<b>PPG Aerospace Earns Supplier Awards</b> HUNTSVILLE, AL—The aircraft transparencies facility and the Los Angeles and Atlanta Application Support Centers operated by PPG Industries’ aerospace business have been honored by Northrop Grumman Corp. as 2009 Platinum Source Preferred suppliers for their performance and quality in delivering transparencies, coatings, sealants and other value-added services. This is the fourth time PPG Aerospace’s Los Angeles and Atlanta centers have received the Northrop Grumman award, which recognizes companies for achieving distinction in product quality, on-time delivery, customer satisfaction and robust lean processes. Northrop Grumman honored 69 supplier locations. “Being honored for a job well done is no small matter, especially when that honor comes from a company as prestigious as Northrop Grumman,” says Dave Morris, PPG Aerospace vice president and general manager for the Americas. “We are especially pleased by the continued achievement of our people at the Los Angeles and Atlanta ASCs and the award-winning performance of the people at our Huntsville plant. The PPG Aerospace team is committed to continuous improvement in quality and customer service through operational excellence in our manufacturing plants and ASCs.” PPG’s Application Support Centers supply Northrop Grumman with coatings, sealants and custom-packaged third-party chemicals. The Los Angeles center in Valencia, CA, supplies Northrop Grumman Aerospace Systems facilities in Palmdale and El Segundo, CA. The Atlanta center in Kennesaw, GA, supplies Northrop Grumman’s St. Augustine and Melbourne, FL, facilities. PPG’s Huntsville plant manufactures windshields, windows and specialty transparencies for Northrop Grumman facilities worldwide. A longtime supplier to Northrop Grumman, PPG provides transparencies, coatings and sealants for the B-2 stealth bomber and E-2D Advanced Hawkeye aircraft. PPG Aerospace is the aerospace products and services business of PPG Industries. PPG Aerospace-PRCDeSoto is a global producer and distributor of aerospace coatings, sealants, and packaging and application systems. PPG Aerospace-Transparencies is the world’s largest supplier of aircraft windshields, windows and canopies <b>RAYTHEON RECEIVES $13 MILLION FOR AEGIS MODERNIZATION</b> TEWKSBURY, MA—Raytheon Co. Was awarded a $13.7 million U. S. Navy contract to upgrade the Aegis weapons system for several Arleigh Burke-class destroyers and Ticonderoga-class cruisers. Under the Aegis modernization baseline contract, Raytheon will implement various ordnance alterations to enhance the weapons system’s tracking performance and missile communication capabilities. The upgrades will improve radio frequency signal generation, allow missile data downlink for ballistic missile defense operations and enable operation with current missile configurations. “These upgrades will strengthen the capabilities of Aegis, improving the reliability and effectiveness of this frontline weapons system,” says Raytheon Integrated Defense Systems’ (IDS) John Kelly, director of Sensor Systems. “Raytheon continues its legacy of radar systems expertise, serving a critical role in the modernization of Aegis and helping the Navy to remain ahead of sea-based threats.” Raytheon’s AN/SPY-1 radar transmitters and MK99 Fire Control Systems have been in production for 30 years as part of the U.S. Navy’s Aegis shipbuilding program. In addition to supporting Ticonderoga-class cruisers and Arleigh Burke-class destroyers, the systems are also installed in Japan’s Kongo-class destroyers and Spain’s F100-class frigates. Raytheon’s transmitter and fire control systems are vital to the Aegis weapon system’s ability to track and defend against multiple threats, including aircraft and missiles. This contract follows a recent $59.2 million award to Raytheon, under which the company will procure critical Aegis components for DDG 114 and DDG 115—future Arleigh Burkeclass destroyers. Work on the Aegis program is performed at Raytheon IDS’ Surveillance and Sensors Center, Sudbury, MA, and at the Integrated Air Defense Center in Andover, MA. <b>BOEING ACQUIRES ARGON ST</b> ST. LOUIS—The Boeing Co. Completed its acquisition of Argon ST Inc. Argon ST, based in Fairfax, VA, develops C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) and combat systems. Boeing announced its intent to acquire Argon ST on June 30 as part of the company’s strategy to expand its capabilities to address the C4ISR, cyber and intelligence markets. As a result of the merger, Argon ST is now a wholly owned subsidiary of Boeing and a new division of Boeing Network & Space Systems, a business within the Boeing Defense, Space & Security operating unit. <b>OUTSOURCING MAY LEAD TO FAILURE