Crosslink Technology Inc.
Formulated Epoxies, Urethanes and Custom Cast Electrical Parts

ISO 9001: 2000 Quality System

EPOXY AND URETHANE RELATED COMMENTS & OPINIONS

This page of our web site is where we express our comments and opinions concerning various subjects relating to the Epoxy and Urethane business. Manufacturing and marketing epoxy and polyurethane products and cast components are not unlike marketing any other goods or services. Our comments and opinions reflect our experiences in the above subjects. From time to time, we also include comments on politics and other business matters that may be of interest to our readers. You may also visit our Epoxy and Urethane news page.. for additional articles.

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From the Epoxy/Urethane supplier’s point of view            October 24, 2004

It is interesting to see that whenever the economy slows, many manufacturers decide that the most important item in assuring the survival of their companies is to reduce costs by demanding price reductions from their suppliers while totally disregarding the value of each supplier or the real value of the goods and services received from them. This is true when considering epoxy or urethane suppliers or suppliers providing other raw materials.

What is wrong with this picture..? First of all, cost reduction should be an ongoing daily process, regardless of the economic climate. An unnecessary expense is unnecessary regardless of the prevailing economy. The cost reduction process must always be based on the end value, that is, the increased profit or market share which will result from it. Cost reduction must also be in harmony with and not compromise the overall manufacturing process.  

This brings us back to the value of the goods and services being purchased.

The lowest cost goods and services are not always the most cost efficient if we consider the complete process. There are many occasions where paying slightly more for a raw material will result in greater cost savings. Epoxy and polyurethane compounds, like many other raw materials, are often customized to meet specific handling and performance requirements. This is where the value of the goods and services being purchased must be carefully analyzed.

 One should consider the following key points during such analysis:

 1.      The availability of identical products or services from other suppliers

This is important since not all products are identical although they claim to be the same. The differences may be slight but the nuances could cause major headaches in the overall process. This is especially true with customized products such as epoxy and urethane compounds. Only products that have already passed performance testing should be used in the comparison.   

2.       The reliability of the available suppliers

In many cases, during the cost reduction process, reliable suppliers who deliver goods and services at consistently useable levels of quality on time are discarded for lower cost products. Previously required supplier quality certifications are ignored for the sake of cost reduction. The short term results will be impressive but the long term damage could be a disaster.

Focusing only on price instead of value is even more dangerous when comparing a long established supplier to an offering from a newcomer. Chances are that the person making the comparison was not involved in the growing pains and the difficulty encountered at the beginning of the project and believes that anyone can provide the goods and services in question at the same level of competence. For example; formulated epoxy and polyurethane compounds are difficult to duplicate precisely and the supplier's knowledge of the process at hand and reputation for consistent quality and delivery is most critical. The results could be disappointing.    

 3.       The long term plans for the goods and services being considered

The customers purchasing the finished products expect to pay the lowest price for the best possible quality. Since every business must meet the needs of its customers, it only makes sense to utilize ingredients that will consistently yield the level of quality and selling price required by the market while maximizing profits for the manufacturer.

These goals are best maintained by working with reliable suppliers who are familiar with the manufacturing process at hand and who are in the position to respond to new requirements including required cost reductions.  Since suppliers are also in business to make a profit, it is unrealistic to demand drastic price reductions unless they are accompanied by an equally drastic increases in purchase volumes or a corresponding reduction in the services required by the purchaser.  In any case, the chances are that reducing the supplier’s margins on the existing levels of business will eventually result in reduced quality or a reduction in the services provided.

4.       The support available from each available supplier 

A supplier of a particular product is usually an expert in his field. Even if he can not be considered an outright expert, he will know more about his product than the purchaser since he is involved with its application every day. On the other hand, the purchaser knows his overall process requirements better than any supplier for the same reason. The lowest cost, most efficient manufacturing processes are achieved by the purchaser stating his requirements and the supplier providing the best possible product to meet those requirements. As in the case of epoxy and urethane formulators, the supplier and customer working together often results in additional improvements upon the expected results. This process of interaction must represent value to both the purchaser and the supplier. The value must represent increased profit for both.

