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Manufacturing executive leadership journal sustainability

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Jack McDougle shares the Council’s new strategic alliance with the Thomas Publishing Company, we are including the July 2011 edition of Manufacturing Executive Leadership Journal, entitled “The …

Jack McDougle shares the Council’s new strategic alliance with the Thomas Publishing Company, we are including the July 2011 edition of Manufacturing Executive Leadership Journal, entitled “The Sustainability Imperative.”

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  • 1. MANUFACTURING LEADERSHIP TWENTY DOLLARS —John Gercak, VP, Information Technologies, Eaton Corp. Vehicle Group .................................. .................................. .................................. .................................. .................................. ................................. looking for people who “You can teach the technology. That’s Sustainability JOURNAL the easy part. We’re can communicate.” Imperative DIALOGUE EXECUTIVE The Leadership Board explores new strategies in the latest Roundtable. urges companies to embrace sustainability by restructuring their supply chains and the way they think about global production. Rockwell Automation’s John Nesi lays out a plan for shrinking PUSHING SUSTAINABILITY FORWARD A NEW INDUSTRIAL REVOLUTION LEADERSHIP IN ENERGY EFFICIENCY Prof. Stephen Evans of the U.K.’s Cranfield University energy consumption throughout your organization. B E T T E R F U T U R E / J U LY 2 0 1 1 The FOR A BOLD IDEAS......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
  • 2. By Dave R. Meyer, Vice President of Northwest Operations, practices, adapt their supply chains, develop new types manufacturers must move beyond compliance-driven Companies need to explore more sustainable business Sustainability must be measured to be successful. But of sustainable materials, and restructure the way they metrics and embrace measurement systems that acknowledge Sustainability In our latest Roundtable, members of the Manufacturing Leadership Board discuss the state of sustainability and 12/Meeting the Sustainability Challenge 20/Sustainability: How to Measure Up By Prof. Stephen Evans, Cranfield University Imperative 34/Pushing Sustainability Forward sustainability’s broad sweep and financial impact. Edited by Jeff Moad, Executive Editor, MELJ T how manufacturers can take the next step. ’ H SEEDS Global Alliance think about global production. I T The................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
  • 3. J U LY 2 0 11 V O LU M E 2, NUM BER 4 MANUFACTURING EXECUTIVE B O LD I D E A S FO R A B E TTE R F U TU RE LEADERSHIP JOURNAL 12 26/Wanted: Leadership 4/E ’ L In Energy Efficiency The Serious Business By John Nesi, Vice President of Market Of Sustainability Development, Rockwell Automation By David R. Brousell, Editor-in-Chief, MELJ Senior manufacturing executives must get in the driver’s seat to make energy efficiency 5/Best of the Blogs an ongoing reality. Here’s a road map on Extracts from among the best blogs on the how to get there. global Manufacturing Executive Website (www.manufacturing-executive.com) 40/Information: 7/Community Voices Sustainability’s Best Friend Excerpts from some of the hottest discussions By Mark Symonds, 26 on the global Manufacturing Executive Website President and CEO, Plex Systems The success of your sustainability programs 10/O may come down to the quality of the infor- ERP Is Dead. Long mation—and information systems—within your business. Live the New ERP By Pierfrancesco Manenti, Head, Europe, Middle East and Africa, IDC Manufacturing 48/Safety and Sustainability: Insights The Core of Manufacturing 48 Excellence 58/T B By Jim Alder, Senior Vice President, Meet the members of the Manufacturing Operations & Technical, Celanese Corp. Leadership Council’s BoardCover icons: veer.com/Sergiy Timashov, left: Roman Sigaev In our unpredictable world, safety and sustainability can’t be taken for granted. 61/T C Manufacturers must raise both disciplines Meet some of your fellow members on the to a strategic level. Manufacturing Leadership Council 52/Dialogue: Eaton’s 63/O 63 Customer-Centric Future Sustainability Demands By Paul Tate, Executive Editor, MELJ Innovative Solutions By Lisa Bodell, CEO, futurethink John Gercak has helped Eaton Corp. create greater visibility in its operations, and develop closer connections with its › Join the conversations at fast-growing customer base. www.manufacturing-executive.com. And read the latest blogs by your peers and Manufacturing Executive editors. 34 MANUFACTURING EXECUTIVE LEADERSHIP JOURNAL is published six times a year by Thomas Publishing Company, LLC. 5 Penn Plaza, New York, NY 10001. J.E. Andrade, Chmn. of the Board; C.T. Holst-Knudsen, Pres.; R.J. Anderson, V.P., Planning.; E.V. Dillon, V.P., Mkg.; M. Peipert, V.P., Finance; I.J. Molofsky, V.P., Human Resources. Executive Office: 5 Penn Plaza, New York, NY 10001. Tel: 212-695-0500. Managing Automation: 5 Penn Plaza, New York, NY 10001. 6 issues, $120; single copy, $20. ©2011 by Thomas Publishing Company. All rights reserved. MA, Managing Automation, Manufacturing Executive are registered trademarks of Thomas Publishing Company.  www.manufacturing-executive.com ME Global Leadership Community
  • 4. MANUFACTURING EXECUTIVE LEADERSHIP JOURNAL ........................................ ........................................Editor’s Letter / David R. Brousell ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ............. ..........................The Serious Business ........................................ ........................................ ........................................Of Sustainability PRESIDENT HEATHER L. HOLST-KNUDSEN............................................................................................................................................................................I................................................................................................................................. +1 212-290-8724 hholstknudsen@thomaspublishing.com EDITOR-IN-CHIEF DEAS ABOUT USING LESS ENERGY IN PRODUCTION FACILITIES DAVID R. BROUSELL and in buildings, reducing waste in the use of materials, and recycling have been +1 212-629-1510 dbrousell@thomaspublishing.com around a long time. Many companies have pursued these activities because ........................... ........................... they improved efficiency, were mandated by law, or even because of a sense of Editorial responsibility to the environment and future generations. All of these motives EXECUTIVE EDITORhave been necessary to advance the so-called sustainability movement. As this move- PAUL TATE +44 (0) 7973 510-458ment matures, though, there is a growing sense that sustainability can and should be ptate@thomaspublishing.commuch more. Not only are more compa- EXECUTIVE EDITORnies thinking and talking about sustain- sue, sustainability should be viewed by in- JEFF MOAD +1 510-531-3456ability as part of their corporate cultures, dustrial leaders as a way to a better future. jmoad@thomaspublishing.combut many are now treating sustainability “It’s not simply about the desire to ........................... ...........................as a part of their core business strategies. mitigate the effects of 200 years of in- MANAGING EDITOR JAY E. BLICKSTEIN That may seem like a subtle shift, but dustrial development and to address +1 212-629-1540 jblickstein@thomaspublishing.comit may have profound implications in some of the environmental damage that ........................... ...........................the years ahead. This view transforms scientists around the world have now de- Columniststhe activity from a cost consideration to tected,” he says. “It’s about ensuring the PIERFRANCESCO MANENTIa growth driver, and perhaps even more continual development of a successful IDC Manufacturing Insights Milan, Italythan that. industrial base.” LISA BODELL As Prof. Stephen Evans of Cranfield A series of articles this issue address futurethink, New York, NYUniversity says in our lead article in this is- other aspects of the challenge. In “Sus- ........................... ........................... tainability: How to Measure Up,” ME Design & Production Council member Dave Meyer urges DESIGN DIRECTOR BEST & CO. manufacturers to adopt metrics that link robert@rbestdesign.com the outcomes of sustainability initiatives ADVERTISING to corporate and financial performance. PRODUCTION DIRECTOR And in “Wanted: Leadership in En- REGGIE RIOS +1 212-629-1520 ergy Efficiency,” Rockwell Automation’s rrios@thomaspublishing.com Vice President of Market Development CROSS-MEDIA PRODUCTION John Nesi warns of a gap between C-level SPECIALIST PHILLIP GALLOF manufacturing executives and next-level +1 212-629-1503 managers on how well-integrated energy pgallof@thomaspublishing.com initiatives are with business strategies. WEB DESIGNER Is sustainability part of your core strat- PAUL POLICARPIO +1 212-629-1511 egy today? Continue the discussion on ppolicarpio@thomaspublishing.com www.manufacturing-executive.com. M www.manufacturing-executive.com  www.manufacturing-executive.com ME Global Leadership Community
  • 5. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL .................................. ................................. .................................. .................................. .................................. .......................................... .................................. .......................................... .......................................... .......................................... Best of the Blogs .......................................... .......................................... .......................................... .......................................... ..................... ..................... ........................................... ........................................... .......................................... The following extracts are taken from among the best blogs on the global Manufac- turing Executive Leadership Community Website. You can join in, read more, and respond with your own point of view at www.manufacturing-executive.com. T H E N E W WO R K FO RC E CO L L A B O RAT I V E I N N O VAT I O N T H E N E W WO R K FO RC E Are You Feeling Insecure Collaborative Tools Finding Tomorrow’s About Cyberspace? Drive Enterprise Manufacturing Leaders Value Networks Extract: I’m increas- Extract: Last semester, ingly concerned about Extract: To become I had the pleasure of expanding inter-con- more innovation-cen- participating in the nectivity. With greater tric, companies need to Manufacturing Lead- inter-connectivity integrate their design, ership Council’s dinner David R. Jill Brousell comes the potential for Andy make, and deliver pro- O’Sullivan meeting and tour of greater vulnerability. Chatha cesses from end to end. L’Oréal’s Franklin, NJ, facility. Be- I’m also increasingly worried To enable a Collaborative Value ing in manufacturing for many about mobility and the prolifera- Network, you need an easy-to- years and now in academia, I loved tion of computing and communi- use, Facebook-type platform and this opportunity. Jump forward to cations devices. While these two you have to digitize your com- March 31, 2011. A team of factors enable more people and pany, moving your boxes of pa- L’Oréal’s VPs, managers, and organizations to connect, they perwork to the cloud. A few years group leaders came to my college also complicate the security pic- ago, building this type of platform to interview our students for op- ture by making activities harder to would have been prohibitively portunities in L’Oréal’s Summer locate, monitor, and police. expensive, but today the informa- Operations Internship Program The battle that will be fought tion technology is in place to build and Operations Management De- here is one that pits the desire for this platform at a reasonable cost. velopment Program. Shortly after, an open Internet and individual However, building such a plat- the first student was interviewed freedom with an obviously grow- form requires both executive lead- and has been given an offer of em- ing need for greater security. ership and common standards ployment at L’Oréal. The others Whatever happens, one thing is and processes at all levels. are being contacted and scheduled clear: Our inter-connected world Manufacturing needs to focus as I write this account. will never stay the same. It will more than ever on creating col- To be able to make a difference change, mature, lurch forward and laborative cultures that will help in a student’s life in this way is over- backward, help, and hinder. We drive the enterprise value chains whelming. I am extremely grateful will make mistakes with it, but I’m of the future. to the Manufacturing Leadership betting we will get it right in the end. Andy Chatha is President and Founder Council and L’Oréal for this part- of ARC Advisory Group and a member of David R. Brousell is Editor-in-Chief of nership, which has motivated me, the ME Leadership Board. Manufacturing Executive. Read the full blog: http://www.manufac- Read the full blog: http://www.manufacturing- turing-executive.com/community/leader- executive.com/community/leadership_dia- ship_dialogues/collaborative_innovation/ logues/the_new_work_force/blog//// blog////collaborative-tools-drive- are-you-feeling-insecure-about-cyberspace enterprise-value-networks  www.manufacturing-executive.com ME Global Leadership Community
  • 6. Best Blogs / HotTopicsmy students, and our entire school. G LO B A L M A N U FA C T U R I N G FA C TO R I E S O F T H E F U T U R EJill O’Sullivan is a professor in the School A N D S U P P LY N E T WO R K S Is There a ‘Watson’of Business at Farmingdale State Col- Conflict Minerals: In Our Future?lege, and a member of the Manufacturing The ‘Perfect Storm’Leadership Council. In February, an IBM Extract: Surveys tak- Power7 computer sys-Read the full blog: http://www.manufacturing-executive.com/community/leadership_dia- en from manufactur- tem called Watson waslogues/the_new_work_force/blog/2011/04/25/finding-tomorrow-s-manufacturing-leaders ers suggest a lack of able to stage a dramatic confidence in being win on the syndicatedFA C TO R I E S O F T H E F U T U R E Dave Meyer able to trace conflict MarkShifting Into Symonds American television minerals to the source. So, youGrowth Mode game show Jeopardy! can see the difficulty in compa- Jeopardy! required Watson to Extract: As the econo- nies demonstrating due dili- my continues its un- find a number of alternative so- gence in tracing the chain of ma- lutions and determine which is even recovery, are terials flows from point of manufacturers begin- “best,” and then to assign a level of origin. According to writer Jay- confidence to the answer to decide Jeff Moad ning to invest in new mi Heimbuch, plugging the sup- whether to “buzz in” and offer atechnologies and processes in an- ply chain to ensure that all min-ticipation of growth? Or are most guess. erals come from conflict-free We can speculate on how thisholding off on major capital in- zones is no easy task. Even Ap-vestments to conserve cash? technology might enter our own ple has noted how it is nearly im- lives in the foreseeable future. Not all manufacturers are tak- possible to know the exacting the wait-and-see approach. The most obvious applica- source. If it is impossible to tion would be a greatly improvedColumbus, IN-based engine track the source of all the miner-producer Cummins Inc. is ag- Web search capability. Instead als going into the stream, then of getting a million hits to agressively investing in new tech- the big question is what coun-nologies and processes with the precisely worded query, we might tries and companies will do to fix anticipate more focused answersintention of leveraging what it inadequate governance and sys-sees as a growth opportunity. (with confidence indicators) to tems. And if U.S. companies more loosely worded questions. Cummins is picking up the pace shift their sourcing to other na-on an ambitious project that, over Manufacturing engineers tions, will this be enough? Is and software developers willthe next several years, will see it global manufacturing merelyroll out standard processes, manu- undoubtedly come up with playing “kick the can”? The con- some innovative ways to applyfacturing execution systems, ERP flict minerals issue may be thesystems, and analytics in at least these capabilities. Could this be “perfect storm” that combines the next generation of supplyhalf of its 83 plants globally. elements of resource consump- In the end, Cummins expects chain optimization or finite tion, consumerism, corporate scheduling?the new process and systems in- social responsibility, supply Mark Symonds is President andvestments to enable growth, par- chain management, politics, and CEO of Plex Systems, and a memberticularly in emerging markets product stewardship. of the Manufacturing Leadershipsuch as China, India, and Brazil. Dave Meyer is VP of Northwest Opera- Council. Read the full blog: http://www.manufac-Jeff Moad is Executive Editor of tions for the SEEDS Global Alliance. turing-executive.com/community/leader-Manufacturing Executive. Read the full blog: http://www.manufacturing- ship_dialogues/factories_of_the_future_/Read the full blog: http://www.manufac- executive.com/community/leadership_dia- blog/2011/03/29/is-there-a-watson-in-our-turing-executive.com/community/leader- logues/global_manufacturing_and_sup- futureship_dialogues/factories_of_the_future_/ ply_networks/blog/2011/04/18blog/2011/05/06/shifting-into-growth-mode 6 www.manufacturing-executive.com ME Global Leadership Community
  • 7. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL .................................. ................................. .................................. .................................. .................................. .......................................... .................................. .......................................... .......................................... .......................................... Community Voices .......................................... .......................................... .......................................... .......................................... ..................... ..................... ........................................... ........................................... .......................................... The following extracts are taken from some of the hottest discussions on the global Manufacturing Executive Community Website at www.manufacturing-executive.com. DISCUSSION designing, building, and operating told that as expensive as it is to Why the Public’s View loop-rich environmentally sensi- bring new material out of the Of Manufacturing tive industrial systems. The oppor- ground, transport it, smelt it, and Still Lags Reality tunity for manufacturers is to em- manufacture it into a usable form brace these developments...and the (bar, sheet, wire), that many mate- Michael Gell public will support them. rials are even more expensive to re- CEO, Xanfeon Join the discussion: http://www.manufacturing- cover. Until it is more expensive to executive.com/thread/ ?tstart= One can probably iden- produce virgin material, recycling tify examples of areas DISCUSSION will not reach a large percentage in which the public’s Recycling of Metals of metal production. Recycling view of manufacturing Lags, Shortages Loom will continue, and it will increase either leads or lags real- Greg Knight as resources become scarcer or ity. What does seem to be occur- Vice President, MachineTool Automa- more expensive to extract. I’m ring, though, is an increasing appe- tion, AMT Machine Systems sure that many would encourage tite amongst the public to have We sell machinery into levies, taxes, fees, etc. to “force” re- more information about the envi- the screw machine/pro- cycling as the superior economic ronmental performance of the duction turning mar- alternative. I am a believer in the products they are considering pur- ket. This market has free market; however, there is cer- chasing. Twenty years ago, manu- been recycling scrap tainly little sense in burying poi- facturers would not have given metals, oils, and tooling for de- sons in the ground, only to cause much consideration to informing cades. Likewise with the metal problems later. the public about what materials are stamping businesses. Why do we Join the discussion: http://www.manufacturing- executive.com/thread/ ?tstart= being used, how far those materials recycle? Is it because we are dedi- DISCUSSION are being transported, whether the cated environmentalists? Well, I manufacturer will take back the would like to believe that some of Baseball and Continuous product at its end-of-life, what us pay attention to environment Improvement—A might happen to that product and impact, but I can tell you the an- Common Strategy? the valuable materials and compo- swer is because it is economically Scott Miller nents at the end-of-life, and wheth- viable to recycle these materials. It Vice President, SightBridge Consulting er the product may be remanufac- is obviously not economically via- In most manufactur- tured. Many of today’s gifted ble for the consumer to recycle; ing environments I young people may be discouraged therefore, few but the most envi- have observed, there from being shoehorned into line- ronmentally conscious make it a is very little time rich forms of manufacturing, but priority. If it’s convenient or pays, spent nurturing the they have much to offer in terms of consumers will recycle. I have been day-to-day, small but valuable  www.manufacturing-executive.com ME Global Leadership Community
  • 8. wins that can be achieved by DISCUSSION DISCUSSIONthose on the front lines. And MES in the Cloud: Can Manufacturingthe standards required to mea- Is it Time? Use Social Media tosure the value of these routine Improve Its Image? Paul Stamasimprovement initiatives actual- Vice President of InformationTechnol- Chris Williamsly exist in most plants. It is the ogy, Mohawk Fine Papers CEO, Vuuchexpectation for incremental In our company, the “Collaboration” isgains against existing perfor- MES is tightly inte- an overused/over-mance measures and the effec- grated (real-time, burdened word, andtive engagement of all of our customized) with as such it really hasresources to achieve them that large numbers and no meaning. Moreare generally missing. Those types of process control sys- importantly, we are focused onthat embrace Lean principles tems that drive production pro- how people interact in order toquestion everything in the pur- cesses—this level of integration get something accomplished—suit of improvement. The most can’t be effectively accommo- how people are connected withfascinating part of being in dated with current cloud tech- respect to the work they are do-manufacturing is that it is dy- nologies. Further, lapses in sys- ing. Consumer social connec-namic and it changes every day. tem availability or performance tions are simple—friend-to-The processes and tools and degradation—a reality in the friend following. This will notmaterial we used yesterday may current state of cloud comput- work in the enterprise. If youor may not apply today. Large ing—would bring production followed everyone you workinitiatives generally depend on to a halt. Lastly, most manufac- with, it would be like addinga few specialists to deploy and turing organizations isolate your complete contact list to ev-take a longer period of time. their factory networks from ery e-mail you send, resulting inContinuous improvement their business networks so as massive noise and confusion. Inshould not be limited to the big not to expose their process con- the enterprise, the connectionsinitiatives; our people and pro- trol systems and manufacturing are more complex and more dy-cesses need to embrace im- assets to the public Internet. namic. People are connectedprovement continuously. The The Stuxnet computer virus, through deliverables and thestandard that needs to change which targeted industrial soft- work they are doing with re-is how we manage that. In the ware and equipment last year, is spect to the deliverable. For ex-end, it takes both to be effec- an example of such risk. I can ample, if you and I are workingtive. Do we need special fund- envision an on-premises MES on a “cost issue” on the “flange”ing to expect continuous im- interoperating with cloud- that is part of our product, weprovement? Shouldn’t our based applications (ERP, busi- are connected through this is-chief executives and sharehold- ness intelligence, quality sys- sue, the flange, and the relateders embrace and expect that tems, etc.). In fact, I think the product. And once the issue iscontinuous improvement can reality for most manufacturing resolved, we no longer have aand should occur on the plant firms is that their enterprise IT connection.floor? Are we providing the architecture will be a hybrid of Join the discussion: http://www.manufactur- ing-executive.com/message/1655#1655leadership to see that happen? on-premises and cloud-basedJoin the discussion: http://www.manufacturing-executive.com/message/2238#2238 applications. Join the discussion: http://www.manufacturing- executive.com/thread/1753?tstart=7 8 www.manufacturing-executive.com ME Global Leadership Community
