Industrial Automation Blog

On December 10,2020, Talking Industrial Automation Host Lisa Richter talked with Tim Finerty, a shareholder with Clayton and McKervey to find out what pitfalls and opportunities business owners should know about to ensure maximum cash flow and minimum taxes before the end of the year.

Here is a transcript of the episode. You can listen to the episode here.

Lisa Richter: Welcome to Talking Industrial Automation, a podcast where you get to know the people who make modern industrial automation possible. In today’s episode, we’re doing something a little different by covering a topic that we wouldn’t normally get into --  taxes. I know, I know. It’s not everyone’s cup of tea. But with so much that happened in 2020 that impacted businesses like the CARES Act and Paycheck Protection Program, we felt it was worth spending a little time delving into the implications and obligations as we army crawl over the 2020 finish line.

With me today to help us ...

By Jim Ford

As a systems integrator we are seeing a significant shift in our customers’ understanding of machine safety and the need to provide safe systems. We get a lot of questions about safety. We see more customers adding functional safety into their control’s specifications.

In the past many customers would perceive functional safety and risk assessments as just added costs to a project (expensive!). There was a time when this was probably accurate. Risk assessments can be time consuming. The safety design process can be iterative and slow. Safety hardware can add cost. Validation and verification processes take time and may delay qualification.

These can all be true, but we are seeing a change being driven by a need to provide safe systems, but it’s also due to the availability of functional safety hardware and the tools for designing and integrating these systems. There are a lot of options and functions to address whatever is needed. 

The first step ...

By Wayne Labs

System integrators and machine builders are great sources when you want to learn how to protect control networks from viruses and ransomware. After all, they design and build machines that must operate continuously without incident, supplying operational data to those who need it—and keeping their equipment and the rest of the plant safe from cybersecurity intrusions—malware, viruses and ransomware.

One such machine builder that has been making cyber-secure, safe machines and IT/OT networks communicate without incident for six years is elliTek, Inc., a Control System Integrators Association member. I spoke with elliTek’s president, Brandon Ellis, who has probably seen it all—from the vantage point of where the rubber meets the road.

Located in Knoxville, Tennessee, elliTek builds custom machines for manufacturing systems and offers comprehensive turnkey and design/build services—in addition to tech training. The SI offers IIoT solutions ...

By Jim Montague

Because they're often shoulder-to-shoulder with plant-floor personnel, system integrators have some definite views and advice on how the COVID-19 pandemic is affecting process applications and how mobile technologies can help.

McEnery Automation

"Tablet PCs have been available for a number of years, and are very practical because users can easily take them into their process settings. Some examples of these applications include classified areas, if they're properly protected, or simply providing the convenience of making control room-type adjustments on the plant floor where conventional operator terminals wouldn’t be practical," says Kevin McEnery, CEO of McEnery Automation, a CSIA-certified system integrator in St. Louis. "Logically, if operators are usually in a main control room, but need to allow social distancing due to the pandemic precautions, they can deploy tablet PCs or other remote connectivity technologies. This will ...

The retail surge of March saw a rise of 8.5% in retail trade according to the ABS, the strongest rise since it began tracking retail trade. Whilst the panic buying saw empty shelves in supermarkets across Australia, what often goes unseen are the Australian manufacturers behind the scenes struggling to fill this unprecedented demand.

“Determining appropriate inventory levels is one of the most important and most challenging tasks faced by supply chain managers,” says Levi Martins, SAGE Group company Nukon’s senior consultant and support lead.

“If you carry too much inventory, you tie up money in working capital and risk writing off perishable goods; if you don’t carry enough inventory, you face stockouts.”

What Is Safety Stock?

In any supply chain planning, safety stock (sometimes known as buffer stock) is extra stock to cover demand or supply variability and avoid stockouts.

Stockouts stem from factors such as:

• fluctuating customer demand, ...

The following is a partial transcript for episode 44 of the Talking Industrial Automation podcast with Cullen Raichart, founder and CEO of GreenBroz Inc., a pioneer in automated marijuana harvesting solutions based in Las Vegas. It was recorded June 10, 2020, by show host Lisa Richter.

Lisa Richter: Talk about your background and your journey to where you are today.

Cullen Raichart: I’ve had about a million jobs throughout my life. But as an adult, I had a very successful career doing IT work for the United States Navy and a bunch of different companies.

But I really have always wanted to own my own company. Everybody in my family has their own business and I was like the last guy in, you know. At the time, I was doing a couple of different things. I was growing on the side because of finances in California, even though I had a decent income it’s tough in California, so that’s what got me into cannabis.

I just understood the market. Then people started asking me ...

Machine Design and the Control System Integrators Association (CSIA) have partnered to feature the association’s popular CSIA Exchange portal on Machine Design’s home web page.

The CSIA Exchange allows end-users to find potential system integrators and suppliers through a robust search engine. Manufacturers can search based on location, industries served, automation specialties, product lines, certifications, and other categories. More than 2,500 integrators -- including CSIA members and CSIA-Certified integrators -- are featured in the database.

