Re: Why is the Automation market declining?
Oct 31, 2000 9:53 am, by David K.
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There are many interesting points and replies to this subject. It was disheartening to read the initial report showing my industry heading downhill just as we are entering a new revolution of technology. I remain cautiously optimistic. On one hand, the technology available can make better, more efficient manufacturers. The internet will never make razors, or cars, or barbecue grills, so manufacturing will always be a necessity. On the other hand, I have seen, especially in the automotive industry, many customers that are slow or even unwilling to accept new improvements to their plants. "It ain't broke, don't fix it" is soon followed by "Why are the Japanese building cars at such a high efficiency rate." As mentioned in the article, I have too many times seen short sighted business plans of cutting R&D and development spending to just maintain the plant a while longer. Many senior executives are just on a step waiting to move up so they look for short term gains, fat cutting, and good returns to get their next promotion. A new platform PLC5 is a vast improvement in programming and troubleshooting over a PLC2, yet how many PLC2s out there are still running - like the article says, the plant will continue to run and produce product, so how do you convince them to adopt new ideas and technologies? I hope that some of the optimistic views expressed here are passed on to plant management, and for all of you working in plants, please consider this: The technology is here to make a quantum leap in manufacturing, increasing flexibility, efficiency and reducing costs to consumers. You can make your products better and more affordable if you take a far sighted approach to embracing the new revolution of information and automation systems. I hope that this cry doesn't fall on deaf ears, both for the sake of my engineering and integration services and for the benefit of American manufacturing and the economy as a whole. (stepping down off my soap box)
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• Re: Why is the Automation market declining?
  Nov 1, 2000 2:31 pm, by Jim Pinto
  David K. e-wrote : >I hope that some of the optimistic views expressed here are passed >on to plant management, and for all of you working in plants, >please consider this: The technology is here to make a quantum leap >in manufacturing, increasing flexibility, efficiency and reducing costs >to consumers. You can make your products better and more affordable >if you take a far sighted approach to embracing the new revolution of >information and automation systems. Jim Pinto, uncomfortable that his original article is seen primarily as a negative warning, writes : I am delighted that David has presented this response! The industrial automation business serves Customers (the end-user) through bringing increased Productivity. Everything else is incidental! David K continues : >I hope that this cry doesn't fall on deaf ears, both for the sake of >my engineering and integration services and for the benefit of American >manufacturing and the economy as a whole. Jim Pinto : Thank you, David - I must tell you that I have had a lot of personal feedback that presents the positive and hopeful side! It is my belief that growth is indeed coming - through agile and innovative new companies, who see what is needed and are utilizing new technology to bring results for their Customers. These are the people who succeed! Cheers; jim ----------/ Jim Pinto email : jim@jimpinto.com web: www.JimPinto.com San Diego, CA., USA ----------/
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• Re: Why is the Automation market declining?
  Nov 1, 2000 2:30 pm, by Anthony Kerstens
  One thing I've seen (in automotive companies) is an attempt to follow the Japanese model of team and "employee empowerment". Such methods require a high commitment, not just from management, but also from the employees. Some of the automotive companies that I know of that attempted this met with little success. In fact, going down this particular garden path diverted attention, resources, and funds away from the task at hand and the bottom line. I wonder if this sort of thing is a contributing factor to decline in the automation market? If it is, how important a factor? Anthony Kerstens P.Eng.
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• Re: Why is the Automation market declining?
  Nov 3, 2000 7:54 am, by Jim Pinto
  Anthony Kerstens suggests : >One thing I've seen (in automotive companies) is >an attempt to follow the Japanese model of team >and "employee empowerment". >I wonder if this sort of thing is a contributing >factor to decline in the automation market? If it >is, how important a factor? Jim Pinto comments : I am surprised that Anthony thinks this might be a contributing factor for *decline* - rather than growth! Indeed, the age of the web-communications (personal email, B2B, B2C) is the age of employee empowerment! People who have NOT empowered their employees have suffered badly! The high-growth, high-tech companies (CISCO, EMC, HP) could not survive without employee ownership and empowerment! Jack Welch of GE (although he was known as "neutron Jack" - eliminating lots of people) converted GE from the stuffed-shirt syndrome to an empowered leader. The people who could not or would not take charge were eliminated. Anthony is right about this : >Such methods require a high commitment, not just >from management, but also from the employees. Jim : Absolutely - commitment from both sides! Empowerment is people "taking responsibility" for their own work and results - and unfortunately, some employees just don't seem to be able to do that! Anthony : >Some of the automotive companies that I know of that >attempted this met with little success. In fact, >going down this particular garden path diverted >attention, resources, and funds away from the >task at hand and the bottom line. Jim : IMHO - the programs of employee-ownership for major companies such as GM, Delta, United and others - have saved those companies from going downhill. Japanese "empowerment" was an extension of their earlier "lifetime employment" which was not successful. Employee-ownership and empowerment was originated in the United States. Cheers: jim ----------/ Jim Pinto email : jim@jimpinto.com web: www.JimPinto.com San Diego, CA., USA ----------/
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• Re: Why is the Automation market declining?