  • 9. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL e.g., logistics, supply chain, sales, line is that our current education .......................................... automation, etc. .......................................... systems .......................................... system is not sufficiently supporting .......................................... .......................................... .......................................... .......................................... .......................................... ..................... ..................... ........................................... Gervais ........................................... Marie .......................................... the development of a new genera- Director, Global Leadership Associates Inc. tion of innovative minds. Time is I just returned from an unfortunately running out. These international forum on geniuses are coming from countries DISCUSSION like China and India. These coun- Skills Shortage? training and recruit- tries and many others are experienc- Why Not Hire ment in the oil and gas ing the emergence of their own Military Veterans? industry. Several com- panies have targeted military veter- economies. In 10 years, these econo- Patrick Gouhin mies will have matured. Top chem- Executive Director and CEO, Interna- ans for this industry with strong success stories. The Marcellus ists in this country are leaving to go tional Society of Automation (ISA) Shale project has recruited military to Bangalore, where the most cut- At ISA and the Auto- ting-edge work is being done. To re- mation Federation, we veterans for several levels of jobs and is very satisfied with the results, main relevant, they are making the have been working with difficult decision to move over- the U.S. DoL and Vet- particularly with regard to setting workforce standards among popu- seas. The next Silicon Valley could erans Affairs to devel- very well be in those emerging econ- op programs that transition these lations that are not used to the rigor and time-sensitive nature of the in- omies. The U.S. is losing ground, military careers into the industry and there needs to be a significant sector. We have built a mapping of dustry. Manufacturers might find the Shale-NET model for recruit- course correction. U.S. companies military occupation codes that need to be investing heavily in their show our servicemen and women ing and training interesting, even if there are industry and salary scale local community school systems to how they can take the skills and ex- provide top-notch science and math perience they have and leverage it variants. The initiative combines industry with the public workforce programs. We need to prepare the into a rewarding automation ca- next generation with the tools to reer. Mike Marlowe of the Auto- system and training providers to respond more comprehensively to compete and think creatively. Too mation Federation would be glad much reliance on foreign thought to share current progress and future workforce gaps. Join the discussion: http://www.manufacturing- leaders has deprived this country’s plans with all who are interested. executive.com/thread/?tstart= need to be self-sufficient in this re- DISCUSSION gard. For many years, we have been James Sanford Managing Director, Eily Mekhi LLC/ Recruiting and reliant on this brilliant workforce, EmBrands Retaining Foreign- but now it’s time to nurture a new Thank you for pointing Born Engineering generation of homegrown innova- out such a resource. Our Talent tors. There is no stopping the chang- servicemen and women Sina Moatamed es we are seeing worldwide. The real offer a unique set of CIO, BendPak issue is for the U.S. to contribute to skills and experiences The United States is in a the global talent pool, especially that can only be obtained in service very difficult period in when this country is more than ca- to our country. I must admit, what relation to its ability to pable of producing top minds. should be obvious I’ve overlooked. be self-reliant genera- Join the discussion: http://www.manufacturing- Our team will vigorously explore to executive.com/thread/?tstart= tors of innovation. We identify personnel for placement have an immediate education gap throughout our entire operations, that needs to be addressed. Bottom  www.manufacturing-executive.com ME Global Leadership Community
  • 10. MANUFACTURING EXECUTIVE LEADERSHIP JOURNAL ......................................... ......................................... ......................................... ......................................... ......................................... ......................................... ......................................... ......................................... ............. ........................... ......................................... ......................................... .........................................Opinion / Pierfrancesco ManentiERP Is Dead.Long Live the New ERPTraditional ERP is no longer enough to suppor t today’s global manufacturing businesses.What’s needed now is a new Operational ERP that better suppor ts customer needs................................................................................................................................................................................................................................................................... A........................................... NUMBER OF SPEAKERS AT RECENT INDUSTRY CONFER- ences have questioned whether traditional ERP is “dead.” A thought- provoking idea, and in many ways I believe this is true. The massive ini- tial investments in ERP 10 to 15 years ago led to a fundamental shift in the way businesses were run, a true revolution in the manufacturing industry. Previously, manufacturing enterprises used to pick and choose single applications to cover single back-office functions, such as finance or sales administration. Those functions weren’t integrated, which resulted in orga- is what we call “Financial ERP.” Indeed, nizational silos, ineffective processes, and ERP systems are the most widely adopted additional costs. The advent of ERP put applications in manufacturing today. Our order into that fragmentation. Today, no latest survey found that more than 75% of company would ever consider purchasing manufacturers in Europe have ERP in place, independent applications for its back-of- and 22% are planning to invest further in the fice functions. technology during 2011. ERP systems in large manufacturing In recent years, however, manufacturing multinationals today provide the nec- has experienced a series of dramatic trans- essary infrastructure that forms the formations. Firms have evolved from being all-important transactional sys- “international,” with centralized manage- tem of record. They are primar- ment and operations and physical distribu- ily finance-related and have be- tion channels, to “multinational,” where each come essential “commodities” region has its own product variations and to help run the business. This management. Now companies are looking to .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... Companies are looking to become globally integrated, where locally tailored products and services can be designed anywhere, pro- duced anywhere, and sold anywhere.  www.manufacturing-executive.com ME Global Leadership Community
  • 11. Opinion / Manenti / ERP Is Dead become globally integrated, where locally tai-......... lored products and services can be designed.................. anywhere, produced anywhere, and sold any-......... where. Several disruptive technologies have also emerged. Cloud computing, mobility, and social networking, for example, are set to become next-generation technologies for many business applications. Operational ERP will see the convergence Multiple applications beyond pure Fi- of customer-order, manufacturing-oper- nancial ERP are now being used to aug- ations, and supply chain management, ment business alignment. For example, in a recent global survey, more than 30% of reconciling a mash of best-of-breed appli- manufacturers indicated that in the areas cations across silos of process domains. of BI, MES, CRM, budgeting and fore- .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... casting, and SCM, dedicated applications .......................................................... beyond ERP better support the business. enterprise-wide operational platform that More than 43% also said they found no or is as important as the traditional Financial only minor soft-business benefits with their ERP platform. This will support a more cus- current ERP setup, and 35% don’t even ex- tomer fulfillment-driven approach to opera- pect to recover ERP implementation costs tions management in globally integrated or- or don’t expect a payback until after three ganizations, and will allow an evolution and or more years. elevation of existing applications deployed While the deployment models for Fi- to support operational processes. nancial ERP may have been sufficient in Operational ERP will see the conver- the past, IDC Manufacturing Insights be- gence—in a tight, integrated, and coordi- lieves that tomorrow’s globally integrated nated environment—of customer-order, ..................... ..................... firms will need a new approach that bal- manufacturing-operations, and supply ..................... ..................... ..................... ..................... ..................... ances greater corporate coordination with chain management, reconciling what is greater latitude in operating in local mar- frequently a mash of best-of-breed applica- Related kets. There are a couple of critical capabili- tions across silos of process domains. Articles: Plant-Floor Security ties here that native Financial ERP systems Operational ERP will therefore offer Must BeTaken simply aren’t able to cover: an enterprise solution to the critical capa- Seriously www.manufacturing- › Real-time visibility, intelligence, and bilities required by globally integrated or- executive.com/ plant_floor decision-making environment: This re- ganizations in today’s market: real-time Mastering Com- quires non-transactional systems in addi- decision-making and multi-enterprise plexity With Active tion to Financial ERP’s system of records. orchestration. It will also create more IT Decision-Making www.manufacturing- › Global multi-enterprise orchestration: efficiencies, rationalizing the number of executive.com/active This goes beyond the nature of Financial best-of-breed applications and reducing in- ERP, which is generally designed to serve a tegration costs. Photo: istockphoto.com/alengo single enterprise. Are you ready for the era of Operational What the manufacturing industry needs ERP? M now is a new, complementary platform to Fi- Pierfrancesco Manenti is head of Europe, Middle East, nancial ERP. We believe that a modern “Op- and Africa for IDC Manufacturing Insights (www.idc.com). erational ERP” is the answer—a separate, Manenti is a Manufacturing Leadership Board member. 11 www.manufacturing-executive.com ME Global Leadership Community
  • 12. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL ............................. ............................. ............................. ............................. ............................. ............................. ............................. ............................. Meeting the
  • 13. Sustainability Challenge Sustainability is perhaps the greatest manufacturing challenge, and op- portunity, of the 21st century. To grasp that opportunity, companies now need to explore more sustainable business models, adapt their supply chains, de- velop new types of sustainable materi- als, and restructure the way they think about global production. ............................. ............................. ............................. ............................. ............................. ............................. ............................. By Prof. Stephen Evans
  • 14. B Meeting the Sustainability Challenge / / ACK IN 1962, PRESIDENT KENNEDY ADDRESSED A PACKED crowd at Rice University to announce America’s intention to conquer a seem- ingly insurmountable engineering challenge—to send a man to the moon and return him safely to Earth: We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win. Fast-forward to 2011, and we stand on the factory in readiness, to optimizing the oper- brink of another seemingly insurmountable ations and processes of factory production challenge, one that we must face head-on, and lines or processing plants. one we must win. That issue is sustainability. But by 2050, with the world population It’s not simply about the desire to mitigate estimated to approach 10 billion people, the effects of 200 years of industrial devel- these simple, short-term quick wins aren’t opment and to address some of the envi- going to be enough. We are already in the ronmental damage that scientists around age of doing more with less, a great deal less. the world have now detected. It’s about en- Over the next few decades, in order to meet suring the continual development of a suc- carbon reduction targets, we’ll have to cut cessful industrial base; it’s about taking the dependence on fossil fuels by placing more next leap forward in improving the way we emphasis on energy efficiency than on re- Stephen Evans source, make, and distribute products and newable energy generation.is Professor of Life services in the century ahead. But we’re not going to achieve the things we Cycle Engineer- In most developed countries, and many need to just by turning off lights and shutting ing at Cranfield University in the developing economies, too, a great deal down parts of the factory during downtime. U.K., a special of research effort is now being exerted on It’s going to take something else to meet our advisor to the meeting this challenge. The central argu- long-range ambitions. What we’re talking House of Lords, ment is that besides enabling businesses to about is a new industrial revolution. board member of the Centre meet corporate social responsibility objec- for Sustainable tives, a primary motivation for sustainabili- Toward a New Industrial System T Engineering, ty is that it provides a major opportunity for he first industrial revolution was and a partner in two clean-tech manufacturing businesses to operate more characterized by the emergence of startups. efficiently and effectively. mass production, helping to gen- erate local and national prosperity. But we Quick Wins can’t produce or manufacture things the M any manufacturing businesses way we used to, so the new industrial revo- are already making progress. One lution will need a different focus. We need obvious step is to reduce energy different manufacturing processes and sup- Illustration: Veer.com/ Olivier Le Moal consumption and cut waste. Around 30% ply chain configurations to develop a 21st of global energy production is used in man- century industrial system that is a better fit ufacturing, and 90% of waste is produced for today’s purposes. by industry. There’s plenty of scope here Thirty years ago, production focused on for significant improvement, from more making sure machines never ran out of work energy-efficient lighting and heating, to re- and therefore operated efficiently. As a young ducing the energy we use to keep an empty manufacturing engineer, I was proud to keep  www.manufacturing-executive.com ME Global Leadership Community
  • 15. MANUFACTURING EXECUTIVE LEADERSHIP JOURNALmachines busy using all the stock available.The way I viewed a factory eventually shifted .................................. .................................. .................................. .................................. .................................. ..................................to leaner models of production, focusing on .................................. .................................. ..................... ............ .................................. .................................. ..................................waste reduction and quality rather than ma- Industrial Restructuringchine-level productivity. To each subsequent Sgeneration, the previous paradigms must ap- o, how do you restructure an existingpear naive and primitive, yet we are about to industrial system? It’s a question thatembark on another major shift. one of the U.K.’s leading retailers, Factories and production networks can no Marks & Spencer, has been examining forlonger be viewed solely as the engine of indus- some time. ................. ................. ................. ................. ................. ................. .................try, but rather as transformative agents that The retail chain sells everything from cloth-turn natural resources into valuable goods. ing to housewares to fresh food and insur- We’re not go-They will stand or fall on their ability to man- ance. It runs 600 stores in the U.K., has 300 ing to achieveage the impacts of their activity, both com- other outlets in 40 countries, and deals with the things wemercially and environmentally. This will be more than 2,000 suppliers from around the need to justthe basis for innovation and competitive ad- world on a continual basis. by turningvantage for the next 30 years. Recently, the company has been rolling out off lights and an impressive platform in sustainable manu-Four factors look set to shape this shutting facturing through its “Plan A” program. Partsustainability transformation: of this endeavor is trying to accurately con- down parts1. Industrial restructuring: being smarter ceive and predict what the future shape of of the fac-about where we locate production production should look like. tory during2. Identifying sustainable materials: collabora- One of the big questions is: “What gets downtime.tion among the world’s advanced scientific base made where?” For example, if you supply fro-to find innovative new materials What we’re zen food, which production processes can be3. Adjusting the supply chain: creating supply talking about located at the site of origin (such as the farm)networks that ensure valuable materials are not is a new to cut down on transportation of raw materi-lost to the productive system als to a central production plant, and which industrial4. New business models: unlocking the eco-nomic potential of closed-loop material supply could be delayed until store delivery to ensure revolution.chains; for example, by selling service delivered that transport is efficient and then allow in-rather than simply product manufactured store final configuration/sizing and packag- ing operations? The traditional view that manufacturers source supplies and then have them delivered to a specific location for assembly before ship- ...................................................... ...................................................... ...................................................... ...................................................... ...................................................... ...................................................... ...................................................... Factories and production networks can no longer be viewed solely as theengine of industry, but rather as trans- formative agents that turn natural resources into valuable goods.
  • 16. MANUFACTURING Meeting the Sustainability Challenge / /EXECUTIVE LEADERSHIP JOURNAL turnover. These lessons are now being shared .......................................... .......................................... .......................................... with suppliers around the world. .......................................... .......................................... .......................................... .......................................... .......................................... ..................... ..................... ........................................... ........................................... .......................................... Identifying Sustainable Materials D oing more with less also involves ping is no longer sacrosanct. This model is seeking alternative materials to the under increasing pressure in the wake of re- natural resources we are currently cent events, like the Japanese earthquake and consuming. Middle Eastern political upheavals, which Traditionally, designers and engineers have highlighted the resilience and economic have been used to evaluate materials impact of current strategies. through their technical properties—flexi- Local manufacturing on a dispersed, bility, weight, tensile strength, etc. Perhaps Related smaller scale may be one longer-term solu- industry now needs to add another dimen- Articles: tion. This approach takes advantage of local sion— environmental criteria. Manufacturers Need a More skills and resources, rather than seek low- In some cases, companies may want to Holistic Approach cost labor in other parts of the world. But the invest more in research and development To Energy Management manufacturing industry does not yet have the into new materials, either through work- www.manufactur- ing-executive.com/ tools and techniques that can model whether, ing with academia on new sciences and holistic and where, local manufacturing is appropri- technologies or by developing them in- Conflict Miner- ate, and just as importantly, where it is not. house. In some instances, alternative natu- als: The “Perfect Storm” of CSR, That has to change. ral materials, or at least biodegradable ma- Sustainability, Marks & Spencer is also linking sustain- terials, may be more appropriate. Politics, and Supply Chain Manage- ability and corporate responsibility with its The ideal is to create a more sustainable, ment, Part  www.manufactur- supply chain. During 2010 it provided more closed-loop system—one in which raw ma- ing-executive.com/ than 21,000 hours of training, including ethi- terial is used to create a new product, and all conflict cal trade conferences in China, South Africa, of the manufacturing waste can be reused Navigating Sus- tainable Supply Vietnam, Spain, Bangladesh, Egypt, and In- in the manufacturing process or for other Chain Manage- donesia, focusing on issues such as “living” purposes, rather than being dumped into ment in China Takes a Keen Eye wages and working hours. landfill. That requires a greater focus on the and Business Sense www.manufactur- The company has also set out values for its design of logistics and technology of mate- ing-executive.com/ supplier factories. Three plants producing rial recovery and sorting, to ensure the ben- navigating clothing in Bangladesh and one U.K. food efits are captured. manufacturer have completed Ethical Model British-based multinational Martin- Factory trials, and results show increased effi- Baker, a leading manufacturer of aviation ciencies, improved quality, and less workforce escape equipment, particularly ejection ...................................................... ...................................................... ...................................................... ...................................................... ...................................................... ...................................................... ...................................................... The manufacturing industry does not yet have the tools and techniques that can model whether, and where, local manufacturing is appropriate. That has to change.
