WSPE eNews

A monthly publication from the Wisconsin Society of Professional Engineers

February 1, 2008 Edition

1. 

WSPE's President's Corner

2.

Engineer’s Week Feb. 17-23, 2008

3.

Governor’s New Product Award 2008: Entries Due Feb. 11

4.

Symbiont Seminar on Phosphorus Removal from Wastewater Feb. 28

5.

Competitive Bidding in Public Projects and the Qualified Bidder
By Attorney Robert J. Kay

6.

Engaging the Customer
By Marc Annacchino, P.E.

7.

Welcome New WSPE Members


1.

WSPE's President's Corner

I was just reading through some past issues of WSPE eNews and I noticed some common themes, mostly related to encouraging members to take an active role in their professional society. I especially encourage you to visit the eNews archives at http://www.wspe.org/enews.html and read the President’s message from the March 2007 edition.

We are privileged to be part of one of the noblest professions on earth. The things we engineers accomplish improve the quality of life for people all across the globe. But being part of this profession places certain obligations on us. For example, we need to keep current on the state of the practice in our areas of expertise and we need to encourage young people to become engineers and pass on what we know so the profession can continue to grow. We also need to take an active role in professional societies and politics so we can help influence laws and public policies affecting the engineering profession.

Fortunately, WSPE offers opportunities for our members to do all of this and more. As Engineer's Week approaches (February 17-23, 2008), please consider making a presentation to some school children, or attending an engineering meeting, or helping out with your regional or state MATHCOUNTS competition, or nominating a fellow engineer for an award, or joining a WSPE committee. Most importantly, please consider becoming an officer at either the chapter or state level. All of these activities benefit the engineering profession and the people we serve, but becoming an officer also opens up a world of opportunity for networking, learning new skills, traveling, and influencing the direction of WSPE. It also paves the way for becoming a leader at the national level.

Here is a quick update on legislative issues. Assembly Bill 181 authorizing the Department of Regulation and Licensing (DRL) to create rules for mandatory continuing professional competency has passed the Assembly and Senate and is awaiting signature by the Governor. Once this becomes law, WSPE plans to work closely with the DRL to help develop fair, relevant, and reasonable requirements. Your input will be critical, so please start thinking about what you would like to see.

Assembly Bill 69, which changes the allowable paths to engineering licensure, has passed the Assembly and is now in the Senate. Assembly Bill 553 requiring Quality Based Selection (QBS) for certain public works projects is currently with the Committee on Urban and Local Affairs. The Wisconsin State Bar Association petition to the Wisconsin Supreme Court regarding establishing a definition of the “practice of law” is currently in a comment period after a public hearing in December. A proposed amendment to the definition would exempt professionals already regulated by the DRL. Please contact Bob Givens, P.E. at bob.givens@omnni.com or 920-830-6171 for more information about any of these issues.

Our organization is only as strong as the people who belong to it and who take an active role in governing it and delivering its programs. We need everyone’s help to continue to be an advocate for the engineering profession and to have a positive impact that goes beyond just doing our jobs. Please contact Nancy Short at n.short@wspe.org or 414-908-4950 x135 for information about WSPE programs, volunteer opportunities, or officer positions. In closing, I would like to thank everyone who has participated in WSPE activities so far this year, including our Supporting Organizations, and welcome all the new members who have joined WSPE. Thank you!

James Buggs, P.E.

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2.

Engineer’s Week Feb. 17-23, 2008

“Engineers make a world of difference”—this is the theme for the 2008 celebration of engineers and their dedication to making the world safer, healthier, more exciting and more efficient. Go to www.eweek.org for more information on this special week.

Just one of the highlights of this week includes the Future City Competition. The mission of the National Engineer's Week Future City Competition is to provide a fun and exciting educational engineering program for seventh- and eighth-grade students that combines a stimulating engineering challenge with a "hands-on" application to present their vision of a city of the future.

Free engineer/volunteer kits are available to give you ideas to celebrate this special week. If you've participated in Engineer's Week before, it's likely you received a printed volunteer package. The printed kit consists of a folded 2008 poster, including 3 classroom activities printed on the reverse side, a one-page program FAQ sheet/DiscoverE summary, an evaluation form for students and teachers, and printed Product Catalog. There is no charge for this kit; limit one per order. Order online, by mail or telephone: 412-741-1393.

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3.

