Industry Week articles from January 2004

Industry Week archives from January 2004

Online poll.(Brief Article)
January 1, 2004... ONLINE POLL Which ONE of the following would most benefit from the application of lean practices? IndustryWeek.com readers respond: (Percentages do not equal 100% due to rounding.) Health Care 64% Education 8% ...

Half-hearted efforts endangered competitiveness.(Editor's Page)(Editorial)
January 1, 2004... THE U.S. ECONOMY IS showing encouraging signs of life: Productivity is way up, businesses have started hiring, and some economists say the positive trend will take hold this time. Still others aren't convinced. They call attention to the...

Waiting for the lean health-care revolution.(Letters)(Letter to the Editor)
January 1, 2004... As an engineer and manager who has dedicated the past l0 years to implementing lean manufacturing and Six Sigma initiatives, I applaud passionately the work of the folks [at the Community Medical Center] in Montana. ["Lean Health Care? It...

Questioning loyalty.(employees)(Letter to the Editor)(Brief Article)(Letter to the Editor)
January 1, 2004... The solution to waning employee loyalty is "concern for employees, creation of feelings of accomplishment, and fairness at work" ["Headed For The Exits," November 2003, Page 17]. One has to wonder how the questions were worded to elicit these...

Correction.(Letters)(Brief Article)(Correction Notice)
January 1, 2004... "RFID In A Box" [Page 40, December 2003], incorrectly identified Eric Peters, Senior Vice President of Products and Strategy, Manhattan Associates.

The show must go on: having a contingency plan and being able to execute it will ensure the bottom won't fall out of your bottom line.(Strategy)
January 1, 2004... THRRORISM. BLACKOUTS. Strikes. Wildfires. Hurricanes. Earthquakes. Death. No matter the disaster, being able to ensure consistency in your manufacturing operations is paramount to your company's success. After all, if your company can't do its...

The power of laughter: Duck Tape dresses? A roll in the dough? Henkel Consumer Adhesives Inc. (HCA) reaches its goals with a spirit of fun.(corporate culture and employee motivation)
January 1, 2004... JOHN KAHL, CEO OF THE $286 MILLION Avon, Ohio-based division of the Henkel Group, has no shame and a lot of pride when it comes to the company's motivational mayhem and meeting financial milestones. This year's Duck Challenge Day will take...

On board.(Book Shelf)(Book Review)
January 1, 2004... "Back to the Drawing Board" (2003, Harvard Business School Press) will disappoint those absolutely convinced that the jobs of chairman of the board of directors and CEO must go to different people. Or those who believe that boards must take...

Fuel cell hybrid scoots to market: Parker Hannifin helps Vectrix bet on a hybrid fuel cell/electric scooter. Introduction date: 2006.(Emerging Technologies)
January 1, 2004... SEEKING SIGNS OF THE HYDROGEN economy? Carmakers may have promised to have fuel-cell powered vehicles in the showroom by 2010, but in the meantime plan to check out the local dealer handling scooters made by Vectrix Corp., Newport, R.I. At...

Self-assembling nano transistors.(Emerging Technologies)(Brief Article)
January 1, 2004... "You can start with DNA proteins and molecular biology and construct an electronic device without human intervention." That's a conclusion drawn by lead researcher Erez Braun at the Technion Israel Institute of Technology, Haifa. He's...

Breakouts, booze and bad shirts: it's time for the Boondoggle boogie.(Brandt On Leadership)(Column)
January 1, 2004... IT'S ALMOST FEBRUARY, ALSO KNOWN as Corporate Boondoggle Season. You know what a Boondoggle is: That trip to someplace warm with your company or professional association or trade group, complete with "Meetings" (Salon A, 8:30-11:30),...

Tick tock: IW/MPI Census of Manufacturers shows challenges, reality and, yes, even optimism.(Manufacturing Performance Institute survey)
January 1, 2004... THE CLOCK IS TICKING FOR U.S. MANUFACTURING. AT A COMPETITIVE disadvantage in terms of labor, raw materials and energy costs, no other business sector has been transformed so widely by globalization. It's telling when, after 39 consecutive...

IW/MPI Census: time will sell: capitalize on your process improvements.(Continuous Improvement)(Information Week/Management Performance Indicator)
January 1, 2004... START WITH THE BASIC PREMISE THAT the purpose of any business is to make money. To deliver earnings at a percentage rate commensurate with risk, earnings that are distributed to owners or shareholders. Consider that, when asked to report...

Testing testers saves millions: Advanced Technology Services improves FTA success rate; saves engine maker time & money.(IW case study collection: Advanced Technology Services)(Test cell maintenance)(Product/Service Evaluation)
January 1, 2004... Oftentimes, it's a matter of asking the right questions before you find the right answers. When a major manufacturer of diesel engines had some questions about its finished product testing, it turned to Advanced Technology Services (ATS) for...