  • 17. seats, is a case in point. Part of the manu- ing have become the norm, with compo-facturing process involves using a chemical nents traversing continents before reachingcoolant during machining. The swarf (met- the customer.al shavings) left as part of the manufactur- In the light of recent disruptions, how-ing process is coated in this expensive and ever, resilience to disturbances and close-polluting coolant. So, the company intro- ness to market are beginning to reassertduced a system to recover the coolant from themselves as important characteristicsthe rejected swarf, allowing recovered cool- for the production networks of the future.ant to be reused in the manufacturing pro- We see this to a small degree in the trendcess and increasing the value of the waste toward “re-shoring,” but this period ofswarf at the same time. flux also allows us to reflect on the other This is just one example of the move potential benefits of more local produc- .................. ................. .................. .................. .................. .................. .................. ..................toward lifecycle manufacturing—us- tion networks. What should be madeing appropriate materials sustainably where —and how? The ideal is toand ensuring that they are used with the Local manufacturing can combine create a morefull lifecycle of the product in mind. In a on-site production, such as the “farm” sustainable,world of increasing scarcity, environmen- and “store” solutions being explored by closed-looptal legislation, and consumer pressure, it Marks & Spencer, or through the use of system—onewill become increasingly important for digital technologies and new media to in which rawmanufacturers to identify the drivers val- help create new business models or meth-ued by customers, and to design or modify ods of production. material isproduct lifecycles and their production One example is Local Motors, the crowd- used to createprocesses to be more responsive to these sourcing-based U.S. automotive manu- a new product,values, thus creating new long-term sus- facturing startup. The company wanted to and all of thetainable business models for the future. reboot the design and manufacture of kit manufactur- cars, so it turned to the Web. It generatesAdjusting the Supply Chain ing waste can designs for the cars from its user base; theseT be reused in the oday’s global systems of produc- are voted on, and the most popular are tion are clearly vulnerable to un- manufactured. Customers buy a design and manufactur- predictable disturbances. The then manufacture the car at local factories ing processcatastrophic earthquake and subsequent across the U.S. or for othertsunami in eastern Japan, for example, se- Others experimenting with Manufac- purposes.verely disrupted the country’s manufactur- turing 2.0 include Shapeways. The Dutching base, but it also had a subsequent effect online site uses rapid prototyping 3Don the entire global supply chain. In the printing technologies to create productsU.S., Canada, and Europe, many manufac- for home-based manufacturers. Its greatturers had to suspend production as they est success so far has been to help launchdealt with problematic parts supply. the Glif, an accessory for the iPhone. The past 50 years have seen production Two other new manufacturing models aremove onto an increasingly global stage.Large-scale plants produce goods that aremanufactured, assembled, and deliveredacross vast and complex production net-works. Distributed models of manufactur- 17 www.manufacturing-executive.com ME Global Leadership Community
  • 18. MANUFACTURING Meeting the Sustainability Challenge //EXECUTIVE LEADERSHIP JOURNAL exploit that knowledge to its profit and .......................................... .......................................... .......................................... to the benefit of the customer. This is .......................................... .......................................... .......................................... .......................................... .......................................... ..................... ..................... termed “sale-of-service,” and Xerox has ........................................... ........................................... .......................................... long been a proponent of such a business model when leasing its photocopiers over GetitMade.com and Common.is. Both re- the decades. semble a hybrid between co-operative, crowd- Xerox designs, makes, sells, and sup- sourced innovation and traditional manufac- ports document management machines. turing. At the moment, these and others like it Xerox had recovered used equipment are untested new models, mostly suitable for since the 1960s, but in the late 1980s and the shed-based inventor or mini-maker, but early 1990s there was a drive to develop ................. ................. ................. ................. ................. ................. ................. in time they have real potential to be as disrup- a more formal system to maximize the New manu- tive to industry as the Web has been to print. profitability of remanufacturing opera- As Winston Churchill, another political tions. The company shifted its operation facturing heavyweight, put it: “To improve is to change; from a product-based system (i.e., selling models like to be perfect is to change often.” a photocopier) to one in which it provides GetitMade. a service (selling the ability to produce com and Com- New Business Models copies). F mon.is are inally, manufacturing needs to Modular product design, wide prod- mostly suit- think much more seriously about uct compatibility across models, inte- able for the alternative and more sustainable grated return logistics, ease of assembly business models for the future. and disassembly, and the development shed-based Current business models reward prod- of high-tech quality-assurance methods inventor or uct churn and inadvertently reward mate- have allowed re-use of components and re- mini-maker, rial consumption because we make more manufacturing of products. but in time profit from selling more stuff. New situa- By bringing the product under its con- they have real tions create an opportunity for new busi- trol, Xerox has the access and the moti- potential to be ness models, and in an energy- and mate- vation to deal with through-life and end- rial-constrained world, business models of-life issues. In some business cases, the as disruptive that reward material and energy efficiency contribution that remanufacturing can to industry as are likely to evolve. This currently implies make will be limited by the suitability of the Web has moving into the recycling business or mak- products, and some analysts suggest that been to print. ing a “greener” product (greener cars, the strength of the Xerox model is inher- greener light bulbs, greener chairs) and ent in the type of products it produces. The hoping it sells in greater volume. products are large, robust, easy to disas- But there are other ways. Selling the semble, and valuable when remanufac- function of a product to the customer, tured; however, the company have made while retaining ownership of the materi- a substantial investment in developing the als that go into that product, means that systems and technology that guarantee the customer gets what he or she wants these conditions. (mobility, light, a place to sit), and after Indeed, Xerox has become one of the use the manufacturer gets back the ma- pioneers in extracting maximum value terials that it has deep knowledge of—al- from minimum materials, while reducing lowing the manufacturer to find ways to its impact on the environment. Its service  www.manufacturing-executive.com ME Global Leadership Community
  • 19. model enables the company to address the engineers are brought to bear on the issues ofminimization of waste throughout the de- resource consumption in this way, substantialsign, make, use, and end-of-life stages of changes in sustainability performance areits products. Many more manufacturers clearly possible. These changes can be madecould benefit from such an enlightened ap- without radical impacts on product or pro-proach to how they combine product and cess, and are often cost-beneficial in the longservice activities. run. Toyota’s environmental programs are self-funding.Eco-Efficient Manufacturing In research terms, this is called “eco-effi-C ompanies are beginning address the ciency”—how manufacturers can improve environmental and economic im- their sustainability performance without pacts of their whole operation, in- changes to product, process, or equipment.cluding manufacturing. Better knowledge of the measurement and Toyota Motor Europe (TME) has begun modeling of factories as a system that receivesa journey toward sustainability that is now various resources (materials, water, energy,a central tenet of the company strategy, etc.), and creates value-adding product asand manufacturing is playing an essential output plus various wastes, will be a corner-part. Taking the global aim of zero emis- stone of industrial sustainability in the future.sions and a road map toward the ultimate That’s the challenge facing every manu-eco-car as inspiration for its European facturer. What industry must now exploremanufacturing operations, TME devel- more determinedly than ever are the inno-oped its own vision: “Toward the Ultimate vative processes, business models, and or-Eco-Factory.” This has special focus on ganizations that can help business becomefour major key performance indicators: more sustainable as well as deliver competi-energy/CO2, water, waste, and air emis- tive advantage.sions (of volatile organic compounds, or It’s no easy task, but it is achievable. Sus-VOC). These represent the most signifi- tainability is manufacturing’s moon mis-cant manufacturing plant environmen- sion. And as President Kennedy put it backtal impacts and have been attacked ruth- in the 1960s, it is an endeavor where successlessly. TME achieved zero waste to landfill is vitally important:two years ahead of target, saved 100,000 To be sure, we are behind, and will be be-tonnes of water a year, and slashed CO2 hind for some time…But we do not intendemissions to below 2004 levels. to stay behind, and…we shall make up and When the skills and tools of manufacturing move ahead. M..........................................................................................................................................................................................................................................................................................................................................................................................What industry must now exploreare the innovative processes,business models, and organiza-tions that can help business be-come more sustainable as well asdeliver competitive advantage.
  • 20. Sustainability:
  • 21. MANUFACTURING EXECUTIVE LEADERSHIP JOURNAL ................................... ................................... ................................... ................................... ................................... ................................... ................................... ................................... ..................... ............. E ................................... ................................... ................................... nvironmental metrics were not much of an is- sue when I started as a young environmental co- ordinator at a Utah coalHow to mine 30 years ago. The few metrics I used were mainly driven by regulatory agency permits, inspections, and audits. How many spills occurred thisMeasure month? How many fines did we get this quarter? Did we exceed wastewater dis- charge requirements? Our environmental compliance philosophy was driven by per- Up mit limits, rules, and regulations. My company was actually more con- cerned about controlling environmental pollution and managing the impact of operations on the environment than most companies in the Western U.S. at that time. Still, back then, there was a major discon-Like any other initiative, sustainabil- nect between environmental performance ity must be measured to be success- and business performance. Environmental protection was seen by management as a ful. But manufacturers must move cost, not as an integral part of conduct- ing business. Metrics weren’t designed tobeyond compliance-driven metrics and optimize environmental performance or embrace measurement systems that to provide managers with an understand- ing of the long-term impacts our decisionsacknowledge both the broad sweep and would have on our business or the environ- financial impact of sustainability. ment. All decisions were made within a limited point of view. ................. ................. ................. ................. ................. Unfortunately, many of the environmen- By Dave R. Meyer tal metrics in use today have their origins in the end-of-pipe, command-and-control reg- ulatory approach that has been implement- ed in a piecemeal fashion over the past 30 years since I joined the environmental pro- fession. Regulatory agencies drive the key performance metrics, which, in turn, tend to drive business strategy and performance. It’s time to rethink this. While compli- ance is a key benchmark for environmental  www.manufacturing-executive.com ME Global Leadership Community
  • 22. Feature/ Sustainability: How to Measure Up /MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL up short. And while there is benefit in using ........................................... ........................................... ........................................... the latter to shape metrics-based continual ........................................... ........................................... ........................................... ........................................... ........................................... ............. ............................. improvement, I recommend that forward- ........................................... ........................................... ........................................... thinking companies focus on the former. performance, manufacturers shouldn’t stop Fortunately for manufacturers seeking to there. To be truly effective, metrics must link take a forward-looking approach and to link the outcomes of sustainability initiatives sustainability and financial performance, directly to corporate performance and, ulti- a new set of comprehensive metrics frame- mately, financial performance. And sustain- works has begun to emerge and mature. ability metrics shouldn’t be limited to envi- These frameworks are allowing companies ronmental impacts. Sustainability is also to take a broader look at the ways they mea- about health and safety, social and ethical, sure environmental performance. and economic impacts. One of these frameworks is the ISO 14001:2004 Standard and Specification Why Measure Anyway? and its companion guidelines. A creation Two well-worn axioms state that, “You are of the International Organization for Stan- .................... .................... .................... what you measure,” and, “What gets mea- dardization and established in 1996, ISO .................... .................... .................... .................... sured gets managed.” Without a way to 14001:2004 guides manufacturers in creat- To be truly establish an internal benchmark for con- ing what it calls environmental management effective, met- tinual improvement, it becomes harder to in- systems (EMS), management approaches rics must link novate, advance, and proactively respond to that companies can use to control the envi- the outcomes stakeholder expectations. ronmental impacts associated with an orga- of sustain- Key advantages to monitoring and mea- nization’s activities, processes, and services. ability initia- suring environmental and organizational The central feature of an EMS is to allow tives directly performance include the ability to: companies to continually improve their to corporate • Set effective and value-added priorities environmental performance as measured performance • Benchmark and continuously against specific objectives and targets. ISO improve operations 14001:2004 also provides manufacturers and, ultimate- • Encourage bottom-up, large and small with a systematic approach ly, financial organization-wide innovation to setting environmental objects, and dem- performance. • Reinforce personal and onstrating internally and externally that organizational accountability those objectives have been achieved. • Strengthen strategic planning A companion to ISO 14001, the ISO 14031 and goal-setting processes Environmental Performance Evaluation • Improve internal and external communication guidelines, provide for the establishment of Value-added metrics can do one of two measurable and verifiable environmental per- things: They can tell you what you should formance indicators (EPIs). These include do, or they can tell you what you should have economic indicators that are appropriate to done. If you use metrics to tell you what to any public or private enterprise. The potential do, you’ll be using them to guide continual benefits from linking environmental and eco- improvement efforts that measure your suc- nomic performance depend on a company’s cesses. But if you use them to tell you what ability to integrate environmental manage- you should have done, you’ll be focusing ment practices into its normal course of oper- them mainly on measures of where you came ations. The ability to quantify environmental  www.manufacturing-executive.com ME Global Leadership Community
  • 23. performance in a meaningful way is critical to for sustainability. It is a challenging under-the effectiveness of this integration. taking, but one that offers great promise for Adding to the growing mix of bench- helping small and large businesses to system-marks for environmental indicators are atically plan, develop, implement, and man-the Global Reporting Initiative (GRI), the age all aspects of their sustainability efforts,Global Environmental Management Initia- including environmental, health and safety,tive (GEMI), and the World Business Coun- social, and economic concerns.cil for Sustainable Development (WBCSD)guidelines. Each of these measurement and What to Measure and How to Frame the Messagereporting frameworks enables reporting onthe sustainability—economic, environmen- Once manufacturing executives decide thattal, and social—dimensions of an organiza- they have to engage in additional sustain-tion’s activities, products, and services. ability measurement, the key question be- In addition, new sustainability measure- comes: What do we measure, and how doment frameworks such as ULE 880, a report- we measure it? Here are a few tips:ing standard for manufacturers being de- . Measure things that add value to organizationalveloped by a group including Underwriters decisions. Measuring for the sake of measuring Dave R. Meyer is a waste of time. For instance, if water or energy is vice presidentLaboratories, will fill a major void. They will al- use is a large part of your organization’s environ- of Northwest op-low companies to consistently understand and erations at SEEDS mental footprint—and your cost structure—de-measure how well they are doing in address- velop initiatives geared to reducing or mitigating Global Alliance, aing and communicating their environmental, provider of sustain- those e ects, and document metrics that are ability consultingfinancial, and social impacts within their four normalized, meaningful, and representative. services. He is alsowalls and across their supply networks. . Think about ways to measure performance a member of the At its core, ULE 880 is designed principal- that are di erent from the metrics used by your Manufacturingly as a procurement tool, allowing compa- competitors. Novel and unique metrics are just Leadership Council. as important as your products in di erentiatingnies, public agencies, and institutional buy- you. For example, if your product is designed forers to assess the performance of their supply longer life than a competitor’s, you may be ablechain and trading partners. It is intended to document the product lifecycle impacts into complement existing and future prod- such a way as to not only show how special youruct procurement specifications throughout product is, but also demonstrate how it is lessmany layers of an organization’s supply resource-intensive.chain. This latest effort is being initiated in . Benchmark yourself against your competitors, and use metrics that are accepted within youran attempt to harmonize dozens of stan- manufacturing sector.This will ensure that overdards and guidelines into one global, mea- time, globally focused metrics will become har-surable, and verifiable third-party standard monized. If you are a large company with multiple .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... Measure things that add value to organizational decisions. Measuring for the sake of measuring is a waste of time.  www.manufacturing-executive.com ME Global Leadership Community
  • 24. MANUFACTURING Feature/ Sustainability: How to Measure Up /EXECUTIVE LEADERSHIP JOURNAL driver for monitoring and measuring sus- .......................................... .......................................... .......................................... tainability performance. If metrics don’t add .......................................... .......................................... .......................................... .......................................... .......................................... ..................... ..................... value, they will not support continuous im- ........................................... ........................................... .......................................... departments, divisions, or sites, collect and re- provement and, eventually, will be ignored. port metrics so that results from individual parts It’s important to remember that one size of the company can be rolled up in a way that does not fit all when it comes to defining and addresses the entire organization but still meets measuring sustainability. The unique culture the specific needs of a site or department.This will of each company is an important factor in allow large, global companies with multiple op- determining how you structure your sustain- erating units to seek site-specific water, energy, waste, chemical use, carbon intensity, and other ability initiative and what you measure. To be data while also being able to consolidate results truly effective, an initiative must create positive and report on how well they are meeting sustain- change in fundamental organizational behav- ability goals at the corporate level. ior, both within, upstream, and downstream Also, when establishing appropriate sus- of the organization. This change must provide tainability measures (whether they are fo- long-term, measurable, and meaningful value. cused on social, environmental, operation- The look-and-feel of sustainability, then, al, or financial dimensions), consider that depends on the level of enlightenment that metrics must be: a company has, the desired end state, and • Representative the depth of its resources to execute the • Understandable change. So, it’s important to note that while • Relevant the main focus now is on the environmental part of sustainability (i.e., “green”), that’s not • Comparative the whole story. Sustainability embraces the • Quantifiable legal, financial, economic, industrial, social, • Time-based and normalized and behavioral aspects of organizations as • Unbiased and validated well as their impacts on the environment. • Transferable And just as there’s a lot more to sustain- In addition, make sure that the metrics you ability than the environment, there’s a lot use address the needs of all internal and ex- more to becoming a truly sustainable orga- ternal stakeholders. They must represent the nization than metrics. In a new open-source needs of your employees, customers, local book, The Sustainable Business, Jonathan community, government, and shareholders. Scott describes seven key elements and cri- Finally, good metrics, if applied properly, teria needed for organizations to evolve and will foster innovation and growth. Focus on qualify as sustainable. The “7-P’s” of sus- continuous improvement as the primary tainability, according to Scott, are: .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... Focus on continuous improve- ment as the primary driver for monitoring and measuring sustainability performance.  www.manufacturing-executive.com ME Global Leadership Community
