The Rise of the Smart Machine

Algorithms and integrated networks (Industry 4.0) will change the landscape of equipment in the years to come.  The power of well-constructed, self-healing, and adaptive networks is difficult to comprehend at this stage of their development, or maybe they are not.

For example, imagine a machining center that monitors each component of its function in real time, all the time, deciding its spindle needs replacement.  The machining center automatically adjusts its speeds and feeds for each tool to ensure the quality of the parts it machines are not compromised.  It also orders the new spindle or spindle bearings.  The delivery of the spindle determines when the machine will need to schedule its downtime for replacement.  The downtime is going to disrupt production, so it automatically adjusts raw material needs and its production times to ensure the downtime does not affect overall production.  If it is unable to...

In my involvement of 500 plus capital projects, hitting the budget is rare. The reasons for missing the mark are almost always the same and avoidable. For all companies investing in new capital, meeting budget targets is a critical component of the justification. Investing the company’s funds in new capital projects is similar to our individual investing in a stock. The individual makes the investment expecting a return on the investment. The biggest difference between capital investment and equity investment is that a capital investment can be in the business’s control. This is true only if the person managing the project has an understanding of how to keep the project on track and within budget. The project was justified based on a budget, so to maximize the return on capital it must meet the budget. Here are the major reasons a capital project budget gets busted.

1. Timing – The number one reason without a doubt is a lack of time to properly execute the project....