EXECUTIVE SUMMARY
Bosch is a leading global supplier of household industrial technology and of consumer goods and building technology. The objectives of the Bosch Group's activity are sustained profitable growth and the safeguarding of its independence which allows it to pursue long-term strategies. In 2005, worldwide sales of the Bosch Group came to 41.5 billion euros. The number of employees around the globe in various business sectors focusing on home technology as well as consumer goods respectively. Aside, Bosch supplies technologies for driving, controlling, and moving machines. Bosch's packaging technology division plans, designs, manufactures and installs packaging lines for manufacturers of confectionery, food and similar products as Bosch became the largest supplier of home packaging technology. The company will have to consider outsourcing for its assembly as well as customer support services by looking for labor markets that are more competitive as a cost-cutting measure. Thus, expanding the business looking outwards means that Bosch will continue to look for emerging markets, identify contacts and develop networks in these markets in preparation for the acquisition of existing businesses. Bosch will expand into emerging markets like for instance within Asia and other parts of America as a market share objective. This is important and imperative so it the company can commence to strengthen its hold over emerging markets before its competitors.
PROFILE AND EVOLUTION OF THE ORGANIZATION
Bosch Company makes industrial machinery and hand tools and owns 50 percent of Bosch-Siemens Hausgerate, a European appliance maker. Bosch's Blaupunkt unit is a major of such household industry equipment. Subsidiary Bosch Rexroth makes electric, hydraulic and pneumatic machinery for applications ranging from automotive to mining. The Robert Bosch Stiftung, a charitable organization, controls 92 percent of the company's voting rights; the Bosch family controls 7 percent. (1990) Since then, Bosch has grown into a global leader through its dedication to innovation and quality engineering. Bosch is one of the companies with the most patent applications worldwide. As of today, Bosch operates in almost 50 countries on every continent through subsidiaries and associated companies. (1990) Aside, around the world, the Bosch name stands for innovation, quality and product diversity in the following sectors: (1990 )
Ø Quality household equipment
Ø Power tools and accessories
Ø Thermo-technology
Ø Household appliances
Ø Communication
Ø Automation
Ø Packaging machines
Bosch Structure
Source:
Mission:
Bosch is a global supplier that comprehensively offers high-quality; single source, best-in-class components as well as modules, systems and services for hydraulic, electric, pneumatic and mechanical drive and control technology for factory automation and mobile applications.
Philosophy:
To contribute to their customers' success by making their machines and manufacturing processes more productive utilizing innovative Drive and Control technology, superior application skill and comprehensive market knowledge.
Vision:
To achieve Global Market Leadership for Mobile applications and defined Factory Automation market segments with a leading technology position, to deliver profitable growth through a focus on market share gains, to provide customer satisfaction by being easier to do business with.
Values:
Earn the trust of their management, associates, business partners and customers as Bosch associates have high character and competence. The company is empowered to drive their business to success as the management understands their needs and strive for consensus.
Supervisory Council – Top management
The Supervisory Council of Bosch at a glance
Dr.
Chairman former Chairman of the Board of Management of Robert Bosch GmbH
Deputy Chairman
Member of the Shop Council of the Schwieberdingen Plant
and Chairman of the Central Works Council as well as
of the Combined Works Council of Robert Bosch GmbH
Dr.
former Member of the Board of Management of Allianz Versicherungs-Aktiengesellschaft
Dr. , Stockholm
former Chairman of the Administrative Board and Chief Executive Officer of The Stora Kopparberget Corp.