  • 25. 1. Preparation: The means of setting the stage for the ISO 14001 EMS, or perhaps the upcom- change (both physically and psychologically). Be- ing ULE 880 standard. While sustainability fore starting on any sustainability initiative, make certain that all employees and stakeholders have is the guiding principle and goal, an EMS been informed about what’s being done and why, such as the one defined by ISO 14001 can act and that they are on board. as a valuable framework, a set of processes2. Preservation: This encompasses two areas—the and tools that can keep you on track. internal collection and reporting of real-time So, before you leap, plan ahead. Build a sys- metrics; and the external compliance with laws, tem to plan, implement, measure, and check pending legislation, trends, and developments. the progress of your initiative. Look for the3. Processes:These are sustainable belief systems, quick wins. Build an innovation-based cul- philosophies, business models, and thought pat- ture, and reward positive outcomes. Measure, terns that help match a business with customer demands, core capabilities, and best practices. manage, report, and build on the early wins.4. People: This applies to accepting the importance Build the initiative in manageable chunks. of training and education and working to avoid Although the economic slowdown may .................... .................... .................... .................... wasting human resources. It applies specifically have dampened the speed with which or- .................... .................... .................... to employees (who seek security and motivation), ganizations are implementing sustainable stakeholders (who want a return on their invest- Before you practices, organizations are finally getting ment), customers (who want safe, value-laden leap, plan it. A few key pointers: products), and the world community, including ahead. Build the two-thirds of humanity who are currently left • Know your driver a system to out of the global economic loop and who desire • Develop a compelling, clear vision of sustainability jobs and inclusion. plan, imple- • Identify critical sustainability issues5. Place: The buildings and places where work is ment, mea- • Select areas of focus—look outside the four walls performed and/or products are sold. sure, and • Develop and adopt goals and measurable6. Product:This involves ensuring that goods and check the performance indicators services are free from unnecessary waste and progress toxins and are designed so that the materials, • Reflect sustainability throughout all phases of or- ganizational development, planning, and imple- of your energy, and manpower that comprise them (and their packaging) are treated as investments and mentation processes and decisions initiative. continuously reused. • Build a network of internal7. Production: This involves the physical, mechani- sustainability champions cal, biological, and chemical processes used to • Strengthen relationships with key transform raw materials into products or ser- external sustainability partners vices—and to transport them. In this highly competitive, quickly changing economy, organizational success requires agil-And I would add three criteria of my own. A ity. Increasingly, manufacturing executives aresustainable organization must, at a minimum: looking at how environmental performance• Minimize resource consumption can have a direct impact on the bottom line• Avoid damage to the environment of their organization. Drivers such as the glo-• Meet business goals, human needs, balization of markets, shifting customer and and stakeholder aspirations shareholder preferences, regulatory pressures, So, how does one get started along the business process re-engineering, and, yes,continuum that leads to meaningful and sustainability mandates are fundamentallymeasurable sustainability? One way is changing the way companies operate, design,through development and implementation manufacture, and distribute products. Andof a systematic framework like one based on the way they measure themselves. M 25 www.manufacturing-executive.com ME Global Leadership Community
  • 26. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL ................................... ................................... ................................... ................................... ................................... ................................... ................................... ................................... ................................... ................................... ....... ........................... ................................... Wanted:  www.manufacturing-executive.com ME Global Leadership Community
  • 27. Leadership inEnergy EfficiencySenior manufacturing executives must get in the driver’s seat to make energy efficiency an ongoing reality. Here’s a road map on how to get there. By John Nesi
  • 28. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... ..................... ..................... ........................................... M ........................................... .......................................... OST MANUFACTURING LEADERS TODAY UNDERSTAND the need to improve energy efficiency throughout their organizations, yet a gap exists between what they acknowledge as a problem and the perceived companywide commitment to addressing it. However, there are steps that executives can take to help promote energy-efficient operations that en- gage the workforce to drive improvements throughout the organization. Why Energy Efficiency? Why Now? mark their achievements. Based on a con- I ndeed, there are many drivers for re- tinual-improvement framework, it supports ducing consumption, and they vary organizations in their effort to develop and from company to company. Perhaps implement energy policies with established your customers are pushing you to manu- objectives, targets, and action plans. facture products more sustainably, or the When implemented effectively, ISO constant fluctuations in energy costs are 50001 can help organizations make better proving detrimental to your bottom line. use of their energy-intensive assets through Your principal manufacturing facilities benchmarking, measuring, documenting, may be located in states where voluntary and reporting energy-intensity improve- emissions monitoring and reduction pro- ments and their projected impact on reduc- grams offer significant monetary incentives tions in greenhouse gas emissions. for participation. Or maybe you simply need to identify areas to cut costs without An Organizational Disconect W harming throughput. hile the drivers may seem ob- If that isn’t enough, ISO 50001—a stan- vious, many businesses admit dard developed by the International Organi- to struggling with implemen- zation for Standardization (ISO)—will take tation of energy management initiatives. A effect later this year. The ISO estimates that recent survey conducted by the Economist 50001 will influence up to 60% of the world’s Intelligence Unit and Ingersoll-Rand has energy usage. The standard establishes a helped reveal a perception gap between C- framework for industrial plants, commercial suite executives and next-level managers facilities, and entire organizations to man- that might be causing the challenge. age energy in their facilities and to bench- The survey reports that nearly half of C- .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... There are many drivers for reducing energy consumption, and they vary from company to company.  www.manufacturing-executive.com ME Global Leadership Community
  • 29. Feature/ Wanted: Leadership in Energy Efficiency /4/7 suite executives believe their organizations’ costs over the life of the asset.” energy efficiency initiatives are well integrat- › Lack of awareness: Both Russell and .................... .................... .................... .................... ed into their business strategy, but that only researchers at the Pew Center point out that .................... .................... .................... one-third of managers below C-level believe employees throughout an organization are Many so. This disconnect is significant because, like frequently unaware of the energy-saving op- executives any successful policy or program, successful portunities available to them. In an article on must take implementation requires commitment from barriers to energy management, Russell uses all levels and functions of an organization— the example of compressed air leaks that go a harder especially from top management. unchecked because staff believe that air is look at their No doubt, many executives must take a free, when in reality, five horsepower of elec- companies’ harder look at their companies’ energy per- tricity is consumed to generate one horse- energy per- formance and acknowledge the fact that they power of compressed air. formance and could be standing in the way of improvements. › Lack of ownership: Google’s energy acknowledge czar, William Weihl, took the issue of com- the fact that Why the Perception Gap? panywide buy-in a step further at a Climate they could be A variety of sources cite several factors One presentation in March, pointing out, standing in that can contribute to a company’s “With institutional barriers such as mul- the way of im- inability to truly address and imple- tiple departments working with differ- provements. ment energy conservation efforts, including: ent budgets, the overall cost of ownership › Short payback requirements: Accord- causes many to push the efficiency issue to ing to the Pew Center for Global Climate another person.” Simply put, without lead- Change, many companies set aggressive re- ership directing all relevant business units turn on investment timelines for energy ef- to identify and implement energy savings ficiency projects, which can exclude certain initiatives, nobody will “own” the effort, projects that might offer significant savings and efficiency gains will not be realized. over longer periods of time. › Existing business culture: Perhaps the › Inflexible budgeting: As Christopher single largest challenge to implementing Russell of Energy Pathfinder points out, energy efficiency improvements is the com- “Operating budget strategies may simply pany leadership itself. As Russell explains,Previous spread photographs: left, Veer.com/irin-k, right, veer.com/Rui Vale de Sousa John Nesi is vice trend each line item from year to year. The “Few corporate leaders, if any, ‘save’ their president of market manager who saves energy this year will way to the top. Their bias is for short-term development risk getting a reduced budget for the com- revenue-making, not cost-saving. This at Rockwell ing year.” Alternatively, while funding for thinking is evident in capital budgeting de- Automation. Industrial GreenPrint, energy efficiency improvements may come cisions, where growth-oriented projects are Allen-Bradley, and from the maintenance department’s budget, favored over expense-reduction initiatives.” PowerFlex are trade- marks of Rockwell the savings often are attributed to a separate Automation Inc. production budget, which negatively im- A Road Map for Change C pacts the maintenance department’s motiva- ertainly, there are many barriers to tion to implement the improvements in the implementing energy reduction ini- first place. Russell also points out, “Low-bid tiatives. While institutional issues or least-cost purchasing requirements im- such as budgeting and corporate culture may posed by front-office procurement person- take years to overhaul, they don’t have to be nel lead to purchases based solely on upfront an impediment to saving energy and money costs, ignoring energy and other operating today. Executives can use existing technol- 29 www.manufacturing-executive.com ME Global Leadership Community
  • 30. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL the organization, which could include .......................................... .......................................... .......................................... Operations, Maintenance, Engineering, .......................................... .......................................... .......................................... .......................................... .......................................... ..................... ..................... ........................................... ........................................... .......................................... Sourcing, and Environmental Health and Safety, among others. The individual with ogy and services to help their companies ad- the most expertise about the organization’s dress some of these challenges right away. energy consumption and management— As industry analyst firm Aberdeen such as the head of sustainability, head of A comprehen- Group pointed out in its January 2010 Ana- environmental compliance, or head of op- sive energy as- lyst Insight “Energy Intelligence: Creat- erations—should lead this group. sessment will ing Data Driven Efficiency,” there are two The task force’s responsibilities should in- help define key best-in-class strategic actions for driving re- clude setting goals for energy consumption metrics and ductions in energy use that manufacturing improvements and developing a prioritized identify a wide companies can implement now: list of projects for getting there, including the range of proj- › Create or improve visibility into energy cost and rate of return for each project. This use across the enterprise work, when completed, would compose ects that can be › Optimize production processes to be much of what is needed for the energy-policy implemented more energy-efficient aspect of ISO 50001 compliance. to reduce Following is a short road map—or what Beyond supporting the creation of this task energy con- Rockwell Automation refers to as the In- force, the lead executive’s role includes ap- sumption and dustrial GreenPrint—to help you accom- proving select projects uncovered by the team improve the plish both of these actions. and creating funding for them in the corpo- bottom line. rate budget. The executive is also the person .................... .................... .................... Step 1: Appoint and Support .................... .................... .................... who will hold the task force accountable for .................... An Energy Task Force meeting established key performance indica- A first step is to support your staff in the tors. In other words, beyond simply express- development of an energy task force. This ing support for the work of the team, execu- cross-functional team should draw its tives must enable them to succeed and must members from all relevant groups within stand as a driving force behind their efforts. ................................ ................................ ................................ ................................ How Owens Corning Saves $150K a Year in Energy Costs O wens Corning is a e ciency projects at the technology, the plant engi- The four Allen-Bradley Pow- company with a true Guelph plant saves more than neers evaluated the potential erFlex drives help provide Ow- corporate commit- $, a year. savings of installing variable- ens Corning with total annual ment to sustainability. Since One of these projects led the frequency drives (VFDs) on its energy savings of  mega- , its Guelph, Ontario, plant Guelph plant, which manufac- fans, and verified that reduced watt-hours, or about $, has invested nearly $, in tures glass fiber used in prod- fan speed would not a ect per year. Owens Corning sees energy conservation projects ucts such as car-door panels product volume and quality. a total payback of $, as part of a multi-million- and windmill blades, to install The ultimate installation of in energy savings annually, dollar investment in energy real-time metering equip- the VFDs helps Owens Corning including gas savings, and it e ciency at Owens Corning ment to measure and monitor achieve its sustainability goals received a $, payback from operations around the world. energy use for its major manu- by providing energy savings of the Electricity Retrofit Incen- The investment in  energy- facturing processes. With this nearly %. tive Program.  www.manufacturing-executive.com ME Global Leadership Community
  • 31. Feature/ Wanted: Leadership in Energy Efficiency /6/7 sessment will help define key metrics andStep 2: Understand identify a wide range of projects that canYour Company’s Baseline be implemented to reduce energy consump-To measure your task force’s efforts, it is tion and improve the bottom line.critical that its members determine a base-line for energy improvement—including all Step 3: Maintain and Share Visibility to Promote Continualwater, air, gas, electric, and steam resources. ImprovementThis will be the lead executive’s most im-portant reference point as the task force re- By leveraging the consumption data gath- .................... .................... .................... ....................ports on its progress. ered during the assessment and baseline- .................... .................... .................... Quite understandably, the process of set- setting activities, the energy task force canting an accurate baseline can be a daunting begin working within its organization to Related Articles:feat, as there is a seemingly endless amount make incremental and proactive behavior- ERP Tackles theof data to gather and assess. The energy al, control, and equipment improvements. Environment www.manufacturing-task force might find itself overwhelmed These might include forecasting, load ag- executive.com/tackleswith questions when it comes to figuring gregation, and rate analysis exercises. Cor- Manufacturersout where to start. porate executives should maintain a clear Need a More Holistic Approach to Energy Executives should consider recommend- view into these activities, and stay informed Management www.manufacturing-ing that the task force begin with an energy about any improvements toward reduced executive.com/assessment. As part of this assessment, a energy consumption. holisticCertified Energy Manager (CEM), who To maintain visibility, executives can re- Sustainability: Are We Makinghas successfully completed the CEM cer- quest that their task force install a custom- Progress?tification exams administered by the As- izable reporting dashboard—a Web-based www.manufacturing- executive.com/sociation of Energy Engineers, completes information solution available to them to- progressan in-depth analysis of the facility’s current day—that drills into the energy consump-energy usage. Using data collected on-site tion of each aspect of a facility on an on-from the in-house team and a comprehen- going basis. This dashboard could featuresive review of all utility bills for the past two weather-normalized predictive modeling,years, the CEM can generate an analysis as well as worldwide key performance in-output document that provides a broad, dicators and reports for comparisons ofhigh-level overview of the company’s en- multiple facilities. A plant manager canergy usage. Armed with this information, use a similar tool customized for his or herthe energy task force can set a true facility specific goals to pinpoint energy usage andconsumption baseline. variable costs on the plant floor, and con- In addition, a comprehensive energy as- sider ways to improve profitability. .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... ..........................................................Executives can help create an energy- conscious culture with engaged employees who remain mindful ofcontinual-improvement opportunities. 31 www.manufacturing-executive.com ME Global Leadership Community
  • 32. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL and can make adjustments accordingly. .......................................... .......................................... .......................................... At this point, energy and its associated .......................................... .......................................... .......................................... .......................................... .......................................... ..................... ..................... ........................................... ........................................... .......................................... greenhouse gas emissions are no longer fixed allocations that are simply part of un- Additionally, executives should share vis- avoidable overhead. Manufacturers that ibility across the company. In doing so, they add energy to the bill of materials can ac- help create an energy-conscious culture with tively manage it as an input to achieve high- engaged employees who remain mindful of er profitability. In addition, this unit-level continual-improvement opportunities. energy consumption information becomes valuable input to sustainability scorecards Step 4: Support New Ideas and other reporting mechanisms, allow- Without a doubt, these steps will lead the ing companies to better optimize their full energy task force into new territory, where supply chain to enhance their sustainability its members can implement more sophis- and energy programs. ticated energy management projects. With so much data at their fingertips, they could Enable Your Company to Do Better T begin optimizing plant floor assets by mod- he possibilities are vast, and the eling production with energy resources as potential returns are real. Ac- economic variables, and forecast the most cording to Aberdeen, best-in- According economical way to manufacture products. class performers implementing energy to Aberdeen They could even project, in advance, how savings are realizing 15% year-over-year Group, much energy will be required for specific reductions in energy use and 14% gains in best-in-class loads and batches, allowing your company operating margin. performers to include energy requirements in resource Such improvements are exclusive of the implement- planning and scheduling decisions in the financial benefits to be gained from other ing energy same way it considers the availability of third-party incentive programs. In Taiwan, savings are raw materials or other inputs on the bill of for example, tax deductions encourage realizing materials. Empirically tying energy con- large energy users to buy efficient equip- 15% year- sumption requirements to the bill of mate- ment and technology. In Malaysia, exemp- over-year rials enables a plant manager or production tions from import taxes are available for reductions scheduling manager to make proactive pro- renewable-energy equipment. in energy use duction decisions, and better manage en- Ultimately, as Energy Pathfinder’s Rus- ergy investments in a way that will generate sell notes, energy efficiency programs can and 14% gains a greater return. For example, by knowing help maximize returns on shareholder eq- in operating that certain batches require more natural uity by minimizing tax burden, minimiz- margin. .................... resources, managers can schedule those ing expenses to increase operating margin, .................... .................... .................... .................... .................... .................... batches outside peak windows. increasing revenues to improve operating This knowledge enables better overall margin and asset turnover, and increasing business decisions as well. Knowing how asset values to improve financial leverage. much energy (and therefore additional cost) However, none of this is possible without is required to manufacture a specific prod- proven support and leadership from the top. M uct, a product marketing professional may realize that a specific product is not priced appropriately to generate a strong margin  www.manufacturing-executive.com ME Global Leadership Community
  • 33. Member Organizations • AMD • AMR Research • Apriso • ARC Advisory Group • AT&TMANUFACTURING • BendPak Inc. • Black Rapid Inc • Boeing CompanyLEADERSHIP COUNCIL • Campbell Soup Company • Cisco • Colgate Palmolive • Covidien • CPI AeroThe Only Network for • Cummins Turbo Technologies • DellManufacturing Join Now! • Deloitte • DOW Chemical Company • DuPont • Eaton CorporationManufacturers have never faced greater challenges. From • Emerald Packaging, Inc. • Farmingdale State Collegecost and efficiency pressures, to globalization and chang- • Ferrariing customer and workforce demographics, the need for • FONA International • Franklin Universitybold and creative leadership, innovation, and greater • General Dynamics • General Motorsbusiness agility has never been more important. • GlaxoSmithKline • Global Leadership Associates Inc. • Graphicast • Grayling Industries, Inc.The Manufacturing Leadership Council includes • Hanel Storage Systemsrepresentatives from the most influential companies in the world. • IDC Manufacturing Insights • IfM at Cambridge • Executive Education • Ingersoll Rand • InSource Solutions Academic programs, guided tours, benchmarking data, and • International Society of Automation (ISA) subscriptions to top-tier content • Inteva Products, LLC • Johnson & Johnson Peer Connection • L’Oreal • Lexmark International, Inc. Mentoring, online peer connection, and • Liberty Color participation in dedicated events • Lion Vallen Industries • Lockheed Martin Aeronautics Co. Talent Acquisition • Markley Enterprise • Metcam, Inc. Access to talent from selected universities • MiaSole • MIT • Market Influence • Mohawk Fine Papers • MPE Machine Tools Setting the agenda, addressing critical issues, • Nesctec Ltd., Nestlé presenting thought leadership through the • Next Intent Manufacturing Executive Leadership Journal • O-Flex Mfg Group • Okuma America • Panduit Corporation • PepsiCoApply for membership today • Plex Systems, Inc.Use code CNLAMA • Premium Panels Inc. • Production Tube Cutting • Purolator International, Inc. • Raytheon • Remmele Engineering Inc • Rockwell Automation • S&S Hinge • Sealed Air • SEEDS Global Alliance • Siemens Water Technologies • Steinwall Inc • Tata Motors • The Everest Group • Tusco Display • University of California, Los Angeles • University of Cincinnati • VirTex Assembly Services • Volvo Construction Equipment • Zeus,Inc.
