MFGx Blog : May 2008

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Assembly Line Students

Posted by aj May 30, 2008

Anyone in the U.S. with any passion for manufacturing (or technology, for that matter) strongly questions the overall condition of our education system. We're no exception.

But the problems are numerous and solutions complex - there just isn't one magic bullet to fix what ails us. Manufacturing depends on bright, energetic, and curious talent to thrive and allow us to compete.

Heck we all know that, right? But I came upon a post today that really got me thinking about it in a different way.

Over at Grockit, "Schools Make Students Like Factories Make Cars" makes an interesting comparison of how we turn out students with how we make cars.

In the early 1900s, the number of schools in the country was cut in half. Any guesses as to why? This was the mass movement from single room schoolhouses to larger city schools. The idea was that if factories could improve quality and quantity of manufacturing, so could schools. Instead of teachers being facilitators of a classroom where students taught each other, they became the factory worker, the school the line, and the student the car making its way down the line.
The post goes on to stress for education what Demming screamed to the auto manufacturers decades ago - improve quality.

Demming argued that equipment must be constantly checked to be within a tolerance. At the end of the line you get Toyota cars that all work to the same exact specifications with almost 100% quality. The analogy is this. If cars were made like we make students, they would come off the end of the line and some would work and some wouldn't and we wouldn't know where things went wrong. The cars that came off the line non-functional wouldn't be fixed, they would be shuffled off to places where functional cars aren't really needed. Without metrics measuring the delta of a student's learning before and after said 'learning', we are left with a system that shuffles students down a line and out the door. Some work, some don't. Nobody knows where (it) went awry.
I'm still convinced that factors other than the "system" need some repair. And no Toyota will ever conduct the Philadelphia Philharmonic or repair a child's cleft palate. But I haven't heard many solutions lately that make this much sense.

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More Collaborative Tools For SMBs

Posted by aj May 27, 2008

Here are a couple of online, low-cost collaborative tools for you to use with clients or colleagues. These may not be the most secure or elegant solutions, but for personal use to support your work, you may want to check these out:

  • ADrive - ADrive offers up to 50GB of storage space for your documents and files. While it's touted as an online backup for your hard drive, you can share your files with anyone. Adrive is free after you create an account.
  • Tweetcube - Do you Twitter? Many are flocking to the real time networking site. Tweetcube allows you to share files of up to 10MB in size through your Twitter account, and deletes them after 30 days. Tweetcube is also free with registration.
  • SnapYap - OK, the name may sound odd, but Yahoo was already taken, OK? SnapYap is simple: plug in the e-mail address of anyone you want to video conference with, they're notified to meet you online, and you're squawking together in no time. Absolutely free.

Shout out: Robin Good.

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Supply Chain Management For SMBs

Posted by aj May 24, 2008

I recently had the pleasure to meet Chris Norek. He’s a Senior Partner at Supply Chain Connectors, a consulting firm for small and mid-sized manufacturing businesses (SMBs). In the short time I spent with Chris sharing a drink at a neighborhood watering hole, I learned 3 very important things:

First, he’s tall. I’m not, so you may not think so. But he’s playin’ the paint, as far as I’m concerned.

Second, he’s smart, credentialed, and well heeled. He’s been around the heavyweight academic and corporate blocks, leading up to a Ph.D. in logistics and transportation from THE Ohio State University.

Third, he’s pragmatic - which you don’t often find in consultants, much less those of the supply chain variety.

I get passed a lot of articles from authors looking for a plug. Chris e-mailed me with a link to an article that he and some colleagues (Wesley Gass, and Thomas Jorgenson) wrote for Supply Chain Management Review (published this past March).

SMB? You Can Transform Your Supply Chain, Too is a wonderful piece that any SMB should take the time to read and digest.