This cooperation must be close and ongoing in order to solve any problems encountered in the manufacture of the end product. An experienced, knowledgeable supplier, who already knows the process at hand, will have more value to the purchaser than one who lacks the required knowledge. This must also be considered in any cost reduction effort. The willingness and ability of a supplier to respond in case of problems is paramount in achieving the lowest overall cost.

The saying, “talk is cheap”, must be included in the final assessment of the cost reduction process.

Considering formulated epoxy and polyurethane products, it is extremely critical to avoid rash decisions. A product with proven performance is, in many cases, very difficult to match by other formulators. Slight changes in formulation can result in major failures in the field. The epoxy or urethane being substituted must be fully tested to confirm its performance characteristics even if the processing appears to be identical.  

Focusing only on the cost instead of the value of a supplier’s product, at the exclusion of every other factor, will produce immediate results on the bottom line but could also spell disaster later on in lost customers and market share. Cost reduction should be viewed and assessed based on the total cost of a given process. In many cases, purchasing a slightly more expensive product or service, one that eliminates steps or speeds the process or results in fewer rejects or increases the value to the customer will result in the optimum increase in profitability. Switching raw materials and/or suppliers without regard to anything else is probably not the way to go.  

“The most valuable product or supplier is not necessarily the cheapest but the one that generates the most profit for the purchaser. “ 

Crosslink Technology Inc.

Karl Egenberger.

Marketing Manager.

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What is the true cost of an Epoxy or Urethane product?

Simply put, the true cost of a product is reflected by its contribution to the overall cost of a particular manufacturing process. The manufacturing process includes all the steps necessary to produce a saleable item, preferably at a profit.

From the purchasing standpoint, the goal is to obtain suitable products at the lowest possible prices.

From the manufacturing standpoint, the goal is to obtain the best possible products in terms of quality, reliability, ease of handling and the availability of technical support in case of problems.

If the product being purchased is a “commodity”, meaning that identical products are available from several suppliers, then price and delivery are usually the deciding factors. On the other hand, if the products being purchased have special characteristics, which are required for economical processing, then the lowest priced products may turn out to be the most expensive due to the lack of features that minimize the overall processing costs.

Epoxy and Polyurethane products are often developed and/or customized to meet application specific handling and quality specific performance criteria. These products are usually the result of extensive cooperation between the customer and the supplier during the development process, each contributing ideas to arrive at the best possible product for the application at hand.

It would be a great mistake to consider these products as “commodities” unless identical versions become available from other suppliers. Purchasing on price alone could result in negating the processing and/or performance advantages, the cost of which could far exceed the initial up front savings.

In many cases, products that look to be identical based on the published specifications in fact, may not be identical at all. This is because the published test results were not obtained under identical conditions. Therefore, switching materials without confirming the performance capabilities on the final component could result in a disaster.

The true cost of a given product is:

Performance capabilities + ease of processing + selling price = total cost

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Epoxy and Polyurethane prices outlook

 The current situation:

 Considering the fact that Epoxies and Polyurethanes are oil based materials; 

1. Oil prices are hovering at an all time high.
2. Oil based raw material prices have increased in the neighbourhood of 30% in 2004.
3. The US dollar is dropping in value and will continue its slide due to the current account deficit, ever increasing debt load and the cost of maintaining internal security.
4. Manufacturers are struggling to compete with the emerging countries such as China.
5. Manufacturers are moving off-shore or outsourcing labour intensive operations to third world countries slowing job creation on the North American continent.
6. China has a great apatite for raw materials pushing raw material prices up due to the increased demand.

This is not a pretty picture. These conditions bring about serious inflationary pressures. Governments attempt to control inflation by raising interest rates making borrowing money more expensive. Manufacturers cut back as demand for goods drop due to the higher cost of borrowing. The housing market will falter as mortgage interest rates climb higher. Real property values will drop reducing the equity supporting mortgage loans. Customers will squeeze their suppliers, demanding lower prices to keep a bottom line, while suppliers will continue to face ever increasing raw material costs.