  • 34. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... ..................... ..................... ........................................... ........................................... .......................................... MELJ/ Roundtable/ / Note: This fan is powered by wind powerPUSHINGSUSTAIN
  • 35. Edited by Jeff Moad Many manufacturing companies have recognized that being perceived as sustainability leaders can boost their brands and dif ferentiate their products....NABILITYFORWARD
  • 36. ...But how can manufacturers advance to the next step and begin to document that a wide range of sustainability initiatives can actually bolster the bottom line? Recently, members of the Manufacturing Leadership Board discussed the state of sustainability and how manufacturers can take the next step. H ow far have your compa- of managing materials and equipment, nies and the manufactur- and it can play a big role in cost savings. ing industry in general We are seeing that it is becoming a part come in creating a green- of the culture and business [so much]............................................................................................ ............................................. er business? Has the re- that companies have not been talking....................... cession reduced interest about it as much as they used to.Roundtable in sustainability? O’Marah: I’m with Andy onParticipants Manenti: What we have seen over the last this as far as the generalAndy Chatha couple of years of economic crisis is some trend. But I’ll tell you some-President and Founder,ARC Advisory Group reduction of interest in sustainability, thing. I got some data backLarry Lapide particularly among smaller manufactur- recently from some surveyResearch A liate, MIT ing companies because there was more work, a really big survey, 750 respon-Center forTransportation& Logistics urgency for them to do things like reduce dents. What this survey is saying is thatPierfrancesco costs and reorganize. For midsize to large the things that are causing supply chainManenti enterprises, the sustainability road map executives to do anything about sus-Head, Europe, MiddleEast & Africa, IDC Manu- is still a key area of interest, although tainability are still coming from the tra-facturing Insights we have seen that the budgets allocated ditional sources, meaning CEO orGeorge Nickel haven’t been enough to im- board-level sponsorship is the mainDirector, Global Process plement important change in driver.Architecture, Johnson& Johnson Consumer companies. I think it’s quite clear that there areProducts The market, particularly all sorts of resource savings available,Kevin O’Marah for consumer products, has but the hard-dollar cost savings seemGroup Vice President, Sup-ply Chain Research, AMR remained interested in greener products. to be the least active drivers of sustain-Research/Gartner Think about cars, for example. The green ability efforts. I feel a little bit like weScott Park features of a car are quite important for may be hitting a low period of enthu-Global CIO and VicePresident, Processes & consumers because all the rest is primarily siasm for this topic, which doesn’t un-Systems, Volvo Construc- commodity. This is similar, for example, dermine its long-term potential. But istion Equipment for household appliances such as white going to require that we think a little bitM o d e ra t o r s : goods. in terms of the staying power of the ar-David R. BrousellEditor-in-Chief, Manufac- Chatha: Sustainability is becoming gument, and the lessons being learnedturing Executive much more a part of the culture of com- right now.PaulTate panies. I think more and more compa- Things that are still important [asExecutive Editor, Manu-facturing Executive nies are trying to make sustainability drivers of sustainability initiatives], in part of their business processes. Many addition to board or CEO-level spon- companies, in fact, are finding that sus- sorship, are stuff that has to do with tainability is good for business. Energy brand. They’re still buying into brand management, for example, is a big aspect as a reason for continuing to push sus-  www.manufacturing-executive.com ME Global Leadership Community
  • 37. MANUFACTURING EXECUTIVE LEADERSHIP JOURNAL tainability. I’m a little disappointed, frankly, at how much less I’m seeing the .................................. .................................. .................................. .................................. .................................. .................................. hard-dollar cost savings materialize [as .................................. .................................. ............. .................... .................................. .................................. .................................. drivers]. The policy or regulatory impact thing is still out there, but it’s less of a big O’Marah: Absolutely, Larry. That’s exact- deal than customer and/or brand image ly my problem with the data. The data are and the CEO or board-level drivers. telling me that the cost case and business Lapide: I always like to look at case is not robust yet, even though the CEO two sides to the sustainability believes that it is a necessity. I think what story. One is called energy, and we are missing basically is enough critical the energy one is about CO2 mass in the underlying industries that are emissions, air quality, and all going to make these types of non-energy, of that. That I think is going to play out be- ........................................ ........................................ ........................................ ........................................ cause, as oil prices rise, people are going to ........................................ ........................................ ........................................ squeeze out those CO2 emissions as much as possible. “For midsize to large enterprises, the The piece that I’m disappointed in is in sustainability road map is still a key the other piece, addressing the products that we put out in the environment that area of interest, although the budgets pollute the streams and all of that. It’s the allocated haven’t been enough to recycling story—making products that are better able to be recycled and disposed of. implement important change.” That’s a piece that people have given a lot —PIERFRANCESCO MANENTI H EAD , E UROPE , M IDDLE E AST & A FRICA , of lip service to but, frankly, nobody has IDC M ANUFACTURING I NSIGHTS cracked the code yet on how you save mon- ey doing that. sustainability-oriented changes—packag- Until you can do that, it’s very hard for ing, reusable materials, recycling, etc. Right supply chain managers and manufac- now, it’s not there. turing managers to go to their CEO and Nickel: It’s interesting when you look at say, “Hey, let’s create our products with sustainability in the context of the supply more environmentally sound things,” or, chain. There is one initiative we’re talking “Let’s not dispose of our products and about, which is carbon footprinting of let’s make sure we understand what hap- a product in the marketplace. It’s about pens to the Earth when we do this.” Oh, assessing the carbon footprint of a given by the way—what’s the price? Well, the product and how do you get data, for ex-Photos: iveer.com/ Laurent Davoust,Todd Kuhns price is more than we would like. That’s ample, from a PVC supplier that’s mak- the problem. ing something for you? You don’t know Until we can show that these recycling ef- how they do what they do. But it’s in your forts can actually be done in a cost-effective way, that’s a stumbling block right now. The reason why a lot of people haven’t been talking about it lately is because, with the Great Recession, we basically got more fo- cused on cost.  www.manufacturing-executive.com ME Global Leadership Community
  • 38. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL Chatha: You have to go back to ........................................... ........................................... ........................................... the machinery and equipment ........................................... ........................................... ........................................... ........................................... ........................................... ............. ............................. builders. They have to redesign ........................................... ........................................... ........................................... their machinery and produc- product in the sense that you’re using tion process. If you go to Eu- their bottle to put your liquid in. Maybe rope, some of those machine builders are for our manufacturing process we can trying to incorporate some of the newer get fairly succinct data. But for the sup- technology, but it is taking some time to pliers downstream that provide us with bring it to the customers. Many companies caps, bottles, labels, we don’t know how are driving some fundamental changes in to go about getting information about the their production processes and machinery. carbon footprint of their products, and Some automation companies are work- ..................... ..................... ..................... ..................... ..................... how it affects our content. When you use ing very closely with the machinery build- ..................... ..................... the word “sustainability,” it’s more im- ers, trying to integrate their machinery “When you use portant for branding than anything right much more tightly. In the packaging lines, the word ‘sus- now, it seems. for example, you will be able to make tainability,’ it’s O’Marah: George, I’m not surprised at all changes much quicker. But new solutions more important to hear that that was your finding. We did generally take time to come down to the for branding this unbelievably detailed carbon-footprint factory floor. analysis of glass versus paper versus PET Nickel: Andy, you’re right. We than anything packaging, and it is so amazingly compli- are definitely trying. Money is right now, it cated when you start talking this site ver- still being spent. People are be- seems.” sus that site, this energy source versus that ing given this job, being given —GEORGE NICKEL energy source. Basically you end up saying, this title, but when you get to D IRECTOR , ”Forget it.” the capital requirements involved—as you G LOBAL P ROCESS Therefore, for us to try to use a com- say, peeling all the way back to the machin- A RCHITECTURE , J OHNSON & J OHN - prehensive carbon-footprint analy- ery providers who have to retool a bunch of SON C ONSUMER P RODUCTS sis ends up being tied up in knots, and I stuff—then you’re asking for capital. Once think that applies to the cost argument you’re asking for capital, and you’re going as well. What we’re finding is it all makes in the face of a recession, which is perhaps tons of sense on a whiteboard, but when finally turning around but awfully slowly, you really want to get into the account- some people decide, “Let’s just shut up ing stuff, it’s hairy. Whereas branding is about this topic and talk about something easy to understand. If you’ve got a decent else.” That’s how we lose some momentum. story, people will perhaps go along with But I think we’ll get there eventually. you. But real supply chain sustainability? Tate: We don’t seem to have in We’ve probably got a generation of work place defined processes or mea- ahead of us before this is serious. surement standards that can actually help us compare the relative sustainability of differ- ent approaches and different products. Does this mean that we need the industry to do more, or is it a regulatory thing? Does it mean that the annual sustainability reports  www.manufacturing-executive.com ME Global Leadership Community
  • 39. Tomorrow’s Leaders / Roundtable/ 6/6that a lot of the major manufacturers are In addition to that, on the internal side ofnow developing are really just PR exercises? the equation, our core processes, we do workNickel: There is no standard set of metrics on trying to create a more green environment,that makes sense. There are different kinds whether it’s in our factories or in our offices.of standards you have to uphold to, differ- So, we do have quite a bit of activity to ensureent standards in the United States as com- that we are true to our core values or at leastpared to Ireland, for example. There’s not a the core value of environment in this case.common set of metrics, so even if you have O’Marah: As I was listening to Scott, I wasa measurement capability, the metrics that thinking, “You guys have protecting the en-you would be using are different from coun- vironment as one of your core values, andtry to country. So, it’s even more difficult to that means that you’re going to keep invest-try and really get to the true numbers. ........................................ ......................................... ........................................ ........................................ ........................................Lapide: I think it’s going to take govern- ......................................... ........................................ment regulation, not just the U.S. govern- “Sustainability is going to require thatment, but basically the big industrializedgovernments as well as the U.N. to start to we think a little bit in terms of theput regulations in place. I think companies staying power of the argument, andby themselves won’t necessarily have thecost benefit analysis needed—the business the lessons being learned right now.”case—to do it on the recycling side. They —Kevin O’Marahwill on the energy efficiency side, but not GrOup vice president, supply chain research,necessarily on the recycling. I’m optimistic aMr research/Gartnerabout the energy stuff, a little bit more pes- ing even through the ups and downs of thesimistic about the recycling until some of general public vibe in favor or against.”the governments get their acts together. What I like is to hear from a brand like Vol- Brousell: What can manufac- vo that we know and we innately respect. turing executives or manufac- When they do things that ensure that not just turing leaders do to help accel- the product itself is green and sustainable, erate all of this sustainability but the process of generating the product process? Is there something is green and sustainable, I think we shouldthat presidents and chief executives should tell those stories. We don’t do that so much.be doing that they’re not doing now? Typically, all the efforts around brand focus Park: At Volvo, we have three are on how wonderful the product is, not the core values: quality, environ- process by which the product is made. ment, and safety. What we’re The companies that are known for this talking about is actually one of probably could take a little more credit for how our core values, which is envi- green their plants are, how green their sourc-ronment. So, we do put a lot of effort and a ing is, or how green their distribution networkslot of investment into making sure that our are, and they don’t typically. Generally, we ex-products are coming out much more green, pect the market not to understand that, mean-whether it’s the recyclability or the fuel effi- ing the consumer not to understand that. We,ciency of our machines. Surely, that type of as manufacturing executives, ought to try toefficiency is something that is also a require- float these stories on behalf of the companiesment to be successful in the business. that people look up to, like Volvo. M 39 www.manufacturing-executive.com ME Global Leadership Community
  • 40. iinformation: 40 www.manufacturing-executive.com ME Global Leadership Community
  • 41. Sustainability’s Best The success of your Friend sustainability programs may come down to the quality of the information —and information systems —within your business. .................... .................... .................... .................... .................... .................... By Mark Symonds
  • 42. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... C ..................... ..................... ........................................... ........................................... .......................................... OMPANIES AROUND THE GLOBE ARE PURSUING “GREEN” initiatives for three very good reasons. First, of course, green is good for the planet and future generations. Company leaders are well aware of this social responsibility and are acting according- ly. In addition, there are regulatory pressures and mandates that must be satisfied. Third, and certainly not the least important consideration, there are pursue re-use, remanufacturing, and recy- economic factors that make some green, or cling. The natural extension of these efforts sustainability, efforts beneficial for both the is to reach out to supply chain partners and top line and the bottom line. enlist their participation in sustainability As companies look for opportunities to efforts. This is especially important because improve sustainability, it quickly becomes a company’s product typically includes evident that information plays an impor- content from suppliers’ products and ma- Mark Symonds is tant role. As with any improvement pro- terials. Regulatory agencies are interested President and CEO cess, the first step is to understand your in the entire content and the entire carbon of Plex Systems. company’s current environmental foot- footprint (energy usage, emissions) of the He holds an M.B.A. in finance and print or current state. Then, as changes are end product, including the materials and accounting from made, it’s important to measure the effect activities of the suppliers along with logis- Cornell University’s of those changes so you can document tics contributions—carbon generated dur- Johnson Graduate progress and provide guidance for the con- ing transportation, for example. Many cus- School of Manage- ment. Symonds is tinuation of sustainability activities. Final- tomers and investors want to know as well. also a Manufactur- ly, customers, stockholders, and regulatory So, it is incumbent upon manufacturers to ing Leadership agencies will insist on evidence to prove gather content information from suppliers Council member. .................... claims and document compliance. All of and work with them to reduce non-renew- .................... .................... Illustration: Veer.com/Pokki .................... .................... .................... these tasks require complete, detailed, and able content, energy usage, and unrecover- auditable information. able or toxic materials. Sustainability initiatives begin within the The corporate social responsibility sec- enterprise as companies change processes; tion of many public companies’ annual seek alternative (renewable) materials; and reports reads like a financial analysis, .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... It is important to leverage the information that i is already within the enterprise’s “system of re- cord” and to integrate additional sustainability information with line-of-business applications.  www.manufacturing-executive.com ME Global Leadership Community
  • 43. Feature/Information: Sustainability’s Best Friend /4/8with charts and graphs of environmental ous repositories for this resource usagekey performance indicators. While more information and some of the necessarycompanies are beginning to collect this data might already be available, althoughinformation, many continue to do so in a probably in not enough detail to supporthaphazard and informal manner, with in- a full-blown resource management ini-complete measurements held in disparate tiative. A company’s accounting depart-spreadsheets and text documents. When ment may have identified and analyzedthis information is reported in company specific resource usage rates in the pro-public documents and regulatory reports, cess of establishing overhead applica-however, it is assumed to be documented, tion rates, and will no doubt appreciate .................... .................... .................... .................... .................... .................... ....................verifiable, and defensible. Corrections and the higher level of detail that will becomerestatements can be embarrassing and available from sustainability efforts. If If you aredamaging to company credibility. your company has pursued an activity- aiming for a based costing (ABC) strategy, more de- certificationUnderstanding Baseline tailed data may be available. Conversely,Measurements or inclusion gathering detailed information like this on some kindA s with any improvement pro- could spur an increased interest in ABC of ranking or gram, the first step is to deter- among the accounting team. listing, first mine current status—product It is important to leverage the informa- learn how thecontent, energy usage, greenhouse gas tion that is already within the enterprise’s organizationemissions, amounts and types of mate- “system of record” and to integrate ad-rial being sent to the landfill. The more ditional sustainability information with receiving thedetailed this information is, the better. line-of-business applications to ensure report definesIt is good to know how much electricity consistency, completeness, and auditabil- sustainabil-the plant consumes in a day or a month, ity. In most manufacturing enterprises ity and whatfor example, but this type of informa- today, this information resides in multi- measure-tion is not necessarily actionable data. ple places and is incomplete. A key foun- ments itIt is better to know how much electric- dation is the bill of materials or, more values.ity each work center uses—how much is broadly defined, the bill of resources. Itconsumed for heating and cooling, air is critical to have one place to maintain allcompressors, annealing or heat-treating the resources used to make a product. El-ovens, and the data center, to mention ements of this information are in a prod-a few examples. With this level of detail uct data management system, and in theavailable, it becomes possible to relate re- ERP system and the MES (manufactur-source usage to production volume. This ing execution system).kind of information supports reduction Companies usually do quite well mea-claims, plans, and regulatory reporting. suring the parts and materials consumed. The same logic applies to lubricants, The challenge is to capture all the otherwater, and gas and oil for heating. Once resources such as water, air, gas, electric-this documentation is complete, a simple ity, and steam (often referred to as WAG-Pareto analysis will identify the biggest ES). Once the usage rate is built into theconsumers and therefore the ripest pros- bill, all plans and master schedules canpects for reduction. be checked for their impact on resources, Information systems are the obvi- and any proposed changes to improve 43 www.manufacturing-executive.com ME Global Leadership Community
  • 44. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL of ranking or listing, first learn how the .......................................... .......................................... .......................................... organization receiving the report defines .......................................... .......................................... .......................................... .......................................... .......................................... ..................... ..................... sustainability and what measurements it ........................................... ........................................... .......................................... values. Set your own goals and measure- sustainability can be modeled within real ments accordingly. and alternative production plans. Be aware that many of the sustainabil- ity reports and rankings also include less Measuring and Using Change quantitative factors along with those O nce the project is underway, discussed here—concerns such as em- information systems track re- ployee development, human rights, gen- sults and document accom- der equality, and anti-corruption. Other plishments. Information systems should measures of sustainability employ a con- support the project planning process by cept known as full-cost accounting where simulating the various changes, what ef- the entity (company, industry, country, Many com- fect they should have on product costs region) attempts to quantify its net im- panies have and margins, and the total impact of any pact on the environment—resources cre- found that changes on the supply chain and resource ated compared to resources used or de- sustainability usage. stroyed—with the objective of creating efforts can be As each change is brought into play, the an operation that has a net positive effect profitable in related measurements will record the di- on the world, or is at least not a net overall the sense that rect impact of the change and validate the user of resources. This is a lot more com- assumptions made in the planning pro- plicated and quite controversial in defini- they actually cess. These measurements steer the proj- tion and methodology. generate a net ect by identifying actions that achieve If there is a defined project with a bud- cost savings. results, as well as those that fail to meet get, goals, and a time line, or some defined .................... .................... .................... .................... .................... .................... expectations and those that cause unan- deadline for achievement, you’ll want .................... ticipated and undesirable effects. Often, to take final measurements that also be- the team can learn from early successes come the baseline for the next round of and failures, applying that experience- improvements. It is important that these [] PWC report: based knowledge to future efforts. Once measurements are consistent, defensible, “Creating value from corporate again, it is best if these measurements are and auditable. Once reported to the out- responsibil- ity: Does your integrated with other operational pro- side world through news outlets, adver- reported data get cesses and measurements so that they can tising material, product packaging, or the respect it de- serves?” February be validated and controlled. regulatory documents, they become part , Pricewater- In many cases, the relevant measure- of the public record and the company is houseCoopers LLP ment is “less.” Whatever energy usage, thereafter held accountable for accuracy. non-renewable material usage, water According to a recent Pricewater- usage, or pollutant emission was docu- houseCoopers report1, “Stakeholders are mented previously, the intention is to looking for investment-grade informa- show a reduction for the same level of tion on corporate responsibility…If sus- production. It is also important to un- tainability data is integrated into the an- derstand the expectations of the recipi- nual report, investors will expect the data ent of the data. If you are aiming for a to have the same level of quality as the certifi cation or inclusion on some kind financial data.” Even if there is no regula-  www.manufacturing-executive.com ME Global Leadership Community