, Hildesheim
Chairman of the Shop Council of the Hildesheim Plant and
Member of the Joint Shop Council of Robert Bosch GmbH
Dr., Königsdorf
Dr., Frankfurt
former Member of the Board of Management of
Deutsche Bank AG
Dr.- Fellbach-Oeffingen
Chairman of the Board of Trustees of Robert Bosch Stiftung GmbH
Dr.-, Stuttgart
former Member of the Board of Management of
Robert Bosch GmbH
, Frankfurt
Political Secretary at HQ, Industriegewerkschaft Metall
, Stuttgart
Regional Chairman of Industriegewerkschaft Metall,
Baden-Württemberg region
Wolfersheim
Chairman of the Shop Council of the Homburg Plant and Member of the Joint Shop Council of Robert Bosch GmbH
Matthias Georg Madelung, Munich
Member of the Board of Trustees of Robert Bosch Stiftung GmbH
Stuttgart
Chairman of the Shop Council of the Feuerbach Plant and Deputy Chairman of the Joint Shop Council as well as of the Combined Shop Council of Robert Bosch GmbH
Chairman of the Shop Council of Rexroth Indramat GmbH and Chairman of the Joint Shop Council of Bosch Rexroth AG and Member of the Combined Shop Council of Robert Bosch GmbH
Hofheim/Taunus
Managing Member of the Borad of Industriegewerkschaft Metall
Stuttgart
former Deputy Chairman of the Board of Management of Robert Bosch GmbH
Vice-President, Global Policies and Strategies, Corporate Sector Purchasing and Logistics, as well as Chairman of the Joint Speaker Group of Robert Bosch GmbH and of the Group Speaker Committee
Chairman of the Shop Council of the Bamberg Plant and
Member of the Joint Shop Council of Robert Bosch GmbH
Source of the above data: July 2006
History of Bosch
1886 – A modern industrial giant began humbly enough when German engineer, Robert Bosch, opened his Workshop for Precision Mechanics and Engineering.
1906 – Bosch had established its first U.S. subsidiary. That was followed by 60 years of growth into what became the Robert Bosch Corporation.
1990 – Through acquisitions and innovation engineering, Bosch Appliances had grown to 41 subsidiaries worldwide.
1997 – Bosch made a bold commitment to the U.S. market with the construction of the New Bern, North Carolina Dishwasher plant.
2001 – Bosch Appliances are now available in 100 countries across the globe. The brand is proud to be ranked as the #1 and #2 dishwashers in a leading consumer magazine.
2002 – The on-going quality dedication and quest for innovation continue to make Bosch the leader in upscale appliances.
The name Bosch is closely associated with the automotive industry. Bosch supplies many other products and services, including household industrial technology, power tools, security solutions and household appliances. (1990) Everything focuses on reliable, high quality communication services in the Bosch Communication Center – be it inbound or outbound, front or back office customer communication a wide range of industries rely on Bosch Communication Services. Customers can rely on them: The company are there for their customers: in their name, across all communication channels, in all major European languages and on request on 24 hours/day. (1990)
Competitors
The Black & Decker Corporation
Other tool makers would like to borrow the power tools, hardware and home improvement products that Black & Decker has in its shed. Black & Decker is the nation's #1 maker of power tools and accessories, mainly under the DEWALT and Black and Decker names. It also makes electric lawn and garden tools, plumbing products, specialty fastening and assembly systems, security hardware and cleaning and lighting products (Dustbuster vacuum cleaners, Snake Light flashlights). Its largest customers include Home Depot and Lowe's, which together account for nearly 35% of sales. It purchased power products maker Vector Products in 2006 for $160 million.
Key numbers for fiscal year ending December, 2005:
Sale: $6,523.7
One year growth: 20.8 percent
Net income: $543.9
Income growth: 19.3 percent
Source:
Target market
It’s a fact of life in today’s business world. More customers Original Equipment Manufacturers and end users alike want to partner with suppliers who understand their industries and offer a wealth of product know-how, technical experience and applications expertise. (1997) In practice, target market penetration involves compiling target account lists and selecting the most attractive Bosch prospects. The team establishes a set of criteria and ranks the accounts accordingly. Then the team works with sales to pursue the accounts. Ultimately, the goal is to obtain customer commitment to Bosch through a written agreement. (1997) The market to which Bosch sells its products also demands certain performance with regards to product availability. Our distributors can provide a local warehouse that stores products until the customer needs them. This allows the customer that cannot commit to large quantities of products the opportunity to purchase what they need, when they need it, in quantities that work for them and with lots of these local warehouses having product such as distributors, Bosch is able to provide a large base of inventory in the U.S. for their customers to draw from. (1997)
For a company like Bosch, sometimes it is better to have the distributor in between the customer and us. The company let the distributor act somewhat like a bank for the customer, a service for which they normally do charge the customer, besides being one of the most cost-effective ways to get Bosch products to a large group of customers, distribution and representatives also bring many value-added services like local assembly of groups of Bosch products, access to complimentary product lines and local engineering services. (1998) These services build strong relationships with our customer, which builds customer loyalty. The challenge that faces all of the players in this market is to become the first player that is dominant in both the European and the US market. Eaton, Parker and AB are all strong in the US while Siemens and Bosch are strong in Europe. The challenge is to capture both sides of the Atlantic. The company still has some good machine tool customers out there, but similar to what happened to the hydraulic press market a few years ago, the customers are fewer and farther between, which makes competition at these accounts even tougher. In a continuing process Bosch is systematically pursuing its Asia strategy at top management level. (1997) In particular through its targeted expansion of business operations in the growth region of Asia, Bosch is realizing its continual and long-term expansion strategy in important target markets.
