WSPE eNews

A monthly publication from the Wisconsin Society of Professional Engineers

December 3, 2007 Edition

1. 

WSPE's President's Corner

2.

Encourage Students to Apply: The Engineers Foundation of Wisconsin Giving Away Three Scholarships for High School Seniors

3.

Governor’s New Product Award 2008: Call for Entries

4.

Take Advantage of the WSPE Job Board

5.

Statute of Repose and the Safe Place Statute
By Attorney Robert J. Kay

6.

Communications: The Dynamics and Pitfalls
By Marc Annacchino, P.E.

7.

Welcome New WSPE Members!


1.

WSPE's President's Corner

I hope everyone had a nice Thanksgiving and that the holiday season is filled with good cheer. Just a quick reminder that we have a full WSPE State Board of Directors meeting on Saturday, December 8, 2007, beginning at 9:00 a.m. in Green Bay at the offices of Foth Production Solutions. Members are welcome to attend, but we ask you to please RSVP to Executive Director Nancy Short at n.short@wspe.org.

The issue of continuing professional competency (CPC) requirements for registered professionals in Wisconsin continues to move forward. On December 4, 2007, there will be a hearing before the Senate Committee on Labor, Elections and Urban Affairs on Assembly Bill 181. This bill would give the Joint Board of Architects, Landscape Architects, Professional Engineers, Designers, and Land Surveyors the authority to create CPC requirements. WSPE supports this bill and, assuming it ultimately becomes law, looks forward to participating in the process of developing the CPC requirements. We encourage our members to continue to provide input on this important issue.

I would also like to thank our newest Supporting Organization. KL Engineering has signed on as a Bronze sponsor. Thank you for your support of WSPE and all its Chapters and programs! As a reminder to organizations, the Supporting Organizations program provides a credit toward sponsorship levels based on the number of WSPE members employed by an organization – the more WSPE members in your organization, the more you can save. Please contact me at james.buggs@ch2m.com with any questions about the program.

Just a reminder if you haven’t already done so - please take a moment today to invite at least one colleague to join NSPE/WSPE. Invite them to a Chapter meeting or other society activity to help them get involved. Remember to tell them the first six months are free! It’s easy to join by visiting www.nspe.org.

Another issue that continues to make headlines is the looming shortage of engineers. Please consider making a presentation at one of your local elementary, middle, or high schools to teach children about engineering and all the exciting opportunities in our profession. As always, there are many other programs in progress at WSPE, so please contact Executive Director Nancy Short at n.short@wspe.org to get involved. Together we can have a positive impact on our profession, our communities, and the future generation of engineers. Thanks!

James Buggs, P.E.

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2.

Encourage Students to Apply: The Engineers Foundation of Wisconsin Giving Away Three Scholarships for High School Seniors

Three lucky high school seniors enrolled in an engineering program in a university will each win $1,000 soon. The scholarships are provided by the Engineers Foundation of Wisconsin, a non-profit foundation sponsored by the Wisconsin Society of Professional Engineers (WSPE). The deadline for applications for these special scholarships is fast approaching. Applications must be postmarked no later than December 17, 2007. For more details, go to: http://www.wspe.org/efw.html.

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3.

Governor’s New Product Award 2008: Call for Entries

Applications Due: Feb. 11, 2008
Evening Awards Ceremony and Banquet: Apr. 17. 2008, Kalahari Resort, Wisconsin Dells
Questions? Contact: Dale Swenson, 414-343-8452, dale.swenson@harley-davidson.com

Each year, the Governor’s New Product Award is given to participants in a variety of categories for engineering quality products that do a number of things, including save time, energy, effectively utilize engineering principles, or increase environmental health and personal safety. This state-wide competition honors Wisconsin’s leading manufacturers for their innovation. Consider applying today!

For more information, and to check out the application and the rules for entrants, go to www.wspe.org/gnpa.html.

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4.

Take Advantage of the WSPE Job Board

Looking for a new job? Curious what kind of engineering jobs are out there on the market today? Don't forget - WSPE has a job board. Go to: http://www.wspe.org/jobboard.html to check it out.

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5.

Statute of Repose and the Safe Place Statute
By Attorney Robert J. Kay

In July of this year, the Wisconsin Court of Appeals took another look at the Wisconsin Safe Place statute in a case brought by a visitor against a commercial building owner after she fell and broke her foot while negotiating a three-inch-high step that violated the state building code. Affirming the Milwaukee County circuit court, the Court of Appeals held that (1) the claim that a three-inch-high step was unsafe was a structural defect claim subject to a ten-year statute of repose; (2) the step had been in an unchanged condition for more than ten years such that the statute of repose barred the visitor’s structural defect claim, and (3) the owner did not have constructive notice of the alleged unsafe condition of the building’s step as required to support the claim for a breach of the duty to properly maintain or repair the unsafe condition.

