REAL WORLD


Federal Labs' Commercialization Success and Failure

A nationwide study of the commercialization of technology from federal laboratories to industry has uncovered the factors that explain why some laboratories are more successful in this effort than others. The laboratories studied belong to the areas of health, energy, space, defense, transportation, agriculture and environment. The network of more than 700 national laboratories employs about 200,000 scientists and engineers, and close to 1 million people, with an annual budget of $23 billion.

The study was supported by the National Science Foundation and involved 43 federal laboratories, 51 industrial companies, and 428 scientists and engineers in these laboratories. In addition, the study also surveyed the technology transfer officers in the sample of federal laboratories.

The main findings from this study show that the successful laboratories are those in which senior management actively support cooperation with industry, with strong positive attitudes and actual incentives, and in which the scientific personnel exhibit entrepreneurial attributes and have positive attitudes towards commercialization. Also, successful laboratories are those in which the cooperating company supports commercialization and where the company's technical people perceive their counterparts in the federal laboratories as willing to take risks and able to deal with ambiguity.

The study also established that the incentives most likely to work in the effort to improve commercialization in the federal laboratory are those that create a supportive environment for entrepreneurs in the laboratories (as opposed to just offering financial incentives). Further, the study has found that technical capabilities of the laboratories and their attractiveness to industry are poor predictors of successful commercialization. Rather, it is not so much what the laboratory has to offer, but how the cooperation is carried out and managed that better explains the success of commercialization.

Finally, the study also found that the main reasons why industry and federal laboratories engage in cooperation (for example, access to unique technical resources) are different from the behavioral and organizational factors that impinge on successful commercialization.

For more information about this study, contact Professor Elie Geisler, Department of Management, College of Business, University of Wisconsin, Whitewater, WI 53190; Phone: (414) 472-3971; Fax (414) 472-4863; E-mail: geislere@uwwvax.uww.edu

Industrial Mathematicians Highly Valued

Mathematics has played a key role in solving complex problems from many industries - software, electronics, financial services, communications, chemical, transportation - according to a new report on the role of mathematics and mathematicians in industry. Nearly 500 engineers, mathematicians, scientists and their managers were surveyed for the Mathematics Industry report released by the Society for Industrial and Applied Mathematics (SIAM).

The managers reported that industrial mathematicians are highly valued as problem-solvers and systems thinkers. Recent mathematics graduates working in industry thought that U.S. universities successfully taught many of the technical skills necessary for an industrial environment. However, both graduates and managers called for improvements in education in such areas as computation, modeling, interdisciplinary work and communication skills.

"We set out to explore the roles of mathematics outside academia, to understand the qualities valued in nonacademic mathematicians, and to examine how nonacademic mathematicians and their managers view graduate education. Documenting the benefits of mathematics to business and industry was a welcome result of the MII survey," says Margaret Wright, SIAM president and Distinguished Member of the Technical Staff at AT&T Bell Laboratories.

"What we have learned about the work place for non-academic mathematicians can help enhance education and industry-university connections," says James M. Crowley, SIAM executive director. "The Society will now work with universities and industry to implement the report's suggestions."

Database of Undergraduate Studies Provides Collegiate Insight

Educators and policy makers are increasingly concerned that many students graduate from American colleges and universities after having completed an undergraduate curriculum of disconnected, largely unchallenging courses. To facilitate research on this subject, the National Science Foundation has developed the Curriculum Assessment Service National Database to offer analyses of course-taking behavior of undergraduate students. The database includes transcript information for over 42,000 students from a random sample of 100 U.S. colleges and universities to provide researchers an opportunity to analyze student course-taking, student demographics, and academic characteristics for 1991 baccalaureate recipients in liberal arts and sciences.