Governor’s New Product Award 2008: Entries Due Feb. 11

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.

Symbiont Seminar on Phosphorus Removal from Wastewater Feb. 28

Feb. 28
West Allis, WI
9:15am-5:00pm

Stringent USEPA water quality nutrient criteria (values as low as 0.01 mg/L for phosphorus) have sparked major interest in nutrient removal to very low levels. Phosphorus removal from municipal and industrial wastewater is a hot topic for wastewater treatment operators and regulators. This seminar will provide the technical principles of phosphorus removal followed by real case studies. This seminar is open to anyone involved with wastewater treatment. A team of expert professionals has been assembled as presenters. 6 credits will be provided for WI Wastewater Operators for full-day attendance.

Please RSVP by Feb. 11.
A block of rooms is set up at the Ambassador Hotel 414-345-5000.

Go to www.symbiontonline.com/wwseminar for more details.

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5.

Competitive Bidding in Public Projects and the Qualified Bidder
By Attorney Robert J. Kay

Competitive bidding is usually required as a matter of law for the construction of public buildings. The process of competitive bidding contemplates the availability of completed plans and specifications upon which each bid is based. Consequently, nonconforming bids are usually rejected because strict adherence to the plans and specifications is contemplated in order to have a common standard upon which all bids can be judged. There is no doubt that competitive bidding will not function successfully unless bidders have a sense of confidence in the system. The preparation and submittal of bids is a complex, expensive undertaking and bidders wish to be reasonably assured that they will be treated fairly, consistent with the rules of the game announced in the invitation for bids.

From time to time, inexperienced bidders desire to bid on a competitive bid project. Professional designers know that not all bidders are qualified to perform the work which is the subject of their plans and specifications. Accordingly, prequalification of bidders is an essential step in assuring both public and private owners who are engaged in procuring competitive bids that the bids represent a meaningful offer to perform the work specified for the price bid.
Public construction projects are subject to the provisions of §§16.85 and 16.855 of the Wisconsin Statutes. Section 16.855(9) states:
(9) The department may require bidders to submit sworn statements as to financial ability, equipment and experience in construction and require such other information as may be necessary to determine their competency.

The Wisconsin Department of Administration administers §§16.85 and 16.855 of the Wisconsin Statutes relating to engineering and construction of public buildings. It has promulgated administrative rules which are known as Chapter Adm 21 that relates to the advertising, bidding and award of construction contracts. In Adm 21.02 various definitions are set forth in these administrative rules, including (7) which defines, “Lowest qualified responsible bidder.” Those provisions are specific and numerous. Consequently, I believe that they should be reviewed from time to time so that design professionals and contractors are fully informed about who is regarded as a qualified or responsible bidder under the Wisconsin Statutes governing construction by competitive bidding. I set forth the entirety of Adm 21.02(7) in this article:

(7) "Lowest qualified responsible bidder" shall be defined to include all of the following which must be met to be considered for award of contract:

  1. Lowest bidder. The lowest bidder is one whose bid contains the lowest total dollar amount when compared with other bids submitted for the same work. Should the specifications require evaluation of other factors in conjunction with lowest dollar amount to determine the lowest bidder, a formula shall be specified which will permit the conversion of evaluation factors to a dollar value.
  2. Qualified bidder. A qualified bidder is one who meets the following conditions:
    1. Has completed one or more projects of at least 50% of the size or value of the division of work being bid and the type of work completed is similar to that being bid. If a greater magnitude of experience is deemed necessary, other than size or value of the work, such requirements will be described in the specifications.
    2. Has access to all necessary equipment and has organizational capacity and technical competence necessary to enable performance of the work properly and expeditiously.
    3. Consideration will be given to associations consisting of 2 or more contracting firms organized for the purpose of entering into a construction contract as a single entity, providing the assignment of and provisions for continuity of the various responsibilities within the association are agreed upon prior to award of contract and further providing that either of the individual firms constituting the association is qualified as defined herein.
    4. In the event that the project is of such magnitude as to limit competition as a result of the conditions established for qualification, the department may waive the condition for bidder qualification.
    5. The department may require bidders to submit sworn statements as to financial ability, equipment and experience in construction and require other such information as may be necessary to determine their competency. Bidders failing to submit required sworn statements shall be deemed not qualified.
  3. Responsible bidder. A responsible bidder is one who meets the following conditions:
    1. Maintains a permanent place of business.
    2. Provides a sworn statement upon request, which evidences the bidder has adequate financial resources to complete the work being bid, as well as all other work the bidder is presently under contract to complete.
    3. Is bondable for the terms of the proposed contract.
    4. Has a record of satisfactorily completing past projects. Criteria which will be considered in determining satisfactory completion of projects by contractors and subcontractors will include:
      1. Completed contracts in accordance with drawings and specifications.
      2. Diligently pursued execution of the work and completed contracts according to the established time schedule unless extensions are granted by the owner.
      3. Fulfilled guarantee requirements of the contract documents.
      4. Established and diligently maintained a satisfactory affirmative action program in accordance with the contract provisions.
      5. Established and diligently maintained a satisfactory safety program in accordance with the contract provision.
    5. Is not presently on an ineligible list maintained by the department of administration for noncompliance with equal employment opportunities and affirmative action requirements as provided for in s. 16.765(9), Stats., or on any other agency list for construction related violation of statutes or administrative rules.

