MFGx Blog : February 2008

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Did you like the last one? Well, check this bad boy out.

But first, a question ...

Do you share or otherwise exchange spreadsheets with your customers or prospects? If you do, you gotta push a click at www.Sheetster.com.

Look at what this rich app does (from the Sheetster Web site):

  • Featuring R3S(tm) (Really Simple Spreadsheet Syndication) Technology. Subscribe to Spreadsheet Cells using RSS!
  • Exports to true Excel files
  • Supports 180+ Excel Formulas
  • No more emailing Spreadsheets
  • Securely track and share lists
  • Upload and share existing Excel files
  • Embed Spreadsheets in BLOGs and Websites
  • Free BLOG and RSS Reader

Sheetster is free, but does require registration. But who cares? For a quick, practical, easy way to share Excel files with anyone anytime, Sheetster is flat-out wicked cool.

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OK, here's a really cool utility for engineers on the fly.

Have you heard of filemail? It's a new model that lets you upload any file up to 2 megs, to anyone with an e-mail addy. AND, you don't have to log in. Just select the file, plug in the recipient's addy, and send it. Brilliant. Simple and brilliant.

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It seems the Chinese are taking customer service and the user experience seriously these days.

A friend sent this picture to me yesterday from Shanghai. He said he'd encountered this contraption at the airport immigration booths when entering the country last week, around town at various businesses during his visit, and again at the airport when leaving.





It really gets me to thinking ... how serious are the Chinese to develop and maintain a focus on the customer? This is a remarkable thing - watching a society focus on others by soliciting feedback from customers.

At immigration. In the airport. In China.

Say, here's another thought - when do you think we'll see U.S. Immigration or Customs add these bad boys in L.A., New York or any other point of entry? And even if they installed them, do you think they'd use them?

And what about your business? In the face of dramatic, global competition and shifting price points within the supply chain, what rating would your business get from customers and prospects that visit your Web site?

Maybe the China syndrome for manufacturers has had a lot to do with price to this point. But if these little machines catch on, manufacturers in mature markets are gonna have a whole lot more to worry about than competing against China on just price.

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If you're an SMM (small-to-medium sized manufacturer) that's either participating in the aerospace/defense supply chain or wants to, you may want to check out the Supplier Excellence Alliance (SEA).

This organization is part association, part certification provider, and part consortium of powerhouse buy-side primes from the aerospace sector. Its purpose is to help SMMs improve their abilities to manufacture and service customers through improved manufacturing and business processes.

If you're seriously thinking about Lean, these guys may offer a viable option for you.

The SEA Certification Program is a comprehensive, two-step process that takes organizations through assessment, process improvement, and instilling lean principles to drive down costs. Certification is awarded, and annual audits are required to maintain certification.

But you have to see the SEA Partners to understand the viability of this program. From Boeing and Bombardier to Sikorsky, Textron and UTC, these companies participate and contribute directly to the SEA Certification curriculum.

The SEA Web site contains much to get you started, including case studies and a digital media center.

If you're looking to move your enterprise to a higher level of efficiency and looking to break into aerospace/defense, this should be added to your mix of alternatives.

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The past month has been a tough one for China's trade and manufacturing policies.

First, the World Trade Organization (WTO) issued a preliminary ruling against China in a dispute filed by the U.S. over duties on imported auto parts. The official ruling is months away, but sources confirm that decisions by the WTO are rarely, if ever, changed between the issuance of preliminary and official rulings.

See this coverage online:


Add to this ruling the fact that more complaints will likely be filed with the WTO in hopes of similarly favorable plaintiff rulings, and it looks like China is in for a scrum.
But wait ... there's more:

Also this month, the managing director of the International Monetary Fund (IMF) publicly urged China to ease exchange rate controls on their currency, to address international currency imbalances.

Pundits are suggesting that China may react by contracting to a more protectionist position, away from the WTO and IMF. Others suggest that it's in China's best interests to comply.

Either way, these events will likely takes months - well into 2009 - to play out.

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Reacting To The "R" Word

Posted by aj Feb 20, 2008

All of you old dogs who've been around the track a time or two know this already:

Whenever a recession starts, no one can agree on when it started.

The government wants us to think it never started. The media and the markets scream that it's already upon us. And so it goes...

