When one is in the business of selling purpose-built manufacturing systems and equipment, one is frequently asked by one’s prospective customers to provide pricing for their goods and services. Depending on how well defined the needed solution is, which would be embodied in the equipment to be priced, calculated equipment costs can be widely variable. In these situations, where a selection of different technologies and even approaches may satisfy our prospect, we recommend that some preliminary engineering be performed to better define the needs of the client’s operation, and thereby provide criteria with which to limit options and better judge best fit/return on investment from the solution options.
We are a business that executes hundreds and hundreds of projects every year. These span the spectrum from simple to complex, urgent to critical, and small to large. As a vendor in industrial automation, we participate in these interactions as a supplier to prospective clients wishing to accomplish business goals. There are about as many ways to go about this as there are projects; however, there are certain parameters that yield more likely success more often. Let's look at them.
Last week the New York Photonics & Rochester Regional Photonics Cluster held their annual meeting. The Rochester Regional Photonics Cluster has been around for a long time and its predecessor the Institute for Optics was founded in Rochester in 1929. The photonics industry has been around a long time in Rochester. We haven’t been talking about it very much for all that time, in fact hardly at all until recently. Now it’s a big deal. Chuck Schumer, Louise Slaughter and Dr. Ernest Moniz, the Secretary of the Department of Energy himself, came to Rochester to attend the meeting. It was held with a great deal of pomp and ceremony at the Rochester Museum and Science Center. It was no doubt the largest attendance at an annual meeting ever, so large in fact that the event was “sold out.”
I guess it is time to say goodbye to summer and welcome in all that comes with autumn! It has been an amazing summer, but now the kids have gone back to school, the morning traffic has returned, it’s getting dark earlier, and it’s getting a little cool for a convertible or rolling all the windows down on the morning commute to work. All of these things signal the next season, not only in our personal lives, but in our work lives as well.
A great deal has been studied, written about and taught on the subject of selling. All of us in our daily lives are salesmen of some sort and all of us in our daily lives are consumer and buyers as well. If we think about our own buying experiences, we can begin to understand what it takes to be a better than average salesperson.
In today’s age, it’s easy to search and get reviews for pretty much any product or service. If you’re looking for a hotel, you probably read the reviews of the hotel before you book. If you’re looking to buy a new product, you do the same before adding it to your cart.
In 1957 "Sputnik" not only launched itself into space but also, simultaneously, a space race. Several years later, American President John F Kennedy announced a seemingly impossible mission: landing Americans on the moon and bringing them back safely.
This combination of goal setting, vision, and leadership propelled America to the forefront of innumerable technologies and industries. Seizing on potentially dire conditions as a result of the Soviets’ surprise leap into space ahead of America, JFK tapped into that in a proactive and unparalleled manner.
With last week’s 47th anniversary of American astronaut Neil Armstrong's first step onto the lunar surface, it's worth considering what moonshots can really be all about, and how you can have one also.
While there may not be a singular definition of a "moonshot," it's safe to say that it consists at least of a stretch goal (that really redefines "stretch"); addressing multiple problems at once; requiring different thinking; an unwillingness to fail. So what is your moonshot?
In the journey to revenue and profit there are a couple of ways to look at the development of a new product or technology. Projected profit margins sometimes never seem to be big enough. In the early stages of designing a product, the anticipated earnings from such an endeavor can be quickly wiped away if the manufacturing and production impact is not fully understood. Whether it is a brand-new product or an evolution that results in some manufacturing or production changes, it's important to consider the downstream impact of design changes and product decisions.
Considering only the product design cost, which often pales in comparison to the CAPEX (capital expenses) and the long term cost of ownership, a lot of emphasis gets placed on the cost of pieces and parts. While critical to understand, it can often be misleading without properly vetting against the downstream expenses.
Site preparation, production equipment, tooling, and the material handling necessary for the transport of goods during production can all be flexed in order to satisfy the business objectives for the new product or a process change. When insufficiently considered, or underestimated, these expenses can quickly erase any profit margin that's projected, as they can quickly get out of control.
Similarly, the cost of ownership, including labor for production, the degree of automation included in the production and assembly of product, maintenance and reliability features, etc. can also add up and nibble away at that projected profit margin. On top of the capital expenses, these are sometimes overlooked and can often be significant. So what is the low-hanging fruit to best and fully calculate these factors?
Early engagement is the key. Don’t lock out or over-constrain the options available to production. As the product development or process change discussions are beginning, include the manufacturing and production teams. This will shed light on the means to more efficiently handle and manufacture the product, as well as provide early opportunities for considering as many alternatives as possible, casting a wide net to grab the best ideas early on.
Design for Assembly, Design for Test, and Design for Manufacturability (altogether “DfX”) are proven methodologies for doing this. Consultants can contribute to that early thinking, being agnostic in our approach, our toolsets, and bring a wide variety of experiences to the development process.
Project Management and Schedule Management -- understanding the impact of timing is also critical, again providing an opportunity for specialists to bring to bear options that will enhance the decision-making, and lead to the best profit margins possible. Understanding the sequence and dependencies of decision-making, equipment availability, and time frames for such activities as prove out, commissioning, and validation will help provide a complete perspective on the project’s life cycle. Technology risks in product design and manufacturing technology are often studied and qualified; but one of the greatest threats and risks to profitable business is not understanding the timing, dependencies, and schedule implications of proper scheduling.
The world is full of cool and innovative products. The battle to differentiate them and gain advantages in the market should be remembered as coming not only from the design features, but also the manufacturing and production processes that make them possible, differentiated, and affordable.
“Forewarned is forearmed.” “Planning is everything, plans are nothing.” Whatever your mantra, be sure that your focus includes the means for manufacturing as well as your products’ design intent. Consult your production people and invite integrators and consultants to bring in their professional experience, knowledge, and expertise. That makes for a winning combination of product and process.