The article lays out the challenges that all SMBs face with regard to supply chain management:

  1. Decentralized Supply Chain Organization
  2. Lack of Economies of Scale
  3. Lack of Consistent Business Processes (which likely relates directly to #1)
  4. Supply Chain Technology Concerns
  5. Ability to Attract Top Talent
  6. Lack of Significant Capital for Investment

Fair enough. Many consultants (and bloggers, publishers and pundits, for that matter) do a great job of pointing out the challenges. But where Chris et. al. distinguish themselves is in describing in lucid terms what can advantages SMBs have to overcome those challenges:

  1. SMBs can use the supply chain to keep acquiring companies at bay
  2. SMBs can use outsourcing to expand geographic coverage
  3. SMBs have greater flexibility to implement supply chain management

The article goes on to offer advice on when and how to adjust internal processes to capitalize on the agility that SMBs can leverage as an advantage, compared to larger enterprises encumbered by bureaucracy and mass-in-motion.

Chris and his peeps are involved in a 3-day event at Georgia Tech University called Developing Supply Chain Strategies for Small and Medium-Sized Businesses. This is an event that any SMB – particularly SMBs in the manufacturing space – should consider to get their supply chain management house in order.

Growth across borders and disciplines is imperative for manufacturers of any size to survive these days. These cats are an awfully good place to start, or to up your game in the paint if you think you’re already there.

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Solutions In Search Of Problems

Posted by aj May 23, 2008

I'm an unapologetic Doug Hall fan. For just one reason why, check out this previous MFGx post.

I'm also a fan because he's a creative inventor, honest to a fault, rabidly passionate about manufacturing, and he is anything but afraid to get in your grill and challenge a concept until it's proven correct - or not.

His latest invention - Planet Eureka (named after his famous Eureka Ranch in Ohio) - is an "innovation marketplace" that's less original in its concept, but more so in its approach.

PE.gif

Most innovation marketplaces connect companies or organizations looking for creative solutions with those that can provide them - scientists, engineers, and other technologists and professionals. Here, it takes two to tango in a common formula - "seekers" looking for "providers."

But the Planet Eureka (PE) model is different in that "Providers" (inventors, companies, and entrepreneurs) post their solutions and the "Seekers" engage based on their needs.

What's so cool about the PE model is it looks to protect the provider in the process via Access, Translation and Valuation.

Like its other innovation brethren, PE offers access to inventors or companies - they ALL do that, pretty much. But PE also provides translation of inventors' ideas into language that businesses can easily understand. PE also provides advanced valuation services that help both parties realize the solution's commercial potential.

For any manufacturer with advanced capabilities or processes, this model and its counterparts offer opportunity and inspiration.

Leave it to Doug Hall to turn the tables and shake things up.

Other Innovation Marketplaces:

Props: Innovation Marketplace Helps People With Good Ideas Find Problems from Marianne Kolbasuk McGee @ Information Week

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Get Your Mill On, Yo

Posted by aj May 22, 2008


For the second time in as many years, Mori Seiki - the venerable Japanese machine tool monolith - is putting on its "Innovation of the Americas machining competition.


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The competition is open to machining professionals in North, Central and South America, and is intended to showcase the people behind "...the most intricate cuts, the most challenging materials, the most inventive parts."

The contest is "open to all individuals, companies, schools and research institutes involved in metalcutting, (and) this contest has one requirement: each entry must be processed on a CNC machine tool."

Winners will be chosen from 4 categories:


  • Aircraft/Aerospace - Featuring innovation in aircraft and aerospace components
  • Automotive - Featuring innovation in automotive components
  • Die/Mold/Artistic - Featuring innovation in die, mold and artistic components
  • General/Tool/Toy - Featuring innovation in general, tool and toy components

Winners get a boatload of prestige, a trip to Chicago for IMTS 2008, and more.

If you cut metal - and you're really, REALLY good at it - you're gonna want to look into this. But make it snappy - Mori Seiki must receive all entries before June 30, 2008.

Details of the contest can be found at the Mori Seiki Web site.

And for some visuals on the 2006 winners, take a gander at them over at MMS Online.

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The confluence of the virtual world on linear manufacturing continues to point us toward great rewards, and great uncertainty.

