Electronic Controls and Communications

The Global Challenge Of Strategic Standardization Management

Alec McMillanRockwell Automation

Director , Global Standards & Trade

March 23rd 1999

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Agenda

• Who is Rockwell

• Market Trends

• International Standards, and

One-Standard-One-Test-One-Mark

• Components Of A Standards Strategy

4

An electronic controls and communications company holding leadership positions in its global markets

Industrial automation controls —

#1 in North America

Avionics & communications equipment — used by every major airline worldwide

Leading supplier of customer call center systems

Rockwell

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A Family of Brands

More than 350,000 industrial control and system solutions

Additional 150,000 motor- and control-based solutions

Mechanical power transmission equipment

Programming, man-machine interface, communication and component software solutions

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Power Generation

Water/Wastewater

PackagingApplications

Semiconductor/Electronics

Material Handling

Metals Pharmaceuticals/Health Care

Transmission/Distribution

Cement HVACTransit Food & BeverageMachine Tool Entertainment Mining Packaged Goods

Automotive Oil & Gas/HPI Fibers Tires

PrintingForest Products

Wide Range of Industries

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Hierarchy of Rockwell Participation

TCTC

AGAG SCSCSCSC

WGWG

SCSC

MGMTMGMT

STANDARDSOVERSIGHTCommercialCommercialParticipationParticipation

WRITING OF DRAFT STANDARDS

TechnicalParticipation

WGWG WGWGWGWGTFTFTFTFWGWG

First PriorityFirst Priority

Only when commercially justifiedOnly when commercially justified

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Important Benefits

Important benefits to Rockwell available only through participation in the standards and certification processes worldwide:

• Uninterrupted product flow

• Prevent product obsolesce

• Determine the content of the standard by influencing the definition of:

• Intended purpose

• Conformance criteria - Certification

• Early warning

• technology transfer & market cooperation

• Rate of standards development

• And, as described in to IEC/ISO Guide 2, determine the attributes of the standard by influencing standard content on subjects of –

• Variety control • Interchangeability

• Compatibility • Economic performance, Usability

• Mutual understanding •Trade, removal of NTBT

• Protection of the environment, Health and Safety

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Public Standards Participation

SCCSCC ASTMASTM

NCMSNCMS

ISOISOIECIEC

EIAEIA

IEEEIEEE

ISAISA

ANSIANSI

NARMNARM

CANENACANENA

NEMANEMA

NFPANFPAU.L.U.L.

EEMACEEMAC

CSACSA

BSIBSI

VDEVDE

DINDIN

CELELECCELELEC

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IndustryStandards

ProductRegulations

ConformityAssessment

Trade Policy

International

NorthAmerica

LatinAmerica

Europe

Asia-Pacific

Safety

Resource Deployment

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Agenda

• Who is Rockwell

• Market Trends

• International Standards, and

One-Standard-One-Test-One-Mark

• Components Of A Standards Strategy

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Some Key Trends & Forces

• Products & Technology– Open System and System Accessibility– Merging Technologies

– Integrate control and information– Integrate communications - -LAN/WAN wire and wireless

– Focus shifting from products to solutions

• Product Regulations & Market Needs– A standard is only as good as the market it protects – Intentional restriction of Conformity Marks availability – Trade Agreements and Customs Unions controlling product flow– “Worse regional case” will become global minimum – PAC-Rim and LA are maturing their regulatory systems

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Some Key Trends & Forces

• Regionalization of Trade is increasing (representative listing):

– Mega-Regions: APEC, FTAA

– Multi-National Regions: EU, MERCOSUR, ASEAN

– Inter-regional Agreements: MERCOSUR and EU

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Some Key Trends & Forces

• Expanding Markets - Western Hemisphere & Pacific Rim– Opening of previously closed markets (e.g., Mexico, China)– Largest market growth potential

• Regionalization of Standards Activities is Increasing– Each regional trade group has at least one regional standards

group– MERCOSUR MERCOSUR Committees– EU CEN, CENELEC, ETSI . . .– NAFTA NAFTA Committees, CANENA

• IEC Continues to be Perceived as Euro-Centric

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Some Key Trends & Forces

• Increasing Demand for Bilateral (trade) Agreements– Most common is the recognition of certification systems MRAs– Only in EU under regional control– Many use template (e.g., APEC)

• Proliferation of 3rd-party Certification– Proliferation of regional/international accreditors of certification

schemes– Proliferation of national 3rd-party certification schemes – Proliferation of national product conformance marks

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Enhancing Market Share Opportunities

What standards should the

product comply with?

What technology meets the standard?

What standards should the process

follow?

What tests are required to self-

certify per conformity rules?

What regional marks are needed?

What are the safety-related

system standards?

Are there region specific regulations?

Prefers a safe, reliable, high-quality, cost-

effective product that meets industry

standards !

Marketing

DesignEngineering

Manufacturing CommercialServices

Quality Assurance System

Integrators

RegulatoryEnvironment

Customer

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Standardization Across the Supply Chain

Safety, Environmental, and Quality Standards

Material, Component, Design, Manufacturing, and Distribution

Standards

Electronic Commerce, Customs, Marking, and Other Regulatory Standards

Product, System, Application, and

Industry Standards

Component & EquipmentSuppliers to Automation

Vendors

Materials &equipment

Components & Services

Automation Vendor

Products& Services

CustomerProducts

& Services

Raw materials, fuels & equipment

Raw materials& fuels

Utilities, Equipment &

MaterialsSuppliers

Supplier of

Automation

Products

Consumers

Users ofIndustrial

AutomationProducts

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Agenda

• Who is Rockwell

• Market Trends

• International Standards, and

One-Standard-One-Test-One-Mark

• Components Of A Standards Strategy

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International Standards

• WTO definition by international trade – Definition by trade use

– Not by source of standard, name of SDOs

• Single standard solutions do not reflect reality

• Need for regional and national ability to make deviations and common modifications (for health, safety, environment)

• Withdrawal of national conflicting standards

• Considering the actual commerce in world trade - -

• Why can’t the IEC adopt the de jure and de facto standards existing in other nations and regions of the world?

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One Test, Suppliers Declaration of Conformity and One Mark

• One “international accepted” standard

• One Test means executed once, accepted everywhere

• Supplier’s Declaration of Conformance includes choice of 3rd party test and certification

– Objective to minimize government involvement – IECEE CB Scheme can be altered to facilitate the one-test-one-

mark operating as a full, global Conformity Assessment scheme that is recognized and used in both none-regulated and regulated product verification.

• One Mark requires certification records be maintained in a public file, may also be on/with the product

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Agenda

• Who is Rockwell

• Market Trends

• International Standards, and

One-Standard-One-Test-One-Mark

• Components Of A Standards Strategy

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Strategy Definition

• Key Customers, Markets, and Business drivers

• Objectives and Approach– By Industry– By Business– By Technology

• Assess current standards position– Business focus ( strategic, operational/tactical)– Success factor (critical, necessary, nominal)– Standards Participation (lead, influence, observe)– Standards Participation Investments ( time, expenses)

• Business Plan Integration– Impact areas- product, process, procedure– Key benefits and risks– Near term and long term plans