Our projections for 2005 

As costs escalate, we will see a slowing economy along with slow or negative job creation. There will be frequent incremental price increases necessitated by increasing raw material prices. Off-shore economies with their low labour costs will gain market share further reducing local manufacturing. Some governments, hurt by low cost imports, will become more protectionists, imposing tariffs on imported goods.  

We expect a tough economy, several price increases during the year and a highly competitive market.

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Now, that is customer service!!!

November 15, 2004

One of our customers placed an urgent order last week. Realizing that the shipment would not arrive on time, due to the short lead time available, he requested a partial shipment by FedEx. The product was made and shipped as requested on Friday. We monitored the FedEx shipment from home on Saturday, as did the customer. We both noticed that the shipment was stuck in Memphis. Upon inquiring as to why, we were told that FedEx lost the customs papers and, even if we faxed the papers immediately, they could not deliver until Monday which was way too late for the project. The customer asked if we could quickly make a fresh batch and courier the product directly to his plant.

We contacted our employees, they made a fresh batch on Saturday, the product was put through quality control Saturday night and was shipped as promised Sunday morning by courier.

The customer received the material in the nick of time and successfully filled his urgent order!

We thank the following people for delivering on our promise which is "Service beyond expectation". That is customer service!!!!!

Jozef Lubina

Brian Mikan

John Ulcar

Customer response:

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Why do we exist? - A question for all organizations.

This is one of the critical questions that every organization must ask itself and its employees at least once during its life time. The answer to this question requires much reflection. Surprisingly, many organizations do not ask this question and, if they do ask, frequently the only answer is "to make money".

Of course, every organization must at least brake even or make a profit in order to survive but this should be the result of fulfilling its purpose for existence. An organization must have a clear purpose and a set of unrelenting base values to be successful.

Crosslink Technology Inc. has identified its purpose for existence as follows:

"We exist to make our customers more profitable through the application of our products and services."

Although our products happen to be formulated epoxy and polyurethane compounds and components cast with epoxy and urethane, our purpose would remain even if our products changed.

From our inception, we identified our base values as follows:

> To be fair and ethical in business and with our employees.

> To provide the best customer service in our industry.

> To be recognized as the most trusted and reliable supplier in our industry.

> To be recognized as the most innovative and complete source for solutions in our area of business.

> To be profitable by making our customers more profitable through the application of our products.

It is important to our company that every member of our team understands our purpose and base values because, we believe that our existence and success depends on it.

Be aware of any organization that can not identify its purpose for existence beyond "making a profit".

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How important is the ISO Quality System?

The earlier versions of the ISO standards were product focused with the main purpose being repeatability in manufacturing. The latest ISO 9000 standards include the customer's requirements as well as the products being manufactured. This was an important change since both are critical from both the purchaser and supplier standpoint.

Under the earlier version of the standard a company could be certified if the manufacturing process was properly documented and repeatable from batch to batch. Considering an extreme case, this meant that if a company properly documented manufacturing a defective product, and followed that procedure at all times, could technically gain certification. The latest version of the standards also require that the products manufactured are useable by the purchaser.

As an epoxy, polyurethane formulator and a manufacturer of epoxy and urethane cast components, we implemented our latest ISO 9001 quality system based on the following philosophy:

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The success of any system or strategy is predicated on the ‘buy in’ and participation of all  employees. This was very much the case in implementing ISO 9001 in our company. We are in the epoxy and urethane formulating business, as well as supplying custom cast transformer bushings, insulators and mechanical components. To ensure the success of the standards, each employee had to fully understand their responsibility to our customers in order to participate in and contribute to the system. Once everyone was on the same page, achieving the desired results was inevitable.

Our goal was that the program would ultimately help our company to create a set of procedures that generate benefits beyond the quality assurance area and produce significant benefits for our customers. The purpose was not simply completing paperwork for ISO, but to develop a system which improves our internal processes in order to better meet the needs of our customers . We did not want to serve ISO….we wanted the ISO procedures to serve us and our customers.