“The importance of system integrators for automation projects has long been understood. The CSIA Exchange is a valuable resource for companies looking for skilled professionals to upgrade and develop automation solutions,” said Bob Vavra, Senior Content Director for Machine Design. “We are excited to be able to offer this free resource to our readers.”

The CSIA Exchange also provides information on more ...

By Doug Fagaly and Lee Schulte

“Safety isn’t that important to us,” said no company ever. We all know that safety is important, and the cost of a recordable incident is expensive in more ways than one. Yet we continue to see reports of the Occupational Health and Safety Administration (OSHA) fining companies for violations, some in the hundreds of thousands or even millions of dollars.

Fatal work injuries actually increased in 2018 by two percent from 2017, and incidents involving contact with objects and equipment increased 13 percent, according to the U.S. Bureau of Labor Statistics.

If we all know that safety is important, why are we still here talking about safety best practices? The problem may be in the way manufacturers think about safety, or rather when they think about it. Often, companies will have a reactive approach, only making changes after an incident or near miss occurs.

Approaching safety as a bolted-on fix leads to a number of concerns in a ...

By Michelle Jacobson

Testing and validating medical devices are the final steps before delivery to a customer. Therefore, it’s critical to uphold the highest quality at this point in production. Companies that have automated some testing may still rely on manual processes because they don’t leverage all of automation’s benefits. To ensure a full understanding of the benefits of automation, ask the right questions and evaluate each type of system to determine which will be most suitable. The right system will let you test consistently, get feedback on possible failures, improve return on investment (ROI), and enhance device quality.

Determine a need
Deciding when to automate is driven by individual needs. Before implementing any type of automated test solution, determine the overall goal. Consider:

• What will the overall cost be?
• How much automation is necessary?
• How much benefit will there be?
• How much will it improve quality and production speed?

...

Casco Systems Donates Engineering Services to Create The X-VENT Ventilator

Casco Systems, a Maine based electrical engineering firm specializing in automation, integration and electrical systems, is announcing its collaboration with Enexor Health Systems, formerly Breathe Strong, LLC, to develop the X-VENT – an emergency, positive pressure ventilator designed to treat patients with respiratory insufficiency or failure.

Amidst the initial phases of the COVID-19 pandemic, Enexor BioEnergy Director of Engineering Scott Auerbach contacted Casco Systems about supporting the electrical, instrumentation, and automation controls design of a fast-tracked project. A long-time client and supporter of Casco Systems, Auerbach knew Casco had the breadth of knowledge and reputation for solving complex challenges on tight budgets and timelines.

Casco Systems embraced the opportunity to support this effort. Ultimately, Kevin Mahoney, President & Founder, decided to donate Casco ...

By Ivy Arkfeld

The purpose of the spiral freezer is to quickly decrease product temperature prior to transporting or placing in storage. Product travels through the spiral freezer on a belt, with the time spent in the freezing process controlled by the belt speed. The enclosed area of the spiral freezer, or box, is maintained at a target temperature, with evaporator fans operating at a defined speed to maintain air flow across product while the evaporator coils remove heat from the space.

There are three key operating parameters for the spiral freezer: belt speed, temperature, and air flow. Target product temperatures at the outlet of the spiral freezer typically vary due to differing product geometry, weight, and ingredients. If a spiral freezer is operated at the highest fan speed and lowest temperature, some products may become over frozen, which can result in breakage and poor performance in end use. End use impacts can vary depending on the type of product, for example a raw ...

By Dan Pan Demetrakakes, Senior Editor, Food Processing

Automation could, in theory, solve many of the food and beverage industry’s problems.

So why doesn’t that happen more often?

It’s clear that various forms of automation should be able to help with many of the challenges, both eternal and relatively recent, that the industry faces, such as staffing adequately, maintaining quality and safety, keeping product moving out the door, and satisfying demands for SKU variety. But food as an industrial sector has historically lagged in adopting automation, and that situation shows no sign of abating.

Experts consulted by Food Processing identified a variety of factors that may be slowing down adoption of automation, such as the nature of food and beverage production and the expense and uncertainty of both hardware and software. But they add that overcoming these concerns is both inevitable and vital.

“Automation is really the long-term investment ...

By Wendy Covey

System integrators, this episode of Content Marketing, Engineered is for you! Stop neglecting your dated websites and double-down on digital marketing. Discover 5 marketing investments to get rolling, many of which are low-cost. 

There has never been a more important time than right now for system integrators to make their website and content a priority, but too many are still stuck in old school marketing ways, relying heavily on unscalable activities such as referral networking and trade shows. They are also missing out on many low and no-cost tactics to gain awareness and drive web traffic.

In this episode I'm joined by Lisa Richter, Industry Director of the Control System Integrators Association (CSIA) and host of the Talking Industrial Automation podcast. Her sole focus is to help CSIA members be successful through training and resources. I can say first-hand that this community is very tight-knit, with a ...

By Kevin Johns, Shareholder, Clayton & McKervey 

We are living in unprecedented times; learning and adapting every day without clarity as to what the future may look like. In the midst of the uncertainty, it is as critically important that business owners lead and make wise decisions.