  • 45. Feature/Information: Sustainability’s Best Friend /6/8tory compliance issue, the validity of the in line with investor priorities. These in-claim is important to company image and dexes necessarily rely on data providedthe perception of its integrity. It could be by the companies themselves and expectvery embarrassing and possibly illegal if that any information provided is correct,refinements in measurements and meth- documented, and auditable. Inclusionodologies in subsequent years result in on, or elimination from, any of these liststhe need to retract or restate prior claims. can make a considerable difference in de- mand for the company’s stock.The Changing Compliance PictureR egulators demand information Market Access T in the form of auditable records here is a market segment that de- that confirm the current per- mands, and is willing to pay a pre-formance level and document changes mium for, “green” and sustainablefrom the previous state. The same level products. It’s really quite remarkable howof detail that supports the project itself is consumers are willing to place a higherprobably sufficient for reporting purpos- value on commodity products like house-es, although the regulatory requirements hold cleaners simply because the label toutswill probably impose additional controls its sustainable content or the smaller car-to ensure auditability. bon footprint of the producer. Neverthe- Another side of compliance has less, there are opportunities for companiesemerged in recent years for companies to distinguish their products through theclaiming environmental achievements. elimination of toxins and pollutants, an in-In the U.S., the Dow Jones Sustainabil- crease in renewable and recyclable content,ity World Index ranks the top 10% of the reduction of the company’s carbon foot-largest stocks in the Dow Jones Global print, and positive environmental action.Index for sustainability and environmen- Once again, information systems providetal practices. The U.K.’s FTSE4Good the platform for measuring these factorsindex measures the performance of com- and documenting differences and improve-panies that meet “globally recognized ments. Additionally, it might be beneficial tocorporate responsibility standards.” map competing products and producers, as These and other stockholder indicators much as is practical, to be able to referenceare used by individual investors, institu- “x% less (or more) than the leading brands”tions, and mutual funds to guide invest- in addition to “y% more (or less) than ourments into companies that demonstrate regular product.” The switch to renewableconservation and sustainability behavior materials might increase the cost of goods .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... Any changes made in pursuit of social responsibility must be fully vetted for their impact on operations, costs, and margins. i 45 www.manufacturing-executive.com ME Global Leadership Community
  • 46. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL previous section). And don’t discount .......................................... .......................................... .......................................... the value of more stable—or perhaps de- .......................................... .......................................... .......................................... .......................................... .......................................... ..................... ..................... creasing—material costs. ........................................... ........................................... .......................................... sold, but there might be enough market value Social Responsibility D to allow a sufficient price increase to maintain oesn’t it feel good to be doing margin. Your information systems should good while doing well? Sus- provide a simulation capability to allow you tainability efforts contribute to to explore the cost-price-margin relation- the overall long-term health of the plan- ships and determine the best course to take. et through cleaner air and water and the preservation of dwindling resources. Nev- Cost Savings ertheless, a company’s primary respon- M any companies have found sibility is to its owners. It can’t make any that sustainability efforts can contribution to the health of the planet or .................... .................... .................... .................... .................... .................... be profitable in the sense that anything else if it is not profitable enough .................... they actually generate a net cost savings. to stay in business. So, any changes made Related Recycled materials, renewable alterna- in pursuit of social responsibility must be Articles: tives, and the like usually cost more per fully vetted for their impact on operations, ERP Tackles the Environment pound or gallon today, but these prices costs, and margins. www.manufacturing- tend to be more stable and may even de- Once there is a clear picture of the cur- executive.com/tackles Manufacturers crease as supplies become more plentiful. rent situation—product content, energy Need a More Holistic Prices for other commodities like petro- usage, emissions, waste—enter each pro- Approach to Energy Management chemicals and metals have proved to be posed change into the information sys- www.manufacturing- extraordinarily volatile of late, and are tems and calculate the expected results. executive.com/ holistic more likely to increase than to decrease Identify the net change in content or out- Cloud Computing: in light of rapid development (and, there- put based on today’s run rate, and re-esti- The Pros and Cons www.manufacturing- fore, increasing demand) in Asia and the mate with any expected changes in volume executive.com/ increasing cost of extracting and process- built in. Then simulate potential changes pros_cons ing these materials. in material costs, cost changes in the ma- You may be able to compensate for terials that are being reduced or replaced, some of the increased costs through re- and margins. This should provide a rea- covery of recyclable materials; refurbish- sonably clear picture of additional costs, ment and resale of returned products, cost savings, and markups needed to offset if that’s a part of your strategy; reduced the costs of implementing the change. disposal costs; or increased margin (see It may be that the board or executive .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... It’s entirely possible, quite i plausible, in fact, that sustain- ability may turn out to be as “free” as quality has become.  www.manufacturing-executive.com ME Global Leadership Community
  • 47. Feature/Information: Sustainability’s Best Friend /8/8team might decide to pursue the changes objectives, milestones, measurements,even if they are not profitable. But this simu- and proper management. And it will belation exercise is important no matter what most effective if viewed as a process rath-the outcome. It provides an expectation level er than as a project. Since any change ofagainst which to measure actual results. this scope requires both an investment and a commitment, executive-level buy-The Supply Chain in is essential.M ajor consumer goods manufac- A parallel can be drawn with the seismic turers, retailers, and OEMs are shift in the approach to quality that oc- asking their suppliers to pro- curred in the latter half of the last century.vide detailed information about product Before the quality revolution, companiescontent, emissions, and carbon footprint. measured the end product and discardedSome are doing this for marketing pur- or reworked non-compliant units. Thisposes, and others in response to regulatory was called “quality control.” The newpressure. Nevertheless, most manufactur- approach to quality focused on control- Accordingers—up and down the supply chain—will ling the process so it didn’t produce bad to a recentbe asked, in the foreseeable future, to track product. The switch from quality control Pricewater-their own content and resource usage as to process control elevated quality from a houseCooperswell as to accumulate the content and re- cost to a process-improvement approach report, “Stake-source information for materials and parts that increased quality overall with the holders arepurchased from their suppliers. costs absorbed into the process, not added One effective approach is to use a cloud- on. We learned that making it right the looking forbased self-service database to store this in- first time is less costly than correcting the investment-formation. Such facilities exist for chemical errors after the fact. Perhaps these same grade infor-and biochemical industry companies that lessons will apply to sustainability. mation onhave to maintain hazardous-material in- It’s entirely possible, quite plausible, in corporate re-formation and material safety data sheets fact, that sustainability may turn out to be sponsibility.”(MSDS). An end-item producer can re- as “free” as quality has become. Today we .................... .................... .................... .................... .................... ....................quest content information from suppliers are looking at sustainability as an added ....................that enter the information into a central- cost that we are willing to pay because weized database in the cloud. This makes it have to (regulatory requirement), becauseeasier for both supplier and customer to our customers want us to (market access),maintain the database and has the addi- or perhaps because we feel it’s the righttional benefit of providing a single entry/ thing to do (social responsibility). Aftersingle repository approach for all of the “green thinking” becomes a part of oursupplier’s customers for the same com- corporate culture and is incorporated intoponent product—enter once and make it product design and operations manage-available to all customers. ment, it may well turn out to be the “right thing to do” from all three perspectives—A Need for Strategy regulatory, market, and social—and prof-A s with any other significant un- itable as well. M dertaking, a move toward great- er sustainability should be pur-sued as a comprehensive strategy with 47 www.manufacturing-executive.com ME Global Leadership Community
  • 48. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... ..................... ..................... ........................................... ........................................... .......................................... Safety and Sustainability: .................... .................... .................... .................... .................... .................... .................... By Jim Alder The Core of Manufacturing Excellence In our unpredictable world, safety and sustainability can’t be taken for granted. Manufacturers must raise both disciplines to a strategic level.
  • 49. Feature/ Safety and Sustainability/ / T HERE IS NOTHING MORE EYE-OPENING THAN WITNESSING something as devastating as the recent earthquake and tsunami in Japan. As a manufacturing executive, seeing firsthand the disaster and the many unfortu- nate events that unfolded afterward was one of the most humbling experiences of my life. But it also had the effect of reinforcing something that we sometimes take for granted —the importance of safety across the manufacturing industry. Most of us believe that our safety designs and procedures are effective. We also think that gressive, they won’t create the motivation for our environmental and sustainability efforts tough, transformational decisions. Jim Alder is senior are sufficient. We can rationalize not doing To help guide these goals, manufacturers vice president, more because we’re overwhelmed with a host should look outward to evaluate what “sus- operations & tech- of competitive, labor, regulatory, financial, tainability”means and what “good”looks like. nical, for Celanese and other issues. But all it takes is one surprise Look at benchmarking with others within the Corp. He oversees the company’s from Mother Nature like the recent Japan di- sector and across manufacturing to see how global manufac- saster, or a process or personnel accident, or your company compares. The companies at turing operations, one major product quality issue to call into the top of these lists have reached today’s ver- as well as overall question a manufacturer’s ability to survive. sion of “good” and can serve as an initial goal. productivity e orts including Six Sigma But successful companies want to thrive, Celanese took this step seven years ago when and Operational not just survive. In order to thrive, manufac- our 2004 occupational safety performance de- Excellence. turers must treat safety and environmental re- clined below 2003 levels. We realized that we sponsibility as strategic parts of the business. needed to understand how our performance EcoVAE, AOPlus, and VAntage Plus By doing this, safety and sustainability aren’t compared with the performance of other are registered mandates but rather choices, creating value chemical companies, and we initiated a major trademarks of for all stakeholders including shareholders, external benchmarking effort. Using standard Celanese Corp. employees, communities, and customers. Occupational Safety and Health Administra- This is what makes these efforts worthwhile. tion (OSHA) metrics, we discovered that our As one of the world’s leading technology safety performance was only average. .................... .................... .................... .................... and specialty materials companies, Celanese Since then, safety has become not just a pri- .................... .................... .................... takes a pragmatic and business-focused ap- ority, but the foundation on which all other proach to safety and sustainability. In other priorities are based. It is a precondition for all Related Articles: words, every practice, product, and process we do and the first of our core values. In early Sustainability: works to enhance overall safety and reduce 2006, we used the same benchmarking tech- Are We Making Progress? the company’s environmental footprint, while niques to measure sustainability and environ- www.manufacturing- also enhancing our financial performance. mental progress. For the first time, we also set executive.com/ progressPhotograph: Veer.com/ Adam Radosavljevic aggressive five-year goals relative to our in- Set Aggressive Goals Manufacturers dustry-sector peers, and communicated these Need a More Holistic E Approach to Energy very manufacturer can improve its goals externally. We knew it would take 100% Management safety and environmental respon- support and accountability from executives www.manufacturing- executive.com/ sibility. The first step is making the and employees to meet the targets and goals. holistic commitment. Set long-term goals and in- Since that time, Celanese has gone beyond terim targets that stretch the organization the American Chemistry Council’s Respon- beyond its comfort zone. If goals aren’t ag- sible Care requirements in multiple areas,  www.manufacturing-executive.com ME Global Leadership Community
  • 50. Feature/ Safety and Sustainability //MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL most 2,000 tons of carbon dioxide. The full .......................................... .......................................... .......................................... results will multiply over time. .......................................... .......................................... .......................................... .......................................... .......................................... ..................... ..................... ........................................... ........................................... .......................................... Serve Your Customers—and Yourself C achieving aggressive environmental-health ompanies like Celanese that pro- and safety-performance goals to reduce our duce components used in their cus- impact on the environment and safeguard our tomers’ manufactured products employees and contractors. In 2010, Cela- can engender a tremendous safety and en- nese exceeded each of its five-year goals, with vironmental impact for these customers as an energy-intensity reduction of 26%, green- well as for themselves. house-gas reduction of 35%, a waste-intensity For instance, Celanese designs and manu- drop of more than 70%, and an air-emissions factures thermoplastics used in turbines that Safety and reduction of more than 40%. Most signifi- produce wind energy. These plastics also cantly, Celanese’s 2010 global OSHA injury help make cars lighter by replacing metallic rate, which shows the relative level of injuries components such as instrument panels and within Celanese, was 0.15, surpassing the 2010 dashboards. The result of a lighter-weight Sustainability goal of 0.22. While these represent good inter- vehicle is lower carbon dioxide emissions im targets, our goal is premier environmental and better mileage and safety. performance and zero safety incidents. And in response to legislation and more In real terms, our greenhouse-gas inten- eco-wise consumers, Celanese developed vi- sity achievements equal the annual power nyl acetate ethylene emulsions, which in turn consumption of more than 400,000 homes. are used to manufacture low-odor paints and And we’re not stopping there; we recently an- coatings that are safer and more environmen- .................... .................... .................... nounced aggressive 2015 goals to continue tally friendly to produce and use than com- .................... .................... .................... .................... the strong momentum. peting products. The EcoVAE water-based Many corpo- paints are also easy to apply and stain-resis- rations “pla- Reduce Your Footprint tant, and can withstand a tough scrubbing. T teau” in their he most obvious place for com- For its own part, Celanese recently an- journey to panies to improve environmental nounced what has been called a “game- achieve safety responsibility is within their own changing technology” by the business me- and sustain- operations by using less energy and water, dia. Developed by our R&D team in Clear ability goals. cutting waste, and reducing air emissions. Lake, Texas, the company will produce eth- Explore new New U.S. clean-energy legislation is a strong anol for industrial use and, potentially, for tools and pro- possibility in the near future. Taking a pro- use as an automotive fuel. The technology active approach now, instead of waiting to will utilize whatever hydrocarbons are avail- cesses, bench- perhaps be pushed by a deadline, will pro- able and economically viable in the region, mark against vide time to find realistic solutions to envi- including natural gas and coal, instead of re- top perform- ronmental problems. lying on corn and sugar cane. This process ers, and push Our facility in Lanaken, Belgium, for has significant cost advantages over conven- harder. instance, uses wind farms for 50% of its re- tional ethanol production methods, and will quired energy. In addition, the team at our reduce both the economy’s dependence on plant in Bishop, Texas, cut the site’s energy foreign oil and the use of arable land. consumption by more than 34,000 MMBTU By looking ahead to see where customers and reduced greenhouse-gas output by al- and their industries are headed, corporations  www.manufacturing-executive.com ME Global Leadership Community
  • 51. can follow a strategy Corporate Sustainabilitythat’s competitive and Leading technology drives “step change” improvementssafe, as well as fiscallyand environmentally PAST FUTUREresponsible. Pampa NanjingLook Within Shut down plantFor Solutions Timing › 12/08 Start up mid-2007A t most compa- 60-year-old Technology › butane oxidation World-class Strategic nies, includ- AOPlus ing Celanese, Energy › Highest 12 times lowerthe best ideas come (in company) Economicfrom its own work-force. Consider having Greenhouse › Highest 5 times lower gases (in company)employees set stretch Sustainablegoals, and encour- Air › No. 3 (in company) 12 times lowerage them to generate emissionsideas on the best way Waste › Highest 25 times lowerto achieve these goals. (in company)With the right projects,time lines, and metrics,these goals can potentially improve a com- technology. For example, Celanese closed a › Celanese’s im-pany’s financial and market position. high-cost plant in Pampa, Texas, and opened provements are Look for wide-ranging solutions. New a state-of-the-art facility in Nanjing, China. illustrated in this side-by-side com-and innovative production technology is one The newer plant is safer, has 12 times lower parison betweenof the keys behind our aggressive operation- energy consumption and air emissions, and the Pampa,Texas,al energy reductions. Acetic acid is a com- produces 25 times less waste (see chart). chemical plant, which was closedmon component in many of our products, so in December 2008,we use our proprietary AOPlus and VAntage Look Forward and the Nanjing, MPlus technologies to optimize acetic acid or any corporations “plateau” in China, integrated chemical facility,vinyl acetate production as well as reduce their journey to achieve safety which opened inenergy consumption, greenhouse gases, air and sustainability goals. Leveling mid-2007.emissions, and waste. out should not discourage any company’s commitment. Instead, explore new toolsMake the Tough Decisions and processes, benchmark against top per-T he biggest challenges facing manu- formers, and push harder. Our next phase facturers include changing business in improving safety performance focuses on practices and processes, adopting benchmarking and learning from high-reli-new technology, and shutting down obso- ability, low-error operations in sectors suchlete facilities. Oftentimes, transformations as the nuclear and aerospace industries. Weneeded to achieve aggressive sustainability have also globalized our environmental sus-goals require company executives to replace tainability strategy, and continue to pioneerinefficient and outdated technology and new measures to enhance environmentalshift to sites using modern and more efficient and financial performance. M 51 www.manufacturing-executive.com ME Global Leadership Community
  • 52. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... ..................... ..................... ........................................... ........................................... .......................................... Eaton’s Customer- Centric Future ..................................................... ..................................................... ..................................................... ..................................................... ..................................................... ..................................................... Eaton Corp. is celebrating its centenary year with a Manufactur- ing Executive 2011 Progressive Manufacturer of the Year Award for its success in delivering a “model plant” platform across its world- wide production network. John Gercak has helped Eaton create greater visibility in its operations, and develop closer connections with its fast-growing global customer base. A new model: Gercak’s strategy is to standardize Eaton’s technology to better support the company’s global operations.