Since the case involves the interpretation of the Statute of Repose and the application of the Safe Place Statute, it is of interest to professional engineers.

Under the Safe Place Statute, Wis. Stat. 101.11, every employer and owner of a public building is to provide a place that is safe for frequenters of that place, and every owner of a public building is required to construct, repair or maintain the building as to render it safe. The owner of a public building is liable for structural defects and unsafe conditions associated with the structure of the building. In Rosario v. Acuity And Oliver Adjustment Co., Inc., 2007 WI App. 194, 738 N.W.2d 608, the Court of Appeals discussed whether the three-inch-high step was a “structural defect” or “an unsafe condition associated with the structure.” Under Wisconsin law, a property owner must have actual or constructive notice of the defect to be liable for an unsafe condition associated with the structure of the building.

In the case, Rosario contended that her injuries resulted from Oliver’s failure to warn of the small step outside of the building which constituted an unsafe condition associated with the structure. She argued that the trial court had erred when it concluded that her claim for injury was fundamentally based upon a structural defect and consequently barred by the ten-year Statute of Repose found in Wis. Stat. 893.89.

The Court of Appeals noted that a structural defect has been defined as a “hazardous condition inherent in the structure by reason of its design or construction,” and that a property owner is liable for injuries caused by a structural defect regardless of whether it had notice of the defect. On the other hand, a property owner is liable for an unsafe condition only when it has actual or constructive notice of the condition.

The Court of Appeals affirmed the trial court’s determination that the Statute of Repose found in Wis. Stat. 893.89 barred the safe place claim for injuries caused by structural defects beginning ten years after a structure is substantially completed. The Court determined as a matter of law that because it is uncontroverted that the defectively designed and constructed front step to Oliver’s building had been in an unchanged condition since 1965, the ten year exposure period of the Statute of Repose has expired and Rosario’s claim is barred.

The Court then went on to observe that Rosario’s alternative claim was that there was a lack of markings or signs warning of the irregular step that caused her fall, and that the lack of markings or warning signs constituted a breach of duty to properly maintain or repair an unsafe condition associated with the structure. She argued that although Oliver had no actual notice, he had constructive notice because the condition of the lack of warning has existed unchanged for 40 years. The Court of Appeals noted that the record of the court proceedings established that Oliver had purchased the premises in 1999 while the accident had occurred in June of 2004, approximately five years after Oliver became the owner, a period of time much shorter than contended by Rosario. The defectively designed step was constructed in 1965 and no change to the step had been made since 1965 when it was originally constructed. The record also showed that Oliver was not aware of any modifications to the front step of the building since its purchase in 1999, there was no evidence that any building code violations were ever filed relating to the step, nor was it claimed that Oliver allowed the condition of the step to deteriorate or fail to maintain it in a safe manner. The Court also noted that there had been no accidents involving the front step of the building since Oliver purchased it in 1999.

The Court held that the lack of warning was not the cause of Rosario’s injuries but rather the unsafe condition of the short step which was the result of a design defect which was no longer actionable because of the Statute of Repose. The Court concluded:

Ms. Rosario endeavors to elude the bar imposed by the Statute of Repose by arguing that these circumstances are an unsafe condition because defendant should have warned of the step. This appears to me to be intrinsically circular logic. To accept it would be to undo the Statute of Repose. It would be tantamount to saying that an unsafe condition is created by a failure to warn of a design defect barred by the Statute of Repose.

The Rosario case evidences that our Court of Appeals is not about to allow an end run around the Statute of Repose so that claims can be brought under the Safe Place Statute by alleging that the failure to warn of the design defect amounted to an actionable unsafe condition of which the owner has notice and which is not barred by the Statute of Repose.

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 visit www.kayandandersen.com.

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6.

Communications: The Dynamics and Pitfalls
By Marc Annacchino, P.E.

BACKGROUND

Today we have more ways of communicating with each other than ever before. We have telephone, fax, e-mail, instant messaging, voice mail, video links, web links, internet, mobile wireless communications, and yet this is one of our major challenges in business.

I remember a simple definition for communications that was in my freshman Speech textbook in my first-year engineering curriculum. Simply stated, communication is that activity that creates understanding in the receiver that is the same understanding that is in the transmitter. How profound… couldn’t be simpler, right?