  Nov 7, 2000 8:21 am, by Sam
  Hmmm. I don't see it that way. Not that employee empowerment doesn't make some sense, but I don't see it as the key to success in the "new" e-commerce world. I would argue that B2B and B2C is primarily software marketing hype. Check out the companies in that sector. Check out how the overwhelming majority of companies are doing supply chain management. Note the fact that there is not a clear standard for B2B and B2C. Vaporware and hype. EDI is still the prevalent form of inter-company transactions. The web provides a better way of viewing downstream forecasts, but it is still not linking the supply chain. Cisco has a unique business model. I don't see employee empowerment being the key to what their doing. They extend their enterprise systems into their supplying plants. I think automation is more affected by cheap labor than it is modern management techniques. From: Jim Pinto : Anthony Kerstens suggests : >One thing I've seen (in automotive companies) is >an attempt to follow the Japanese model of team >and "employee empowerment". >I wonder if this sort of thing is a contributing >factor to decline in the automation market? If it >is, how important a factor? Jim Pinto comments : I am surprised that Anthony thinks this might be a contributing factor for *decline* - rather than growth! ....
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• Re: Why is the Automation market declining?
  Nov 3, 2000 1:36 pm, by Anthony Kerstens
  The question I tried to ask, but perhaps not so clearly, was about the _attempt_ by companies to follow the Japanese model. Jim, let me restate my question: I wonder if the attempt and subsequent failure to implement management models (not necessarily Japanese) is a contributing factor to decline in the automation industry? In one specific example I can think of, a significant amount of training, reassignment of resources, and expenditure of funds led to dismal failure. Why? Not because the Japanese model was bad, but the implementation was not met by the commitment required. There was not just a lack of commitment, but general hostility toward those that showed interest. The subsequent failure in fact made the situation worse. Jim, you mention specific successes. Are there any failures, and how big an affect did they have on the automation industry? Anthony Kerstens P.Eng.
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• Re: Why is the Automation market declining?
  Nov 7, 2000 8:22 am, by Jim Pinto
  Anthony Kerstens restated his earlier question : >I wonder if the attempt and subsequent failure >to implement management models (not necessarily >Japanese) is a contributing factor to decline >in the automation industry? >In one specific example I can think of, a >significant amount of training, reassignment >of resources, and expenditure of funds led to >dismal failure. Why? Not because the Japanese >model was bad, but the implementation was >not met by the commitment required. There was >not just a lack of commitment, but general >hostility toward those that showed interest. The >subsequent failure in fact made the situation worse. >Jim, you mention specific successes. Are there >any failures, and how big an affect did they have >on the automation industry? Jim Pinto responds : Yes, there has been a lot of re-alignment and effort at re-organization to develop employee ownership and empowerment. I am sure that this indeed absorbed a lot of resources. However, I cannot think of any failures that resulted specifically from this effort and wasted resources in this type of involvement. Off-line, I received one wise-crack (at least I think it was a wise crack, and not serious) that "employee-ownership" was not an American idea - it was invented by a German (presumably Karl Marx) and implemented by the Russians (presumably Communism). Seriously, there is a subtle and significant difference between "collective ownership" and "employee-ownership". The former reduces emphasizes the "collective" - the State; the latter emphasizes the individual Employee-owner, who becomes individually responsible and accountable. As you can tell, I am passionately in favor of individual-empowerment and employee ownership! I have seen significant success, (and admit that I am probably blinded to the failures). <soap-box on> I strongly advise Engineers everywhere to rise up, and demand stock options, ownership and equity-sharing plans! Or else, start your own company! <soap-box off> Cheers : jim ----------/ Jim Pinto email : jim@jimpinto.com web: www.JimPinto.com San Diego, CA., USA ----------/
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