Recently, we've presented some interesting (and very real) influences that are gonna change the manufacturing supply chains and marketing channels as we know them (see here, here and here).

Another case in point: Double Happiness Jeans (DHJ), a "telematic manufacturing" business (as they call it) housed on and run through the virtual world Second Life.

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The New York Times covered the Double Happiness debut at the Sundance Festival earlier this year. Here's the NYT's description of what DHJ does:

Stephanie Rothenberg, a new media performance artist, and her collaborator, Jeff Crouse, a digital artist and programmer, started Invisible Threads (parent "company" of DHJ) a year ago while at Eyebeam, an art and technology center in New York. Invisible Threads is intended as art, but they see it as a window into so-called telemetric manufacturing methods of the future.
The jeans are being shown and sold for the first time at Sundance, in a beta version. Customers tell the Invisible Threads staff the size and style of jean they would like, the instructions are sent to the virtual factory inside Second Life, where workers push buttons that generate an image. From that image, a pattern is created and sent to an industrial printer, made by Hewlett-Packard, which spits out the custom-printed canvas cotton patterns. The patterns are then cut and assembled on the spot (at a Sundance Festival venue, that is) with a glue gun and a little stitching for reinforcement. They cost around $35.
The margins are pretty good. The Invisible Threads "factory" has sixteen workers, who are paid 200 Lindens an hour (Lindens are the currency of Second Life) - about 90 cents, which is pretty good pay by Second Life standards. Factory workers are also granted 500 square meters of Second Life "land" on which to build a house.
(+There are many photos of the entire process at the DHJ Web site.+)
While there are real people behind the sales and operations of DHJ, technologies are leveraged to truncate those processes - as well as the actual design and manufacturing of the product - in ways that turn the supply chain and customer experience on its collective ears.

Imagine your own company's interactions with prospects and customers, and how these relationships will change as Second Life, avatar marketing, 3D printing, and on-demand manufacturing principles make their way into the manufacturing mainstream.

Now, imagine your own relationships with your suppliers. What demands will you make of them when you know order time, design processes and costs can be greatly reduced through these technologies? Will you accept the status quo?

This change will come neither with a bang nor a whimper. It never does with manufacturers - most of us, anyway. The signs will all be there, and when they are forced on us we'll act as though we never saw it coming.

Pay attention. Listen to your kids and the smart, energetic youth whose talents we'll need as manufacturers to take advantage of these emerging markets and evolving channels for doing business.

Ignoring the virtual future may come back to bite you in the actual behind.

For more on businesses that market, communicate and manufacture on Second Life, visit The Business Communicators of Second Life.

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You got no fear of The Underdog, that's why you will not survive. - Spoon
You might remember Illuminati Motor Works (IMW). They're the Illinois underdogs that are competing for the Automotive X PRIZE (AXP), a $10-million (US) prize for building a 100-mpg car. Against the odds, they made it past the initial round to "official" status. We wrote about this fantastic group of 5 Midwestern manufacturing messiahs a few months back.

IMW have little funding to speak of. They have even fewer sponsorships (which is to say, "none"). Like the best among us in manufacturing, they are fueled by equal parts of inspiration, passion, altruism, and a ton of smarts.

If you want to dig deeper into the personality of this group and get to know their motivations, check out their blog. If you read that and aren't convinced of their resolve and commitment, then you have a screw loose.

US manufacturing is in a state of flux right now. We are evolving at a swift pace toward an odd, unfamiliar landscape and set of rules. As we are forced to adjust to expanding supply chains and business acumen, something is getting lost that led the best of us to manufacturing in the first place:

The very personal passion for altering the physical world to make things that solve problems.
IMW is outgunned. Their competitors have more money, more resources and heavyweight sponsors.

Give 'em a shout, some encouragement. Slip 'em a few bucks. Tell your friends about them.

The underdogs are usually where innovation is born. Let's help give 'em a fighting chance.

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Do YouTube?

Posted by aj May 10, 2008

Videos presented on machining and manufacturing Web sites vary wildly in both quantity and quality. Don't believe me? Take a trip around the Manufacturing Web and tell me what you find.