Beyond the RFQ: achieving bottom line benefits through strategic supplier relationships.(IW case study collection: Air Products)(Product/Service Evaluation)
January 1, 2004... Being committed to customer service means finding suppliers that are committed to you. Operations cannot be shut down--especially for a disruption in raw materials supply. That's why Rath Manufacturing Co., of Janesville, WI, contacted Air...

Truck to floor in 24: logistics play a key role in keeping borders group one step ahead of competition.(IW case study collection: FedEx Freight)(Company Profile)
January 1, 2004... When it comes to delivering goods to market, logistics and timing are everything. As a leading global retailer of books, music, and movies, Ann Arbor, Ml-based Borders Group, Inc., is always looking for ways to get merchandise to market faster...

Delivering supply chain value: whirlpool gains greater efficiencies with i2 business optimization services.(IW case study collection: i2)
January 1, 2004... Staying on top in the fiercely competitive appliance industry means constantly recognizing challenges and implementing strategies in supply chain operations to improve the bottom line. As one of the largest appliance manufacturers in the...

Driven to succeed: FATA aluminium gets GM production up and running-fast.(IW case study collection: Machines Italia c/o Italian Trade Commission)(Company Profile)
January 1, 2004... When General Motors went shopping in 1997 for a company to manufacture machinery for its powertrain operations, industry insiders weren't sure if any company could meet the stringent performance and size requirements of the foundries in...

Getting a head start: PRIDCO's site selection plays key role in growth of contract pharmaceutical manufacturer.(IW case study collection: Puerto Rico Industrial Development Company)(Pridco)
January 1, 2004... When Joaquin B. Viso founded MOVA Pharmaceutical Corporation in 1986, the business premise was simple: Large drug companies, already burdened by heavy research and development costs, would welcome the help of a contract manufacturer to bring...

Creativity before capital: TBM Consulting Group works with Hayward pool products to save millions of dollars through kaizen events.(IW case study collection: TBM Consulting)(Product/Service Evaluation)
January 1, 2004... If you want to grow a business, you can't tread water. When Hayward Pool Products, a market leader in the manufacture of filtration equipment and swimming pool accessories, found itself under intense competitive pressure, it decided to change...

New world leader: 3M Co.'s James McNerney, CEO Of The Year, is committed to operating excellence and organic growth through innovation, international strength, leadership development and Six Sigma.(Leadership)(Cover Story)
January 1, 2004... There is one notable thing that W. James McNerney Jr. is not. He is no longer one of two former General Electric Co. executives who did not get Jack Welch's job when the legendary leader chose his successor in November 2000. In his...

U.S. manufacturing agenda: an essay and invitation.(From The Editor-In-Chief)
January 1, 2004... IT'S BEEN A TOUGH START TO THE 21ST CENTURY, especially for manufacturers. As if on cue, a heartbeat after we turned the lights out on our "we survived Y2K" parties, the last of a decade-long celebration of the "new" economy,...

Ties that bind: IndustryWeek Value Chain Study reveals manufacturers' struggle to add value from product development to delivery.(Survey)
January 1, 2004... IN THE IDEAL STATE, A MANUFACTURING COMPANY IS LIKE a seamless, value-creating pipeline endlessly meeting customers' expectations by transforming ideas, raw materials, parts and subassemblies into finished products and services. That's the...

Adapting to the times.(Supply-Chain Planning)(Brief Article)
January 1, 2004... HOW HAS POLITICAL AND ECONOMIC uncertainty impacted your supply chain over the past five years? For most manufacturers the pain is most evident in decreased sales and increased costs, say respondents to the 2003 IW Value Chain survey. While...

A need for it.(Supply-Chain Planning)(information technology)(Brief Article)
January 1, 2004... THE MORE SOPHISTICATED PLANNING and execution practices today require some level of visibility into what's going on in the supply chain. That requires information technology. Although a majority of respondents have not yet automated many...

Calculating capital costs.(Supply-Chain Planning)(Brief Article)
January 1, 2004... CASH-TO-CASH CYCLE TIME MEASURES how much working capital an organization has tied up in its supply chain. Simply put, it's the number of days between paying for raw materials and components and getting paid for a product. For our purposes,...

New products faster.(New Product Development)(Brief Article)
January 1, 2004... MANUFACTURERS ARE SUCCEEDING IN shortening their product development cycle times. Three years ago 26% of operations report that it took them 300 days or more to bring a product to market from the start of the design process until the new...

Essential input.(innovations)(Brief Article)
January 1, 2004... TRADITION HAS IT THAT R&D DRIVES new product development but the real drivers of success are the innovations that the entire organization brings to meeting or exceeding customer requirements. And the innovation process extends beyond corporate...

The benefits of disruption.(Harvard professor Clayton M. Christensen)(Brief Article)
January 1, 2004... IT'S IMPORTANT TO NOTE THAT THE NEW product development challenges cited by respondents apply primarily to satisfying existing customers with product enhancements and platform extensions. The respondents do not consider new product development...

Buying from abroad.(Brief Article)
January 1, 2004... WHEN SOURCING DIRECT MATERIALS, THE larger the manufacturer, the more willing or able it is to cast its eyes outside of the United States. One of every four firms with annual revenue exceeding $100 million gets 30% or more of direct inputs from...

