WSPE eNews

A monthly publication from the Wisconsin Society of Professional Engineers

September 5, 2007 Edition

1. 

WSPE's President's Corner

2.

Congratulations to Mike Davy, Winner of the PEPP Award

3.

Legislative News: Engineer Continuing Education Proposed to State Legislature

4.

Summary of NSPE House of Delegates’ Annual Meeting: Taking Actions to Help WSPE members

5.

“Betterment” and the Law of Damages
By Attorney Robert J. Kay

6.

Framing the Market Opportunity into a Company Opportunity
By Marc Annacchino, P.E.

7.

Welcome New WSPE Members!


1.

WSPE's President's Corner

As the year continues to fly by, I greet you with some good news. Michael (Mike) Lefebvre, P.E., has offered to serve as WSPE President Elect for the remainder of the term! The Executive Committee considered his appointment at this month’s meeting and moved to submit Mike’s name to the full State Board for approval at the September meeting. Mike is the Vice President and Office Manager of the Green Bay office of Graef, Anhalt, Schloemer & Associates, Inc. He has been a member of WSPE for many years and has been very active at the Chapter level, including serving as President of the Fox River Valley Chapter. He is also an active member and Fellow of the American Society of Civil Engineers and has served in various roles, including President of the Fox Valley Branch and President of the Wisconsin Section. Because President Elect is normally an elected position, Mike would also appear on the ballot for next year’s officers to ensure he is duly elected to the President position by the WSPE membership. We are excited to have someone of Mike’s experience step into this important position and we look forward to working with him soon!

We continue to gear up for upcoming events and, as always, we have many opportunities for our members to get involved. We are currently seeking volunteers to staff the exam sites in Platteville, Madison, and Milwaukee for the Fundamentals of Engineering (FE) and Professional Engineering (PE) examinations. The dates are October 26 and 27. The main purpose is to provide NSPE/WSPE information and membership applications as well as snacks. Our presence at these exams means a lot to the candidates and is an easy way for us to introduce many engineers to our organization. If you can spare some time on either of these dates, please contact Nancy Short at n.short@wspe.org or 414-908-4950 x135.

We are also looking for people who are interested in getting involved at their local schools to talk to kids about engineering. This is an ongoing endeavor, so it is very flexible. We have some materials, including PowerPoint® presentations, to get people started and we welcome any resources you might like to share. This is a fun way to reach out to future generations and show them the wonders and joys of engineering. We are also looking for ideas for Engineers Week next February. As the premier engineering organization in the state, we want to be at the forefront of Engineers Week activities, but we need your help. Please contact Chad O’Donnell, P.E., at 414-278-3347 or codonnell@hga.com when you are ready to help or to share your ideas.

Membership is another ongoing initiative. Please remember to ask your colleagues if they belong to NSPE/WSPE and, if not, encourage them to join. Invite them to a Chapter meeting or other society activity to help them get involved. The more members we have, the more we can accomplish.

The Southwest Chapter has begun planning for next year’s Discovery Conference. If you have any ideas or thoughts you would like to share regarding venue, format, speakers, activities, or anything else you think might make it a valuable event for you, please contact the conference chairperson, Dave McDermid, P.E., at 608-242-6652 or dmcdermid@msa-ps.com. The Discovery Conference is for the benefit of our members and we want to make it valuable for as many members as possible, so your input is extremely important.

WSPE can be as much as you want it to be, so please start thinking about what activities you would like to get involved in and contact Nancy Short or one of the state officers. With your help, we can make this one of the best years in the history of WSPE. Thanks!

James Buggs, P.E.

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2.

Congratulations to Mike Davy, Winner of the PEPP Award

PEPP (Professional Engineers in Private Practice) presents several awards to engineering professionals each year. This year PEPP recognized the 2007 award winners on July 26 during the PEPP 50th Anniversary Gala in Denver. The purpose of the PEPP Award is to honor an individual who has made an outstanding contribution to the role of private practice serving in the public interest.

Michael F. Davy, P.E., F.NSPE

Mike has served NSPE and PEPP since 1972, including 20 years as a member and chair of the Professional Liability Committee. He has been a state PEPP governor, a regional vice chair, as well as member and chair of the former PEPP Education Committee and Employment Practices Committee. He has also served the profession through the Wisconsin Society of Professional Engineers as everything from chapter president to state president.

Mike has served as the president of Davy Engineering Co. for more than 20 years. He also wears the hat of project engineer for many of his firm’s business endeavors. Davy Engineering Co. makes a conscious effort to provide direct project involvement by the principals. This has resulted in the company’s decision to avoid branch offices and to limit the geographic area where services are offered. The company also limits services to those areas where the principals are most adept.