Granted, some are pretty good (mostly on capital equipment manufacturers' or other big boys' sites). But the vast majority of what little you can find shouldn't be.

A big part of the problem is MIP (Manufacturer's Internet Phobia). This is a condition that afflicts many managers, presidents and owners of small to mid-sized shops and plants that are on the cusp between their kids that can setup a LAN with their eyes closed and their parents who still marvel at the first time they saw the Smothers Brothers on color TV.
Videos can be incredibly valuable in presenting your value as a technology and service partner. They can also go a long way in differentiating you from your competition.

But the question for MIP sufferers is: How do I create and manage videos efficiently and do my business justice?
Answer: Have you thought about YouTube?

Obviously, many manufacturers haven't. Check out these search results from YouTube a few days ago (keyword/phrase – results):

  • Machining – 174,600 (looks impressive until you start finding Jimi Hendrix "Machine Gun" and Rage Against The Machine clips on the 3rd SERP
  • High Speed Machining - 100 (much cleaner results, but c'mon – 100?!?!)
  • Gear Hobbing - 8 (including a House Of Blues reference)
  • Machining - 122 (not as bad as you'd think, but just know there aren't a lot of Davenport references)

YouTube isn't the place where your customers are going on their own to research in ways meaningful to you. There's too much "space junk" to make it a valuable research channel for your prospects.

Instead of producing and hosting your own videos on your site or posting random videos on YouTube hoping they're found in the haystack, consider creating a Channel on YouTube.

It's easy to create (create an account on the YouTube home page) and your profile page is your Channel. Give it your company name, and start uploading videos of the processes you're best at. As your collection grows, link to it/them from your own Web site – both as a collection (click here for videos) and individually (click here to see this turbine blade machined).

Following this advice is free, effective (by linking to it from your site, you increase the value by sending prospects to videos in context to their research) and it's easy (no hosting or other technical requirements).

Related Link: Joining the YouTube Community – And Creating Your Own Channel

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This is the title of a really good forum post on MFGx, and it's a great question that deserves to be debated.

In my opinion, the question posed is valid, because the vast majority of manufacturers don't understand branding at all. Marketing and promotion are "black arts" to manufacturers as much as feed rates, multi-axis machining techniques, and cellular manufacturing are to "marketers."

From my experience, the causes are easy to understand but complex to solve:

  • Branding by and to manufacturers is different - The elements of "branding" that are most obvious in our culture (logos, slogans, etc.) resonate really well with the consumer in us, but they don't work well to solicit strong behavioral response from manufacturers with precise, explicit, tangible needs. I mean, think about it: "Looking for high-tolerance, complex geometrical product solutions with the most exotic materials for advanced weapon or aerospace applications? Well, we're the bomb!"
  • There are few examples to follow - Consumer Marketing has become so prevalent, that that's all we see and have to use as examples. Manufacturer's Web sites often go for the shallow, and ignore the detail that most buyers of their services are looking for.

But maybe you think I'm all wet, or worse. Jump in this discussion. Defend yourselves. Share your thoughts.

So, what do you think? Do manufacturers truly understand brand development?

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MFGx offers manufacturers the chance to Buy & Sell equipment, tools, materials and more. Whether you're looking to clear out that shop floor or looking to pick up a great deal, you can post or browse MFGx anytime throughout the New Year.

Check out the following categories:

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MFGx Forums

Posted by aj May 10, 2008

It's been said that "It is better to debate a question without settling it than to settle a question without debating it." +Joseph Joubert, French moralist and essayist+

You'll find some lively, stimulating exchanges in the forums on MFGx. To wit, these offerings for your participation:

  • Open Source Everything? – Open source is more than a fad; it's more liked a movement, comparable to outsourcing on steroids. But, as everything shouldn't be outsourced neither is everything benefited by an "open source" model which allows a community to create or improve a product, process or concept. What are your thoughts, and how might "crowdsourcing" impact manufacturing in the future? Might is disrupt supply chains and the services they serve OEMs and buyers through? Jump in the pool and weigh in with your two cents.
  • What's Up With The Automotive Industry? – The question is posed: is the US automotive industry moving toward a less influential position of influence in our (and the global) economy? Has it become so myopic and staid that other sectors – like aerospace and medical – are poised to supplant automotive as the driving force of manufacturing innovation and commerce? That's a good question – share your insight and experience.