Sustained growth for the whole company will thus be guaranteed and not only in China, but also in other Asian countries, there is a continually increasing requirement for high-quality household industry technologies. (1997) Rexroth has an extensive product portfolio of all relevant drive, control and motion technologies in industrial and factory automation that is for home and mobile applications. This offers an important competitive advantage, something which is also gaining in significance in the Asian market. (1998)
EXTERNAL ANALYSIS
Company Perspectives
Bosch wants to have satisfied customers that is why the highest quality of their products and services as it is one of Bosch major corporate objectives that applies to the quality of the work carried out in their name by our trading partners and in their sales and service organization. (2000) Safe, clean and economical: these are the guiding principles behind their work to manufacture products and systems which satisfy the ever higher demands with respect to safety, environment and consumption. (2000) Thus, Bosch integrates an innovative, global, one-stop-shop for high-quality security and communication products for household purposes. Offering an unrivalled choice and an integrated approach, Bosch company offers a complete range of specialized state-of-the-art products and systems for standard or customized home applications and projects.
PEST Analysis
Political Sector
A company will not be able to gain success, good reputation and trust if it will not consider legal and political sector as part of their strategy. Bosch Company has been able to follow the principles of business ethics. Hence, the company considers legality in all their actions. They make sure that all their products and services adhere to the standards and wills satisfy their client worldwide. Politically, Bosch had been able to follow all the standards set by the country and other international organisation satisfies their customers.
Economic Sector
Economically, it can be said that throughout the years, Bosch Company had enjoyed being at the top of its competitors. The economic status of the company is highly remarkable that it always give its consumers the best and quality products and services in their successful business divisions. In addition, the company’s growth and expansion on different countries in the world is an obvious evidence that Bosch has been able to have a stable economic capacity to sustain and maintain its competitive position in the market place.
Sociocultural Sector
Culture is an important factor in understanding an industry, because for any organization to operate effectively it must for some extent have a general set of believe and assumptions on how culture will influence the productivity and the success or failure of any company. Culture environment is one of the important principles that influence the organization. (1991) identifies that there are four dimensions that differentiate cultures at a national level (power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance), which help to understand that people arrive to organizations with their own national culture. In the Bosch, the management sees to it that they value the opinion of their employees no matter what is their nationality. Since, this company is competing globally; it cannot be denied that they need employees from different cultures to be in the company to help in the decision making. It is also indicated that the international managers has been able to create a positive relationship in the local managers. Moreover, the management of the company has seen to it that they would be fair in treating all their employees. In addition, as mentioned earlier, the company sees to it that their social commitment is being achieved by satisfying the consumers with their quality products and services in aviation and special material industries.
Herein, the company values the consumer by knowing their demands and providing their demands and in aviation and special material products. The business division of Bosch has been able to make the company more competitive. Moreover, with the Bosch core mission to provide customer satisfaction is also given emphasis. Accordingly the company’s mission and vision can only be achieved if and only if they would focus immensely on satisfying their customers and clients. Bosch had many consumers all over the world and the company is succeeding due loyalty given by their target market. To be able to serve their customer and clients better, they have initialize a strategy which includes a set strategies that greatly influence the whole corporation in achieving its goal.
