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Here's an interesting online collaboration tool that can help manufacturing SMBs, workgroups and displaced teams come to consensus around elements of a project.

http://www.mfgx.com/servlet/JiveServlet/downloadImage/1200/zapproved.jpg

Zapproved allows anyone - at no cost - to submit a proposal or proposed project/product to any person or group with an email address. Of course, attachments can be added to any proposal. The proposal package can then be sent within the email with two buttons - one to approve, one to deny. All votes, their sources and any comments from the group are tracked and shared, allowing for strong record keeping and approval cycle management.

Since Zapproved is a SaaS (software as a service, and Web-based), there's no software to install. And your projects and proposals - along with all data around the approval cycle - are maintained and retrievable for later review.

This simple tool can help technical groups build consensus, keep projects moving, and it brings transparency to all team members involved in a decision process.

It's not too hard to imagine how Zapproved can assist manufacturers manage their supply chains by gaining documented approval and consensus on design or process changes, as well.

A unique approach to collaboration, Zapproved is worth a visit if your team could use a little control.

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In the MFGx tradition of bringing you only the best in online, affordable collaboration tools that make sense for manufacturing SMBs, check this bad boy out:

Teamness is a free collaboration suite with a surprising number of features.

According to the Teamness site, it provides:

"... tasks, milestones, messages, file sharing, whiteboards with versions, overview of all recent activity, a powerfull search engine, groups to keep your data organized, notifications and RSS to help you stay up to date with any changes ..."

If you’re company is looking for a utility that allows for strong collaboration, this is something you may want to investigate.

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Today's MFGx guest blogger is Anita Berlanga, CEO of Bear Boring LLC, a custom machining shop in Wyoming, Illinois.

"What does not kill you makes you stronger," to paraphrase an oldie.

For small-to-midsize machine shops, the current economic recession - coupled with shocking fuel charges - will either kill us, or we will prevail and possibly even grow.

The media would have us cowering in our shops, scared to buy a paperclip, let alone explore inventive ways to maintain our customer base as well as grow during these difficult economic times but I posit that these are actually times of OPPORTUNITY for small-to-midsize machining and manufacturing businesses.

One example: As few as 5 years ago it looked as if we were on the ropes due to offshore sourcing. The current cost of fuel (coupled with other offshore difficulties) is allowing companies to reconsider shops that are more geographically desirable. How do we present ourselves to buyers to maximize this potential? What are the opportunities therein for the small jobshop or midsize manufacturer?

I don't have all the answers or I'd be in Tahiti, sipping a pina colada ... so I'm putting it to you, cyber-colleagues: what are YOUR plans to weather the current (and developing) conditions ... and maximize opportunity during these difficult times. Let's share some ideas:

One of our solutions is to provide our customers with value-added services. The big guys are sweating so you can imagine what your smaller customers are going through. Chat with your customers, find out what their concerns are, then see what you can do to address those concerns.

For example, we have a customer about 2 hours away with several processes to end-use. When we first teamed up with him we found he was sourcing casting 4 hours away from him (6 hrs from us), machining with us, powdercoating with yet another shop ... and these are relatively large parts ... if you look at this, it's easy to see that it rapidly becomes cost-ineffective for him to do business all over the tri-state area - shipping alone was eating him alive and that was before gas spiked over $4/gal!!! Our solution was to work with our local foundry and powdercoater to supply him with quotes for casting, etc. within our local area (a 20 mile radius). Now, instead of hundreds of dollars in shipping charges all over the place he has one shipping charge - back to him. In helping him keep his costs down we are hoping to help him stay in business, in general and with us!

One of my favorite phrases is: SOLVE THE PROBLEM. Most companies can get a machine shop - we're all over the place. It's harder to find a partner- one who can help the customer solve the problem. People tend to stick with their partners. In these perilous economic times, what tactics are you using to partner with your customers and help them solve their problems?

I thought it would be interesting to hear from some of you on this. We don't need particulars - just some ideas you might have for making it easier for small shops to take advantage of this economic downturn.

