Why Companies Buy Manufacturing Software

image of graphSoftware Advice, a company that offers a service of helping clients find the right manufacturing software, has spoken to more than 2,000 manufacturing software buyers in the last year and issued a “Manufacturing Software Buyer Trends Report.”

Most of the companies in the database are smaller firms. Interesting in that the smaller companies now see a value in automating data collection and analysis. I’ve seen how the appropriate use of manufacturing information has improved processes and profitability. Perhaps this is just more information to nudge manufacturing managers into the 21st Century.

Key questions analyzed by the report include:

  • What method do you currently use to track manufacturing processes?
  • What are the top reasons for a manufacturing software purchase?
  • What is your top application requirements?

It recently analyzed its in-house data to find out why manufacturing companies look for new software. Here are a few of the key takeaways from the buyer trends report:

  • 60 percent of buyers are replacing manual methods (e.g., spreadsheets or paper);
  • California is the most active state for manufacturing software buyers in our sample; and,
  • The most in-demand applications are MES and MRP software.

Schneider Electric To Acquire All Shares of Invensys To Broaden Automation and Software Business

Schneider Electric CEO

Schneider Electric CEO Jean-Pascal Tricoire

I decided to probe the depths of the Invensys Website this morning and found the following announcement that the boards of Schneider Electric and Invensys have reached agreement in which Schneider (or a wholly-owned subsidiary) will acquire all the shares of Invensys.

This is no doubt a mixture of good news and bad news for Invensys employees, business and the industry.

On the one hand, Schneider is much more stable at the top than Invensys. Not to mention financially stable. Invensys top management has been unstable, not focused, and obviously not really concerned with running a viable business.

On the other hand, Schneider’s direction over the past few years has been focused on energy–primarily electrical distribution and power quality. Its sole large venture into industrial automation software–the Citect acquisition–has not been managed for growth. Indeed, I seldom hear anything about that business. And that is mostly when I run into an old contact at a conference.

In like manner, Schneider has pretty much ruined a great old brand in Modicon. And, once again, news from the automation side of the business has been sparse for several years.

It will be interesting to see how Schneider integrates the many unfamiliar businesses–Foxboro/Triconex and Wonderware/Skelta. I, of course, hope for the best. If it leaves the three current Presidents in place and provide stability and investment, it can grow the business. It is certainly acquiring a lot of top talent. And maybe the combination really will provide “synergies” (I hate that word, since it is almost never true) that would reinvigorate the Modicon/automation line of business.

One factor probably not to be ignored is ABB. This move makes Schneider look more like ABB with new abilities to compete broadly. There could also be increased competition with Siemens in some areas.

Interesting times.

From the announcement that I lifted from the Invensys Website this morning:

The boards of Schneider Electric and Invensys are pleased to announce that they have reached agreement on the terms of a recommended offer pursuant to which Schneider Electric and/or a wholly-owned subsidiary of Schneider Electric will acquire the entire issued and to be issued ordinary share capital of Invensys. The Offer is to be effected by means of a scheme of arrangement of Invensys under Part 26 of the Companies Act.

Under the terms of the Offer, Invensys Shareholders will be entitled to receive:

For each Invensys Share: 0.025955 New Schneider Electric Shares; and 372 pence in cash.

The Offer represents a value of:

502 pence per Invensys Share, or £3.4 billion for the entire issued and to be issued ordinary share capital of Invensys, based on the closing price per Schneider Electric Share on 11 July 2013 (being the commencement of the Offer Period) of €58.06 and an exchange rate on 11 July 2013 of £/€ 1.1592. Based on the offer value of 502 pence per Invensys Share, the Offer represents a premium of approximately: 14 per cent to the closing price per Invensys Share of 440 pence on 11 July 2013 (being the commencement of the Offer Period); and 27 per cent to the volume weighted average closing price per Invensys Share of 396 pence in the three months to 11 July 2013 (being the commencement of the Offer Period).

Commenting on the Offer, Sir Nigel Rudd, Chairman of Invensys, said:

“Following the recent disposal of Invensys Rail, the agreement with the Pension Trustees and the re-organisation of the Group, the Invensys Directors believe that Invensys is strongly positioned to execute on its growth strategy going forward.

However, the Invensys Directors believe that the offer from Schneider Electric represents an attractive value for Invensys Shareholders and reflects the future growth prospects of the business and a significant proportion of the benefits which are expected to accrue from the strong strategic fit between Invensys and Schneider Electric.

Combined with the disposal of Invensys Rail and return of £625 million to shareholders, this represents a very attractive outcome for Invensys Shareholders. Furthermore, the members of the Invensys Pension Scheme will benefit from the ongoing support of a significantly larger, leading, global automation business.”

Commenting on the Offer, Mr Jean-Pascal Tricoire, Chairman of the Board and CEO of Schneider Electric, said:

“We are delighted to announce the combination of Invensys and Schneider Electric in what is an exciting day for the stakeholders of both companies. The addition of Invensys’ businesses will considerably strengthen Schneider Electric’s overall offering to its industrial and infrastructure customer base, reinforcing us as a global leader in energy management solutions integrating power and automation, as well as leading software for customer efficiency. The transaction will allow Schneider Electric to benefit from increased scale and realise substantial synergy benefits from the combination. We believe our offer is compelling to Invensys Shareholders who will realise significant value for their holdings while having the opportunity to participate in the future strengths of the combined business.