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3.

Legislative News: Engineer Continuing Education Proposed to State Legislature

Assembly Bill 181 (regarding continuing education requirements), if passed at the state assembly, would grant the state’s Joint Board of Architects, Landscape Architects, Professional Engineers, Designers, and Land Surveyors (A-E Joint Board) the statutory authority to implement rule making to create continuing education requirements for the professions regulated by the board. Simply put, the bill would give our A-E Board the authority to require that professional engineers in Wisconsin obtain and document activities in compliance of the requirements, presumably some number of hours of continuing education applicable to their engineering practice each year.

The A-E Joint Board is in strong support of the proposed legislation and has put much effort into getting the proposed legislation introduced.

Overall, the WSPE State Board is in support of AB-181 and believes the pros outweigh the cons. This article is intended to spur discussion on the matter and ultimately spur the expression of thoughts on the matter by PEs to their state representatives. The A-E Joint Board hopes that this bill will come up for vote at the assembly this fall.

Brief list of Pros/Cons:

Pros:

  • The proposed legislation will be a step in support of the A-E Joint Board’s mission to protect public health, safety, and welfare by establishing requirements for professionals to keep pace with changes in technology, research, and ethics.
  • The proposed legislation will help the Wisconsin engineering community remain competitive in the national/global marketplace.
  • Based on requirements adopted by other states, it is expected that future continuing education requirements in Wisconsin will be reasonable and relatively simple to satisfy.
  • More and more states are requiring some form of continuing education for licensure (only 19 states do not currently have requirements).

Cons:

  • One more administrative task for the state’s PEs to manage/satisfy.
  • Costs associated with finding and enrolling in applicable continuing education courses (although many Wisconsin PEs are doing this already in some form or other).
  • Costs to the Department of Regulation and Licensing to administer the requirements.

Other Information:

  • Martin Hanson, P.E., of Eau Claire is the chairman of the A-E Joint Board. Mr. Hanson has created a web-site blog with information on AB-181, along with the actual language of the bill. The blog also provides a forum for individuals to post their thoughts on the matter. The blog can be found at http://wiab181.blogspot.com/. It is suggested that any comments posted should be copied to your state representative (contact information below) and WSPE’s Legislative Committee at wspe@wspe.org (attn: Legislative Committee).
  • The current status of action by the Assembly on the matter can be found at http://www.legis.state.wi.us/2007/data/AB181hst.html.
  • You can find contact information for your local state representative at http://waml.legis.state.wi.us/.
  • Should the proposed legislation be passed, WSPE’s Legislative Committee is strongly interested in being involved in the process of determining specific continuing education requirements.

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4.

Summary of NSPE House of Delegates’ Annual Meeting: Taking Actions to Help WSPE members

The 2007 NSPE House of Delegates’ Annual Meeting was held with a backdrop of milestones for NSPE. NSPE celebrated the 100th anniversary of engineering licensure, which is the primary focus of NSPE in serving its members. The NSPE Professional Engineers in Private Practice celebrated their 50th anniversary as an essential part of NSPE in providing services and issue forums. The Future Directions activity for redefining NSPE’s relationship with its state societies and its members has completed the transition to the Action Plan activity. And NSPE announced that the Association Management System, the new member information and billing software which gave real headaches to so many of our state societies, chapters, and members has stabilized except for a follow-up process to simplify the thousands of billing combinations of dues for national, states and chapters.

Before discussing the highlights of actions taken by the House of Delegates (HoD), a review of the responsibilities of the HoD may be helpful. The HoD adopts the Vision, Mission and Goals for NSPE, establishes the Strategic Plan, Code of Ethics and Professional Policies, elects the NSPE Officers and the Board of Directors, and serves as the authority to amend the Bylaws.

The HoD elected Bradley F. Aldrich, P.E., F.NSPE as 2009-10 NSPE President and Russell C. Devick, P.E., F.NSPE as 2007-09 NSPE Treasurer.

A number of Professional Policies were approved to implement the action plan for our future directions effort. These set policy for support of science, technology, engineering, mathematics, and computer science. Also, a policy was approved regarding international competitiveness. The HoD tabled or sent back to committee a proposal for dual accreditation for undergraduate and masters programs by the Accreditation Board for Engineering and Technology (ABET).