It is imperative that companies implementing the new standards resist the urge to make things more complex than they need to be. It is often a challenge to develop and implement a system that does not result in a bureaucratic avalanche of paperwork. The required paperwork had to be user friendly in order to make the system work. Many well managed companies beginning the certification process already have most of the procedures in place to achieve ISO registration. All they have to do is organize and document those procedures.

Once the ISO procedures are in place, the tools become available to make the company a vibrant and dynamic machine, more adaptable to change and improvements. If properly utilized, ISO can become an asset to the company and can be used to simplify and streamline paperwork, improve manufacturing efficiency and reduce downtime. This applies to any organization whether manufacturing epoxies and urethanes or making widgets.

There are some who consider the possible problems and challenges encountered in the certification process as insurmountable and use the following as excuses:

• Limited resources: time, personnel, and money.
• Difficulties in hiring and having to rely on external consultants who may not understand the organization's business, resulting in a system that has little or no merit.
• Lack of executive commitment and support.
• ISO 9000 is more of a hindrance than a help for companies that want to achieve superior quality and use quality as a strategic advantage
• The certification is not an indication that the company has world-class quality or "just-barely-meeting-customer-requirements"
• In efficiency-minded organizations, this pass/fail structure breeds a just-enough-to-get-by mentality. "Why should we expend any more effort on quality if we are already passing?" the reasoning goes.

The purpose and focus of ISO 9001 is the customer; which should also be the focus of any supplier.

The following are some of the benefits of implementing an ISO quality system:

• Error reduction resulting from better systematic inspection and testing.
• Error reduction resulting from increased employee participation, involvement, awareness, systematic employee training and documented corrective actions.
• Better products resulting from better design control.
• Improved productivity resulting from planning and teamwork.
• Reduction in cost associated with failures.
• Resolution of non-conformance and adoption of corrective and preventive action in a systematic way.
• improved communications both internally and externally which usually improves quality, efficiency, on time delivery and customer / supplier relations
 

The main reasons to adapt the ISO 9000 standards are:

• To consistently satisfy customer quality requirements

• To meet government standards.
• To improve overall quality
• To increase operating efficiency
• To have a globally recognized quality system.

Successful implementation of a quality system provides significant opportunities for improved service, customer satisfaction, improved productivity, efficiency and cost reduction, all of which translate into improved market share.

Implementing the ISO quality system is a recognized method of assuring customers that they will constantly receive the highest quality products based on their specific requirements.

It is definitely worth while.

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Interesting Epoxy and Urethane related News Items.....

Ex-Bayer exec pleads guilty to chemical price fixing (DE:575200) By Robert Schroeder
WASHINGTON (CBS.MW) -- Martin Petersen, a former executive of German rubber chemical maker Bayer AG (DE:575200) , pleaded guilty to participating in a conspiracy to fix prices in the rubber chemicals market, the U.S. Department of Justice announced today. U.S. officials charged Petersen with fixing the prices of certain rubber chemicals sold in the U.S. and elsewhere during 2000 and 2001. Petersen agreed to assist the government in its investigation into the industry.

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Disturbing politics....

As a direct result of the September 11th terrorist attacks, our government in Canada has began to use what is called the "Security Certificate". This certificate allows the government to hold persons, without specific charges against them, conduct secret hearings and deport persons without anyone, including the accused, ever learning the reasons for the detention or possible deportation.

Furthermore, designating individuals as a threat to our national security is usually based on investigations conducted by the R.C.M.P. and the Canadian Intelligence Service. Both these organizations were involved in investigating the bombing of Air India. Need to say no more.....

Just a short time ago, secret hearings and trials were routine under communist and other dictatorships. According to the latest news on the radio, there are 7 individuals being held under "security orders" by the Canadian government. These are non-citizens, each considered to be a threat to our security. These individuals do not know the charges against them and their lawyers can not obtain the necessary information to defend them in court. The hearings are held in secret. This is a serious violation of human rights in a democratic society. With such powers granted to governments, all we need is a benevolent dictator.

