A frustrating implementation sheds new light on the value of personnel.
So what exactly is intellectual property?
Talking with an accountant is seldom a fun conversation, but I must admit that when our auditor stopped in for his periodic “kick the tires and see how things are going” meeting, the conversation did open my eyes. What started as a simple “have you invested in any assets this quarter?” morphed into a discussion about what really is value vs. just an asset.
The short answer to his question was, “Yes, we did indeed purchase some capital equipment.” My mistake was trying to anticipate his next question, which I presumed was going to be, “Then why have you not started depreciating it?” My cut-him-off-at-the-pass response was because we were going through a much-longer-than-anticipated learning-curve with the machine and had not put it online yet.
Over the past couple months I have been in several discussions where the demise of the North American fabrication industry has been at the core of the various debates. While everyone in these exchanges was coming from different perspectives, ranging from technologist to financier to global consultant to marketer, and ranging in age from “young bucks” to seasoned retirees, the common thread of their thought process was fabrication as an industry in North America is dead or dying.
Various data points cited – accurate or subjectively interpreted – paint a bleak picture. The number of facilities is down to just over 200, with over half of those facilities under $5 million in revenue. New materials and supplies being commercially introduced are more often than not developed in and/or by Asian companies, and the reinvestment in capital equipment in North America pales in comparison to amounts spent everywhere else in the world. Yes, on the surface the picture is depressing – or is it?
Read more: The Demise of North American Fabrication is Grossly Overstated
Quality programs should ensure quality, not hamstring ingenuity.
From time to time, new terms take hold that sound critically important, become heavily, if not overly, used in business conversation, and often are both misleading and oxymoronic. Such is the case with the now frequently used “single point of failure.”
I do not think it’s possible to go through a facility or quality audit by a large customer where they are not searching for – and certainly identifying – what, in their opinion, is an unacceptable single point of failure. In my experience, the single point the auditor or customer identifies is usually neither more nor less critical than any other aspect of the process, is usually not a single point, and is usually not more than a process – or processes – the person who cites it does not understand.