For more, visit the MFGx Forums Home and share your thoughts.

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A friend of mine and I were talking recently about the state of the education system in the U.S. We focused on the real problems with the public schools and - with laser-like efficiency - concluded that there's only one thing to do about it.

Nothing.

It's easy, we figured, to blame the education system itself. So close to the problem, and so easy. Politicians have the perfect scapegoat, and the proletariat scarfs it up Pall Mall.

But the problem isn't the school system's or the Department of Education's so much as it's a cultural problem.

Think about it - the culture parents (or lack thereof), street, cred, peers, and media - all add up to a potpourri of posturing and quick-fixes, that feeds students into the system that are looking for the "wow" as opposed to the "how."

OK, I know what this sounds like - another old curmudgeon looking for an axe to grind. Maybe I'm guilty, but we (my friend and I) have a point.
So, maybe that's the real cause of the lack of qualified, quality employees in manufacturing these days. Time after time, I hear manufacturers complain about that more than anything (except for maybe China and the U.S. government). And the question always is, "why don't they do something?"

The answer is, we opined, that "they" can't - "we" have to. If parents and our culture - and, yes, our education system, too - doesn't put more of a premium on the importance of the "how," we may wanna just pack it in.

In the future of manufacturing, regardless of how automated manufacturing becomes, design will become that much more important. And that requires just as much "shop smarts" as anyone running a Davenport or setting up a Hitachi Seiki needs today.

No association, no department, no institution or "system" can be responsible for what it gets. To expect them to churn out people different than it receives is impractical and just plain naïve.

Sure, provide more options for students that aren't suited for college. Give them the channels to express their talents - more "trade schools," for example. And update the curricula to modern, realistic standards.

But "they" ain't gonna make a silk purse from a sow's ear.

For what it's worth, my friend and I think the culture has to take responsibility, too.

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As you may have read here on MFGx and around the blogosphere, the competition between Airbus and Boeing to build aerial refueling tankers for the U.S. has been fierce.

Now, Airbus has stepped up with a bold announcement (see Airbus Sweetens The Deal and associated links) - if they win the tanker contract, they will, in fact, move substantial production of other aircraft to the U.S. (Alabama).

It's extremely important for aerospace manufacturers to keep an eye on these developments, because there will be ample opportunities for savvy manufacturers to enter the emerging supply chains established from these moves.

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Flipped Out

Posted by aj May 10, 2008

Let me tell you about a new product (new to me, at least) that offers many small-to-medium sized manufacturers a fantastic opportunity to market themselves more effectively.

Mitch Free, CEO/Founder of MFG.com, loves his gizmos. If there was a stronger word than love, I'd use it and not be exaggerating. When Mitch gets a hold on any new tech-toy, he's done. Imagine the excitement of kid on Christmas morning, mixed with the concentration of a neurosurgeon - that's Mitch in that zone. He just absorbs these things.

So, Mitch stops by yesterday with the latest object of his affection, the Flip. It's a point-and-shoot, stupid-simple-to-use video camera. About the size of a cell phone. Brilliant user experience. Looks really cool. Records up to 60 minutes of video/audio. Its name comes from the USB plug that "flips" out of its side. Plugs right into your computer, or any USB-enabled device.

Mitch made a 10-second clip of me. Plugged the Flip into his laptop, D&D'd the file, and played it. I was astonished at the quality of the video and audio.

Pure Digital, the company that makes the Flip, has been around for a few years. They introduced the Flip in May of '07. It sells for $149 - $179 on its Web site. I found a top-end Flip for $149 on Amazon.