One would believe that, in a free and democratic society, if a person is charged with an offence, the charges would be tested in open court, not behind closed doors where no one can be held accountable for any miscarriage of justice that could occur.

It is understandable that protecting our citizens and the world for that matter against terrorist attacks must be top priority. It is impossible to provide our citizens with absolute protection against terror because we live in a free and open society. Extending absolute protection would be considerably easier under a dictatorship where every individual is closely controlled. We value our freedoms and do not want to live under a dictatorship. We value our freedom and do not wish to see our democratic rights eroded because of a few uncivilized terrorists, devoid of moral values.

These are disturbing developments and we should all object to the erosion of our democratic rights. Who is really winning the war on terror?

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Pu2pu .com posts news release regarding our 3 Component Variable Hardness Urethane System

Pu2pu.com , a unique portal fully dedicated to the polyurethane industry, has posted our announcement regarding this unique product offered by our company. We thank pu2pu.com for their generosity. 

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Are you satisfied with your supplier's Tech Service?

Is it prompt?

Is it courteous?

Is it knowledgeable?

Do you get excuses?

Are you blamed for mishandling the product?

Does your supplier focus on your problem until it is solved?

Like it or not, purchasing and using industrial products will inevitably require that you obtain answers to at least one or two questions about the product or how best to use it. This is generally true for all products including formulated epoxy and urethane compounds.

The technical service provided must be knowledgeable, not just about the material being supplied but also how the purchaser would like to use it and how the final product must perform in service. Since most purchases are made either to fill a personal need or to provide solutions to problems, excellent technical service starts with the sales person promoting the product.

In the epoxy and polyurethane industry, whether the requirement is for epoxy potting, urethane adhesive, tooling resin or laminating epoxy, it is the knowledge and the innovation capabilities of the sales person that is most important. Understanding the epoxy technology and having a great deal of application experience allow for speedy solutions to the problems at hand.

Good technical sales people will frequently suggest alternate, more cost effective products and processing methods often overlooked by the customer. A reliable supplier, providing high quality technical service, will not blame the customer for mishandling a product but assumes responsibility for educating the client regarding the consequences of deviating from recommended procedures. In case of problems, the focus must be solving the issues and not laying blame for the mishap.

The quality of technical service should not be determined by the size of the purchaser's company. During the recent past, many medium size suppliers have merged to form large conglomerates. High quality technical service is only provided to key accounts overlooking the smaller customers. In many cases,  product quality and on time delivery have also suffered.

We consider the following to be good quality technical service in the epoxy and polyurethane industry:

1. Inquiries are answered within 24hrs.

2. Immediate response to customer problems.

3. Provide meaningful technical data, pertinent to the application at hand.

4. Explain any trade-offs that must be considered.

5. Maintain or have access to associated equipment and complimentary products that may be needed.

6. Assist customers in developing the most cost effective process.  

The above key points are applicable to any type of technical sales and should be the philosophy of any reliable, competent supplier.

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How important is safety when using chemical products?

Personal safety must be the first and foremost consideration in using any chemical compound including Epoxy or Polyurethane products.

We are constantly learning, almost on a daily basis, about various products being banned, taken off the shelf of supermarkets because of their recently discovered adverse effects. Widely used consumer products seem to be in the news more frequently while re-classified industrial products tend to be less publicised. There are many different products that were considered safe, being re-classified as we learn about specific hazards. Based on this, there is a chance that some materials that we consider safe today may be re-classified as hazardous some time in the future.

Therefore, it is only common sense to take every precaution with any materials we use today, in case they are declared hazardous in the future. Epoxy and urethane compounds fall into this category. They are considered relatively safe today but common sense should dictate to take the necessary precautions in order to forgo any possible future misgivings. Treating chemicals with respect and following the supplier's recommended safety instructions will go a long way to assure our personal safety. It is best to consider all chemicals, including household products,  as dangerous in order to remain on the safe side of any possible future discoveries.   