Regardless of who you believe during these uncertain economic times, I stumbled on this extraordinarily good piece from Business Week's innovation and design guru, Bruce Nussbaum:

"10 Worst Innovation Mistakes In A Recession"

Now, some of these are going to sound like complete BS to many of you. But I encourage you to read not only the list, but also the comments from business owners, professionals, and experts that immediately follow this piece.

In total, it paints an interesting, inspirational, and perhaps surprising portrait of alternatives for manufacturers facing tough economic challenges.

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It appears as though the U.S. Air Force is shifting its intentions regarding who will get the massive $40-billion (USD) aerial tanker contract, reports Aero-News Network.

Originally, it was seen as a winner-take-all award between Boeing and Airbus.

But in Air Force Could Split Tanker Deal, Says Official (from Aero-News Network; document removed 02/26/08), USAF sources are quoted contradicting each other in a span of 6 months. They now indicate that in the 3 phases of the contract, the winner of the first phase may not win the second - or the third.

In August of '07, Sue Payton, Assistant Secretary of the Air Force for Acquisition, was quoted:

"Because we are trying to do so much, we don't have the money upfront that it would take to carry two or three (tankers) through development and then into procurement."

But this past Friday, the USAF's top acquisitions officer, Lt. General Donald Hoffman, told Bloomberg:

"They can say whatever they want, but we have three separate buys as our acquisition strategy at this point."

For more, see this piece from the Seattle Times (document removed, 02/26/08).

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Which Half Are You?

Posted by aj Feb 17, 2008

In December '07, a study examining the Global Value Chain strategies of small- and medium-sized manufacturers (SMMs) conducted by NAM, The Manufacturing Institute and RSM McGladrey was released.

Titled "Forging New Partnerships: How To Thrive in Today's Global Value Chain," it is well worth the read for any SMM. But according to the report, U.S. manufacturers need to read and heed this information the most.

Among its many findings is this startling nugget:

Only half of all U.S. manufacturers of any size have meaningful value chain strategies that will allow them to compete effectively in today's manufacturing environment.

That's right - HALF.

The report covers topics that comprise a holistic manufacturing worldview and strategy, such as global competition, overseas sales, the importance of a skilled workforce, and financing.

Odds are at least 50-50 that you should download this report and share it with everyone at your company.

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President Bush made it official on Wednesday (02/23/08), signing into law "The Recovery Rebates and Economic Stimulus for the American People Act of 2008," intended to, er, provide relief to the American people. Certainly, proponents and detractors will argue its merits in the coming months.

This'll add a twist to the "my daddy can whip your daddy" rhetoric of an election year, donchathink?

But manufacturers do get rather significant stimuli from this legislation through tax incentives for their businesses. The following links offer thorough explanations of them, and how they relate to manufacturers - in simple terms.


You may see this legislation as like putting out a forest fire with a squirt gun. Or you may dislike what it does to the debt. You may think it's just right.

But as a manufacturer, you should examine the options made more attractive through this bill.

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OK, so tell me YOU aren't thinking the same thing ...

Word is out today that India's Tata Industries and U.S. aerospace behemoth Boeing have agreed to form a joint venture to build aerospace parts in India. The main push of the agreement is for Tata to supply Boeing with manufactured components for defense aircraft (jets and helicopters) serving the U.S. and Australian militaries.

Reference this coverage:


Granted, this is likely a smart move for Boeing, despite how severely it's been maligned recently for its supply chain shortcomings (i.e., the Dreamliner). And it's certainly a sweet deal for Tata specifically and Indian manufacturing in general.

But isn't this a little soon to announce this, on the heels of the global brouhaha around Tata's cheaper-than-cheap automobile?
In case you've been living under a rock, read about Tata's "people's car" here, here, and here.

See this quote from the International Herald Tribune: "But the still-untold story of how the Tata car was built is less about big-bang innovations than about a long string of $20 trims: a steering-wheel shaft rendered hollow here, a small headlight leveler removed there, the use of an analog speedometer less accurate than its digital equivalent."

Here's hoping Tata doesn't "cross the streams" and apply its automotive chops to this defense parts manufacturing project with Boeing.

But if you're a fighter or copter pilot in training - or considering becoming one – wouldn't you at least think about this? I would.