  • 53. Dialogue / John Gercak / Eaton Corp.//I t’s been exactly 100 years since New Yorker Joseph O. Eaton co-founded the Torbensen Gear and Axle Co. in 1911 to help serve America’s pioneering truck industry. Originally based in Bloomfield, NJ, the founders moved their manufacturing base to Ohio in 1914 to be closer to their major customers. After a few years of business upheaval, the firm eventually emerged as the Eaton Axle and Spring Co. in 1923. Eaton Corp. is now a diversified $13.7 billion global business with 245 production facilities,70,000 employees, customers in more than 150 countries, and a strong reputation for sustainableoperations. It has also expanded into the aero-space, electrical power, and hydraulics sectors, that IT is in really every facet of the supplybut still provides advanced power trains and chain today, so we’re working very closelykey components to many of the world’s leading with operations to make sure that they canautomotive and commercial truck makers. execute their strategy throughout, and to John Gercak is vice president of information meet our customer expectations.technologies for Eaton’s core $4.5 billion Ve- Q: What are the major challenges that keephicle Group. Two years ago, he began a ma- you awake at night?jor project to deploy enhanced, integrated IT A: A couple of things. From an operationalsystems throughout the group’s supply chain— perspective, our business is growing, so justfrom the shop floor to the final customer. With being able to support the daily requirementsestimated savings of $74 million so far, the and changing requirements of our custom-project won a 2011 Progressive Manufacturer ers. One of the other things that keep meof the Year Award. Gercak talks to MELJ Ex- awake at night is operating in a global en-ecutive Editor Paul Tate about deploying best vironment and understanding the culturepractices as a “model plant,” serving a global as well as the regulatory issues that pop up.customer base, and turning technologists into Regulations, certainly outside the U.S., canfront-line ambassadors of change. get quite complex when you’re dealing withQ: What excites you most about your role multiple countries in an integrated technolo-at Eaton? gy environment. Being able to make sure thatA: I have global responsibility for IT for the you meet all of those requirements, as well asVehicle Group, all the way from coordinat- meeting or exceeding your customer require-ing infrastructure activity at the lowest level, ments, can be a challenge.through innovation activity or differenti- Q: How would you characterize the globalating technology at the highest level, and auto industry today?everything in between. What excites me is A: After a couple of tough years, the volumesunderstanding and working together with are coming back, both on the automotiveoperations, not only to provide execution and truck side, and we need to support that.within our different businesses, but also ap- One of the exciting things that we’re involvedplying some of the new tools that drive inno- with is looking at how we can increase fuelvation and decision-making. We look at the efficiencies and engine efficiencies, whethertotal supply chain. I think what’s exciting is that’s through hybrid technologies on the  www.manufacturing-executive.com ME Global Leadership Community
  • 54. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL ........................................... ........................................... ........................................... NAFTA region and Europe, and then we ........................................... ........................................... ........................................... ........................................... ........................................... ............. ............................. have a growing business in Brazil and in Asia- ........................................... ........................................... ........................................... Pac. They’re very much integrated, and that drives our technology footprint and strategy. truck side or whether that’s through super- We manage these businesses globally, truly charging on the automotive side. [This] not globally in terms of capacity and in terms of only provides increased power, but also more planning for our customer requirements and efficiency within smaller engines as engines execution, so they are not standalone. We decrease in size overall. It’s very exciting. look to move more and more toward an inte- Q:What makes Eaton’s approach grated instance of those technologies. di erent from that of your competitors? Q: So, when you plan a new product, is the A: We look to where our product portfolio, manufacturing location governed by the our services, and our support of the customer proximity of plants to key markets, or do really make the most sense and where we can you ship to where products are needed? add value. We look for products and services A: I think it’s both. We have the flexibility that provide differentiated technology and/ to take both approaches within the supply or service to our customers. We see that as a chain. The majority of our products on the major difference in how we not only deal with truck side are more homogeneous, meaning customers in the existing execution of opera- that we can build a transmission in the U.S. tions, but also continuing to forge those stra- the same way that we build a transmission for tegic relationships within the supply chain. the Australian market, for example. Or, on Q: How do you see your manufacturing and the automotive side, we can produce engine technology footprint changing to support valves and superchargers here in the U.S., as growth and di erentiation? we do in Europe. So, we have the flexibility A: That’s exactly what we’re doing. We are to be able to move capacity within our global changing the footprint. We work in more manufacturing environment and footprint. than 150 countries worldwide with 49 pro- But at the same time, we’re also looking at duction sites in the Vehicle Group, so a lot growth markets, particularly in Asia-Pacific. of different technology is supporting those We’re now looking at our product portfolio operations. The more mature sites are in the to see where it makes sense to service those local markets—whether to build that prod- uct in-country and service that product in- country, versus building the product around ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ After a couple of tough years, the volumes are coming back, both on the automotive and truck side, and we need to support that.  www.manufacturing-executive.com ME Global Leadership Community
  • 55. Dialogue / John Gercak/ Eaton Corp./4/6the world and shipping it to those growing as QAD MFG/PRO in certain regions of theemerging markets. world. Projects are built on a standard ERPQ: Have you found that you’re foundation, and we are incrementally drivingincreasingly manufacturing close standardization and integration of those sys-to new growth markets? tems. This is a back-to-basics approach thatA: Yes. We see that as an overall trend. One of gives us much better visibility of our opera-the things we also went through within Eaton tions in real time. Also, as we work with ouris more of a move toward a regionalized glob- customers and develop relationships moreal model, not only supporting our customers and more in a collaborative sense, we are ex-and building product within-region, but also tending the technology to provide a closerhaving the decision-making in execution and connection with our customer base —wheth-support of our strategy within each region as er it’s how we look at, contact, or talk withwell. We balance that globally, but we are driv- our customers, to how we process a quoteing more and more decision-making within for our customers for a specific product, allthe different regions of the world. the way through what the lifecycle is for thatQ: How do you achieve that agile approach customer, and what associated products maywhere you are able to run either on a region- look like. Finally, from a differentiation per-al or a global basis? spective, we are putting on top of these foun-A: Our approach is to standardize and lever- dational and transactional systems the toolsage common process where we can, which that will help increase further visibility, intodoes reduce the complexity. We are reducing either environmental or operational data,complexity by going with a common, stan- and provide potentially increased decision-dard system and saying that this is the ap- making capabilities by using advanced busi-proach. We then link that to what we call a ness intelligence and analytic systems.“model plant” concept, where the collective Q: What have been the measurableset of common, best-practice processes form benefits so far?the overall plant model, in terms of how you A: The strategy and the results we’ve gainedwould run an automotive or truck manufac- ..................................... ..................................... ..................................... ..................................... .....................................turing operation within the Vehicle Group. ..................................... .....................................Q: What’s driving the technology strategy Executive Profilebehind the “model plant” concept? John Gercak, Vice President, InformationA: Our strategy is to constantly standard- Technologies, Vehicle Group, Eaton Corp.ize and optimize that technology footprint Nationality: U.S.to support the overall operations—both as Based: Cleveland, Ohioa global business, and as needs change. We Education: Bachelor’s degree in finance, master’s degree in operations management, University ofToledomanage a strategic road map that prioritizes Languages: Englishand drives our implementation efforts and Previous roles:standardization globally. So, we are always Director of IT,Truck Group, Eaton Corp.looking to see where we can drive out or re- Manager of IT, North America,Truck Components, Eaton Corp.duce complexity within that footprint and in- IT Manager-Europe,Truck Components, Eaton Corp. ERP Project Manager, Dana Corp.creasingly standardize on the Oracle platform. Awards and industry affiliations:Q: How is the new system structured? Member, Manufacturing Leadership CouncilA: Our operational technology footprint is Curriculum Advisory Council, Haworth College of Business,primarily around Oracle platforms as well Western Michigan University 55 www.manufacturing-executive.com ME Global Leadership Community
  • 56. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL is being able to have the visibility of the cus- ........................................... ........................................... ........................................... tomers overall. They could be buying both ........................................... ........................................... ........................................... ........................................... ........................................... ............. ............................. our truck and automotive products, as well ........................................... ........................................... ........................................... as other Eaton products. We need a good un- derstanding of that and use it as the dialogue to further drive or further identify potential have led to significant efficiencies within our new opportunities, whether that be growth or operations. We estimate a positive impact of new product technology with our customers. $74 million so far for Eaton—and growing. So, it’s about having global visibility of our That’s really us tracking how we’re adding global customers, and being able to use that value with the operations in terms of driv- information within our dialogues to plan and ing costs out, operational efficiencies, or in- to really function as a partner with them. creasing revenue. Q: Have you also had to focus on changing Q: Have there been other benefits? the culture of Eaton’s production plants A: There has been a reduction of both incon- around the world to provide this greater sistency and of complexity. At the same time, customer focus and deploy the new stan- dard technology platform e ectively? while we operate within different regions of the world, our customers expect us to deal A: That’s certainly so. One of our biggest chal- with them globally. So, having a common lenges has been the culture aspects, and the global platform that gives a global perspective people aspects, of that change. We’ve worked and global visibility in terms of capacity, plan- with senior leadership and operational lead- ning, product portfolio, or execution is key. ership to formulate our IT strategy, and then Q: So, customer aspects have been a make sure that people understand it and dis- fundamental driver behind the change? seminate it throughout the organization. A: Yes. We’re dealing with multiple levels of That’s ongoing, and it helps build the senior- our customer organizations, from a senior level and the operational relationships needed strategic level to the operational purchasing to help support the change. Also, making sure or procurement side. Many customers are that we’re actively listening to the organiza- large original-equipment manufacturers, so tion, making sure that we’re meeting opera- they are global operations and they expect tional requirements, and if there is a gap, un- us to operate globally as well. The challenge derstanding what we can do to fill it. It’s about making sure that the strategy is understood, and formulating and leveraging relationships across the organization to make it happen. ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ Many of our customers are large original-equipment manufactur- ers, so they are global operations and they expect us to operate globally as well.  www.manufacturing-executive.com ME Global Leadership Community
  • 57. Dialogue / John Gercak/ Eaton Corp./6/6Q: Have you appointed champions who can ating technologies that will continue to drivetake that message down into the plants andacross the organization? value for the future. Q: What other technologies excite you forA: Our IT team is continually partnering with the future?local management, not only understanding A: One area that we’re looking at is if there’sour internal customer requirements in terms an opportunity for us to increase efficienciesof projects, but making sure that they under- through further manufacturing executionstand the overall strategy, too. Each member system capabilities, and to improve our en-of the IT team is responsible for articulating gineering and product data systems. We havethat strategy and how it applies to their par- a common PLM toolset and we’re primar-ticular internal customer. ily focusing on making sure that all productQ: So, you’re turning the IT team more information is accurate and up-to-date, andinto ambassadors? then focusing on our engineering changeA: Yes—well said. The focus today is on management priorities. Moving forward inmaking sure they’re moving away from just the future, we are looking at whether it wouldbeing technologists alone, and they are able make sense to apply any sort of simulationto communicate, understand the business, capabilities in our operations.understand the business requirements, its Q: Finally, is there a watchword you wouldneeds, and then be able to articulate that into suggest for the future of manufacturing?our technology requirements. A: I think the challenge for the future is aboutQ: How are you finding the right kind of peo- continuing to operate efficiently in a globalple for that new role? environment, given all of the change in dy-A: Our approach has been that you can teach namics that that entails—whether it’s cultur-the technology. That’s the easy part. What al, whether it’s skill set, whether it’s technol-we’re looking for are people who can com- ogies, or whether it’s regulations. So, thatmunicate. We’re looking for people who want watchword has to be “dynamic.” Mto drive change, can articulate strategy, andwho are not afraid to work or to engage with ..................................... ..................................... ..................................... ..................................... ..................................... .....................................multiple levels of the organization. Again, we .....................................can teach the specific technologies and how Fact File:they relate to those business requirements, Eaton Corp. Headquarters: Cleveland, OHbut getting in and partnering with the differ- Business sector: Diversified Power Managementent functions and different levels of the orga- Global ranking: 16th in Newsweek’s Green Rankings 2010nization is really key. 2010 revenues: $13.7 billionQ: is that also changing the role of the CIO? 2010 net profit: $937 millionA: Yes. I think what’s key for a CIO today, and Product sectors: Electrical components and systems for power quality, distribution, and control; hydraulic com-for the future, is being able to understand, en- ponents, systems, and services for industrial and mobilegage, and partner with manufacturing and equipment; aerospace fuel, hydraulic, and pneumaticoperations to make sure that they’re meet- systems for commercial and military use; truck and auto-ing the business requirements—but also motive drive-train and power-train systemsunderstanding the trends that are out there Number of employees: 70,000and building upon key foundational tech- Presence: 150 countries Production: 245 facilitiesnologies, whether it’s ERP or SCM, and thenfinally putting on top of that the differenti- 57 www.manufacturing-executive.com ME Global Leadership Community
  • 58. MANUFACTURING .................................. .................................. EXECUTIVE LEADERSHIP JOURNAL .................................. .................................. .................................. .................................. ................................. ................................. ................................. .................................The Board ................................. ................................. ................................. ................................. ............. ................... ................................. ................................. .................................Meet the members of the Manufacturing Leadership Council’s boardAndy Chatha University in the U.K. and an ficer, responsible for all vehicle as-President and Founder, M.B.A. from INSEAD in Paris. sembly, power train, stampingARC Advisory Group plant systems, and manufacturing Jim Davis engineering systems around the Chatha has more Vice Provost, Information world. Karaboutis previously spent than 30 years’ experi- Technology, and Chief Academic 15 years at Ford Motor Co., and ence in enterprise ap- Technology Officer, UCLA served in engineering roles at Me- plications and auto- In a new executive dar Inc., Volkswagen of America, mation as an leadership role as Vice and GM’s Fisher Body Division.executive adviser, market analyst, Provost of IT and Karaboutis has a B.Sc. in computerproject manager, and software en- Chief Academic science from Wayne State Universi-gineer. He provides leadership to Technology Officer at ty in Detroit, and she completed thethe ARC organization and guides UCLA, Davis is responsible for the Fuqua School of Business Market-its research and client activities. Institute for Digital Research and ing Strategy Program at Duke Uni-For the past 20 years, Chatha has Education (IDRE), the Institute versity. She was a speaker at Manu-provided advice and consulting to for Informatics (I2), and UCLA’s facturing Executive/Managingmany leading companies around institutional educational technolo- Automation’s 2010 Manufacturingthe world. He served as a speaker gy initiatives. He has broad ac- Leadership Summit.at Manufacturing Executive/Man- countability for university-wide ITaging Automation’s 2010 Manu- planning, strategic investment, Larry Lapidefacturing Leadership Summit. and the deployment of academic Research Affiliate, MIT Center and administrative operations and for Transportation & LogisticsPaul Christodoulou services. He is also a professor of Lapide has over 30Principal Industrial Fellow, chemical and biomolecular engi- years’ experience inInstitute for Manufacturing, neering, focusing on data analysis, industry, consulting,Cambridge University decision support, and intelligent research, and aca- Christodoulou joined systems. Davis is now a leading fig- demia. He recently the IfM at Cambridge ure in a U.S. national initiative on worked in MIT’s Center for in 2002 after 20 years in smart manufacturing and manu- Transportation & Logistics, senior management facturing competitiveness. where he managed the launch of roles in multi-national MIT’s Supply Chain 2020 Project Adriana Karaboutismanufacturing companies. His cur- and oversaw its Demand Man-rent role is “helping to put the out- Vice President, Information Technology, Dell agement research. He has alsoputs of research into practice,”an ef- worked at AMR Research, Ac-fort that involves major projects Prior to taking on her centure, and Data General, and iswith companies including Bombar- role as VP of IT at Dell a part-time lecturer at the Univer-dier, Caterpillar, Grundfos, Hunts- in early 2010, Kar- sity of Massachusetts. Lapide hasman, Schneider Electric, and Sealed aboutis was General served as a panel speaker and aAir. Christodoulou has a first-class Motors’ global manu- judge in Manufacturing Executive/engineering degree from Durham facturing and labor information of- Managing Automation’s Manufac-  www.manufacturing-executive.com ME Global Leadership Community
  • 59. MELJ / Council / Board/ / MANUFACTURINGturing Leadership Summit and of technology in manufacturing. EXECUTIVE LEADERSHIP JOURNALAwards program. He holds a Manenti has 20 years’ senior exec- .................................. .................................. .................................. ..................................master’s of science degree in elec- utive industry experience in man- .................................. .................................. .................................. .................................. ............. .................... ..................................trical engineering from MIT and ufacturing operations and supply .................................. ..................................a Ph.D. in operational research chain strategy consulting and ITfrom the Wharton School of solutions, as well as product man- align, synchronize, and imple-Business. agement, marketing, and business ment process capabilities, invest- development. Manenti has a de- ment strategies, and governanceJay Lee gree in computer science from across the consumer sector. He isProfessor of Advanced Pisa University (Italy). also a member of J& J’s Stan-Manufacturing, Ohio Eminent dards & Strategies Board, whichScholar & L.W. Scott Alter Angel L. Mendez ensures cross-functional IT/busi-Chair Professor, University of Senior Vice President, Customer ness collaboration and value real-Cincinnati Value Chain Management, ization. Nickel is a graduate of Lee is the founding Cisco Systems Washington College and has director of the Na- Mendez leads a glob- done graduate work at the Uni- tional Science Foun- al organization re- versity of Pennsylvania’s Whar- dation Industry/Uni- sponsible for acceler- ton School. Nickel has served on versity Cooperative ating innovation and the judging panel for Manufac-Research Center on Intelligent value for Cisco cus- turing Executive/Managing Auto-Maintenance Systems, which is tomers. This includes responsibili- mation’s Progressive Manufac-supported by more than 40 com- ty for corporate quality and quali- turing Awards program.panies. He is also an adviser to the ty management, collaborativeIndustrial Technology Research planning and new product intro- Kevin O’MarahInstitute in Taiwan, the Japan duction, sourcing and supplier Group Vice President, SupplyProductivity Center, and the management, manufacturing, de- Chain Research, AMRAcademy of Machinery Science livery, and product reuse and recy- Research/Gartnerand Technology in China. Previ- cling. Mendez brings more than For over a decade atously, he held the position of Wis- 24 years of management experi- AMR Research,consin Distinguished Professor ence to Cisco, along with proven O’Marah has workedand Rockwell Automation Pro- expertise in developing and imple- with hundreds offessor at the University of Wis- menting strategies to improve op- companies on manu-consin-Milwaukee. erations and supply chain perfor- facturing, product lifecycle man- mance. A native of Cuba, Mendez agement, and supply chain strate-Pierfrancesco Manenti holds a B.Sc. in electrical engi- gies. He launched AMR’s PLMHead, Europe, Middle East & neering from Lafayette College practice and is the creator and au-Africa, IDC Manufacturing and an M.B.A. from the Crum- thor of the widely known “AMRInsights mer School at Rollins College. Supply Chain Top 25.” He was a Manenti leads the vice president at Oracle, focusing IDC Manufacturing George Nickel on supply chain and product data Insights research Director, Global Process management strategy, and worked practice across Eu- Architecture, Johnson & Johnson at Gemini Consulting, now part of rope, the Middle With over 35 years’ ex- Ernst & Young (GCE&Y); MercerEast, and Africa from his offices in perience in manufac- Consulting in London; and Com-Milan. He is also the global lead turing and distribution pany Assistance Ltd. in Warsaw.for the Operations Technology systems, Nickel leads O’Marah is a graduate of BostonStrategies advisory service, with a Johnson & Johnson’s Global College, Oxford University, andstrong focus on the business value Process Architecture team to Stanford Business School.  www.manufacturing-executive.com ME Global Leadership Community