And that's another thing ... how do we help each other solve the problem? We can all survive this if we work together. Another example (I'm full of 'em): I just had an interesting chat with my painter - he's a tiny shop and often he's the only one there. He just had surgery on a badly damaged hand. Wrangling heavy beams is out of the question for a while. We had 2000+ lbs of frames that had to be powdercoated NOW and I suggested that I send one of our guys to help him lift the beams and he said 'well, it's my problem'. Bull - it's OUR problem. If the parts aren't done my customer will bite ME, not him. So it behooved me to get somebody over there to give him a hand. We met our deadline, the customer loves us and we solved the problem!

These economic times will cause us to react in one of two ways - we can hunker down and hang on tight to what we know, or we can explore other avenues of thinking how to do business. Do you collaborate with other machine shops that, perhaps, have a client base where processes can - and need to be- shared? If not, consider it. There is actually more business to be had with collaboration than exclusion, even amongst 'like' shops. Consider putting together an ad-hoc consortium. We have scored several HUGE jobs that way (you can have your attorney draw up a limited non-compete and you sign one, too! Works both ways). The lead shop is responsible for quality control and liaises with the customer - no cheating!!! One job we closed in the past month kept the doors open for 3 different shops, including our own. If our colleagues reciprocate, that's great. But if not, we're still all making money we wouldn't have made on our own.

This may sound all Pollyanna and everything, but consider this: the companies that are coming back onshore have been doing business with giant offshore shops with cheap labor. Even if that is changing, it's still their current benchmark so we have to be creative to give them a translatable value (it's unlikely we are going to be able to match their labor rates!). Communication, customer service and collaboration and problem-solving are all qualities that will help quantify your value and make your shop a viable contender.

And don't listen to the media - we will can prevail and grow during these times. But only if we work smart...and possibly work together.

Let's hear your thoughts on this!

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2 Million Minutes

Posted by aj Jun 18, 2008

No, that's not how long it feels like listening to Boeing moan over losing the KC-X tanker contract (although no one would blame you for thinking that).

2 Million Minutes is the title of a new documentary, named for the approximate amount of time a student spends in high school. The push of the film is twofold: to compare those 2 million minutes from the perspectives of students in the U.S., China and India; and to exclaim loudly that the U.S. education system is broken - that it is incapable of generating the amount of engineers, scientists and technologists the U.S. economy requires to compete and thrive in the global bouillabaisse.

Check out the trailer for a great introduction.

Now, anyone would have to be a fool or asleep not to agree - at least partly - with this premise. The clues are all around us. Recently, Bill Gates testified before the U.S. Congress on the need for increased funding for math and science education and revised immigration regulations for the U.S. to maintain its competitive edge.

I acknowledge that our education system is flawed. Our curricula and techniques are outdated, and we're slow to adjust. Students in countries that 20 years ago couldn't hold our abacus are catching up to us at an alarming rate.

But you know what? I don't buy it - at least, not the fact that the education system is solely to blame for this malaise. It's like saying guns kill people. Yes, they do. But a lot of things lead up to a killing, outside of - and just as important as - the action itself, or instrument used.

Look at manufacturing in the U.S. If you're reading this, odds are you're intimately familiar at how difficult it becomes every year to find talent for the shop floor. You know that it's not just the system that is failing us.

It's the culture, too. Mostly.

Fact is, the attraction isn't there. Fewer students are ENTERING school to become chemists, engineers, and computer scientists. Manufacturing is seen as a path best suited for mouth-breathing Luddites out of step with the times and technology. More now see the road to success paved with abstracts, leisure and bling. Our culture places less emphasis on space programs or smallpox vaccines. Parents, families, peers, media, government and, yes, our education system are ALL a bit out of whack.

2 Million Minutes is an important film, with an important message. Heading its warnings can do nothing but help us regain our competitive edge.

But we must acknowledge that the 2 million minutes BEFORE these 2 million minutes are just as important to this cause. Otherwise, we're whistling in the dark.

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Google has just announced a new Web service called Google Sites, and it offers manufacturing professionals large and small several options to promote and serve their businesses, and collaborate with others simply and effectively.

In essence, Google Sites is about building a Web site without needing to know how to build a Web site. No coding, design or advanced computer skills are needed.

Check out these features and descriptions:

  • Single-click page creation - Creating a new page for your Google Site just takes the click of a button.

  • No HTML required - Creating a Google Site is as easy as editing a document, which means there's no markup language for you to learn - just get started.