Some of the most widely accepted precautions are:

1. Prevent skin contact (use suitable gloves)

2. Prevent any type of ingestion (keep away from children etc.)

3. Provide for safe storage when not in use

4. Do not breathe vapours (use in well ventilated area)

5. Keep away from heat, flame and spark.

6. Follow any specific safety instructions provided by the supplier.

The above list is not all inclusive but it is a start in safely handling chemical compounds.

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Is the hype about Mercury an overreaction?

Some years ago we discovered that heavy metals, including Mercury, are extremely dangerous to our health when ingested. We learned about this when we saw the results of people eating fish poisoned by Mercury. Lead is another metal that falls into this category. We discovered its hazardous effects when toddlers ingested lead based paint from the woodwork in their rooms.

Many of us played with Mercury in our science classes long before anyone knew about the dangers.

In the epoxy and polyurethane formulating business, mercury is sometimes used as a catalyst. Mercury catalysts yield some extremely unique properties when combined with certain base resins. These properties are next to impossible to duplicate with any other material.

A good example of a unique Mercury catalyzed product, widely used for many years, is dental Amalgam. This is the stuff that Dentists have been using for years to fill cavities in our teeth. Millions of people are in constant contact, 24/7, with mercury catalyzed fillings in their teeth.

Since Mercury has been declared dangerous, all manufacturers, including epoxy and polyurethane formulators, have made every effort to reduce the level of Mercury contained in their materials. Many have tried to replace it totally but have found it impossible to maintain the unique cured properties.

There is a distinct probability that, with time,  we will discover other widely used products to be dangerous under certain circumstances. The best sure-fire precaution is to treat all chemicals with respect, use them in moderation, prevent inhalation, skin contact and ingestion.

The dangers are clear. We should certainly maximize our efforts to eliminate dangerous products from our environment but we must also use common sense. Treat all chemicals as though they were dangerous.      

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Gasoline prices and the Canadian Competition Bureau

Being formulators of epoxy and polyurethane compounds, the price of crude oil has major impact on our costs and the selling prices of our products.

We just received an update from one of the local law firms, summarizing the recent activities of our Canadian Competition Bureau. Among the many items, it appears that the Bureau completed examining the rapid rise in retail gasoline prices during the Spring and Summer of 2004. The Bureau concluded that there was no evidence to suggest a national conspiracy by gasoline companies to coordinate price increases, and that gasoline pricing behaviour was consistent with independent pricing actions taken in response to normal market forces.

Surprise. surprise... Did we expect a different conclusion? To a layman, it is rather surprising how these market forces appear to act exactly at the same time, literally within minutes, on all the major gasoline outlets. All the outlets must open the same barrel of fuel within minutes of each other.

Curiously, these market forces must vary between the different districts of our city but not between the different outlets within those districts.

The base resins used in epoxy and urethane formulations are oil based. The price of these raw materials have been increasing regularly, approximately once per month, during the last few months. Since the prices of these products don't fluctuate with the price of crude oil, one must assume that they are effected by different market forces although all suppliers seem to open the same barrel at the same time.

One has to wonder about how much real competition is out there in the oil industry.

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Canadian politicians show their true colour..

Remembrance ceremonies began today in the Netherlands remembering those who took part and those who fell while librating that country during the second world war. The Dutch are very grateful to the Canadians and take every opportunity to express that gratitude. This year, being the 60th anniversary of their liberation, they decided to name local streets after soldiers who gave the ultimate sacrifice during the battles. Once again our aging veterans gathered to take part in these ceremonies and visit the graves of more than 2500 soldiers buried near  the German border.

Curiously, none of our "political hotshots" are there to show their appreciation and express the gratitude of the Canadian people. Apparently, the reason for this conspicuous absence is the "political situation in Canada". To an outsider it appears that they stayed home to make sure they keep or have the best chance to take a crack at the public trough. This appears to be significantly more important than a few aging veterans or those who fell liberating the Netherlands. Regardless of the political party, they all put on a good show when it is convenient but, if there is a choice between retaining or gaining power and supporting our veterans, power wins every time. Sadly, they claim with great rigour that they must do what is best for Canadians.