IN TOUGH TIMES AND IN GOOD, SHOWS RESEARCH</b> SALT LAKE CITY—In tough times, many companies slash staff and turn to outsourcing, yet that strategy may doom their products. And, in good times, as with Toyota, losing control over critical components can contribute to failure, according to a study led by Lyda Bigelow, strategy professor in the University of Utah’s David Eccles School of Business, that appears in the August issue of the journal Organizational Science. Her team found that companies were more likely to fail when they outsourced components critical to their competitive position. “Across the board, we find statistically significant increases in the failure rate for firms that don’t consider transaction costs in their outsourcing decisions,” she says. “Firms need to look beyond production costs to other costs such as poor quality, delivery delays and risk of price increases by suppliers.” One of their previous studies shows that failure rate increased between 5% and 70%, depending on the risk associated with making technological changes, product type and company market share. In the latest study on vertical integration—or the in-house manufacture of products, Bigelow and co-author Nicholas Argyres of Washington University analyzed performance in more than 100 U.S. auto companies from 1917 through 1931, to examine the industry’s shift from innovation to production efficiency. At that time, there were many more manufacturers than there are today. Today’s economic environment is similar in that it is highly competitive and forces firms to focus on reducing costs while maintaining value to customers, Bigelow says. Toyota and Boeing are two modern outsourcing examples. “This is a critical strategic choice that firms make,” Bigelow says. “Companies need to retain adequate control over specialized components that differentiate their products or have unique interdependencies, or they are more likely to fail.” For Toyota, those components were the electrical system and the accelerator. For Boeing, the attachment of the Dreamliner’s wing to the fuselage was crucial. For other companies, success or failure might hinge on something such as customer service. Penalized, because the market no longer valued that kind of radical innovation. What it valued was greater reliability and durability, and a lower price.” One success story was the Pennsylvania-based Biddle Motor Car Co., which specialized in sports cars and luxury vehicles. In spite of its reputation as a vanity project by its aff luent owner, it outlasted many contemporaries because it produced many specialized parts in-house. “As it turned out, he knew enough to keep the company running longer than anyone ever expected,” Bigelow says. Their research helps prove the theory of Oliver E. Williamson, professor emeritus of the University of California, Berkeley, who won the 2009 Nobel Prize in economics. Williamson theorized that in a producer/supplier relationship, the more highly specialized a component, the greater the level of risk to both parties, if it is outsourced. Bigelow studied with Williamson at Berkeley. Although studies in other industries— computer hardware and software manufacturers, pharmaceutical companies and hospitals, for example— have examined the impact of vertical integration, Bigelow and Argyres’ study is one of the few that link outsourcing to performance. <b>HOW MANUFACTURERS CAN BETTER COMPETE HIGHLIGHT KEYNOTE PRESENTATIONS AT FABTECH 2010</b> DEARBORN, MI—In today’s competitive global marketplace and unpredictable economy, manufacturers must seek ways to survive and thrive. Two keynote presentations at FABTECH 2010, November 2-4 in Atlanta—one on diversification and another on sustainable manufacturing practices—will provide knowledge manufacturers can use to enhance their businesses. A keynote session on November 2 titled, “Diversify Your Business or Die,” focusing on the importance of diversification in today’s manufacturing environment, will be moderated by Paul Veryser, strategic leader at Novitas Advisors. A panel of experts including Roy Verstraete, president and chief executive officer of Anchor Danly, Sam Strausbaugh, managing partner of Defiance Metal Products, and Brent Schwartz, vice president of engineering for MetoKote Corp., will discuss what diversification practices work and which don’t, plus the risks and rewards of various diversification options. “In today’s manufacturing environment, relying on one customer, one market or one process can spell certain death, but understanding the choices and deciding how and when to diversify can be complex,” says Randy Kish, exhibition marketing manager with the Precision Metalforming Association, a show sponsor. “This session will provide first-hand