  • Make it your own - (Google's) customization options let you give your Google Site your own look and feel.

  • Get started with templates - (Google) offer(s) a growing list of page types -- web page, announcements, file cabinet, dashboard and list -- to help you get started with your Google Sites pages.

  • Upload files and attachments - Use the file cabinet to upload files up to 10MB in size. Each Google Apps account receives at least 10GB of storage in Google Sites. Google Apps Premier and Education editions get an additional 500MB for each user account.

  • Embed rich content - Google Sites is integrated with other Google products, so you can insert videos, docs, spreadsheets, presentations, photo slide shows, and calendars directly onto your Google Sites pages.

  • Work together and share - (Google's) permission settings let you designate owners, viewers and collaborators (meaning they can edit pages) for your site. And you can make your Google Sites available to just a few people, your entire organization, or the world.

  • Search with Google - You can search across Google Sites pages and content using powerful Google search technology. You'll find specific pages and documents instantly, the same way you would on Google.com.

What does all this mean for manufacturers? You can create a useful Web site for your company. You can create an Intranet (internal site) to serve you company, employees, sales force, etc. You can create private sites to serve a project and only invite the project members. You can create training sites for your employees.

The point is that you can create a Web site - without knowing how.

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Supply Chain Talent Shortage

Posted by aj Jun 9, 2008

Like the whole of manufacturing, the supply chain is suffering from a serious lack of talent – so says a recent survey and report titled “ Supply Chain Talent: State of the Discipline” from AMR Research.

It suggests a confluence of factors that have contributed to this malaise: fragmented definitions of what the supply chain is and does, a lack of corporate standards to train and establish expectations for supply chain professionals, and – shockingly – an insufficient response from academia, in general.

Specifically, the report pinpoints 5 areas of concern:


  • No two supply chains are alike. Very few companies define the supply chain in the same way. Of the supply chain leaders with which we spoke, almost all had different spans of control. This contributes significantly to a lack of clear priorities for standards and for consistent curriculum development at universities.

  • Leaders view supply chain management as a business discipline. Overall, supply chain management is still very engineering centric. Few companies include manufacturing and new product development within the definition and span of control of supply chain, which is a differentiator among leading companies. The dearth of companies with this view also makes clarity of priorities a challenge.

  • Globalization has created urgency. A general flattening and global broadening of supply chain organizations has boosted the need for a more extensive set of complex skills and competencies within company ranks. In addition, a trend toward a more centralized supply chain structure has heightened the need for broader skill sets and faster ramp-up time.

  • A common supply chain talent model is the foundation for improvement. For supply chain management professional development to evolve into a more universal body of capabilities, industries and academia need to adopt a shared, modern, comprehensive model that incorporates the growing depth and scope of the discipline. To this end, AMR Research has developed and tested a model through this research.

  • Universities have an opportunity to take a leadership role. Schools can lead the way in providing more universal supply chain management skill sets. Truly comprehensive programs, covering the full talent attribute model, would gain strong support from the industry. This partnership model, with industry providing access for students to gain real-world experience, is a starting point for reducing the talent gap.


The report is a really good read; matter of fact, the executive summary is as thorough as I’ve seen in awhile.

But what struck me are those similarities between AMR’s supply chain deductions and the same issues with manufacturing overall.

While AMR points to training and academia adjusting themselves to consider a supply chain holistically - as an entire organism (including manufacturing and product development) – manufacturing is trying to catch up to the notion of itself as an evolving service economy, where business acumen and marketing savvy are as important as machining skills once were.

Maybe the talent shortages across the board all require a rework of how we create and support emerging manufacturers, regardless of where they fall in the chain.

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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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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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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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Joseph Juran

Posted by aj May 9, 2008

Maybe you're familiar with Joseph Juran. He passed away last week at the ripe old age of 103, and he managed to make the best of them all.

His accomplishments are impressive and his contributions to quality and industrial management should interest all manufacturers. He was perhaps best known for contributing to the rebuilding of Japanese manufacturing muscle after WWII. Whether of not you knew much of Juran or not, spend some time mulling over what he did and what he was via a Google search.

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An earlier post on MFGx titled "Is China's Shift From LCC Status Beginning?" commented on China's shifting prospects as a preferred Low Cost Country for manufacturing.