The importance of this product to manufacturers is this:

Many manufacturers either don't have the time, resources or ability to create quality video of their processes, capabilities and products to complement their Web presence. Or enable their sales or support staffs in the field to share videos. The Flip heralds a moment in technology when you can record effectively and efficiently and share or post those videos easily - regardless of how comfortable you are with the medium.

Record processes or facilities or interviews with a Flip, post videos to a channel on YouTube, link to them from your site. Simple, quick, and all for less than the cost of a weekend at a Holiday Inn.

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A while back, MFGx posted "Do YouTube," which presented an alternative for manufacturers, shops and plants without advanced resources to present videos online to support their marketing efforts.

Since YouTube is the Web's most popular video site, it just makes sense to reflexively point to it first.

But there are other alternatives to YouTube. Despite it's popularity, there are well-documented issues with the quality of videos streamed there. Also, as far as manufacturers are concerned, there isn't exactly a herd of manufacturers that you'd care about visiting the site regularly.

Not that there are any sites dedicated to videos for manufacturers. And that's a shame.
But there are alternatives to YouTube you may want to look at. They have slightly different models, communities and higher quality. None attract hoards of manufacturers (yet), but check 'em out anyway:

  • [AOL Video|httmotion - Europe's YouTube. If you covet that market, maybe this could work for you.
  • Metacafe - Never heard of it? This is actually the second most-visited video site behind YouTube. Worth a look.
  • MySpace - Yeah, I said it. You don't have a MySpace page for your business? You should. Load it up with info about your company (and, yes - videos, too) and link to your Web site from your MS page (and vice versa). Not only will MS host your videos, you'll also improve your Web site's posture by cross linking between the two.

It bears repeating: manufacturers must embrace the Web - it's just not going to go away. It's where your prospects are going to research their options. It's where they go to find you.

And video has become too easy to create and post to make excuses for not doing it any more.

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We recently wrote about CSR and its ultimate importance you manufacturers at every level.

A few days back, the CSR Supply Chain Summit was held in Shanghai. The event is compelling enough, what with the recent PR (2007) on China products.

But the companies that presented their CSR strategies in Shanghai are the story here. These companies are serious. And their commitment is focused to help their supplier base reduce the damage that PR has done to their (and other) brands.

Bayer Healthcare. Nestle. Eaton. These are not just companies that can talk CSR - these are companies with skin in the game.

Check out the notes from the CSR event in China. Look for what qualities and strategies equate well with your business.

Now's the time to embrace this movement, not later.

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Some in the press and blogosphere have commented recently on the confluence of economic, governmental and social factors that could lead to a significant shift of work from China.

For a couple of quick examples, see here and here.

In this article from Supply & Demand Chain titled "2008 Global Trade and Supply Chain Predictions," the shift continues to get ink. Check out this excerpt:

Sourcing Shifts from Asia to the Americas: Coinciding with the 2008 Summer Olympics in Beijing, media attention will focus on China as the world's next potential "bubble" and cause many manufacturers to shift sourcing strategies from Asia to the Americas. The falling U.S. dollar, limited free trade agreements, high energy costs and rising production costs in Asia will all contribute to companies reevaluating extended supply chains and moving sources closer to their home markets. In addition, shareholders and board members could question their company's reliance on China and the Asia region should any further negative headlines arise regarding quality issues or if China receives bad press on the handling of protestors (sic) and dissidents prior to the Olympics. While opportunities still exist in Asia, Mexico will become an increasingly popular source for manufactured goods as companies compete on time-to-market strategies, seek financial advantages found in Mexico's multiple free trade agreements and capitalize on Mexico's investment incentives, streamlined customs processes and abundant English-speaking workforce.
As noted, this isn't a long-term shift; other low-cost countries are sniffing up China's exhaust and gaining ground. But this shift is real, and offers manufacturers in more mature manufacturing economies real opportunities to get business back, or restart relationships with buyers.

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Online Tool To Rank Your Site?

