PlantSuccess Newsletter

Volume III, Issue 26

18 December 2003

Dear Subscriber:

The year 2003 has been a better year for most of us; recent reports regarding growth in GDP and improvements in productivity gives all of us reason to be bullish on the future -- as Wall Street has been most of the year. The DJIA has gained more than 20 percent this year and is substantially above 10,000 for the first time in 18 months. The total capitalization of US domestic companies listed on the NY exchanges is now about $14 trillion – all other exchanges pale by comparison.

This year also has been good because it looks as though the war against terrorism has achieved one of its goals – prevent another major attack against the US. Two years ago, the odds were not in our favor. Of course, capturing Saddam Hussein alive is a fitting conclusion to a year when the US military has once again demonstrated so much in the way of capability, strength and resolve. My heartfelt thanks go to those who serve and to their families. I remember that it is not easy; I hope they all return to a grateful nation.

The year 2003 also has been interesting for PlantSuccess. We continued our unique focus on the owner-operator and high-value content with the Gulf Coast conference, held in Houston in April, featuring:

- Keynote Doug Walker, retired exec with ExxonMobil where he was Manufacturing Director of their Singapore Chemical Plant, a $2 billion petrochemical complex.

- John Voeller, Black & Veatch exec, technologist and now White House Fellow and one of the year’s best sessions on a favorite topic, Knowledge Management, with presentations by experts with CDM, DuPont, Fluor and SAIC.

- Managers with Bayer, Dow Chemical and DuPont responsible for supporting the operations of their company’s multiple plant sites in the Gulf Coast area.

- Eastman Chemical’s Johnette McDaniel discussing ERP integration, George Pohle with Shell Global Solutions discussing economic targets, improved work processes and increased collaboration, plus Mike Alianza discussing Intel’s use of technology to improve time-to-market.

- Presentations from PlantSuccess sponsors, a current FIATECH project and a perspective on industrial security from ExxonMobil and CII.

Our 5th anniversary conference in the Philadelphia area, in October, was special with the return of Jim Porter, DuPont’s VP of engineering and operations, as keynote and his outstanding address: “Six Sigma and Best Manufacturing Practices.” Jim led a roster of great sessions and speakers, including:

- Executives Karan Sorensen of Johnson & Johnson and Bob Fraga with the US Postal Service.

- DuPont’s John Sieg and Larry Killingsworth with Air Products & Chemicals discussing MOC.

- Brad Synder with BPSolvay and Tom Argue of Rohm and Haas discussing supply chain execution.

- The session: ISA-95 -- Integrating Enterprise and Manufacturing Systems with AspenTech’s Don Clark, DuPont’s Ray Walker and Eric Cosman with Dow Chemical.

- A report by Hal Thomas of Air Products & Chemicals on the Process Equipment Reliability Database (PERD) a current project with The Center for Chemical Process Safety (CCPS).

- David Muir of Accenture and Steve Williams of AspenTech, presented Operational Excellence: Best Practices in Manufacturing and there was a full range of presentations from our sponsors.

We now have more than 100 presentations by process manufacturing industry leaders for review and downloading at www.PlantSuccess.com. Although still available to everyone, we began tracking the presentations being downloaded a few months ago and asking basic information of those making the request -- almost everyone complies, our thanks to all.

The rate of request is higher than I thought, particularly for presentations made two or more years ago. This indicates that we are achieving a major goal of relevance and quality in conference content. The interest is global and management personnel generally make the request -- keynote presentations are very popular.

In April, we return to the Hilton Houston NASA Clear Lake for the third year and PlantSuccess Gulf Coast 2004. Information on this unique event will be forthcoming at www.PlantSuccess.com and in this Newsletter. Of course, we are always interested in talking to potential speakers, moderators and sponsors. Please call me at 770-565-3282.

Thanks for 2003; best wishes for the holidays and the New Year,

Carl. Howk, Chairman

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Current Links

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What’s Ahead for 2004?

At the end of every year, Knowledge@Wharton publishes the results of interviews with members of its faculty on five key sectors: the economy, the banking industry, airlines, telecommunications and health care.

This year’s report begins: After a slow and confusing economic recovery, 2004 will be a year of solid improvement building on positive news, including the capture of Saddam Hussein, at the close of 2003. READ MORE.

Outsourcing Not the Culprit in Manufacturing Job Loss

From the current issue of AutomationWorld: Over the past decade, US manufacturing jobs have declined by more than 11 percent … Japan’s manufacturing employment base has dropped by 16 percent … one of the largest losers of manufacturing jobs has been China.” READ MORE.

Rader’s Rules

I recently learned of the passing, in August, of Louis T Rader, he was 91 and lived a long and productive life. I knew him in 1969 as a professor at the University of Virginia’s Graduate Business School. He joined the faculty with an impressive set of credentials: president of the Univac Division of Sperry Rand, VP of industrial process control at GE, and group VP at ITT. Rader was a fellow of the National Academy of Engineering, on the faculty at the University of Virginia’s School of Engineering and chair of the Department of Electrical Engineering. READ MORE.

By coincidence, one day last summer, I came across a tattered piece of paper with the title “Rader’s Rules.” They were made a part of many case studies then and seem to be relevant today to business and to life:

  1. Never run out of money or credit.
  2. The sum of all costs should be less than the amount received from the customer.
  3. You can’t sell the second if you can’t sell the first.
  4. When the quarterback says go around left end, you go around left end.
  5. It doesn’t matter how good your calculus is if your arithmetic is no good.
  6. Anybody off the street can run a business at a loss.
  7. Statistics are for losers (no one needs a statistical analysis to show how they made money).
  8. If you don’t get the facts, the facts will get you.

The PlantSuccess Newsletter generates a substantial number of visits to our website, we welcome the interest and the access to previous issues of the Newsletter which are available there. If you'd like to share this newsletter with a colleague, just forward a copy. Subscribe or cancel by sending a request to Carl.Howk@PlantSuccess.com

Full links to Volume III, Issue 26 Newsletter articles:

  1. www.PlantSuccess.com
  2. http://knowledge.wharton.upenn.edu/whatshot.cfm
  3. http://www.automationworld.com/cds_search.html?rec_id=336&eclip=yes
  4. http://www.engineering.vcu.edu/rader/about.html
  5. www.PlantSuccess.com