, accommodations, meals and entertainment! Research and Development costs or prototype development and samples! Labour - internal! Materials! Construction! Media advertising! Media placement! Training! Shipping, transportation, postage or courier costs! Communication costs! Salaries and Commissions! All recoverable taxes! Fees for consultants to complete any portion of the SMART application process; pg. 10
11 How to Apply! The online submission process is currently under development. It will be available by January In the meantime, applications can be downloaded at funding/how to apply.! The following documents MUST be submitted with your request for funding: Completed copy of application form 2 years financials Business case for project application Project Costing Template NPV Calculation if not included in business case! All documents can be submitted to cmeassessment@cme-smart.ca until the online submissions are available.
12 SMART Selection Criteria! Applications will be evaluated based on their ability to meet the following criteria: Applicant s ability to achieve the expected results, as demonstrated by the competence and capabilities of the applicant s management team, it s commitment to the project. Projected economic and environmental benefits to Ontario, including the scale of reasonableness of the benefits expected from the project and interactions with other segments of the Ontario economy (e.g. through strengthening of economic clusters across the province). Creation of long-term employment and high-value jobs; Improved competitiveness and economic growth in southern Ontario; Accountability mechanisms are in place to ensure due diligence in completing the project and ability to report on performance measures; Expectation of success for the project, as demonstrated by the feasibility, clarity and specificity of the project plan; pg12
13 SMART Selection Process! Staff review of applications upon receipt.! Financial statement verification may be required.! SMART staff may call or visit applicant to obtain more clarity of project.! SMART staff will review project budget costs and identify eligible funding amount. Applicants should include any eligible and non-eligible costs to ensure the full impact of the project is shown.! Ranking and final selection by panel of industry experts recruited by CME. pg. 13
14 Timelines! Applications will be accepted beginning December 1, 2014.! SMART will only consider applications whose project and expenses have NOT started before April 1, 2014 and have less than 50% incurred costs at date of online application submission.! An incurred cost is the sum of actual paid costs. A deposit is considered an incurred cost. Delivery of capital equipment, whether paid in full or not are considered fully incurred.! Applications will be reviewed on a first in basis. Program Advisors will work with the applicants to ensure all relevant information is received. A decision for the application will be received within 45 business days.! All projects must be completed within 1 year of project approval or June 30, 2017, whichever comes first. It is important not to submit an application for a project that is too complex and will take longer than one year to complete.! All project activities must be completed by June 30, All final performance reports must be submitted no later than September 30, pg. 14
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