The survey/report from Booz Allen Hamilton is now online and can be downloaded here:

http://www.boozallen.com/media/file/Chinas_Shifting_Competitive_Equation.pdf

The full report offers some interesting points that the initial reviews didn't mention. For example, many companies see China as valuable not just as a manufacturing base, but because they covet an emerging middle class in a market of 1.3-billion people.

Hat tip: Thanks, Bertrand. You're the man.

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Collaborate and communicate with any of your peeps that have an internet connection:

  • FileCrunch - Upload and share files from your hard drive or network, up to 250mb in size. Free and no registration required.
  • Vawker - Create your own online video/chat area, send the URL to whoever you want, and let 'er rip. Very simple to use. Registration required, but it's free to use.
  • Cozimo - Collaborate with a person or workgroup around videos or graphics. Collaborators can place notes with the files real-time, and each account has up to 10mb of space to use (and is limited to 1 workgroup). Registration is required, and the base functionality is free (with charges for more advanced sevices).

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Last week, we passed along word that China is considering - among other actions - shutting down large portions of manufacturing to "green up" before, during and after the games.

Along with our sources on the ground in Shanghai, Richard over at All Roads Lead To China has been on the case in regard to those issues that could impact manufacturers in all roles of the supply chain.

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The talk is heating up, and it's hard to determine exactly what will be done where, and when it's gonna go down. And while talk of pollution has been around since Beijing won the 2008 Olympiad competition, consider these reports from the past few months as evidence that swift, aggressive action is on the horizon:

  • East China Province Gives Ultimatum to Polluters Before Olympics - Richard at ARLTC has posted another update, this time looking into reports that 132 plants in Shandong Province (near Beijing) have been warned to comply with pollution regulations by 06/30/08 or be shut down.
  • Beijing Petrol Stations Face Olympic Shutdown - ABC News Australia reported in February that the capital would shut down 10% of its gas stations, and fit the rest with special nozzles to reduce vapor emissions. Our sources tell MFGx that there has been more recent talk of using an even-odd system for vehicles for this time frame (e.g., cars with odd numbered plates drive on odd days, even on even days).
  • China's Looming Olympics Disaster - Jim Jubak at MSN Money reported in March of the potential "perfect storm" - water and food shortages to support the games, the affects of pollution on atheletes, and - yes - the forced shutdown of industries its impact on the Chinese economy. (Oddly, not much is mentioned about potential Draconian measures' impact on the world economy.)
  • China's Smog Shutdown - This article, published by the Chinese government on 02/28/08, is as informative for what is DOESN'T say about plant closings. No real details are given, which means as of March 1st, Beijing was (is?) leaving their options open.

Bottom line is this:

If you're sourcing to China, you'd better be talking to your suppliers and IPOs to determine if they are in compliance, and what disruptions might occur if they aren't. Now's the time to develop contingencies.

If you're a supplier in a mature market (U.S. and Europe), now's the time to engage current and former customers to see if you can play a part in their solutions. These times of instability and uncertainty in China may present fantastic opportunities for you to get more work and develop long-term, profitable partnerships.

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A few weeks back, I wrote about the benefits manufacturers can get from using social community sites like LinkedIn or Facebook as online tools to market and recruit.

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To get started with Facebook as a real benefit to your business, go to Facebook's home page and select "Businesses" in the footer.

This page presents several options for you to engage and interact with the Facebook community - specifically, the segment(s) most compatible with your motives. Some cost (like Facebook Polls, which charge you .25 cents (US) per response), but some are free and very effective.

  • Facebook Pages - Here's where you can create a page for your business. There are several examples of business pages currently on the site that can give you plenty of inspiration. Simple, and it's free.
  • Facebook Insights - Insights is Facebook's statistics package that fills you in on who's visiting and engaging your business page. Free with Facebook Pages.

In case you still believe sites like Facebook couldn't possibly offer your company substantive value, check out Facebook's statistics: for one, the fastest growing demographic is 25 years and older. And, of course, you're speaking to arguably the largest collection of students in the world. How's that for recruiting muscle?

Recruitment and spreading your good name to the up and coming buyers of tomorrow - what's not to like?

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