Author: karolina30133f14

Google and It’s Robotic Operations

Posted on by karolina30133f14

moffett_field

The Google Company signed a 60 year, 1.16 billion dollar lease to renovate three large hangars at a NASA airfield outside of San Francisco, to create a facility for research and development of robotics, aviation and space exploration. In a press release, NASA announced that “Planetary Ventures LLC, a shell organization operated by Google for real estate deals, will contribute $1.16 billion over the course of the lease, while reducing the government agency’s maintenance and operation costs by $6.3 million annually” (Lawler, 2014). Since 2013 Google acquired many companies that specialize in the production of robot, robotic technologies and other parts.  Some of these companies include Japan-based, Schaft Inc. which makes humanoid robots; US-based, Industrial Perception makes robot arms and robot vision or the Titan Aerospace in the US produces solar-powered drones. The reason why Google decided to make this investment in these facilities is due to the increased demand for industrial robots. This is a new market that is rising. Google took advantage of this, and decided to lease this site that provide Google an ability of greater production of industrial robots. The use of industrial robots that are connected to a control system enables companies to use apps to personalize the robots to perform specific tasks. In 2013 about 179,000 industrial robots were sold. Out of those 100,000 alone went to the Asian market. The largest current market for these robots is China.

The reason that there is a higher demand has to do with capacity. We talked specifically in class about capacity and determining capacity requirements. In this scenario, “a combination of rising wages and the need for new production capacity that can manufacture products to global standards is driving this demand” ( Banker, 2014). Google is an example of engaging in strategic capacity planning. They are matching capacity with the anticipated demand requirements which is the increasing demand of industrial robots in the global market. They probably asked themselves what kind of capacity they need and how much they need, which led them to decide to expand their headquarters. Google understands the technology and capacity increments. They understand the opportunity they have for change to dominate this new developing market. Therefore Google is targeting the Chinese market for industrial robots since they see the highest opportunities there. Google has already made plans to cooperate with Chinese contract electronics manufacturer Foxconn, who want to purchase 10,000 robots. Google is taking the right steps and engaging in long range planning, by addressing the needs of a new production capacity.

Do you think Google is doing a good job matching capacity with demand requirements? Do you agree with Google’s decisions to take over the operations at these facilities? Do you think robotics is in our near future?

Sources:

Banker, Steve. “Google’s Robot Strategy.” Logistics Viewpoints Logistics Supply Chain and 3PL Executives RSS. N.p., 11 Nov. 2014. Web. 11 Nov. 2014. <http://logisticsviewpoints.com/2014/11/11/googles-robot-strategy/>

Gibbs, Samuel. “Google Leases Nasa Airbase for Robots, Planes and Space Exploration.” The Guardian. Guardian, 11 Nov. 2014. Web. 11 Nov. 2014. <http%3A%2F%2Fwww.theguardian.com%2Ftechnology%2F2014%2Fnov%2F11%2Fgoogle-nasa-airbase-hangers-robots-planes-space-exploration>.

Lawler, Ryan. “Google Takes Over Operations Of Moffett Airfield From NASA, Will Invest $200M Into The Site.” TechCrunch. N.p., 10 Nov. 2014. Web. 11 Nov. 2014.< http://techcrunch.com/2014/11/10/google-moffett-airfield-nasa/>

The Deep “Down” Dark truth behind the Feather Plucking Business

Posted on by karolina30133f14

 

The North face is a popular American outdoor product company that specializes mostly in winter gear such as coats, jackets, fleece, hats, gloves, etc. It is a well-known and respected brand, yet recently it has been facing some ethical challenges in their operations. There has been a lot of controversy over down insulation. Down insulation is used due to the benefits it has of providing warmth during extreme cold weather. Yet the process of collecting these feathers is not so nice and simple. Basically many of the ducks and geese are often plucked alive, and “many of the fine feathers in comforters and puffy coats come from birds that were force-fed to make foie gras” (Stock). The North Face is one of the brands to recognize this problem in their supply chain and their goal is to create one that all customers can have a positive thought of. This relates back to our class since we discussed some of the new challenges that operations managers face, such as the increasing global focus, ethical, social responsibility and sustainability challenges. Basically companies are expected to develop products that are of high quality and sustainability. This could be seen in the actions North face is taking by changing their operations into something much more ethical, sustainable that affects everyone around the world. In the article it states, “We’re trying to change the down industry on a global level,” says Adam Mott, director of sustainability at North Face, a unit of apparel conglomerate VF Corp. “And we’re trying to create a standard that’s inclusive enough that anyone can use it”(Stock). Northface is changing its certification standard to become more environmentally focused, the birds that the feathers come from cannot be raised in harsh conditions. They need appropriate food, water and living conditions. Northface is going to have this supply chain documented clearly so that only qualified feathers will be turned into down insulation in their products. By next year a lot of products will be labeled with “RDS” which stands for “renewable down standard”. Recently a lot of other companies such as H&M, Eddie Bauer and Marmot have caught on with this major change, while Patagonia has been having clean down program for over six years. Yet the biggest challenge companies such as the Northface have to face is to convince duck and goose farmers in China and Eastern Europe, who provide most of the feathers, to change their operations and become environmentally focused, since most of the money they make, comes from meat of the birds and not the feathers. Even though there are still many obstacles along the way, Northface is following a new more sustainable path through it’s RDS program that they hope will raise consumer interest and allow them to compete with their biggest rival Patagonia.

Stock, Kyle. “North Face and H&M Try to Clean Up the Down Business.” Bloomberg Business Week. Bloomberg, 20 Oct. 2014. Web. 21 Oct. 2014.

 http://www.businessweek.com/articles/2014-10-20/north-face-and-h-and-m-try-to-clean-up-the-down-business

Do you think there are other challenges that operations managers of companies such as Northface are going to face?

Do you think by refocusing its ethical approach to down insulation and creating new standards will benefit Northface as a Company? Will the sales and consume interest increase, even though Northface will be competing with sustainable brands like Patagonia who have their own clean down program (PDF) as early as 2007?