There was a lot of discussion on the policy which supports the plan of the National Council of Examiners for Engineering and Surveying (NCEES) to require thirty hours of education beyond an ABET engineering degree in their model engineering licensure law. In general, it was felt more communication was needed with members before NSPE continues to endorse this plan. I, as your delegate, indicated that WSPE supports this long-term goal in concept but that I feel this plan is the cart before the horse. One of the arguments supporting NCEES’ plan is that the four-year ABET degree has deteriorated from a 140-credit requirement to a 125-credit requirement, in general. Seems to me that ABET and our engineering universities need to restore the “4-year” degree to a sufficient level to ensure appropriate qualifications of its graduates. While they’re at it, they could require the fundamentals exam as a requirement for graduation from an ABET engineering program as other countries do.

The HoD approved a “State Affiliate” category for those individuals or entities who are not eligible for NSPE membership. This provision accommodates such classifications as sustaining or supporting members. It does not allow “State only” membership for individuals who would qualify as NSPE members. The “State Only” issue has been discussed many times, including for two hours at this meeting. WSPE’s and NSPE’s position has been that this approach would disrupt the grassroots basis for NSPE’s national activities, would interfere with the development and delivery of services and support from NSPE to its members, weaken the member/chapter/state/national link to address issues which affect members across the nation or in more than one state, and create a more obvious group of free-loaders of NSPE’s programs and activities. The “State only” situation will continue to be tested so the HoD can be firm in any future action on this matter.

Also, the HoD approved changes to the Code of Ethics which address engineers’ participation in civic affairs, career guidance for youths, work for the advancement of the safety, health, and well-being of their community, increased knowledge and appreciation of engineering by the public, and adherence to the principles of sustainable development to protect the environment.

One last note: recognition was given to our outgoing president, Robert Miller, for his great leadership this past year. Bob left this parting statement for us all to remember as the engineering profession faces new challenges:
“Wealth lost, something lost.
Honor lost, much lost.
Courage lost, all lost.”

Our thanks and appreciation goes to Robert Miller.

Professionally yours,
Glen R. Schwalbach, P.E., F.NSPE

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5.

“Betterment” and the Law of Damages
By Attorney Robert J. Kay

When design professionals make a mistake that they then correct, often at their own expense, the concept of betterment enters into the relationship between design professional and owner. The concept of betterment simply means that when a design professional recognizes an error or omission in the design work and corrects it, either voluntarily or because the owner insists upon it, the cost of the required additional or corrected work must be borne by the design professional. However, in computing that cost, the owner is expected to pay for any added value to the structure. The theory upon which betterment rests is that rules of equity in the law compel the owner to pay for improvements which the owner would have had to pay for absent the error or omission by the design professional.

For example, where a design professional fails to design a building or building system to required governmental code, applicable damage law both in contract and in tort (for negligence) will subject the design professional to damages measured basically by the cost of redesigning (and if necessary reconstructing) the project to conform with code. However, if the code requirement not met by the design professional in the original design requires the installation of different or additional components which have added value to the owner, the owner has received a betterment and should pay for it.

Owners, on the other hand, will look to either contract wording or decisional law which requires the design professional to design to the minimum requirements of governmental codes. The owner will argue that in order to receive what the owner contracted for, the professional designer must deliver a design which when constructed will conform to the minimum of governmental code. While the law of damages in contract law differs somewhat from the damage law in negligence, the concept of betterment should not differ. Whether the owner is pursuing contract damages or tort damages against the design professional, the legal concepts of unjust enrichment or causation should apply to the determination of damages. Under unjust enrichment, the owner should not be awarded damages which gives the owner a windfall. Therefore, the damages should be calculated so that the owner pays for the betterment while recovering the damages associated with the erroneous or deficient design. Similarly, if the claim brought by the owner against the design professional is for negligence, the design professional should be heard when arguing that the cause of the owner’s damages relates only to the expenses incurred in connection with the deficient or erroneous design and not with the cost of the correct or improved design.

Although the concept of betterment is alive and well, there is a surprising lack of decisions applying the concept to the determination of damages arising out of defective work by design professionals. We can expect that when design professionals and their insurers litigate issues involving betterment, helpful decisions will become available.

Attorney Robert J. Kay is the senior partner in the law firm of Kay & Andersen, S.C. and devotes his time to representing professional engineers, architects, contractors, material suppliers and owners of construction projects. Please feel free to contact him at (608) 833-0077 or at rjkay@kayandandersen.com.

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6.

Framing the Market Opportunity into a Company Opportunity
By Marc Annacchino, P.E.

The Better Mousetrap
Design a better mousetrap and the world will beat a path to your door. This has been the battle cry for new product developers for many decades. However, there are increasing requirements for success today, such as: Who else makes mousetraps? Are we a low-cost mousetrap producer or are we a niche mousetrap player? Have we complied with the new mousetrap standards? Is there a significant influx of foreign mousetrap manufacturers encroaching on our market? All of these issues make the age-old adage, now, multidimensional.