Technological Sector
The complexities of achieving business success through increased efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology, has heightened the awareness of both Technology and business managers towards more strategically oriented approaches for planning and management of any industry ( 1993). Bosch has been able to use technological advancement for creating new and innovative products and services needed by its customers may it be from the aviation or the special materials business. Part of this is their utilization of modern technology in producing new products that will meet the demands of their target market. They also use the purpose of information technology by creating their own website to let their consumers have an easy access of knowing the company and the products and services that the company has made for them. (2000)
Furthermore, Bosch offered a completely new system for governing the household tools, one that has now become the standard for modern home appliance systems that allows the governing variables to be more comprehensively and accurately recorded than with mechanical measuring instruments and be rapid in its technology advances in order to perform corrections. ( 2001) The system works in three stages: recording the operating conditions by means of sensors, processing this information in the electronic control unit and implementing the necessary control commands in the actuator mechanism. This type of control has now become essential, because it is the only type that can be networked with other home electronic governing systems, such as TCS, which prevents wheel spin when having certain electronic transmission control. ( 2001)
INTERNAL ANALYSIS
One of the ten largest companies in Germany, Robert Bosch is best known as a worldwide supplier of household technologies, with world leadership in household systems as the company has also developed into a world leader in various other areas, including communications and radio technology, traffic management systems, power tools, household appliances, thermotechnology, automation technology and packaging machines. (1990) Bosch has operations in more than 50 countries on every continent through its subsidiaries and associated companies. Bosch readily acknowledged ability and creativity in his employees, assigning the most talented among them to positions in the most promising areas. He also recognized the need for a diverse, high-quality product line as the most direct means to growth. (1990) Bosch was prevented from doing any more business in the United States and forced to rely solely on European sales under a wartime economy. (1990)
Bosch managed to remain in business, partly as a result of its diversification and good management. As the economic situation stabilized, public discontent in Germany began to rise. Bosch, which expanded modestly during the period, purchased the radio manufacturer Blaupunkt-Werke in 1933. Bosch reorganized and its factories were rebuilt. (1990) The American market remained closed to Bosch after the war, again forcing the company to strengthen its connections with smaller European manufacturers. New efforts were made to develop more advanced products as Bosch perfected a mechanical fuel injection system. The potential competitors of Bosch, including Siemens and Bendix, ignored the potential of good systems while Bosch continually perfected new and better versions of its appliances. (1992)
SWOT Analysis
Strengths
The first and foremost strength of Bosch is its business model proven by the company as effective in gaining a large market share and competitive advantage relative to other market players. The company’s business model enables the company to provide innovative products and services. This is innovative because it was a strategy that few companies utilized or some companies applied but not in their mass production activities. Bosch was able to build a name in the market by building upon a reputation for custom-built computers solely based on the requirements of customers. The company has streamlined both procurement and inventory by redesigning computers so that different models utilize as many of the same components as possible. Through this process, the complexity of managing its procurement and inventory parts was minimized. Bosch ensures quality in different ways. One way is by building strategic networks of reliable suppliers selling quality computer parts at wholesale price.
Another is by organizing the assembly line to achieve efficiency to maximize output while minimizing the wastage of time and resources. Still another way is by coordinating the delivery of computer components to customers without letting the products pass through different middlemen, which may compromise the quality of the products due to handling and transportation.
Weaknesses
The one weakness of Bosch is its complete reliance upon the performance of its employees and workers especially since the company operates a fast-paced and constantly changing business. Reliance upon the continued efficiency of these key players in the business carries huge risks for Bosch because this means that any problem in the employees or workforces affects production and the overall operations of the company. Concurrently, the company has to update continuously its operations by training its employees and workers on changes in computer technology if they are to keep up with the changes in the industry and maintain efficiency.
Another is the lack of qualified people to establish an international stronghold for the company in the international market. Although the company has a number of assembly plants located in different parts of the world, this fact does not sufficiently support the conclusion that the company has achieved a hold over the international market. The company face the risk of further decreasing their annual rate of increase in succeeding years once it fails to identify and develop qualified people to take charge of stabilizing its hold over the international market and the lack of network with resellers and delivery firms in the international market. This is because of the goal of the company to sell directly to customers to minimize cost. However, in entering the international market the company has to consider that it may not be able to meet demand the same way it did in the United States. There are only a number of assembly plants around the world targeting millions of customers. The company may need external channels of distribution in the future. This constitutes a weakness in instances where its suppliers would incur problems in their operations resulting to their inability to provide the bulk of orders for the company.
