
A Director at Siemens, one of the few windmill manufacturers in the world that supplies those huge 144-foot fins unused on large-scale wind farms, recently told me that just as the finishing touches on a manufacturing plant were completed, their sales blew through the roof so much so that they already had overgrown the facility.
My first thought was is this connected to the problems related with India’s Suzion Energy’s troubles with stress fractures. One of Suzion’s several customers, Edison Mission Energy, has had stress fractures. In Edison’s case, over 1251 blades were recalled. If consider how the blades are 144 feet long and must be hoisted over two hundred feet in the air to be installed or removed, you can imagine that this is a costly problem for both manufacturer and customer.
The end result would be, since this is public news, that other prospects would most likely choose another vendor and contracts for production would be canceled. Add to this the down time associated with such a fiasco since no energy is being produced.
So I asked, “Was this related to the blade recalls from the Indian company?” He hadn’t heard anything about the troubled firm.
My thoughts are simple on this. Part of the role of management is to be aware of key issues related to your industry, markets or future.
In this case, this Director was not responsible for marketing, sales, or engineering, but he was responsible for Asset Management. His role is to search for or build new facilities to meet corporate initiatives. As part of his portfolio he might have 200 real estate assets he’s managing besides building new facilities. So it would be easy to say, he’s only responsible for the physical asset. And if he does this right, he’s done his job.
People who are Enterprise Thinkers and are Paid to Think, think beyond the normal and realize they must at least be aware of any happenings that pertain to their job and beyond, as well as what might impact their future. They see the 50,000 foot view and realize they are not hired to just build a plant but to build a plant that takes advantage of today’s business and the firm’s future.
In this case, when a major supplier has a recall, you’ve got to bet that other customers could be canceling orders and shifting suppliers, which is exactly what happened.
Here are a few ways he could be “Aware.”
Set up a Google Alert for the industry key words. I for example have the words “Paid to Think,” “Enterprise Thinking” and a host of other topics or phrases I’d like to get reports on regularly.
Another source is to subscribe to industry publications that would highlight such issues. In this case, this was a multi-million dollar facility that casts fins with fiberglass, balsa wood, and a binder. Yes, I too was surprised to find the balsa wood is in the fins.
Lastly, for a few dollars a month, he could hire researchers to keep him posted on any topics related to this project. There are PhDs in India, China, Ukraine, and Argentina that will work for very little as a resource.
Just being aware of what’s happening could easily have changed the future of Siemens’ project plants; even if they made the decision not to do anything, this would have been a result of being informed.
Sources Siemens Windmills and WSJ India Windmill Empire Begins to Show Cracks