Tie the Idea to the Business Operations
While most systems for generating new product ideas focus on the idea, the market opportunity, and the timing, they must encompass the business planning to carry it off effectively. The business concept must be entwined with the product concept. Each will draw on the other in the development phase.

The team needs to visualize the business operations as the product is being outlined, ie order entry, configuration, etc. This visualization will assist in defining supporting product features and configuration. For example, the demographic data may indicate a number of versions of a product; however, the business operations—manufacturing, procurement, and inventory control—require a finite, practical number of versions that are more manageable.

Critically Look at the “Business” of the Product (i.e., Pathways for Who, What, Where, Why, and How)
The program that covers all or most of these bases to ensure success will most likely be successful. This is because the team asked those hard questions of the program rather than ignoring the issues altogether, and finding the marketplace asking the same questions and displaying little patience for lack of planning.

Solve the Customer’s Problem in the Product

Customers Purchase Perceived Value of the Solution to a Problem
The customer buys a solution; the manufacturer constructs a bill of material and processes to assemble it into a product. It is therefore a requirement for successful marketing, design, and sales to embody the solution to the customer’s problem into the product. The value of that solution is generally governed by the customer and their alternatives.

What is a critical buying decision for one customer is not necessarily all that important for another. The market must be broken down to effectively create the product’s architecture so that the lion’s share of the available market can be addressed with a basic platform design. This platform design allows a wide variety of features and a feature gradient to be incorporated in a basic unit, with options to scale up performance or repackaging of values for the customer.

The platforms are critical to success. With many of today’s products, versions can be spun off easily, however, being on an outdated platform can bump you out of the market forever.

Under What Conditions Does the Customer Commit?
What is the universal model for customer acceptance? The answer to this question is as complex as the number of different customers there are in the marketplace. The mental arithmetic that takes place in the mind of the purchaser varies with situation, need, time pressure, alternatives, and many other factors.

Understand and know the conditions and the customer alternatives when they make that buying decision. Failure to understand and plan for it properly may position your company with product inventory, and wondering why customers aren’t buying.

Creating a System for Objective Idea Evaluation within the Framework of the Business
These criteria remove the emotion from the evaluating opportunities. Each idea then must be tested against the criteria the same way with the same questions.

Setting Up The Criteria
One of the challenges is in setting up the criteria. What questions are important? What are the pressure points of the company? What are things to avoid? For example, is the opportunity dependent on the development of technology that requires a few select people? What is the timeframe? As a rigorous part of the business development plan, it is important to develop these criteria customized for your specific business.

Testing Each Idea
Each idea should be tested against the several criteria critical to your business. This analysis can be embodied in a numerical evaluation, which is objective. What this avoids is the temptation to talk yourself into an assumption because of a lucrative opportunity. As with any weighted summation, the absolute value of the sum does not hold a lot of meaning. It is when two programs are set side by side, or a potential against an ideal where the sums can be compared on a numerical basis to select the best alternative. This can be a valuable tool, given two conditions:

  1. Be very careful when setting up the company criteria. Make sure it is an accurate reflection of the desire and capacity of the company.
  2. Be accurate and honest when evaluating an opportunity against these criteria.

Consistency
Consistency is one of the key benefits in using this objective type of evaluation. As times change and personnel changes, it becomes a challenge to establish and maintain consistency in the organization.

Measure of Ongoing Effectiveness
As the system is put in place and used for some time, it is important to measure its effectiveness.

Consider the process below where ideas are evaluated and framed within the entire company deployment plan. In this way many of the key elements of planning are contributing to the process.

Figure 1: Evaluation Criteria Maintenance

All in all the establishment of the product opportunity within the framework of the business is critical to long-term product success.

Portions excerpted from Marc A. Annacchino’s book The Pursuit of New Product Development ISBN-10: 0-7506-7993-X. Marc Annacchino, P.E., is owner of Marconi Product Development Institute, Inc., a company providing consulting services, contract development, seminars, and other services. He can be reached at Marconi@execpc.com.

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7.

Welcome New WSPE Members!

The WSPE board of directors would like to extend a heartfelt welcome to the following new WSPE members:

  • Travis Michael Thul, EI
    Research Assistant
    WEMPEC
    Member-At-Large
  • Andrew B. Inman, P.E.
    Vierbicher Associates, Inc.
    Southwest Chapter

New members contribute to the growth, strength and leadership of the WSPE in enhancing its recognition as a leading voice for Professional Engineers throughout Wisconsin and promoting excellence in engineering.

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