Opportunities
In the next five to ten years, the demand for business technology such as computers partnered with internet service providers is expected to increase. The company should find a way to overcome its weaknesses in the international market to establish a stable hold over its target markets. However, despite its weaknesses the company has maintained its lead in the international market relative to its competitors. This means that the company, not only has the current lead but it also has the potential to maintain this lead as long as it settles its weaknesses. Apart from entering target markets, the company also face the open opportunity of further increasing its sales in international markets that the company has already penetrated. This means that even if the company is looking outwards, to other markets, it should still try to maintain its lead in the market especially since its competitors attempting to take the lead. However, the company still has large areas of untapped segments in these markets but perhaps the company can claim a stable hold in these markets after it is able to report significant increases in product shipment in the different regions independently or better yet in individual countries. Aside, having a strong network means that the company has the external resources it needs to enter and operate in a given market. Through networks, the company also potentially increases its industrial customers. Finally, another opportunity is the expansion of the use of internet as a tool both in production and in marketing.
Threats
The primary threat to Bosch is the cloning of its core strategy which the build-to-order manufacturing as some companies already allowed customers to place order via the internet. Although competitors have a hard time duplicating the company’s strategy because of the time it took to develop just-in-time delivery service and the needed close collaboration with suppliers, competitors might soon find ways to develop on how to adopt its effective strategy. If that happens, competitors can also reduce its prices, which is the primary advantage of Bosch over them. One of the biggest threats that the company faces is the consequence of the challenge that its competitors experience due to the performance of the company as these competitors are constantly studying and analyzing the production, management and marketing strategies of Bosch to determine weaknesses and take advantage of every possibility to take the lead from the company. Emerging competitors comprise mostly of small or local companies seeking to take control of the local market. In the United States, several businesses have imitated the sales of custom-built products. Although these do not yet constitute a viable competition, the increasing number may overshadow the company’s operations.
Bosch was able to differentiate itself from the market. However, with fierce competition and the increasing number of companies imitating its strategy it may not be able to hold its ground. The industry is also a fast-paced business with frequent introductions of new products. This means that companies have to keep up with new technology. Lastly, the industry has minimal barriers to entry. This implies that companies should be able to establish a strong hold over the market because of the expectation that competitors will likely to increase and many competitors in a single market, especially a saturated market as the United States means more companies to pull market shares away from a company, requiring the company to establish effective offensive and defensive strategies.
Figure 1: Value Chain Activities for Competitive Advantage
Inbound Logistics —receiving, warehouse storage and inventory of input materials
Operations —transforming inputs into products
Outbound Logistics —getting the product to customers through warehouse management and fulfilment activities
Marketing & Sales —getting buyers to make an order
Service —enhancement of product value
Figure 2: Support Activities for Value Chain Activities
Procurement
Technology Development
Human Resources Management
Firm Infrastructure
Purchase of raw materials and other inputs
Research & development, automation of processes, and other technology development
Recruitment, training & development, and compensation
Finance management, legal management, and quality management
Based from their business strategy that complies with the value chain and support activities, the company holds the competitive advantage of selling products at a price radically less than the offer of its competitors. Because of its ability to maintain a low price despite mass production, the company is able to maintain a respectable market share making it the leader in the industry over the years.
CURRENT ISSUES AND CHALLENGES
The company wants to make sure that their market leadership remains unchallenged in the future! This demanding objective can only be achieved with qualified, enthusiastic employees, both male and female. Equal opportunities for professional men and women mean ensuring that everyone has the same access to resources and promotions. Providing equal opportunities is inherent in Bosch corporate culture, as the company ensure that the next generation of male and female technical and management staff enjoy the same access to interesting positions and safeguarding an important personnel resource for Bosch Company. It is their objective to make Bosch an even more appealing place for women to work, so that they can attract the best employees, promote them, and gain their loyalty-regardless of their gender. (1992) Accordingly, Bosch is actively committed to promoting equal opportunities in a number of areas and operating a family-friendly personnel policy. Bosch continued to refine its electronic automotive components in the 1990s, introducing the Vehicle Dynamics Control system in 1994, designed to improve the stability of vehicles in critical situations by detecting all rotational movements of the car around its vertical axis. The company also entered into the increasingly lucrative market for airbags through a joint venture with Morton International called United Airbag Systems. ( 1992)