The database shows that about 52 percent of the students were "traditional" students. That is, they were granted degrees from the school where they matriculated as freshmen and had spent uninterrupted years of full-time study. The remaining students did some or all of the following: transferred among institutions, attended part-time, or were intermittent (i.e., they spent at least one term away from their home campus). The attendance patterns of the students varied by area of study. Among the sciences, the percentage of traditional students was the highest in life and physical sciences, with 66 percent. This percentage was the lowest for mathematics and computer science, at 48 percent. The mathematics and computer science domain also had the largest share of part-time students: 24 percent.

With the data provided by this database, researchers can probe such questions as:

  • When students with certain majors received good grades, were those students getting good grades just in their major fields or everywhere?
  • Did non-majors in mathematics, science or foreign languages take courses in those subjects early enough in their careers to allow for a major?
  • What kinds of humanities courses did science majors take?
  • When humanities majors took science, what sorts of courses did they choose?

    Researchers and investigators can mine this new database for the wealth of information it contains about the class of '91 and to consider what that information implies about college students today.

    Top Ten Operations Opportunities Identified

    Tompkins Associates, Inc. of Raleigh, N.C., has recently completed a survey to identify the top ten operations opportunities in industry today. A panel of six experts in the fields of warehousing, warehouse management systems, logistics, manufacturing, organizational excellence and maintenance independently ranked opportunities in their perspective areas. These opportunities are as follows:

    1) Technology/Methods: The greatest operations opportunity today is in either the use of technology or continuous improvement to improve methods. Opportunities for the use of technology include computerized maintenance management systems, manufacturing execution systems, bar coding, warehouse management systems, etc. Opportunities for continuous improvement include preventive/ predictive maintenance, planning and scheduling maintenance operations, simplified work flow, crossdocking, improved inventory management, paper flow simplification, outsource, ergonomics and more.

    2) Facilities/Space Utilization: The capacity of facilities and the flow through these facilities, be they production operations, maintenance storeroom, raw material storage, work-in-process storage, finished goods storage or distribution, are all viewed as offering tremendous opportunities for improvement. Facility consolidation, contraction and expansion are all mentioned as having significant potential depending upon the circumstances.

    3) Strategic Issues: The strategic topics of vision, mission, organizational alignment, capacity, breadth of product offerings, flexibility, modularity, measurement and reporting systems, internal benchmarking and the overall process for creating and sustaining peak performance are ranked very high as offering major opportunities for improvement.

    4) Response Time: The topic of speed and reaction time throughout an organization is seen as a tremendous opportunity for improvement. Production lead times, purchasing lead times, set-up times, new product-to-market lead times, customer response times, order fill response times and in-transit times are all viewed as critical in today's fast-paced environment.

    5) People/Team Development: No matter which portion of an operation is visited, people/team development issues are hot. In maintenance, the topics are craft skill development, operator-based maintenance and teams for continuous improvement. Throughout production and distribution, the topics of employee involvement, empowerment, leadership, communications, rewards and recognition and the teaming process are tabled as having the greatest opportunity in harnessing the energy of change that is occurring through our operations.

    6) Customer Service: Similar to all the other issues, there is nowhere in the organization that customer service is not viewed as critical. Both internal customer service and external customer service are viewed as a tremendous opportunity for improvement. Be it a maintenance manager talking about equipment uptime, a production manager discussing meeting customer needs, or a distribution manager discussing order fill rates, all agree that customer service is a key topic for operational success.

    7) Quality: Product quality and information quality are viewed as equally critical success factors across all operational sectors. The need for ISO 9000/QS 9000 certification and the follow through to exceed customer expectations is a mandate that has been accepted as a given.

    8) Cost Reduction: With a keen sense of reality and the strong awareness of people involvement, all operational elements are working on doing more with less. The simplification, streamlining and focusing of resources to get the job done at a minimal cost are seen by most not as something that has been done, but something that needs to be done.

    9) Inventory Reduction: Although much progress has been made, there exists very little acceptance of current inventory levels. Operations management believes that major opportunities still exist to reduce inventories while still achieving high levels of customer satisfaction.