What we may fail to keep in mind is that much of the communications may rely on modern delivery systems; however we are still dealing with people. People have feelings, biases, and preconceived notions based on experience, fear and doubt.

Moreover, these same people are inundated with communications from all other sources. In fact, this “noise” detracts from our overall ability to lock on to any one communication and complete it properly.

Extend this to the structured workplace environment, add in interruptions, telephone calls and everything else, and it is apparent for all the transmitting vehicles: We do not have a good receiver and thus communication does not take place properly.

SETTING UP COMMUNICATIONS

The communications system can determine the effectiveness of the project participants. A communications system is not necessarily medium dependent. It is simply the bi-directional exchange of key information to enhance progress.

By definition, the communications system must effectively do the following:

  • Transfer information without distortion.
  • Acknowledge and confirm information.
  • Maintain a certain amount of security.
  • Allow a channel for meaningful feedback.
  • Create understanding in the receiver intended by the transmitter.
  • Act as a document and retrieval system.

These items require a fair amount of set up and security to work in a real development situation. In addition, they are multidimensional in that communications occur both internal and external to the company. The importance of a properly implemented communications system cannot be overstated. It will prove to be invaluable as the project progresses and as details become more prolific and harder to keep track of.

A MODEL FOR COMMUNICATIONS

Communications within a company and outside of the company occur on all levels. Consider the illustration below. There are communications within the company, through the channel, and to the customer. At all levels and in all directions, the transmission and receipt of messages, data, and decisions are opportunities for misunderstanding, inflated expectations, and inaccuracy.

We all have experimented with the game of “pass the message.” This game illustrates how a message can change its meaning or emphasis as it passes from one person to another. Consider communications between companies in which the elements of time delay and personalities and focus differ. These factors complicate the job of accurate receipt of transmitted data, as the Figure illustrates.

Depending on the stage of the transaction, there can be diagonal communications, such as sales personnel of the manufacturer communicating with the engineering or finance personnel of the customer. Also consider how many individuals a given message passes through and the degree of interpretation that can take place as it is progressing the pathway from transmitter to receiver.

Another element to consider is the security of communications both within the company and outside of the company. The heavy black lines on the illustration can serve to illustrate firewalls that prevent the breach of communications security. As we will see in the next section, the use of network communications has improved the speed of information transfer tremendously. It has also introduced a whole new set of security problems—such is the nature of progress.

Communications

COMMUNICATIONS MECHANICS

With respect to protecting intellectual property, trade secrets, and interests of the business in general, network communications cannot protect your company. There is no software, protocol, or arrangement of hardware that can make up for poor judgment on the part of team members. In order to use these tools effectively, each member of the company needs to operate like a businessperson. This means being savvy enough to know what and what not to disclose to personnel outside of the company.

If the company personnel understand the business, the threats, and the opportunities and are truly interested in furthering the business, they will conduct themselves in your best interests. If they do not understand the issues, train them quickly, or eliminate them as possible sources of information leaks.

Implement internal communications controls to be able to determine whether sensitive information is being made available to competitors or to the general market, where it can fall into the hands of competitors.

As a final note, secure people you can trust in every aspect of the company. There are no systems (electronic or otherwise) that can provide security as good as trustworthy people who have a vested interest in the business and are streetwise enough to perform their jobs and protect the company’s interests.

COLLABORATIVE COMMUNICATIONS

The following is a listing of the various levels of communications.

  • Executive-Level Communications: In this area issues such as company direction, mergers/acquisitions are appropriate here but not necessarily at other levels.
  • Product Planning and Product Evolution: Obsolescence plans, Brand Label plans, etc.
  • Product Management: Product Margins, Winners, Losers, etc.
  • Development Management: Timeliness, Cleanliness of design, quality levels, etc.
  • Manufacturing: Yield figures, Costs, Value Chain
  • Aftermarket: Parts margins, long-term product support issues, etc.

Each of the information at these various levels may be better to stay at these levels. For example, some information from the Executive level has no place amongst levels below the Executive level.

There are also communications considerations during the various phases of a program.

These phases are listed below.

Protocols for different stages of a program:

  • Beginning of program
  • Development
  • Problems resolution
  • Liability exposure
  • Loss mitigation
  • Reconstitution after a setback
  • Hotly contested competitive areas

COMMUNICATIONS BREAKDOWNS

There is one thought here: Fix them and fast. Communications is the fuel of a product development effort. If there are problems with personnel communicating, the program grinds to a halt. This happens most often when “someone” is “waiting for an answer.”