Posted by aj May 10, 2008

File this under Friday fun time:

Want to see where your site ranks on the search engines? Get a sense of how many backlinks there are to your site? Then you need to visit:

Xinu Returns

Just plug in your URL (or any URL) and you're on your way.

Couple of drawbacks: It's a Spanish site, so checking your indexed pages on Google takes you to google.es (it's easy to switch, but still ...) and some of the search engines register only sporadically.

But Xinu does a cool job of validating coding on your site, and it actually grades your URL and title, keywords, and description code for effectiveness.

Nothing's perfect, but this is a great idea, fairly well executed.

Shout Out: Thanks to Peter08, an MFGx community daddy-o, for the tip.

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MFGx Forums Updated

Posted by aj May 10, 2008

The MFGx Forums platform has been updated and improved. You'll find topics covering Manufacturing, Design, Sourcing and more. Check 'em out, ask or answer a question, and give us some feedback.

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In "Impatience Is A Virtue," we reported on a survey conducted recently in Europe that shows the vast majority of people that submit requests to a company online expect an answer in 24 hours or less.

Your customers are no different. As a matter of fact, it's not unreasonable to surmise that they are even more impatient than that - likely a LOT more.

Think about it - the referenced survey was conducted across a collection that included a lot of consumers. While they are likely very anxious to get information on a book, corkscrew or gift, their sense of urgency can't possibly approach the significance of a manufacturer approaching a deadline. Or a crisis.

Assign someone in your company to frequently check your Web site's e-mail account for incoming requests.

When a request is found, make a call right away to let the prospect or customer know you got the message. Get them the answers they need for their questions or concerns. Be diligent.

When an event - a job, an award, a project - from a fresh prospect doesn't go your way, contact the prospect and keep the conversation going. Many times a selected supplier doesn't work out for a buyer, and they have to fall back to other sources. Maintaining that dialogue that originated online can lead to other work outside of the original contact. Use that contact to your advantage, and don't give up if the first response you get is a negative. As clichéd as it sounds, it's an opportunity.

And here's another tip: Don't be afraid to communicate with your customers when you have nothing to say. Sometimes an unsolicited call (just to ask if there's something they need) can forestall an issue before it gets out of hand. Or, at the worst, keep the lines of communications open.

Bottom Line: Manufacturers are often not good communicators. Work at improving and continuing the dialogue with prospects and customers you engage online (or that engage you).

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The U.S. Secretary of the Air Force has announced that Northrop Grumman/EADS (parent company of Airbus) has won the lucrative KC-X airborne tanker contract, a decision that ends months of jockeying, hand wringing, and speculation.

Or, does it?

By giving Northrop Grumman/EADS the award, and passing over Boeing (who originally won a variation of this contract is 2003, but that award was rescinded in controversy), the coming months stand to bring as much drama as guessing who would win it in the first place. Consider:

  • To sweeten the deal, the Northrop Grumman/EADS group had announced some months ago that if they won the contract, they would move a large portion of Airbus' commercial construction to Alabama. How and when that happens will be a hot topic for manufacturers. The tanker contract alone offers U.S. suppliers great opportunities; the possibilities around commercial work heating up makes for strong prospects for new work.
  • Both finalists for the KC-X stated earlier that they would not challengte the decision if either was passed over. Still, it would be startling if Boeing did not challenge the award to a group with such strong international ties.
  • Earlier this week, the procurement officer for the KC-X contradicted earlier U.S. Government statements and suggested that the contract may be broken up into phases, which could allow Boeing to win a portion of the tanker project in the future.

Even with today's announcement, it's likely to take months to sort out the details and get to building planes. Once that happens, manufacturers stand to win big, if they're smart.

More to follow ...

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An Interesting Take On Textiles

Posted by aj May 9, 2008

Check out this YouTube video of Jeff Hollander, CEO of Hollander Home Fashions, a $300-million (USD) textile manufacturing company that has globalized, unionized, and managed to maintain a balance between manufacturing in the US and China. His take is important for anyone in the global value chain.

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Well, that didn't take long, did it?

This past Friday, the U.S. Gubmint awarded the $40-bill