    10) Productivity: Surprisingly, most operations management still believes we have a lot of potential remaining in improving productivity. Both direct labor and indirect labor productivity are highlighted. The focus of these productivity enhancements are viewed as coming from unleashing the power of the people and allowing people a greater opportunity in designing their work procedures, as opposed to the more traditional top-down productivity enhancements.

    Detailed monographs are available at no charge from Tompkins Associates, Inc. in each of the practice areas. To receive these free monographs, contact: Information Services, Tompkins Associates, Inc., 2809 Millbrook Road, Suite 200, Raleigh, NC 27604, Phone: (919)876-3667, Fax: (919) 872-9666.

    Click here to view a bar chart of the "top ten operations opportunities."

    PCs: A Thing of the Past?

    Attendees at Agenda 96, an annual computer conference, heard predictions that conventional PCs might one day be replaced by inexpensive terminals linked to the Internet. The Wall Street Journal reports that Sun Microsystems Inc., for example, is talking with other companies about using Sun's Java software for the World Wide Web (WWW) to create terminals that might cost as little as $200.

    General Magic Inc. is following the same philosophy as Sun in anticipating greater use of the Internet with PCs by publishing specifications for adding interactive graphics to the WWW. Plans are also in the works for General Magic to load its software on hand-held phones, pocket-sized communicators and PCs.

    GIDEP - Ready for the Future?

    The Government Industry Data Exchange Program (GIDEP), an evolving database of U.S.-Canadian government and private sector product-related information, began more than 30 years ago in an effort to lower manufacturing and service costs and enhance product reliability and quality through information exchange. And although GIDEP has gone through much trial and error, the program now focuses successfully on product data, systems, equipment and component/parts reliability and maintainability, engineering, failure experience data and meteorology. In addition, the program's database contains, by way of industry, a wealth of information on process, process control and product inventory control.

    In 1994 alone, the use of GIDEP's database saved the government and industry a combined $120 million.

    But complaints have risen that suggest gathering information by way of GIDEP is a difficult process. Users have noted that GIDEP lacks a data-analysis means of fusing and integrating information/data from the various categories it maintains so that, from study and statistical summaries, more knowledge and understanding about near and long-term government and industry equipment and service requirements can be ascertained and better understood.

    This leaves GIDEP standing poised for a follow-up phase - a multi-integration era - with information production pointing in new directions that could lead to a more interdisciplinary government/industry two-way street environment. But it's up to the government and GIDEP's users to make this happen.

    Asian High-Tech Becomes Tough Competitor

    High technology firms in the United States are likely to face stiffer competition both for customers and for research staff as Asian high-tech industries continue to grow over the next 15 years.

    Asia's New High-Tech Competitors, published by the Division of Science Resources Studies (SRS), makes these predictions and identifies South Korea and Taiwan as the countries that may become the next "Japans" in terms of high technology industrialization.

    Nine Asian nations are examined in the report and separated into three economic tiers:

  • Advanced Industrialized Economies: Japan.
  • Newly Industrialized Economies (NIEs): South Korea, Taiwan, Hong Kong and Singapore.
  • Emerging Asian Economies (EAEs): China, India, Indonesia and Malaysia.

    South Korea and Taiwan are predicted to become even stronger contenders in the high-tech marketplace, where the United States has long been the leader. Also, Malaysia had strong performances in parts of its economy and is therefore believed to be a contender as the next Asian NIE.

    According to the report, a growing Asian economy will also bring new business and research opportunities for U.S. high-tech industries and the science and technology community. These opportunities will come in the form of larger markets for goods and services and new collaborators in scientific and technological research.

    Corporate MIS Projects Lagging

    Less than half of management information systems (MIS) projects are under budget and on time, according to the Controllers Council of the Institute of Management Accountants (IMA), which surveyed 420 companies.

    According to the survey, 30 percent of controllers report that their companies' hardware/software implementation projects were over budget by an average of 23 percent.

    Keeping MIS projects on time was another challenge for controllers. Forty percent of survey respondents say that projects were completed behind schedule by an average of six months and only 1 percent of controllers surveyed said projects were completed early.