Time is of the essence. No program can “wait for a decision.” The program must be actively worked on by all where each person involved understands the importance of accuracy and timeliness in communications.

FIELD COMMUNICATIONS

The issue of field communications is quite complex, with information being processed by individuals with different agenda and loyalties.

Consider the following showing potential routes to market.

Maintaining accuracy in the message from the manufacturer through the channel to the customer can be a very difficult one. This is especially true where some of the intermediaries may have competing lines or functional replacements. As shown next the communication must be bi-directional to achieve maximum benefit. How doe the customer requirements and needs get communicated back to the manufacturer to create the next product or version of product?

KEEP CLOSE TO THE CUSTOMER AND MAINTAIN COVERAGE

This is an important point. A repeated pattern, occurring as companies grow, can cause them to become further and further removed from the customer, and the all-important dialogue that must occur between the two. The Figure shows that as the channel becomes more complex and has more and more players in it, the company can lose touch with the customer needs and feedback on product performance.

In the illustration, the manufacturer gets to the customer via several players in the channel. Each participant (CH-1, CH-2, CH-3, etc.) diffuses the information flow. This diffusion affects the outward flow from the manufacturer to the customer and feedback to the manufacturer. This can isolate the manufacturer from the market and potentially place them in a dangerous position of losing business.

Furthermore, since members of the channel are often independent businessmen, the agenda and motivation of each participant factor into the overall communications integrity.

Channel Isolation

REMOTE SALES UNITS

The remote regional offices should be tied into a network of communications with the factory, whereby information flows freely between the two. This is illustrated in the Figure, which depicts a sales organization that has several regional offices that work through remote sales offices. These remote offices can be company owned or individual businesses. In either case they get their direction from the regional sales office, and then the regional sales office gets their direction from the factory.

Networked Remote Sales Units

In this way a uniform, new product story can be diffused throughout the sales organization. Policies are communicated in a consistent format and information is fed back to the manufacturer in a consistent fashion from the regional sales office.

It is very important to have accurate and consistent information transfer between the terminal units and the regional offices and the factory. This is because new product decisions may have to be made early in the introduction to facilitate success. Given this fact, accuracy of communications cannot be an issue.

Because every product is different, and the sales route to market may vary, this model is not intended to be the single solution to all situations; however, it does illustrate the need for accurate and directed communications between the manufacturer and the remote sales offices.

COMMUNICATIONS RECORDS

Keeping the records of communication in our litigious society is an absolute must. In addition, it simply is good business practice to do so. Establishing a record of communication that is retrievable and sequential helps in negotiations, separating fact from feelings, and can be invaluable in troubleshooting problems. In fact, there could be a case made for establishing a formal communications review during a program. Since everyone is so busy, we all process communications and copy everyone on a project “just to make sure” everyone has the information. In reality, there seems to be little respect of the protocol of communications anymore. Anyone can e-mail anyone. In fact with e-mail programs, you can get sensitive information to personnel without the main distribution list being aware of it. This blind copying can help overcome political obstacles or create them.

At the beginning of a program it is essential to establish the protocol for communications and record keeping so that as each issue comes up, the announcement, assessment, disposition can be retraced if need be.

There is also the record keeping required for liability mitigation. If something should happen during the course of the product life and the company needs to defend itself in a liability suit, the retention of good records, helped in two ways. First, the actual issues and disposition if handled properly) can assist in the company’s defense or at least mitigate the damages. Secondly, the fact that the company was diligent in keeping the records in the first place goes a long way to establish credibility.

The manager should establish the protocol and differentiate it between the market issues, product development issues, and contractual issues as well as each of the various aspects.

COMMUNICATIONS OUTLINE

The following outline shows the various communications areas that one would be interested in focusing on in a development program.

  1. Internal Correspondence
    1. Sales Department
    2. Development
    3. Finance
    4. Manufacturing
    5. Quality
  2. External Correspondence
    1. Customers
      1. Account Development
      2. Action Plans
      3. New Items/Issues
      4. Problems/Solutions
    2. Agencies
      1. Qualifications
      2. Testing
      3. Agency Approvals
    3. Reps/Distributors/Agents
      1. Contract
      2. Apr/Territory
      3. Sales Goals
      4. Forecasts
      5. Issues

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:

  • Joseph D. Kolodzinski, P.E.
    Harwood Engineering
    Metro Chapter
  • Al Boake, P.E.
    Metro 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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