It has long been said that “cash is king.” Certainly in the midst of any economic struggles, this is particularly true. Cash is the lifeblood of a small business. Poor cash management can fast track a business’ end no matter the how great their product or service offerings.

Here are 7 cash considerations we recommend that your small business consider when trying to lead with certainly during uncertain times.

1. PPP loan – Businesses have heard that the US Government established the Paycheck Protection Program loan backed by the SBA. The initial round of funding was $349 billion and a second round of funding of $310 billion was finalized and approved ...

The following is a transcript of a recent episode of Talking Industrial Automation that featured a panel of experts to answer manufacturer and system integrator FAQs regarding the impact of the pandemic on their businesses.

Before we get started, a quick programming note. This episode of the podcast was recorded on March 19, 2020. As I tape this, the global pandemic situation is still very fluid. In addition, in the U.S., state and federal leaders are issuing statements daily. To help CSIA members stay up to date, the association has set up a Forum on controlsys.org for members to share resources, advice and tools to cope in this rapidly changing environment. And now, back to the regular program.

Lisa Richter: Hi, my name is Lisa Richter, the host of Talking Industrial Automation, a podcast where you get to know the people who make modern industrial automation and processing possible. In today’s episode, we’re doing something a little different because, with the ...

Water and Wastes Digest Associate Editor Cristina Tuser interviews Jose Rivera of Control Systems Integrators Association (CSIA)

Tuser: CSIA just marked 25 years as an organization. What notable automation advancements do you think are slated for CSIA’s future? 

Rivera: Technology has had a dramatic impact on our personal and professional lives. Industrie 4.0, IIoT and digital transformation are all frequently used terms to describe not only the deployment of technology, but more importantly the leverage of this technology to dramatically transform the way things get done and the output itself. Technology is just as important as process and organization. System integrators have started to recognize this and have been adjusting to meet their client's emerging requirements. 

Tuser: What valuable insights can you provide about automation as it relates to water and wastewater? And how do you anticipate the water sector and automation will continue to ...

While cyberattacks in the retail, financial services and healthcare sectors continue to generate headlines, manufacturing has managed to stay out of the spotlight a bit more. But times, they are a-changing. (Thanks IT/OT convergence!)

Findings in Vectra’s  2018 Spotlight Report on Manufacturing revealed that attackers who evade perimeter security can easily spy, spread and steal, unhindered by insufficient internal access controls. (Full disclosure: Vectra sells a platform that uses AI to automate cyberattack detection.)

Intellectual property theft and business disruption are primary reasons why manufacturers have become prime targets for cybercriminals, according to the report.

"Recent reports about nation-state cyberattacks against U.S. utility control systems show that cybercriminals are intent on surreptitiously taking inventory of critical industrial assets and intellectual property to disrupt manufacturing business operations," says Vikrant Gandhi, ...

By Jim Biehl, CPA, MST

Have you ever wondered how some companies last for generations while others fade into obsolescence?  In Clayton & McKervey’s history of working with closely held businesses, several shared traits among companies reaching the 50-year mark and beyond have proven to be a success time and again.

Observing established companies functioning as finely tuned machines, while welcoming change, it’s clear that these principles foster the longevity of industry leaders.

1. Proactive vs. reactive: Longstanding businesses are forward-thinking and employ some form of strategic planning that allows the team to “aim for the same tree on the horizon.” Decision making is aligned, and a shared mission is embraced and clearly communicated. An overarching consistency to these companies is that they are nimble enough to adapt to change and they embrace innovation.
2. Customer obsessed: They have intimate knowledge of what their customers need and want, ...

When was the last time you really thought about your business model?

What? You haven’t? Or it’s been so long ago you think you might have been sporting an epic 70s stache or rocking a groovy pair of bell bottoms?

With Q4 comfortably settling in – strategizing and budgeting season – there has never been a better time to grab a beverage, go dark and really take some time to dig into what makes your business tick and how you are going to position it for success in 2020.

Let’s get started.

1. Gather your leadership team: It’s time for The Talk

Set aside some time to get your leadership team together to unflinchinly go through a set of questions about your customers and company.

Some examples of questions about your customers:

• How well do you understand your customers’ needs?
• Can you formulate the key unmet needs of your customers?
• What is the monetary implication of not meeting these needs?
• What would resolve those unmet needs?
• Are ...

Historically a software development/IT concept, agile project management methodology is creeping into other areas of the enterprise – from marketing to human relations and, yes, even manufacturing. But what about system integration? Is there a place for it?

According to Tom Sulda, director and lead trainer for Latsa, the answer is a resounding yes … maybe.

What Is Waterfall Methodology?

A waterfall approach attempts to gather all the project requirements from the customer, then define a solution, estimate the cost and profit percentage of that solution, and then proposes both a solution and a cost.

Sounds logical and simple enough. But as Sulda points out, there are some downsides.

For starters, clients are all over the map in terms of being technically savvy – and that means they don’t always know what they don’t know.

Therefore, there are some “clients who are very easy because they can be very clear about what they want and why they want ...