We warmly welcome Invensys’ team and believe that the combined business will provide new and larger growth opportunities for employees and customers as well as offering Schneider Electric’s shareholders significant future value creation.”

Scholarships Awarded to Manufacturing Engineering Students

Scholarships Awarded to Manufacturing Engineering Students

SME Logo

SME Logo

Many of you know that I’m a member both of SME and ISA. It has been interesting to watch the two membership organizations adapt to changing times differently. One great initiative of SME is The SME Education Foundation. It has just awarded more than $600,000 in scholarships to 232 aspiring manufacturing engineers.

In June, the Foundation awarded $120,000 in Family and Director Scholarships to eight students pursuing engineering careers. In addition, the 2013 SME-EF scholarship winner’s circle includes 224 students who were awarded $521,500 in scholarships ranging from $1,000 to $7,000, with some receiving multiple awards.

The press release offers details on recipients of Family Awards. I wasn’t positive about publishing the names of students. But then I figured that just when we are deluged with bad news of deviant people, here is a list of accomplished young people. It’s a reminder that there is hope for the world–and for manufacturing.

Award winners

Morgan K. Montalvo, Woodland Hills, Calif., recipient of the $70,000, four-year scholarship, will pursue a degree in Mechanical Engineering at California Polytechnic State University, San Luis Obispo, Calif. A graduate of Chaminade College Preparatory High School, West Hills, CA, her academic achievements include AP and honors classes which she successfully completed with a 4.2 GPA. She was a member of the Eagle Engineering Robotics team which qualified for VEX World Championships from 2008-2012. Morgan is the daughter of SME member Susan McConnell, SME Chapter 173, Los Angeles & Ventura County.

Kelsey A. Scheppers, Holts Summit, Mo., recipient of a $10,000, one-year scholarship, will pursue a degree in Mechanical Engineering at the University of Missouri, Columbia, Mo. A graduate of Helias High School, Jefferson City, Mo., she was at the top of her class with a 4.0 GPA and was a member of the National Honor Society, the Academic Team, the Library Squad and Club International. Kelsey is the daughter of SME member Tom Scheppers, SME Chapter 287, Mid-Missouri.

Selin Frances Sirinterlikci, Moon Township, Pa., recipient of a $10,000, one-year scholarship, will pursue a degree in Mechanical Engineering at Carnegie Mellon University, Pittsburgh, Pa. A graduate of Moon SHS, Moon Township, Pa., her 4.49 GPA reflects an exceptional academic record which includes AP and honors classes as well as membership in VEX Robotics, Bots-IQ and the speech & debate club. She is the daughter of Arif Sirinterlikci, SME Chapter 8, Pittsburgh.

Rebecca Ann Kurfess, Clemson, S.C., recipient of a $10,000, one-year scholarship, will pursue a degree in Mechanical Engineering at Massachusetts Institute of Technology, Cambridge, Mass. A graduate of D. W. Daniel High School, Central, S.C., she led her class with a 4.0 GPA and has already successfully completed two college-level math and economics courses. Rebecca is the daughter of SME member Thomas Kurfess, SME Chapter 61, Atlanta.

In 2013, the Directors Scholarship acknowledged the contributions of Phillip Marsilius, FSME, LSME and awarded scholarships in his name. The Phillip Marsilius Directors Scholarshipwas presented to four students, each of whom received a one-year, $5,000 award. The recipients were:

Josiah H. Johnson, Duluth, Minn., is pursuing a degree in Manufacturing Engineering and Technology at the University of Wisconsin-Stout, Menomonie, Wis., where he holds a cumulative 3.53 GPA. His ultimate career goal is to establish his own consulting firm which will provide financial advice as well as engineering solutions to manufacturing companies. Josiah is a member of SME Student Chapter S088, University of Wisconsin-Stout.

Timothy W. Biederman, Osage, Iowa, is in the process of completing a Bachelor of Science degree in both Manufacturing Engineering and Automated Manufacturing at the University of Northern Iowa, Cedar Falls, Iowa and maintains a 4.0 GPA. He currently holds a CNC Technology Associate Degree from Hawkeye Community College, Waterloo, Iowa, and hopes to one day become a manufacturing engineer involved with the CNC machining process. Timothy is a member of SME Student Chapter S126, University of Northern Iowa.

Cheyenne McAnlis, Scottsdale, Ariz., is pursuing a Bachelor of Science degree in Industrial & Operations Engineering at Arizona State University – Polytechnic Campus, Mesa, Ariz., and maintains a 4.0 GPA. He hopes to become a manufacturing engineer working with CNC multi-axis operations or designing flexible manufacturing systems. Cheyenne is a member of SME Student Chapter S043, Arizona State University.