perspectives and insights to jumpstart and grow your business.” The “Make Green by Going Green” discussion on November 3 led by Kristin Pierre, green supplier network manager with the U.S. Environmental Protection Agency, will review how manufacturers can gain a competitive advantage through sustainable practices. Panelists Mary Ellen Mika, energy and environment manager for Steelcase Inc., Jon DeWys, owner of DeWys Manufacturing, and John Spangler, technical steward, Caterpillar, will provide insight on how implementing a practical lean and green approach to consuming water, gas, utilities and raw materials can benefit both the environment and the bottom line. “Case study after case study, the pursuit of sustainable manufacturing practices and execution of conservation principles have proven profitable for manufacturers,” says Mark Hoper, FABTECH show co-manager. “Our panelists will share examples of how they’ve done it and how companies can improve their bottom line by going green.” Other expert-led sessions include “Look Before You Leap —The Economics of Diversification,” “The Nuts and Bolts of Diversification,” “The Choice to Merge or Acquire,” “The Lean and Green Audit: Step one to Practical Green,” “Is it Possible to be Lean and Green with Your Finishing System?,” “Converting Factory Lighting: Process and Payback,” “Outlook for Welded Pipe Usage in Natural Gas Shales” and “The Essentials of Job Shop Marketing.” All sessions are free and will be presented in the Solutions Showcase Theater on the show floor. Cosponsored by the American Welding Society (AWS), Fabricators & Manufacturers Association International (FMA), Society of Manufacturing Engineers (SME), Precision Metalforming Association (PMA), and Chemical Coaters Association International (CCAI), FABTECH is the largest tradeshow in North America dedicated to showcasing a full spectrum of metal forming, fabricating, stamping, tube and pipe, finishing and welding equipment and technology. The 2010 event is expected to draw 22,000 attendees and 1,000 exhibiting companies covering more than 350,000 net square feet of f loor space. Buyers and sellers from around the world will come together at this exhibition to exchange products and services, network with peers, problem-solve and discover new products and vendors. Show admission is free with advance registration before October 30, 2010. To register call (800) 432-2832 or visit www.fabtechexpo.com. <b>FORD TO EXCEED PLEDGE TO BRING UAW JOBS IN-HOUSE</b> TRAVERSE CITY, MI—Ford Motor Co. Is on pace to bring in-house approximately 1,975 hourly jobs that would be performed by suppliers inside and outside of the United States by 2012—exceeding its original commitment to the United Auto Workers by more than 25%. Ford said it is able to bring the UAW jobs into Ford’s U.S. plants thanks to collaboration with the union to make its plants more competitive and efficient through modern labor agreements. “The name of the game is competitiveness, and our UAW partners have found new ways of working together on labor agreements that allow us to bring jobs back to Ford plants and back to America,” says Mark Fields, president of the Americas. The initial commitment with the UAW called for 1,559 jobs to be sourced to Ford hourly workers throughout the four-year term of the contract. Ford already has brought 1,340 jobs into 24 U.S. plants and has committed to bring another 635 to nine Ford plants in the United States by 2012. Ford and the UAW have been working together to develop a strong business case for sourcing components— including parts, sub-assemblies and systems—to the company’s American plants. Some of these jobs would have been produced by suppliers outside the United States. “Bringing these jobs to Ford’s U.S. facilities has proven to be a win-win proposition for the company and our salaried and hourly employees,” says Jim Tetreault, Ford vice president, North America Manufacturing. “Not only are these agreements enabling us to become more cost competitive, but bringing work to our UAW work force ensures that we apply worldclass quality control and improved efficiency through the rigorous processes that are part of our production system.” Ford said it has a long history of working hand-in-hand with the UAW on competitive issues, including initiatives aimed at improving quality and productivity. As a result, the company continues to show substantial improvement in these metrics as reported in both internal studies and third-party research. For example, according to a recent J.D. Power and Associates Initial Quality Study, the Ford brand now has the highest initial quality among all non-luxury brands, with three Ford models ranking highest within their segments. “Ford’s commitment