Think about this and draw your own conclusions.

May 4, 2005 - Late breaking update.

It appears that the party leaders had a change of heart. Our Prime Minister announced yesterday that he would attend the memorial services in the Netherlands if the other leaders would join him. (This would guarantee an equal number of members being away from parliament at the same time.) The leader of the official opposition stated during an interview that he did not agree to suspend parliament and therefore the number of members attending is critical in view of the pending non-confidence motion. (They could have easily suspended parliament for this occasion since they don't accomplish anything other than grandstanding.)

Now all four leaders will fly to Europe and, if they are lucky, they will arrive for the closing dinner. (Integrity... doing what is right and honourable..?)

Think about this as well and draw your own conclusions.

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Who do you trust more, your physician or an airplane pilot?

Just consider this. Candidates applying to train as physicians are selected based on their academic abilities and personalities, usually evaluated by their peers. With a few exceptions, based on the bedside manner of the average physician, it appears that there is much less emphasis placed on the personality and character traits of the candidates. In training they learn standard diagnostic techniques and operating procedures which must not be deviated from. They must practice until there are no mistakes. After all the studies and sacrifices, many begin to think they know it all and know it better than anyone else.

In summary, the type of training physicians receive result in a number of graduates who are trained to follow procedures without mistakes, thinking that they know it all with relatively high egos. After all they did survive and complete the rigorous training.

The whole system is based on no mistakes. Therefore, the urge is strong not to report and investigate mistakes. In reality, due to human factors, there are two classes of physicians; those who already hurt patients and those who will inadvertently hurt patients through mistakes.

Training pilots takes a different approach. Considering the human factor, it is assumed that the pilot will make some mistakes. Critical decisions must be made during times of high and severe workload, all conducive to making errors. Taking this into consideration, most modern flight systems include redundancies and safety measures just in case an error occurs. These safety measures along with extensive recurring training make most flights relatively safe. Most incidences that occur are investigated and learned from. Operational safety is continually updated. Despite all these efforts, we occasionally hear about pilots who had to deviate from standard procedures in cases of emergency. This is when they use their talent and training to overcome the unusual. Gliding the Air Canada flight to a deserted airport when it ran out of fuel and the Air Transat flight gliding to an airport in the Azores come to mind.

We need both physicians and pilots throughout our lives. Since no one makes mistakes intentionally, would it not be better if physicians were trained like pilots? Would it not be better if physicians were free to act, do their best, even if sometimes they have to venture outside the stringent procedures and consider the available options with an open mind while constantly learning from mistakes? It is a fact that mistakes are made every day but there are egos to protect, law suits to consider all of which are encouragements to hide those mistakes thus making it difficult to learn from them. 

Just the other evening, on the local newscast, there was a great revelation about how a low fat diet, largely consisting of vegetables, has a major impact on preventing the recurrence of breast cancer. In fact this has been known for the last 50 years, not particularly with respect to breast cancer only but all types of the disease. Dr. Max Gearson had great success in this field many many years ago. Unfortunately for him, he could not follow established procedures rather, he had to develop his own in order to heal or prolong the life of his patients. This would be a real problem under our present system.

Something to think about.....    

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How is UPS serving your customers?

A number of our customers, especially those in a big hurry, request that we ship by UPS. Although we strongly recommend against this, they insist, and we act according to their wishes, usually with disastrous results.

Most epoxy and urethane compounds consist of a resin and hardener component packaged in separate, tightly sealed, metal or plastic containers. A normal shipment would consist of two containers. More often than not, one or both containers would get damaged or one container would be delivered one day with the other arriving a day later.

The damaged containers were usually punctured or severely dented to the point where the lids would release spilling the contents.