Olivia J. Girod, Eugene, OR., is pursuing a Bachelor of Science degree in Industrial & Manufacturing Engineering at Oregon State University, Corvallis, OR., and recently completed the MECOP (Multiple Engineering Cooperative Program) internship. She is an honors student looking for a career that will allow her to combine her Industrial Engineering and Project Management skills. Olivia is a member of SME Student Chapter S019, Oregon State University.

“In today’s economic climate, scholarships are crucial to students and their chances for viable careers,” says Bart A. Aslin, CEO, SME Education Foundation. “As the emerging technologies sector continues to accelerate, companies increasingly dependent on advanced manufacturing technologies want to hire engineers capable of designing and improving products.”

The SME Education Foundation Family Scholarship Awards seek to support the children and grandchildren of SME members and to encourage their pursuit of careers in manufacturing engineering and technology.

Since 1998, the SME Education Foundation has provided more than $8.1 million in scholarships and $1.2 million in awards through its various scholarship programs to graduating high school seniors, current undergraduates and masters or doctoral degree students pursuing degrees in manufacturing and related fields at two and four-year colleges.

Two other Websites that SME maintains are CareerMe for information on advanced manufacturing careers and ManufacturingisCool, our award-winning website for young people.

Online Operations Management – MES Education Offered

Online Operations Management – MES Education Offered

MESA International

MESA International

We have found that online courses have greatly enhanced our soccer referee education programs. I’m glad to see the idea expanding rapidly into the operations management / MES space.

MESA International has been working for the last several years to establish a global baseline of knowledge that will benefit both manufacturers and solution providers. This effort continues to grow and progress, with MESA now offering a variety of instructor-led online courses. Upon successful completion, these courses provide CEUs and can also be applied towards a MES/MOM Methodologies Online Certificate of Awareness.

“Neither the speed of business nor the acceleration of technology advancement is slowing down,” said Mike Yost, President, MESA. “The MESA Global Education Program (GEP) helps companies establish a reliable approach to aligning technologies and solutions with business needs.

“There is significant financial and operational benefit for companies that figure out how to leverage modern Information Technologies in their production operations. Taking MESA GEP training online will expand the accessibility of this valuable knowledge to many more companies looking for a competitive advantage.”

Online benefits

Offering Global Education Program courses online makes the training and knowledge-sharing more accessible to more people in more areas. Online training benefits include:

  • Minimum time away from the workplace
  • No travel and related expenses
  • Instructor-led courses ensure access to industry-leading experts

Individual courses in MESA’s MES/MOM Methodologies curriculum can now be taken online – or the entire 9-course curriculum can be bundled – allowing people to earn the MESA Certificate of Awareness (CoA) completely online.

GEP courses are available for members and non-members. For premium members, MESA credits 100% of membership fees towards the cost of any GEP course. This can yield upwards of $10,000 in savings for large, premium manufacturing members.

Click to learn more about online course offerings, upcoming dates, and how to register.

Opto 22 Expands Human-machine interface product

Opto 22 Expands Human-machine interface product

Human-machine Interface

Opto 22 groov HMI

Industrial automation manufacturer Opto 22 has announced groov Server for Microsoft Windows, a software-based version of its groov product for building, deploying, and viewing simple, effective, and scalable operator interfaces to monitor and control systems and equipment using computers and mobile devices. groov Server for Windows runs on enterprise PCs or servers, and is intended for settings where the IT Department won’t add hardware to the network, but will add software served from a Windows PC. Since groov Server for Windows runs on a PC, it also reduces costs for OEM machine builders who incorporate a PC in their product and need to add mobility options for their HMIs.

Browser-based Benefits

Using only a modern web browser, groov securely lets industrial automation end-users, system integrators, machine OEMs, building managers, technicians, or any authorized person quickly build and deploy browser-based interfaces for automation, monitoring, and control applications. Although groov is served from a Windows PC, any computer with a modern web browser can be used to build interfaces. These operator interfaces can then be viewed on almost any computer or mobile device regardless of its manufacturer or operating system, including PCs, tablets, smartphones, and even smart high-definition televisions. groov is intended to augment traditional human-machine interfaces (HMIs) by making important information available at any time and in any location.

groov offers a simple yet flexible environment for developing operator interfaces with zero programming, and requires no per-seat runtime or viewing licenses. Overcoming the biggest challenge in developing for multiple screen sizes and mobile HMIs, groov automatically and gracefully scales all screens, page objects, and gadgets, allowing groov HMIs to be viewed and manipulated from virtually any device of any screen size.

groov uses the latest web standards like HTML5, CSS3, and SVG. And while many competing technologies depend on additional software or browser plug-ins like Flash, Silverlight, or Java to work, groov simplifies deployment by requiring no additional software or plug-ins.

groov Server for Windows runs on a PC or server that you control. All network communication between a web browser and groov uses an encrypted secure sockets layer (SSL) over an HTTPS connection. groov does not respond to any other communication methods on any other ports.

groov connects to Opto 22 SNAP PAC automation systems and OptoEMU energy monitoring products over a wired Ethernet network or wireless LAN. Opto 22 recommends using a separate network interface card (NIC) to segment your control systems. Support for the OPC-UA protocol is planned in 2013 and will allow groov to communicate with systems from other manufacturers that offer an OPC-UA server.

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