Although competitive bidding in non-public projects is not required by law, similar provisions regarding the definition of “lowest bidder”, “qualified bidder” and “responsible bidder” are often found in bid invitations for non-public projects.

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.

Engaging the Customer
By Marc Annacchino, P.E

In any business endeavor, the “Market” we always refer to is a collection of customers. Sometimes this “collection” is large, homogeneous in their preferences, and predictable. Sometimes they are small groups, splintered and with differing needs and wants. In order to sift out market opportunities for new products, we must “Engage” these customers.
Let’s look at some of the ways we can do this……………

Interviewing

Although it is only one of the primary means for market investigation, interviewing is such a valuable technique. If approached properly and under the right conditions, the customer is the most accurate means for assessing your company’s products and their standing in the marketplace. If you listen and attempt to internalize what the customers are telling you in an interview, they will communicate most if not all of the qualitative data you will need.
When conducting an interview, it’s best to review the customer’s company operations, first. This will give you a feel for the operation and how this customer makes money. It will also give you a perspective on how your company and its products will fit into the overall plans, as well as determine the legitimacy of the respondents’ comments by materiality. The interview will allow you to discover latent needs that the customer may not readily know they have. This generates the opportunities for new product ideas.

It’s best to have samples, models, examples, and props to enhance the exchange and draw out response. Do not be averse to broaching issues that may be controversial (pertaining to the subject matter at hand), because this will give perspective on the attention level of the respondent and his or her biases, and will yield perspective on other comments.

Now that you are talking, let’s actually communicate………..

Directly Engaging the Customer

As part of the visit you will want to engage the customer in a frank discussion about their business, its driving forces, its vulnerability, and how they navigate the competitive threats to find success. This discussion should be a free and open exchange. To have a real appreciation for the customer and their needs, it becomes necessary to understand their business.

The process of customer engagement consists of 3 basic themes as outlined below:

First: Listen To The Customer. You have created the venue for an exchange, so take the time and energy to really listen, not sell.

  • The customer has an issue or problem to resolve. Recognize it!
  • This is why you are here to pick up on subtleties and act accordingly.
  • The customer is not predisposed to your solution; so do not try to convince them at this time.
  • The best evaluation of competitive standing is to remove yourself from the sales arena and place yourself at the customer’s perspective and evaluate all alternatives.

Secondly: Move the interchange to a Process Of Discovery

  • Conduct a Dialog, not a sales presentation!
  • The interchange should be a mutual process of discovery.
  • The probes for conditions, customer alternatives, acceptance scenarios and prerequisites.
  • Understand and framing the customer’s business, alternatives, decision breakpoints and their product pathways.
  • Determine and reduce the information to flowchart and breakpoints.

Finally: Look For The Hidden Opportunity for your company

  • How can your company create a product or service that enhances the customer’s ability to pursue their market more effectively?
  • Discovery should produce the customers and hidden opportunities, competitive situation, and threats to securing the business.

To get started, consider the following as a framework for an initial discussion:

You may want to use the following points to engage the customer. These discussion interrogatories are open-ended and require thought to create mutual understanding.

What are the areas in your organization that currently fall short of skill set and performance index required to achieve your business vision? Who, what, where, how, and why? This allows for an open-ended forum between you and the respondent. It allows you to draw out complaints initially, and then to get specific ideas on the table for discussion. Share your company’s experiences also.