Ah, well - such is life in the wacky, evolving global supply chain ...

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Talkin' Textiles (02/13/08)

Posted by aj Feb 12, 2008

Takin' a spin around the textiles manufacturing Web, we present for your edification ...

India's Plan to Challenge China as Textiles Giant
A report published yesterday from UPI Asia Online titled "India to challenge China in textiles," paints a remarkable picture - but not just of India's strategy and tactics to take on China as a textile powerhouse. It's also a well-written, succinct piece that describes the events leading to India's opportunity in the global textiles supply pecking order.

2008 Textiles Predictions
Around this time, everyone with a voice - much less a blog - professes their predictions for the coming year. Most are repurposed expectations or interviews with industry or otherwise specific experts. But "Eight apparel industry issues to watch in 2008 from just-style.com presents a compelling world-view of events that will likely affect not just the textiles industries - but many other manufacturing industries, as well.

U.S. Retailers Singin' Post-Holiday Blues
The impact of the U.S. economic uncertainty on textiles retailers is reviewed in "January chill ruffles retailers," also a published piece from just-style.com. Here, the actions several retailers including Talbots, Charming Shoppes, AnnTaylor Stores, Eddie Bauer and others suggest rough waters ahead for suppliers to U.S. textiles buyers.
MFG.com Launches Textiles Platform
MFG.com has launched a platform to serve the sourcing and supply chain needs of textile manufacturers and buyers. MFG.com Textiles went live earlier this month.

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You know what the trouble with vitamins is? Lots of folks can't see the benefits right away or soon enough for their tastes, so they abandon them too soon.

Same with New Years resolutions to lose weight or diet or get in shape - it takes longer to see the results than we'd hope, so many us just forget the whole thing.

Tell most young people about the importance of education, and they may roll their eyes. Or, if we're lucky, they'll nod their heads in agreement but not feel the same urgency as we do when advising them. That is, until later when the payoff comes.

It may be the same with you and your Web site.
As manufacturers, we're busy making things - or supporting those that do. We rarely think about what our Web sites are "doing" for (or against) us at any given moment.

But the fact is, there's likely someone looking at your site RIGHT NOW. And many of us are unaware.

"We've done the work," you or your colleagues or managers might say. "We've updated/improved/redesigned it. We're done."

And the results are likely something that aren't considered. We move on. Or forget. Or wait for some invisible benefit to occur.

In a recent article titled "Sparking Interest," engineers and marketing professionals that serve the electronics industry are interviewed about what they need from manufacturers Web sites.

If there's only one thing you take from it, it should be this quote:

"They're introverted, they're very technical, they love the Internet and they don't like salespeople," said Jeff Curie, VP-marketing at SupplyFrame, a vertical search engine for electronics components. "They really don't want you calling them and e-mailing them. They want to pull what they want, when they want it. Blatant marketing is a real turnoff with these guys."

Information about your equipment, your facility, and the history of your company are indeed important to some.

But as a potential partner or source to engineers and technically minded support professionals under deadlines, it's WHAT YOU DO WITH THAT EQUIPMENT, FACILITY, AND EXPERIENCE that count most.

Give examples of your work - not just pictures, but descriptions of why that part or service is or was so valuable to a customer.

By serving the wrong content - a marketing- or sales-flavored message - you're turning off the very audience you want to attract. And if you aren't getting as many contacts, prospects, or legitimate business opportunities through your company's Web site, maybe now you know what is likely the reason.

It's like working out every day, eating chocolate cake for every meal, and wondering why your still gaining weight.

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Some say it's too little, too late. Others applaud the latest economic stimulus package that passed in Congress last week It's expected that President Bush will sign the bill into law in the coming days (barring a meltdown in the Senate).

Much has been written about the rebates to individuals and couples. But what about manufacturers - is there any meaningful relief in this legislation for us?
Should the bill pass into law as written, there is a somewhat meaningful allowance to double the immediate write-off for capital equipment purchases (from $125,000 US to $250,000 US).

But maybe it's a little like trying to put a forest fire out with a squirt gun. This report from NAM paints a balanced picture of the US economy through the first two quarters of 2008, with the housing downturn capturing much of the negative ink.

