Energy policy is a topic that is on the minds of government and business leaders the world over. According to The Climate Group, an independent not-for-profit organization, our global economy is still driven by energy needs, and the vast majority of that energy comes from a finite supply of fossil fuels. According to their assessment, unless we rethink the way we produce and consume energy, eventually there won’t be enough to go around.
They believe that we need to cut our emissions by two thirds by 2050. But we need to do it in a way that protects our livelihoods, creates jobs and supports economic growth around the globe.
Last week at the ODVA Annual Conference--as part of ODVA’s announcement of a new energy initiative and white paper--Cisco’s Bryce Barnes roused a packed-house audience representing ODVA’s ~200 industrial and automation suppliers with a compelling speech on the immediate need for Optimization of Energy Usage (OEU™) in the Production domain. Energy consumption statistics for the industrial sector are staggering, most estimates suggesting half of the world’s total delivered energy, and that amount is projected to increase by 40% over the next 25 years. For Manufacturers, energy typically constitutes the first or second highest portion of product variable costs, and most manufacturing companies now report as part of their governance a sustainability strategy that is core to their overall business strategy. Furthermore, volatility of energy markets--closely linked to the stability of governments, international relations and policies--raises the risk profile for continuity of supply, production and satisfaction of customers. Optimizing energy consumption, minimizing energy costs and mitigating energy risks are clearly top of mind business imperatives for the Manufacturing CEO.
Mark Wylie discusses the importance of energy optimization to sustainable manufacturing operations. Check out Mark’s December blog on factory energy management.
This year for Christmas my wife gave me the wonderful gift of membership to our local gym, and in addition, a discounted gift pack of 8 personal trainer sessions. My first reaction was to be offended by the gesture until I gazed at the sincerity on her face and the “keg” below my chest. So, instead of wallowing in self pity. I proceeded to pull out and dust off my 1998 Brooks track shoes, my knee high athletic socks and my 2000 Los Angeles Laker’s Championship head band, and proceeded to walk out the door on my quest for a new and improved six pack.
How does this story relate to manufacturing? Well let me explain.
I did not make it out the door before my teenage daughter glanced at me, chuckled and stated, “Dad. Where are you going with that outfit? And where did you get those shoes!!!”, “You need some new “stompers” (translation for the tweet challenged generation…new shows. Oh and I needed the translation.) She directed me to the NikeID website to find some new “stompers”
Nike -- Custom Solution
Global manufacturing stalwarts like Nike and Harley Davidson are re-engineering their plants to address the growing trend of custom “productization.” Where customers can personalize and customize their product with unique detail and style. Customers end up paying a little more for this service, but in many instances it turns out to be more reasonable than exclusive branding. Is Custom Automation the new craftsmanship of the 21st century? If so, what is required to implement this new paradigm into a viable business and operational reality -- a sort of Industrial Intelligence? Read More »
Last month at the SPS/IPC/Drives Show, I spoke to a Vice President of Operations for a large semiconductor manufacturer. He is responsible for the global operation of approximately 20 wafer fabrication facilities. He glanced at our logo and my name badge and with a puzzled look asked the following simple question, “Why is Cisco at the SPS Drives show and how can Cisco help my operation?”
Well, my first inclination was to enthusiastically communicate our whole offer converged Industrial Intelligence and Manufacturing solutions, but I paused and replied, ” I’m not sure we can help you, but I have 7 years of previous experience working in your industry and I’m very interested in knowing …. What keeps you up at night these days?” The following is a summary of our conversation as it relates to his communicated supply chain, operational management, design and business value challenges. Are you experiencing the same headaches? And are they keeping you up at night? Does Cisco have a solution to cure those sleepless nights? Read More »