From a historical perspective, what are you doing about them? This determines the commitment level of the management and the organization to change, and to the strategic vision.

What is your business vision? This is a good test to determine if the organization has established a vision and if it has filtered down through the organization.

What operational or product changes are you making to achieve this result? Again, this determines the effectiveness of the management structure to effect change toward a specific goal.

What do you need to make operations easier, more efficient, to increase output, and to exercise better control? This open-ended discussion allows the respondent to identify any latent needs in the organization.

If you were asked to double output with the same resources, what would you expect to be required to achieve this? This removes the specter of the status quo and forces the respondent to push performance of the organization. It helps the respondent to identify future needs.

What is currently considered impossible or impractical, but if you had access to it, you could increase effectiveness? This question allows the respondent to dream of a future workplace and identify latent needs to achieve it.

What do you look for in a supplier? This identifies the customer’s expectations.

How can we become a preferred supplier to your company? This determines if you have a chance at the business and the account.

What are your critical competitive pressures? This allows you to determine a way to partner with them.

The key to identifying the potential new product is to synergistically combine all of the ideas and requirements into the tangible improvement of the next-generation product.

Surveys and Customer Feedback

Surveys and customer feedback should not be conducted only at the onset of a program. These need to be an integral part of the process of refinement, product evolution, and subsequent product developments. Never get too far away from the customer because this will lull an organization into complacency, or worse, remove the feedback loop in the process.

Extracting the Opportunity within the Complaint

The customer grants a significant favor to you by their complaint. Your company may have sold them something that fell short of their expectations, and they thought enough of it to complain. We as market and product development professionals may not like or want to listen to the complaint; however, there is a lot to be mined out of one. In effect the customer is telling you what you did wrong.
If one evaluated the leverage of the situation, a single complaint is worth quite a bit to the organization if you are going to do something about it. If you view it as a nuisance, then it has no value; however, if you plan on changing to meet the customer’s expectations, then it has great value. In other words, how many other customers who didn’t complain would have to stop buying from you for you to lose enough market share to notice? How many customers would you have to survey to find out what this one complaining customer is telling you directly? Clearly it is a valuable means of feedback.

Exchange of Knowledge and Experiences

During your discussion, it is critical to establish an open and free exchange of ideas, problems, and opportunities between the two companies. Establish a spirit of cooperation at the management level and drive it through the organization. Create the atmosphere of going after a market opportunity together, with each contributing a portion of the talent and effort to get there. Constantly look for how the two companies can both profit from the market segment, since very few companies are absolute leaders in a market with a position strong enough to dominate and affect control of the segment by themselves.

Establishing the Rapport, Expertise, Assistance, Improvement, and Authority

This exchange should establish a lifelong rapport between the personnel of the businesses that will transcend any minor market fluctuation, upset, or competitive thrust. Your actions need to position you as an indispensable partner integral to your customer’s plans. Make sure to plug the customer (now your partner) into your organization. Balance the sacrifice you will make in availing the customer of your resources with the positioning of indispensability within their organization.

Correlating the Data

Examine the responses carefully and group the data into some meaningful way to draw product conclusions from it. Look for product configuration patterns in the summary of data so that product planning can serve the market with the proper product.

Does the data received make sense with other information gathered? Has the data been corroborated in some way to substantiate the results and accurately draw conclusions? Did you notice any conflicting data that would require more research? Summarize it in some kind of a spreadsheet to allow viewing and sorting of the data. Organize it for eventual presentation to management. The results should tell the story of the opportunity to management.

Testing the Data

Finally, test the results and the data supporting the conclusions by visualizing the product available for sale today. Evaluate how it will sell in the marketplace today. Would it sell? Why or why not? Visualize the product selling in the future, project the future market needs, and (after development time has elapsed) determine if it will still sell or if you would have lost the window of opportunity. Do the results of this reinforce that you are targeting the right generation of product?

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:

  • Scott R. Grasse, P.E.
    Engineering Manager
    CMD Corp.
    Fox River Valley Chapter
  • Brust J. Robert, P.E.,
    VP
    Harwood Engineering
    Metro Chapter
  • David M. Ahern
    Construction Project Manager
    RMT Inc.
    Metro Chapter
  • Maria A. Schlicht
    QA Electrical
    Astronautics
    Metro Chapter
  • Jon P. Blomquist, P.E.
    KL Engineering Inc.
    Wisconsin Valley 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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