But what's missing is any consideration of an unforeseen event - economic crises in another industry, the status of the US dollar, or (God forbid) another Katrina.

Manufacturers could indeed reap some rewards from this package (in the form of tax breaks and their positive impact on employment in the sector).

But it's best to keep our eyes on these developments and be prepared to contact our representatives should we find the tax break numbers begin to creep southward, as they often do after initial "happy talk."

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Super 20 = Super BAD

Posted by aj Feb 8, 2008

Ever seen the Superfactory 20 (SF20)? It's a list of what Superfactory has determined via polling are the top 20 public companies with the best lean manufacturing programs.

What you'll find on this page - beyond the list itself - are the SF20 stock performance listings (updated every hour), the SF20 average, and a comparative listing of the current S&P index.

(You're going to be impressed with the SF20's performance; it's also an interesting metric to measure manufacturing performance in the U.S.)

There's also a widget you can download for your desktop, and past performance of the SF20.

Anyone out there know of similar indices for other countries or more specific manufacturing industries? Send them to MFGx, and we'll pass them along.

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Impatience Is A Virtue

Posted by aj Feb 7, 2008

If you went into a store and approached a salesperson with a question, what would you do if she didn't answer? How long would you wait?

If you called a potential business partner on the phone with a critical concern, how long would you wait for an answer before moving on?

A recent survey from Lifestyles Online shows that when we submit a question or message through a company's Web site, we expect an answer - pronto.

According to the survey of 7600+ consumers regarding their expectations of response rates to online inquiries, we are not so patient as you might think.

Some quick findings:

  • In response to a specific product request submitted online, 49% expect an answer within 24 hours. 36% expect an answer in less than an hour.
  • 44% of those surveyed said they would wait 24 hours for a response before contacting a competing business with the same request. 42% said they would wait an hour or less before contacting someone else with the same enquiry.
  • 85% said if they didn't receive an answer to an online enquiry, they would not contact that business again.

Your Web site is more than a billboard or a marketing mechanism or a brochure. It is where prospective customers are looking at you without you knowing it.

And when they're ready to engage your business, they expect you to answer.

Quickly.

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More On The Advocacy Toolkit

Posted by aj Feb 6, 2008

In Jakob Nielsen's piece titled "B2B: Help Your Fans Convince Their Bosses," several points are made to support the "'your site as an advocacy toolkit" strategy.

This article is brief, but powerful - it's well worth your time to read it and pass it along to whomever in your organization influences Web strategy.

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How do employees buy things for your manufacturing business? Odds are good that there are approval processes that must be followed before someone can spend the company's money.

And the larger the value or more stress the purchase would put on the organization, the more stringent the justification process is to support that purchase.

In short, you gotta prove it's worth the cost or stay home.

But manufacturers face unique challenges to justify purchases or partnerships. Large expenditures like capital equipment or software can be both expensive and extremely stressful to the company.

So why is it that nearly every manufacturer's Web site I see offers up the same vacuous, lame, useless blather?

Once a prospect is on your site, they are looking for JUSTIFICATION to present to their bosses, supervisors, or to satisfy their own demands. They want a good reason to present that'll get your company on the short list.

But you probably don't give them one.

Instead, think about making your Web site an advocacy toolkit - one that offers prospects in the industries you serve good reason to pick you as a partner or supplier.

  • Brief, easy-to-read explanations of projects, processes and products you've made better or improved.

  • Detailed descriptions of services and logistical support aside from the actual product that your company offers, and examples of how they've translated to success for your customers.

  • Include all contact information for your company on each page and in each area.

Imagine your prospects assembling reports to justify selecting a company like yours. Imagine the information they would need from you and the formats that would suit a printed report, or even a PowerPoint presentation. Make it easy for them to print or copy what they find about you and use it to advocate your company as a preferred supplier.

There aren't many strategies better for you to use for your company's Web site.

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Overall manufacturing production in the U.S. expanded in January '08, according to the latest Report On Business from the ISM.

ISM's PMI rose 2.3 percentage points in January to 50.7%, up from 48.4% in December '07.

ISM: A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

While the report points out some contraction in certain industries such as Nonmetallic Mineral Products, Printing and Related Support Activities, and Textile Mills, growth in others pushed the index up to begin '08 on an overall positive note.

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