Cheap Labor – That’s So 80s

Cheap Labor – That’s So 80s
Foreign factories aren’t just about cheap labor and low tariffs. If your company has or is planning overseas production plants, follow the lead of superior global manufacturers. They have come to realize that using foreign factories exclusively for cheap labor is squandering an opportunity to gain competitive advantage. Leading manufacturers are expanding and elevating the role of their foreign factories. “They use them not only to gain access to the usual incentives but also to get closer to their customers and suppliers, to attract skilled and talented employees, and to create centers of expertise for the entire company.” (Kastra, Furtows, Harvard Business Review) SSOE’s China office, which has tripled in size and capacity over the last year, is taking advantage of these types of opportunities. SSOE China has developed relationships with an extensive network of local suppliers and has attracted a talented staff that values SSOE’s global focus. Continue Reading →

The Battle of the BTUs

The Battle of the BTUs
For a time the issue was a standoff: Does it take more energy to make ethanol than it provides? One side argued it took more BTUs to make ethanol than it produced. Facing off against them were those who challenged how those BTUs should be calculated. Study after study came out in support of one side or the other. In the meantime, ethanol production improved. Today the process yields more energy and the entire supply chain requires less energy. The current stats have silenced many critics. As one long-term supporter of ethanol explained, “In addition to simply over-counting the energy used in producing ethanol, detractors fail to recognize the significant gains of recent years in yields and energy used in processing. Modern ethanol plants are producing 15% more ethanol from a bushel of corn, and using 20% less energy to do so than just five years ago.” Many advances have contributed to the efficiency of ethanol production. Thanks to improved farming practices, the US corn yield per acre has been increasing since 1975. Forty percent of the energy needed in raising corn comes from nitrogen. And nitrogen efficiency has increased immensely. The processing side of ethanol has become much more energy efficient as well. New enzyme technology has improved the ethanol process. Advances in heat recovery, the recovery and reuse of water that was previously disposed of as wastewater, and more efficient wastewater treatment systems have all resulted in a process that takes less energy. Recent calculations put the energy Continue Reading →

It Pays to Be Green

It Pays to Be Green
“Environmentally friendly construction” has historically implied “budget unfriendly construction” for owners of many types of facilities. In fact, if you consider strictly initial costs that perception can be accurate. Luckily for the planet and human kind, green design offers many incentives and benefits that offset pure construction costs including lower operating costs, increased asset value, healthy and comfortable environments for occupants, and in some circumstances tax rebates, and zoning allowances. Studies performed by the United States Green Building Council (USGBC) have shown that green improvements to facilities pay for themselves in three years with an average ROI of 25-40% a year. Developers or owners of new public buildings and larger private office buildings have an additional incentive to go green – LEED™ certification. Developed by the USGBC, LEED™ is currently the industry standard indicating that a building is environmentally friendly. Based on a point system, a qualifying building is rated either Certified, Silver, Gold or Platinum. In addition to a growing number of state and local incentives, LEED™ certification is a badge of honor, indicating the owner’s concern for the environment. “...green improvements to facilities pay for themselves in three years with an average ROI of 25-40% a year.” Continue Reading →

Evaluating Suppliers: Part One

There are scores of ways to evaluate the performance of your suppliers – from detailed rating systems to casual debriefings with your internal team. Based on our own clients’ feedback, we’ve compiled a set of the qualities that distinguish a competent supplier from an “A-Team” supplier — one that adds significant value to the project. In this issue, we’ll illustrate how one of these characteristics: “the ability to challenge assumptions,” resulted in huge savings for our client. Look for examples of other A-Team characteristics in future Dimensions. Ability to challenge assumptions. The right people with the right set of skills. Understand your process in detail. Use sophisticated tools. Invite input. Expend extra effort where it counts. Ability to think creatively. Continue Reading →

Tight on Time?

Tight on Time?
If you find that your projects are often a race against the calendar, here are some strategies for shortening the time it takes to get your facility up or product out the door. Use Building Information Modeling (BIM) software to shorten the design process, help avoid construction delays by allowing materials to be ordered earlier, reduce the number of interferences encountered on a construction site, and create a more straightforward design review process. Conduct Value Engineering sessions with your internal resources, and the design/construction team before any work is started. This “zero-based engineering” process starts with a stripped down facility or process and adds only the items necessary to meet your goal. Continue Reading →