to working with the UAW to maximize our insourcing opportunities sends another clear signal that we are investing in the future of American manufacturing,” Fields says. “We will continue working with our UAW partners and others on competitive business plans designed to provide opportunities for long-term growth and profitable growth for all of our stakeholders.” <b>People News David Marks</b> has been named CEO of Qioptiq, a global manufacturer of photonic products and solutions. Prior to his appointment, Marks served as the head of the defense and aerospace division of the company since its creation in 2005. Before that, he served as managing director of the Singapore facility for three years. The company’s current CEO, Fredrik Arp, who joined the company as chairman and CEO at the beginning of January 2010, will now serve as its executive chairman. Steve Shaw will succeed Marks in the defense and aerospace division. Currently the director of operations at St. Asaph, Wales, he joined the company in 2001 as its manufacturing director. <b>Jim McGregor,</b> vice chairman of The McGregor Metalworking Co. (Springfield, OH) was appointed to serve another term on the “One Voice” Manufacturing Council. McGregor joins 23 other domestic manufacturers who will participate on the council, which is designed to provide advice to Commerce Secretary Gary Locke on issues related to manufacturing sector competitiveness, as well as government policies and programs that affect the industry. McGregor will help emphasize the necessity of designing policies that help small and medium U.S. manufacturing companies, which play a critical role in the industry. “One Voice” is made up of Precision Metalforming Association (PMA), a full-service trade association representing the $91-billion metal forming industry of North America, and National Tooling and Machining Association (NTMA), the national association representing the precision custom manufacturing industry, which employs more than 440,000 skilled workers in the United States. Together, they advocate for the interests of small and medium manufacturers throughout the United States. <b>David Frosini</b> is joining Boulder Imaging (Louisville, CO,) as principal solutions engineer. He will lead sales efforts by working with customers to match Boulder Imaging’s machine vision and high-performance digital video recording and analysis products and services to their specific applications and requirements. Frosini has extensive experience in the imaging industry <b>Association News</b> WARRENDALE, PA—Mandy May, an employee of SAE International for 27 years, is the 2010 recipient of the Joe Gilbert Award, the organization’s highest staff honor. The Joe Gilbert Award recognizes SAE International employees who demonstrate positive professionalism in the workplace. Candidates are nominated annually by their peers and the recipient is selected by a diverse panel of employees. The award honors Gilbert, SAE International’s third executive vice president who served from 1960-1985. May is a technical publications specialist at SAE International, where she began her career in 1982. She resides in New Sewickley Twp., PA. <b>Business News Plexus Corp.</b> (Neenah, WI), for the third year in a row, announces that its Chicago manufacturing facility has been named one of “Chicago’s 101 Best and Brightest Companies to Work For” by the National Association of Business Resources. The winner was determined by an evaluation completed by an independent research firm taking into account the company’s human resource initiatives and practices. Including communication, community initiatives, compensation and benefits, diversity and multiculturalism, employee education and development, employee engagement and commitment, recognition and retention, recruitment and selection, and work-life balance. This year each winner was recognized at a symposium and awards luncheon. SPS Commerce (Minneapolis), a provider of on-demand supply chain management solutions, announced that it has been named one of Minneapolis/St. Paul Business Journal’s 2010 Best Places to Work. Winners were selected based on employees’ responses to an independent survey addressing corporate culture, employee benefits, advancement possibilities, and more. SPS Commerce was previously awarded this distinction in 2005, 2007, 2008 and 2009. The Best Places to Work initiative was created to recognize and honor those companies that have created positive work environments, recognize and share best practices, promote local employers, and provide valuable feedback and data to participating companies that will assist them in measuring levels of employee satisfaction and engagement.
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