Supplier lead times lag.(Procurement)(Brief Article)
January 1, 2004... UNDER USUAL CIRCUMSTANCES, THE fact that over half of survey respondents say their suppliers' lead times failed to improve over the past three years could be considered a bad thing. But it also could be argued that simply maintaining supplier...

Going to market--electronically.(private trade exchange)(Brief Article)
January 1, 2004... IF YOU DON'T YET PARTICIPATE IN A private online trading exchange, you're in the cleat majority. But that could soon change if growth rates continue. Today, one-third of respondents say they make purchases via private online trade exchanges....

Picking your partners.(Customer Order Management)(Brief Article)
January 1, 2004... TWO SEEMINGLY DIABOLICAL FORCES are vexing manufacturers these days: an inability to raise prices and customers demanding cheaper products, faster service and more functional support from suppliers. In tins grip, margins erode. The old-school...

Selective CRM.(Customer Relationship Management)(Value-Chain Survey)(Brief Article)
January 1, 2004... Call IT "SMART CRM." IT SEEMS Manufacturers that responded to the Value-Chain Survey have discovered what works and what doesn't when it comes to Customer Relationship Management. Trying to sell the customer a scarf (cross-selling) or a crown...

Old reliables.(Customer Order Management)(faxes, postal mail and phones)(Brief Article)
January 1, 2004... FAXES, POSTAL MAIL AND PHONES remain the top methods by which manufacturers receive their orders. EDI will take some of those transactions in three years, respondents report, but the "old reliables" will still have a place. Indeed, conventional...

Economies of scale.(Logistics)(Brief Article)
January 1, 2004... LOGISTICS IS ONE AREA WHERE economies of scale and buying power make a huge difference. About one-third of smaller operations reported shipping and handling costs exceeding 10% of sales. Only one out of 10 sites with more than 250 employees or...

Shorter delivery times.(Logistics)(Brief Article)
January 1, 2004... WHEN IT COMES TO CHANGING customer expectations, what a difference three years makes. The number of manufacturers delivering products in five days or less has grown to 43% from 34% three years ago. Today only 17% require more than 20 days to...

Turning to outsourcing.(Logistics)(Brief Article)
January 1, 2004... WITH TRANSPORTATION SO WIDELY regarded as a commodity, it's no surprise that outsourcing is a major logistics strategy. Indeed, among the various logistics functions, transportation and customs services are the most widely out-sourced, followed...

Computer makers tackle e-waste: PC manufacturers catch recycling bug.(E commentary)
January 1, 2004... AFTER TWO DECADES OF STICKing their heads in a pile of silicon when it came to environmental concerns, manufacturers of personal computers have finally gotten a whiff of their own waste at low tide--and it stinks. "Over the last year, more...

Expanding the discovery channel: additional R&D labs at AstraZeneca in Waltham, Mass., promise to aid in development of cancer and infectious disease drugs.(AstraZeneca PLC)
January 1, 2004... THREE THOUSAND MLLES WEST OF ITS corporate headquarters in London, England, pharmaceutical firm AstraZeneca PLC is expanding its R&D presence in the New England city of Waltham, Mass., 11 miles west of Boston. The addition of 80,000 square feet...

Funds rate below 2% in 2004: but a significant increase could be coming in 2005.(Interest Rates)(Brief Article)
January 1, 2004... THERE'S NOT MUCH TALK ANYMORE about Chairman Alan Greenspan and his 11 voting colleagues on the Federal Open Market Committee (FOMC) taking their target for the influential federal funds rate, the interest rate banks charge each other on...

Rethinking rewards pay.(Towers Perrin 2003-2004 Worldwide Total Remuneration Study)(Brief Article)
January 1, 2004... Variable pay, in the form of bonus payouts and long-term incentives, is making a comeback despite public scrutiny on companies to account for every dollar spent, according to the Towers Perrin 2003-2004 Worldwide Total Remuneration Study. ...

Rare beauty: Reflect.com delivers customized products in lots as small as one with remarkable on-time performance.(Best practices)
January 1, 2004... AT FIRST BLUSH, PRODUCING WOMEN'S cosmetics in lots of one wouldn't to be a profitable proposition. principle that Land's End Inc. and Nike Inc. are using to customize trousers and sneakers is being employed by San Francisco-based Reflect.com...

Events.(Update)(Brief Article)(Calendar)
January 1, 2004... Feb. 23-26 National Manufacturing Week McCermick Place Chicago www.manufacturingweek.com May 18-20 2004 IW/AME Best Plants Conference Sheraton Cleveland Cleveland www.ame.org June 13-15 ...

2004--will it repeat 1972? U.S. economy may be living on borrowed time.(Evans On The Economy)(Column)
January 1, 2004... ALL SIGNS INDICATE THAT 2004 will be a great year for the U.S. economy. Real growth could exceed 4%, and the unemployment rate will decline substantially. Interest rates are likely to remain near current levels, and inflation will stay around...