Cutting Your Way to Prosperity

Received the daily email from Nightengale-Conant with a quote of the day. Wow, does this one ring true:

“You seldom improve quality by cutting costs, but you can often cut costs by improving quality.”— Karl Albrecht: a German entrepreneur who founded the supermarket chain Aldi

I think we’ve all experienced this. We write a dozen articles a year about this at Automation World. And, yet, those MBAs floating around continue to believe this. Earlier they just about destroyed the American automobile industry, now they seem intent on doing the same to the airline industry.

To quote an early 60s folk song, “When will they ever learn? Oh, when will they ever learn?”

Eaton and automation

Eaton and automation have been two words that haven’t been associated for quite a few years. For at least eight years (maybe longer), when I think about Eaton, I think electrical power (switchgear, for example). The old IDT group that pioneered operator interface panels had all but disappeared. Hadn’t heard about a controller for years. An early leader in DeviceNet networking, it all but disappeared from there, too.

Talked with Richard Chung of Eaton yesterday. The company does have a controller line and it sounds like there will be additional investment in it. Along with more in the way of operator interface. He was talking about a new I/O wiring system with a gateway to several fieldbus networks.

Should have more after a booth visit to Pack Expo in a couple of weeks. Always happy to see more activity in automation.

Honeywell Introduces Vendor-Neutral Process Control Software Suite

I received this press release from Honeywell Process Solutions last week while at the ISA Marketing and Sales Summit. Now I’m on a partial vacation, but I was thinking about this while relaxing at the pool. (Yes, I can relax and think at the same time–it’s walking and chewing gum that’s challenging.)

Honeywell has released what it calls “the process industry’s first vendor-neutral process control suite, which allows plant operators to centrally monitor and control both Honeywell and non-Honeywell process control systems within their plants.” The process control suite lets operators and management break out of the information silos that can often occur with Advanced Process Control (APC) systems.

I do need to point out, though, that this is probably not the first–at least in concept. Perhaps at some level of definition, it could be labelled first. Perhaps from the point of view of Honeywell specific software. On the other hand, Invensys’ InFusion has done this for quite some time–once again, it may depend upon drilling into some finite definitions. ABB’s 800xA system was developed to allow it to bring together the many DCS systems it had acquired over time.

This is not to denigrate the new product, however, as this release definitely shows the power of a trend in process control. Engineers are just not ready to “rip and replace” DCS systems, yet. But they do need to upgrade usability. Since many plants have areas with different DCSs, a software solution to bring the systems together and then upgrade performance, reporting, advanced control and many other features makes a lot of sense.

The release states that the new system is suitable for all industrial applications by revolutionizing performance monitoring with ability to span not only multiple APC technologies, but also multiple processing facilities, giving consistent performance benchmarking across the enterprise and ensuring proper corrective action is taken when and where necessary. HPS studies have shown the solution can increase service factor and application utilization by 25 percent while reducing troubleshooting time by up to 50 percent, allowing proactive maintenance practices to improve utilization and increase application service factors.

The suite includes three software products: Honeywell Loop Scout, which gives control engineers the ability to identify and correct poorly performing control loops; Honeywell Profit Expert, delivering multivariable controller monitoring for Honeywell’s Profit Controller; and Control Performance Monitor, an application that monitors, identifies, diagnoses and remedies regulatory and APC asset issues throughout the plant.

“This new software suite is a first in the process control industry, which means that our customers will have unprecedented flexibility in the management of their assets and the most holistic view yet of their plant operations,” said Donald Morrison, senior product marketing manager, Honeywell Process Solutions. “The recent addition of Matrikon to the Honeywell portfolio brings together the vendor independence of Matrikon’s monitoring technology with Honeywell’s expertise in the deployment of Profit Suite applications.”

ISA Activities

Marketing and Sales Summit
I’ve been in St. Louis for the ISA Marketing and Sales Summit. Had a quiet dinner with Dick Morely last night. Conversation ranged from manufacturing strategy to the spin of electrons to cures or prevention for Alzheimers and Type II Diabetes. I always leave a meeting with Dick energized. Do you know people like that? I’d love to know more. But that’s the joy of this profession. I get to hang out with awesome people.

The Marketing and Sales Summit began as a response to observations that marketing in the automation industry needed help. Sometimes engineers get “promoted” into marketing but receive little or no training and therefore get lost. Other times people come from consumer marketing into our space. Selling technical products to engineers is unlike any other marketing that you’ll do.

Many experts come to share their ideas and experiences. In my case, I’ll be leading a “speed dating” discussion on PR–or, working with editors. So many marketers don’t write a coherent, hard-hitting press release, often burying the important information in the third or fourth paragraph. They’re lucky if anyone reads that far. Sometimes PR people flood the world with releases and hope someone will read it (actually, many believe that everyone will read it and publish it). That doesn’t work. Trust me. I want to bring relevant information to my readers, and PR people help–at least the good ones do.

Automation Week

I’m seeing reports about the conference part of ISA’s Automation Week coming up in Mobile, Ala. Greg McMillan has assembled a great set of speakers and topics. You probably noticed that this conference was not on my travel agenda. I’m not snubbing ISA. There are three conferences on three different coasts that week that I should attend. Forces beyond my control obligated me to one on the West Coast. Can’t make it to the Gulf coast or the Atlantic coast for the others. But if you have a chance, head down there.

Plans are progressing for the 2012 Automation Week, which will be held in Orlando. I’ve offered to help with the conference if circumstances work out.

I also had a chance to chat with Bob Lindeman, ISA Secretary/President Elect. ISA is trying to turn the ship around and regain relevance in a new world. It is looking at different ways to communicate with members–using the ubiquitous “social media” among others. It is also looking to streamline its Byzantine organization structure. That’s the main reason I would like to be in Mobile–so I could participate in the changes. I’ll wish for the best. The organization sorely needs change and enthusiasm. I hope the current leadership can make it happen.

Investing in Manufacturing and the Future of the Country

No one ever cut their way to prosperity. Remember “Chainsaw Al” at Sunbeam? Destroyed the company. I’ve seen others. That’s one reason I find the current budget debate in Washington so disheartening. There has been almost no discussion about the necessity for investment–especially in infrastructure in all the current national budget debates even though the country sorely needs infrastructure upgrades to support growing businesses.

In an article in the Wall Street Journal, a number of CEOs called on the government to reduce regulations on their activities (no shock there), but also called for government investment in infrastructure.

It is the same in business. Is your company simply cutting costs? Are they cutting costs to eliminate waste, or are they cutting cost simply to try to find profitability? There are two paths to profitability in the short term. One is to increase sales; the other is to reduce cost. For the long term, only the first one works

I’d love to see more talk about intelligent investing in growth as we try to expand this recovery (and, yes, we are still in a recovery). I favor the people who go out an d make things happen.

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