    What areas of MIS can look forward to being outsourced over the next two years? Controllers ranked maintenance first, applications second, communications networks third, and mainframes fourth. In addition, nearly three quarters (74 percent) of the controllers say they are satisfied with the outsourced MIS services.

    U.S. Fire Deaths Reach All-Time Low in 1994

    Fewer people died in fires last year than ever before, according to the non-profit National Fire Protection Association (NFPA), a private fire safety advocate group. In 1994, fire deaths were down 7.8 percent over the previous year to 4,275. This compares to more than 5,000 as recently as 1990, more than 6,000 in 1988, and more than 7,000 in 1979. The NFPA has been tracking U.S. fire trends since 1977, and fire deaths have declined an impressive 42.2 percent in the 17 years since that first study.

    As usual, about 80 percent of all fire deaths occurred in the home. The 1994 home fire death toll of 3,425 represented a 7.9 percent decline from the year before and was also the lowest level ever recorded by NFPA, down 41.6 percent since 1977. Residential properties other than homes (e.g., hotels and motels, dormitories, rooming or boarding homes) saw their fire death toll drop by 61.9 percent in 1994 to a total of 40, the lowest total ever recorded in that category.

    Non-residential structures (e.g., stores, offices, industry, commercial properties, schools, health care facilities) collectively accounted for 125 civilian fire deaths in 1994, a decline of 19.4 percent from the year before and the lowest total ever recorded in that category. Deaths in vehicle fires represented a notable counter-trend, increasing 5.9 percent in 1994 to a total of 630, with most of those involving automobiles.

    INFORMS member John R. Hall Jr., NFPA assistant vice president for fire analysis and research, says the large 1994 drop in fire deaths is an encouraging sign. "Every year we learn more about how and why fatal fires occur, and every year more people take those lessons and apply them successfully to their own lives."

    Overall, U.S. fire departments responded to 2,054,500 fires in 1994, an increase of 5.2 percent from the previous year. Reported property damage totaled $8,151,000,000, a 4.6 percent decrease from 1993 even before accounting for inflation. Since the late 1980s, U.S. property damage due to fire has been strongly influenced by the presence or absence of very large fires.

    Fire safety initiatives must be targeted where the need is greatest, and that continues to be the home, says Hall. NFPA advocates greatly expanded public fire safety education efforts to reach all U.S. homes with essential fire prevention and protection messages.

    Managing Solid Waste

    MIT researchers have developed a prototype system-dynamics model that can predict the economic and environmental outcomes associated with various options for managing municipal solid waste (MSW). The model simulates the institutional framework that generates, disposes, manages and reclaims MSW. Given information including wastestream composition, disposal locations and costs, and recycling options, the model can predict the impacts of economic instruments (e.g., waste charges), regulatory instruments (e.g., product bans or recycling goals), facility closings and facility siting decisions. Using the model, town planners, firms, environmental groups, and other stakeholders can determine how to manage a solid waste system to best meet each group's goals. The model is now being field tested in Rhode Island; a refined version for use in New England will be available within a year.

    B Movie Title Resurrected in OS

    AT&T has introduced Plan 9, a new computer operating system from AT&T Bell Laboratories for research and educational use. The Plan 9 operating system, named for the science-fiction cult movie "Plan 9 From Outer Space," was designed by the inventors of the Unix system.

    Plan 9 is not designed to compete with Unix or Windows; rather it is a small, powerful system designed to work in today's distributed, networked computing world. The operating system is expected to be especially useful in a small segment of the industry where many proprietary systems exist today.

    The Plan 9 operating system is a distributed system. In its most general configuration it uses three kinds of components: terminals that sit on users' desks, file servers that store permanent data, and other servers that provide faster central processing units, user authentication and network gateways.


    OR/MS Today copyright © 1995 by the Institute for Operations Research and the Management Sciences. All rights reserved.
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