Bosch was contributing its expertise in home appliance components by developing the triggering devices for side-impact airbags the venture was developing. Despite continuing its long tradition of innovation, Bosch entered a difficult period in the early 1990s under the combined pressure of depressed markets for automobiles and increased competition. Although known for the high quality of its products, Bosch had also over the years developed a reputation for high prices and inflexibility in its relations with its clients. Homemakers were increasingly turning to other cheaper and more cooperative suppliers for parts they used to purchase from Bosch or manufacturing the parts themselves. (1992) Aside, contributing to Bosch's difficulties was its telecommunications business which, although profitable and already contributing nearly a quarter of overall sales, was finding it increasingly difficult to compete against the giants of the industry. In response to these challenges, Bosch in late 1991 instituted a cost-cutting program and process improvement initiative and also cut its workforce by about 8,000. The company continued to struggle although, as market conditions failed to improve, leading in 1993 to the company's first sales decline since 1967 as the net income fell every year from 1989 to 1993, overall going from DM$626 million in 1989 to DM 426 million in 1993. (1993)
The purchase enabled Bosch for the first time to provide its customers with complete home systems, and as one of the world's leaders in the field. The size of this latest acquisition confirmed Bosch's commitment to its core household components business and also raised the question of whether the company might divest itself of some assets in order to invest further in the core. The most likely candidate was the telecommunications technology sector, given its struggle to secure a foothold. Even if it retained its diversified portfolio, Bosch's future would certainly be tied most closely to automobile components. (1993) Then, Bosch continued to shape its global positioning through strategic acquisitions and divestments that has strengthened its position as the world's second-largest supplier of household components. ( 1993) Considering North America its most important foreign market, Bosch bolstered its U.S. presence with the acquisition of Vermont American Corporation. At this time more Bosch employees worked in the U.S. than anywhere else outside Germany. ( 1993) Sales continued to increase during the second half of the 1990s, and by 2000 had reached DM 61,717 billion, up 50 percent from 1996. Foreign sales increased steadily as well throughout the decade; in 1992, they accounted for just under half of total global sales; by 2001, they accounted for nearly three-quarters. While sales across the board were up, though, a corresponding increase in profits proved elusive. ( 1993)
CURRENT STRATEGIES
Bosch's motto "Safe-Clean-Economical" pinpointed their continuing efforts to meet market demand for greater safety and further reduction in fuel consumption and emissions. Despite consistent, strong sales, although escalating start-up costs for new products and relentless price competition prevented the Automotive Technology division from generating corresponding strong profits. (1997) In Germany alone, Bosch registered 2,400 patents. Its domestic workforce of 91,000 in 2000 constituted 46 percent of its worldwide headcount. To meet changing conditions and challenges in the marketplace, Bosch launched an internal improvement program that focused on two main threads: Time to Market and Customer Focus. The company aimed to accelerate and improve internal processes while complementing product quality and delivery fulfillment with improved customer service and orientation. Their program motto, “BeQIK,” emphasized quality (Q), innovation (I), and focuses on the customer based on the German spelling of customer (). (1997) Bosch enjoyed strong growth in a favorable world economy through 2000. Against a backdrop of a slowing economy, it expected slower internal growth and a drop in sales, especially in North America. However, it expected to be pleasantly buoyed through the slowdown by sustained sales of its diesel direct-injection system, the production of other innovative, new products, improved customer relations and sales generated by its newest acquisition, (1997)
IS STRATEGIES
IP CCTV opens up a whole new world of opportunities for the Security Director, the IT Manager and the Operator. And in the process of embracing these new technologies it is critical to develop a strategic migration strategy that both smoothes the transition for a successful introduction and eases the demand on the security budget in order to drive up the return on existing assets. ( 2001) This Solution Brief is an executive level summary explaining Bosch's seamless and cost-effective Hybrid IP migration strategy available to Allegiant? users. The solution gives operators complete transparency they have no idea whether they are looking at an Allegiant camera or one of the 'new' IP cameras as they use their familiar CCTV keyboard and analog monitors. The migration from one to the other is totally seamless. ( 2001) While every CCTV system has three major parts cameras, video management workstations and video storage at the heart resides switching technology that enables operators to select from all the available cameras. The analog switch is a perfect example of a successful, mature product and its near-commodity status is a natural consequence of multiple generations of improvement. ( 2001)
Many manufacturers offer such analog switches; Bosch systems offer the allegiant line of matrix switchers, ranging from 8 camera inputs to over 4,000. Technological innovations are causing a ripple effect through the CCTV marketplace and they are coming through thick and fast. In the digital storage realm, the CCTV market is benefiting enormously from plunging costs and ever-rising reliability of hard drive storage compared to VCRs. From the operator's viewpoint, the commoditized and pervasive PC workstations and even laptops for the more mobile users have opened up new, flexible and powerful observation workstation opportunities. ( 2001) Arguably, the most significant leap forward during the last few years is to replace the analog matrix switcher with an IP network-based video system. This is analogous to the major carriers that no longer lay down specialized communication backbones. Everything is converted to IP and treated as digital data, including voice, video, alarms, relays and PTZ control signals. IP CCTV, or Video over IP, is heading down the well-established path carved out by Voice over IP with the main difference being the degree of simplification when one considers the cable-intensive infrastructure of CCTV.
