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Online calculator aids test-asset management

Rick Nelson, Chief Editor -- Test & Measurement World, 4/1/2006

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Visit the Sente Website to read a paper by McNamara detailing his approach and to access the Sente Group's online total-cost-of-ownership calculator, based on the company's proprietary TCO model.
What if we could design a way to bring new profitability and speed to our test-related functions?" That's a question posed by Paul McNamara, CEO of the Sente Group, which offers an online worksheet and calculator that can help manufacturers see their own potential for improvement.

McNamara says he has seen telecom and defense companies improve profitability by tens of millions of dollars by focusing on what he describes as the dynamic that drives test-related activities: the interdependence of people, practices, and tools. Streamlining relationships among these groups, he says, can lead to measurable improvements in engineering cultures.

 
McNamara cautions that engineering, financial, operations, and quality personnel should not settle for 5 to 10% improvements. Most asset-management efforts, he explains, aim low and simply deploy asset-tracking software in an effort to foster equipment sharing. But such software, he says, doesn't account for how engineers behave in the real world: They fail to properly sign out equipment, and they hoard it to ensure it's available the next time they need it.

The key to asset-usage improvement, McNamara says, lies in the realization that assets are inanimate objects that don't need management. Assets never have agendas, never are in bad moods, and never engage in office politics. People, however, must be able to manage, be managed themselves, and be satisfied that they can get their jobs done, he says, adding that a program can only be successful if it satisfies users.

McNamara advises starting with practices that will earn the trust of users and build that trust over time by delivering the technology they need, when they need it, without fail. Early success, he says, builds momentum for continuing and expanding an initiative.

The stakes are high. A large OEM, McNamara says, may have 10,000 pieces of discrete test equipment, each having an average acquisition cost of $9500 and achieving utilization rates hovering around 15%. Without an effective asset-management approach, he says, capital spending on test equipment will be 50 to 75% higher than it needs to be.

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