  • 60. MANUFACTURING Michael Packer College, Claremont, and a mas- EXECUTIVE LEADERSHIP JOURNAL.......... Vice President, Manufacturing ter’s degree in international man- ............................................................... ................................. ........................................... Strategy and Processes,.................... agement from the University of ................................. ................................. ................................. ............................................................... ................................. ............. ................... ........................................... Lockheed Martin Aeronautics.......... California, San Diego. ................................. ................................. Packer is responsible Vince Serpico dex by improving its J.D. Power for Lockheed Mar- Senior Vice President — CSI Score. Sinha has also tin’s manufacturing Operations North America, worked in various other areas of concepts, moderniza- L’Oréal Tata, including corporate plan- tion initiatives, pro- Serpico oversees the ning, strategic planning, and duction engineering and technol- entire L’Oréal USA major projects. He has a B.Tech. ogy, industrial engineering, supply chain, focus- degree from the Institute of production planning and control, ing on the manage- Technology at Banaras Hindu and workforce development. His ment of product, University, and completed a previous roles at the company in- from conception to the customer. post-graduate program in man- clude director of production He has been with L’Oréal USA agement from the XLRI Jam- plans, director of F-22 produc- for 25 years. During that time, he shedpur School of Business and tion, site director of Marietta, spent 10 years as plant manager Human Resources. GA, production operations, and at the Franklin, NJ, manufactur- director of Joint Strike Fighter ing plant and later led the com- Mark Wilson manufacturing. Packer has a pany’s manufacturing, finance, Director, Collaboration B.Sc. in industrial technology and IT teams to drive the integra- Management, Pharmaceutical from Eastern Michigan Universi- tion of the Matrix, Redken, Development division, ty and an M.B.A. from Washing- Kiehl’s, and SoftSheen-Carson GlaxoSmithKline ton University at St. Louis. brands into L’Oréal USA. Serpi- Wilson helps lead the co is a graduate of the Cornell development of inno- Scott Park School of Engineering and has vative new products Global CIO and VP Processes an M.B.A. in finance. and processes for & Systems, Volvo Construction GlaxoSmithKline’s 80 Equipment Vikram Sinha manufacturing sites around the Since taking over as Vice President and Head of world. He has global experience of CIO at Volvo Con- Passenger Car Production, primary and secondary pharma- struction Equipment Tata Motors ceutical manufacturing, including in Brussels in 2005, Sinha has 34 years’ both fermented bio-products and Park has forged a new experience in the synthetic chemicals; manufactur- senior-level role, bringing together manufacturing in- ing strategy; and technology devel- IT and business process responsi- dustry. Before taking opment. He has worked for GSK bilities into one function to help over as head of man- in manufacturing and R&D in sev- drive organizational change and ufacturing operations at Tata eral locations, developing, licens- efficiency across the company. He Motors’ main Pune, India, car ing, and implementing new tech- has strong international experi- plant in April 2010, he worked as nologies. Wilson holds a master’s ence in manufacturing and head of customer support for degree and a doctorate in chemical technology, including roles as VP the company’s passenger car engineering from the University of of Volvo’s Excavator global busi- business. In this role, he helped Leeds, and an M.B.A. from Co- ness line based in Korea and VP in transform customer support by lumbia University and London Volvo’s Asian region, based in Sin- ushering in process orientation, Business School. He is also presi- gapore; and chief strategy officer and was instrumental in bring- dent of the Licensing Executives for SAP Korea. Park has a B.Sc. in ing significant improvement to Society of the United Kingdom engineering from Harvey Mudd Tata’s Customer Satisfaction In- and Ireland. M  www.manufacturing-executive.com ME Global Leadership Community
  • 61. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL .................................. .................................. .................................. .................................. .................................. ........................................... .................................. ........................................... ........................................... ........................................... The Council ........................................... ........................................... ........................................... ........................................... ............. ............................. ........................................... ........................................... ........................................... Meet some of your fellow members on the Manufacturing Leadership Council Bruce Benedict his career in the global supply Edward Fred President, Production chain and logistics industry with President and CEO, Tube Cutting Emery Air Freight Corp., rising CPI Aerostructures to senior vice president of Em- Benedict is president Fred is the President ery’s Eastern Division. He also of Dayton, Ohio- and CEO of CPI held several positions with the based Production Aerostructures, a TNT Post Group. Tube Cutting, which publicly held aero- manufactures engi- Dean Ford space company based neered tubular parts and assem- Senior Member and Chair, in Edgewood, NY. He joined CPI blies. He is also the president of Automation Federation/ in early 1995 and moved up the Deuer Manufacturing, a maker of International Society of ranks, holding the titles of control- cable retrieval systems, blocks, and Automation ler, executive VP, and CFO along sheaves for retail hardware busi- Ford is an active se- the way. CPI has grown under his nesses; and Benedict Slurry Seal, nior member in the leadership from $8 million in reve- which manufactures test equip- International Society nue to a projected $80 million for ment and traffic simulators for the of Automation, serv- 2011. He has received the Long Is- asphalt industry. He has served on ing on its ISA 99 and land Association’s Small Business numerous industry boards, includ- ISA 101 standards committees. Entrepreneurial Advocate Award, ing the American Tube Associa- He also serves as the chair of the was named an Ernst & Young En- tion and the Fabricators & Manu- Communications Committee for trepreneur of the Year, and has facturers Association. the Automation Federation, and had his work on the decisions a is a member of its Government CEO faces during periods of tran- John Costanzo sition published in the Journal of Relations Committee. His President, Purolator Management Development. Fred 20-year-plus career has centered International holds a B.B.A. in accounting from on manufacturing and automa- Costanzo has served tion—from a stint as an electrical Dowling College and an M.B.A. since 2001 as presi- engineering student with Anheus- from Hofstra University. dent of Purolator In- er-Busch, to implementing auto- ternational, a wholly Marie Gervais mation projects for Fortune 500 owned subsidiary of Director, Global Leadership companies. He is a member of the Associates Purolator Inc. He’s also a member Project Management Institute of Purolator’s executive council. and PMI’s Troubled Projects and Edmonton, Alberta- Costanzo is responsible for the Automation Systems communi- based Global Leader- corporation’s $100 million global ties. Ford has a B.S. in electrical ship Associates spe- small-package and freight-for- engineering from Missouri Uni- cializes in workforce warding business, and the devel- versity of Science and Technolo- research and training opment and execution of Purola- gy, and is a Certified Automation with an emphasis on people and tor’s strategic growth plan for Professional (CAP). cultural skills for managers. Ger- international markets. He began vais’ work centers on two themes:  www.manufacturing-executive.com ME Global Leadership Community
  • 62. MELJ / Council / / MANUFACTURINGimproving job performance and IT development and deploy- EXECUTIVE LEADERSHIP JOURNALthrough measurable outcomes, and ment. Most recently, he was project .................................. .................................. .................................. ..................................managing an intercultural work- manager in L’Oréal Operations for .................................. .................................. .................................. .................................. ............. .................... ..................................force. Other areas include immi- the North American implementa- .................................. ..................................grant entrepreneurs; intercultural tion of SAP and other key systems. unit. His teams support 15 manu-and interpersonal skill in manage- He has worked extensively in con- facturing locations with process/rial behavior; women’s influence in sumer products companies, in- automation, tooling/molding,the global economy; and the inter- cluding roles in the U.S., Canada, and packaging expertise. Ryansections of religion, spirituality, Puerto Rico, and other countries. has more than 33 years of com-and culture in social change. Ger- These roles have involved defining bined manufacturing experiencevais has a Ph.D. in education from functional specifications, refining with John Deere, Weyerhaeuser,the University of Alberta and holds unit and volume testing, develop- Paragon Trade Brands, and Tycothe highest level of certification ing training programs and materi- Healthcare. Ryan earned a B.S. infrom the Canadian Society for als, managing multi-site deploy- industrial technology from theTraining and Development. ments, and setting the IS structure University of Northern Iowa, strategy for a global business. and sponsors Lean Leader, SixJoe Gieda Lenczicki studied at New Jersey’s Sigma, and SIM training andGlobal Process Architect, Montclair State University. certification programs withinJohnson & Johnson Tim Murnin the Covidien Technologies Gieda has worked for Group. Johnson & Johnson Director, Supply Chain for more than 30 Planning, The Boeing Co. Tracy Vance years in leadership Murnin joined Boe- Director, Customer Facing positions in manufac- ing in 2006 and is re- Applications, Ingersoll Randturing, planning, procurement, sponsible for defining Industrial Technologiessupply chain, and IT. His role as the road map for sup- Vance is responsibleglobal process architect for the ply chain manage- for Ingersoll Randcompany’s consumer sector covers ment strategy and best practices. Industrial Technolo-both “plan” and “make” activities. He also coordinates Lean efforts gies’ customer-fac-Gieda previously served in the across the supply chain organiza- ing applicationsMarine Corps Reserves, achieving tion and leads the Integrated Ma- around the world, as well as allthe rank of major. He is a graduate terials Management initiative areas of information technologyof Penn State and has an M.B.A. within Boeing’s Global Services & in the Americas. He joined Inger-in industrial management from Support group. Prior to joining soll Rand in 2006, serving as ClubFairleigh Dickinson University. Boeing, Murnin was a consulting Car’s vice president and CIO un-He also has certifications from practice manager for Salesforce. til this year. Vance has held aNAPM (CPM), APICS (CIPM), com. He holds a B.S. degree in number of positions of increas-and PMI as a Project Manage- business administration from ing responsibility throughout hisment Professional (PMP). Saint Louis University, and an career in the manufacturing, M.B.A. from Harvard University. banking, staffing, and healthcareMorris Lenczicki industries, at companies includ-Vice President, Industrial Jack Ryan ing Panasonic, the Federal Re-Systems Applications, L’Oréal Director of Engineering, Covidien serve, Elekta, and Randstad Lenczicki has more Ryan is director of North America. He has a B.S. than 20 years’ experi- engineering technol- in industrial engineering man- ence in the manage- ogies within the Co- agement from Southern Poly- ment of production vidien Medical Sup- technic State University in control, supply chain, plies global business Marietta, GA. M  www.manufacturing-executive.com ME Global Leadership Community
  • 63. MANUFACTURING EXECUTIVE LEADERSHIP JOURNAL ......................................... ......................................... ......................................... ......................................... ......................................... ......................................... ......................................... ......................................... ............. ........................... ......................................... ......................................... .........................................Opinion / Lisa BodellSustainability DemandsInnovative SolutionsFour companies of fer fresh ideas for making it work........................................................................................................................................................................................................................ S...................................................................................... ustainability has come a long way. No longer considered the domain of environmentalists and do-gooders, it’s now generally accepted as a criti- cal business imperative for just about every organization. One of the forc- es driving this shift, of course, is the fact that consumers worldwide are demanding that companies play a larger role in solving the sustainability challenge. In China, for example, more than 25% of consumers feel that corporations have a responsibility to tackle environmental issues, but only 15% think ing it as an afterthought. Some of the biggest corporations are taking action, according international companies have achieved this to OgilvyEarth’s recent report Get Going by developing their own innovative strategies. With Green: Closing the Sustainability Gap. Though sustainability has moved beyond Whole Foods: Leading With Values the fad phase, most organizations clearly have As a mission-driven organization focused a lot of work ahead of them to achieve prog- on “Whole Foods, Whole People, Whole ress. Those that take on the challenge, Planet” from the start, Whole Foods was however, stand to make significant in- way ahead of its time with regards to sus- roads with the millions of consum- tainability. It was the first Fortune 500 ers who value sustainability. company to offset 100% of its energy con- The best way to approach sus- sumption by purchasing renewable energy tainability is to truly integrate it credits. Whole Foods also pursues more into the business, instead of treat- specialized “green” initiatives that make .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... The best way to approach sustain- ability is to truly integrate it into the business, instead of treating it as an afterthought.  www.manufacturing-executive.com ME Global Leadership Community
  • 64. Opinion / Lisa Bodell /SustainabilityMANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL its own brand, Starwood also uses it as a ........................................... ........................................... ........................................... testing ground for green innovations that, ........................................... ........................................... ........................................... ........................................... ........................................... ............. ............................. if successful, will not only be incorporated ........................................... ........................................... ........................................... across the Starwood family but may even- tually revolutionize sustainable practices sense for its business, from supporting lo- throughout the hospitality industry. cal producers to leading the industry in ex- panding sustainable agriculture. Coca-Cola: Going Public With Big Goals Nike: Turning Scrutiny Like Nike, Coca-Cola has faced harsh criti- Into Opportunity ..................... ..................... ..................... cism for some of its practices—the most ..................... ..................... ..................... ..................... Like many large corporations, Nike has significant being the massive amount of Related faced censure for some of its practices over water it uses to create its products, often Articles: the years, including environmental and la- depleting the supplies of nearby environ- Opinion: The Era of bor issues. Instead of continuing to view ments and communities. The company re- the ‘Right-Brain’ Thinker scrutiny as a hindrance to success, Nike cently pledged a goal of “water neutrality” www.manufacturing- stepped back and considered how it could (much like carbon neutrality) in which it executive.com/thinker transform these inquiries into an opportu- aims to replenish every drop of water it uses Opinion: Innovation Everywhere nity for advantage. Corporate responsibil- by investing in projects such as wastewater www.manufacturing- executive.com/inno ity is now a major initiative at Nike, com- recapture and river ecosystems. Opinion: Collaborate plete with a public-facing Website (www. How is your organization approaching to Create nikebiz.com/responsibility) that documents sustainability? Can you create a “test kitch- www.manufacturing- executive.com/create related goals, progress, and news. en” in one area of your business to pilot sus- tainable practices? Would you benefit from Starwood: Testing Big making your initiatives more public, giving Ideas in Small Doses stakeholders access to information about Starwood Hotels & Resorts—known for your progress? Sustainability isn’t only about world-renowned brands such as Westin, St. carbon credits or reducing pollution. It’s Regis, W, and Sheraton—launched a new about using innovation—the same power- concept in 2006 called Element. Billed as ful tool you apply to challenges like product Photo: veer.com/alptraum an “eco-chic” hotel group, Element is Star- development—in a way that addresses con- wood’s green brand, with environmentally sumer concerns about sustainability to better friendly features such as low-flow faucets, position your organization for success. M recycled fibers in carpets, and priority park- Lisa Bodell is CEO of futurethink (futurethink.com), an ing for hybrid vehicles. While Element is innovation research and training firm. .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... .......................................................... Element is Starwood’s “green” hotel brand, with environmentally friendly features such as low-flow faucets, recycled fibers in carpets, and priority parking for hybrid vehicles.  www.manufacturing-executive.com ME Global Leadership Community
  • 65. YOUR BUSINESS IS UNIQUE, YOUR SOFTWARE SHOULD BE TOO. If your company is investing in enterprise applications – from ERP, to MES, to CRM, and more – don’t risk making the wrong decision. Subscribe to TechMATCH PRO. 800 Products 15,000 Features 14 CategoriesFind and compare enterprise solutionsbased on your specific requirementsCollaborate with team membersthroughout the evaluation processCreate and submit detailed RFPs,to your short-list vendorsCompare and score RFP responsesas they are submittedTrack your team’s evaluation andselection activities to ensure complanceManage demo scripts and enable teamvoting on vendor presentations CONTACT US TODAY TO START YOUR TECHMATCH PRO SUBSCRIPTION Call us at 800 638-2286 www.techmatchpro.com
  • 66. MANUFACTURING EXECUTIVE B O LD I D E AS FO R A B E TTE R F U TU RE LEADERSHIP JOURNAL Editorial Calendar ........................... ........................... SEPTEMBER ISSUE NOVEMBER ISSUE JANUARY ISSUE Hot Topic: Hot Topic: Hot Topic: NEXT-GENERATION GLOBAL VALUE CHAIN FACTORIES OF LEADERSHIP AND CULTURE OPTIMIZATION THE FUTURE ........................................... ........................................... ........................................... ........................................... ........................................... ........................................... ........................................... Company Directory PRESIDENT MARKETING OPERATIONS CIRCULATION QUESTIONS? HEATHER L. HOLST-KNUDSEN MANAGER RANA SIMUNOVICH 212-290-8724 ROBERT REDMOND 212-613-3419hholstknudsen@thomaspublishing.com 212-629-1513 rsimunovich@thomaspublishing.com rredmond@thomaspublishing.com ........................... ........................... EXECUTIVE ASSISTANT ........................... ........................... Advertising Sales TO THE PRESIDENT Online CORIE COUSINS ACCOUNT EXECUTIVE 212-629-2164 DIRECTOR OF BUSINESS JESSICA TRUGLIA ccousins@thomaspublishing.com TECHNOLOGY 212-560-1858 ........................... ........................... GARY STANTON jtruglia@thomaspublishing.com 212-629-1104 ........................... ........................... Design & Production gstanton@thomaspublishing.com Contact Information: DESIGN DIRECTION BEST & CO. WEB DEVELOPER/PROJECT MGR MANUFACTURING ENTERPRISE robert@rbestdesign.com JOHNSON LAU COMMUNICATIONS 212-629-1525 5 Penn Plaza, 9th Floor ADVERTISING PRODUCTION jlau@thomaspublishing.com New York, NY 10001 Phone 1-212-629-2164 DIRECTOR Fax: 1-212-629-1559 REGGIE RIOS WEB DESIGNER 212-629-1520 PAUL POLICARPIO THOMAS PUBLISHING CO. LLC rrios@thomaspublishing.com 212-629-1511 thomaspublishing.com ppolicarpio@thomaspublishing.com CROSS-MEDIA PRODUCTION ........................... ........................... SPECIALIST Corporate Officers WEB DEVELOPER PHILLIP GALLOF GEETHANJALI DUGAPPA CHAIRMAN OF THE BOARD 212-629-1503 212-613-3415 pgallof@thomaspublishing.com JOSE E. ANDRADE gdugappa@thomaspublishing.com ........................... ........................... ........................... ........................... PRESIDENT, THOMAS PUBLISHING Marketing Subscriptions COMPANY LLC COUNCIL MEMBERSHIP manufacturing-executive.com CARL T. HOLST-KNUDSEN /subscribe COORDINATOR ........................... VP OF FINANCE ........................... RANA SIMUNOVICH Reprints MITCHELL N. PEIPERT 212-613-3419 rsimunovich@thomaspublishing.com For high-quality reprints of VP OF PLANNING articles, contact: DIRECTOR OF CONFERENCES ROBERT J. ANDERSON NICOAL CRAWFORD PHILLIP GALLOF VP OF HUMAN RESOURCES 212-629-1570 212-629-1503 ncrawford@thomaspublishing.com pgallof@thomaspublishing.com IVY J. MOLOFSKY  www.manufacturing-executive.com ME Global Leadership Community
  • 67. CALL FOr Nominations for the 2012 PM100 Awards Program will be accepted beginning September 6, 2011 Each year, Manufacturing Enterprise Communications honors manufacturers across the nation that have trans- 8TH ANNUAL formed their business through the use of information technology. Step up and be recognized. Nominate your company or your client for this prestigious award program so they, too, can be a part of this distin- guished group of PM100 Winners. Visit www.ManagingAutomation.com/awards for more information. Winners will be honored at the 8th Annual Manufacturing Leadership Summit, April 30-May 2 at The Breakers in Palm Beach, FL. APRIL 30-MAY 7, 2012 THE BREAKERS, PALM BEACH, FL SAVe tHe DAte 8TH ANNUAL APRIL 30-MAY 2, 2012 THE BREAKERS, PALM BEACH, FL www.ManufacturingLeadershipSummit.com
  • 68. MANUFACTURINGEXECUTIVE LEADERSHIP JOURNAL