Source: 2006
ALTERNATIVE STRATEGIES
TECHNOLOGY UPDATES
The Bosch View: Quality control is one of the major opportunities to improve the reliability, safety, and productivity of food processing plants. And market-tested automation systems, like those involving GenNext Technology are proving to be one of the most important ingredients in the mix. A common theme emerged from the Packaging Automation Forum, produced by Packaging World and Automation World magazines: optimized line performance and the vertical integration needed to achieve it. P and G’s Dave Chappell, chairman of the Make2Pack initiative, encouraged manufacturers to create internal libraries of automation modules so that manufacturing can become a strategic asset with the agility and flexibility to support modern business needs and Joe Wagner of Hershey describing how, by opening specifications to include multiple global control suppliers, ( 2001) and within the years has been able to reduce project cycles from nine to four months, eliminate control-related issues on projects that have been completed, reduce equipment costs and lead times, and obtain equipment guarantees in line with corporate strategies. The industry is under constant pressure to reduce cycle times, improve connectivity, and reduce costs. ( 2001)
The key is advanced drive, motion and control systems. Radio frequency identification where there is a power source in the tag is called active RFID. This study explains the technology in greater detail and predicts that sales of active systems, including the tags, will now grow very rapidly from $550 million in 2006 to $6.78 billion 2016. outlines its ten-year growth potential. Several applications have been above $100 million ( 2001) and active RFID is currently responsible for more than 20 percent spent on RFID technology. Manufacturing-engineering organizations are becoming aware of the strategic value of safety, recognizing that the use of intelligent safety systems can increase machine uptime and limit liability exposure. ( 2001) As a result, many have come to view an intelligent safety strategy as a competitive advantage rather than as a cost burden. A modern, effective safeguarding strategy evaluates how the operator interacts with the machinery. It avoids unintended axis movement and creates safe motion that reduces the risk of operator injury by allowing continued, but limited, axis movement. In addition, the use of freely programmable safety logic greatly increases the flexibility of a safety system. ( 2001)
RECOMMENDATIONS AND IMPLEMENTATION
Technology and teamwork will possibly together every time a changeover occurs on a processing or packaging line. Lean manufacturing and other continuous improvement strategies are great tools for sharpening the teamwork aspect of changeovers, but the technology part of the equation often gets pushed aside as just another capital expenditure. Flexibility trumps speed when a new case size or carton configuration is introduced, suggests – account executive for food & packaging end-users at Bosch as he cites the example of a soft-drink firm that selected a MeadWestvaco case packer capable of outputting 156 different carton configurations because of the distributed intelligence built into the machine’s servo drive. ( 2001) Manufacturers around the world rely on machinery to rapidly produce quality products on a daily basis. Investing in the right technology and proper equipment is critical to the overall success of the business by increasing the bottom line. Companies that continually process food and frequently washdown their machines are turning to pneumatics to decrease downtime, lower maintenance costs and increase production. ( 2001)
In addition, Bosch also caters to the areas of consumer goods and building technology with its power tool, thermo-technology and security systems, as well as with its household appliances business within the BSH Bosch and Siemens Hausgeräte GmbH joint venture. With its brands Bosch, Skil, Dremel and RotoZip Bosch manufactures power tools for the building trade, industry and do-it-yourselfers. The product range also includes accessories such as drill bits and saw blades, as well as gardening appliances. In thermo technology, Bosch has meanwhile begun manufacturing heating units and hot water appliances. The company will need to increase the number of its household plants and spread the new plants in strategic countries or regions to support the expected increase in demand in the international market. It will also assess the performance of its current assembly plants particularly the process involved in assembly to determine whether there are more effective assembly processes. The company also has to evaluate its organizational structure especially those assigned to manage its international operations to ensure that these people are capable of actualizing the goals of the company.
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