Hoping to solve this problem, we switched to plastic containers. The idea was that plastic containers have more "give" when subjected to puncture forces and of course they can not be dented. Unfortunately this did not work. The reports from UPS came back claiming insufficient packaging. Upon our inquiry, we were told that our packaging could not pass the 10 foot drop test and is therefore insufficient.

A 5 gallon (20 litre) container of epoxy or urethane weighs approximately 50 to 65 lbs (23 to 30kg) depending on the type of chemistry. To our knowledge there are not too many commercially available containers that can withstand this kind of drop containing this amount of weight.

In our experience, only the UN type containers could survive this test. The problem is that these containers are expensive, hard to open and can not be re-sealed by the customer which is a requirement during use.

Let us think about what one would expect from a courier:

1. Responsive, easy to do business with.

2. Reliable to deliver the goods on time, as promised, in useable condition.

3. Economical.

4. Helpful.

Of course, there must be some minimum standards in order for a courier to be able to fulfil these requirements but these standards must be reasonably easy to meet. Based on the above, we will continue to recommend against using UPS and try to dissuade customers if they request such shipments.

Based on our experience, this is how we rate the couriers we have used:

(1 is worst and 5 is best)

Conclusion:

In our opinion UPS is very good at delivering envelopes and small, light packages but we can not recommend them for delivering epoxy and urethane type products.

Be very careful which courier company you use for your urgent shipments because it is not worth the expense if it doesn't get there.

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Latest update on packaging for UPS

We have now been told that our steel containers are fine since they don't have to pass the 10 foot drop test. Apparently they are not placed on any conveyor belts from which they could fall. Since our last shipment in steel pails with mechanically fastened lids was damaged, we have been told to tape the lids as an additional precaution.

How do pails get damaged if they are not dropped or abused in some way?

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Will more money fix the Canadian health care system?

During the recent past, we had the occasion to visit the emergency department in two different hospitals. In both cases we experienced first hand all the horror stories that people talk about while, at the same time, hospitals are demanding more money to fix the system.

On the occasion of our last visit, there were about 25 - 30 people sitting in the waiting area with a sign on the wall stating that "If you feel your condition is getting worse, please see the triage nurse". There were 3 ambulances in the driveway with a number of the ambulance attendants sitting outside filling out paperwork.

Inside, the emergency department appeared quiet with a few nurses sitting at desks also filling out paperwork. Outwardly the department did not appear to be extremely busy. The time was around 5pm in the afternoon.

Thinking about this, one must wonder how long could it take for a physician to examine 30 people? When we visit the doctor's office or a walk-in clinic, there are always a few patients in the waiting room, sometimes 10 or 15 ahead of us. Most of the people are seen within an hour or less if the doctor is at all organized. Granted, there are no ambulances arriving at the private office but there are also fewer physicians available than there are at the hospital. So why the big difference?

In our opinion, the big difference is in the organization of each operation. The hospital is run like the government and the private practice is closer to the way a private business is run. Putting more money into badly run hospitals is like "throwing good money after bad" because it will not have any impact unless they are run more like businesses with all the associated accountabilities. The taxpayers are the share holders and there should be accountability, the same as public corporations are accountable to their shareholders. Under our publicly funded system, all a hospital exceeding its budget has to do is show up at the government asking for more funds. If they don't get the funds, they announce that the government does not care about health care and there will be longer wait times due to the lack of funds. In reality, the wait times will not change, in fact will get worse regardless of how much money is thrown at the problem.

We talk about avoiding two tear health care. In reality we already have two tear health care, as evidenced by the fact that, those who have the means will not put up with the wait and obtain speedy health care outside the country. During the recent past, many prominent government officials have taken this route. No doubt many more will as the better healed aging baby-boomers develop the need for increased health care.

If we continue to operate our present system, the time will come when all our tax dollars will be spent on health care and the wait times will still be worse than what they are today. Hospitals will still ask for donations from the public and nothing will be enough.

We must build accountability into the system by;

1. Employing business savvy administrators rewarded based on customer satisfaction within established budgets.

2. Establishing minimum levels of service that must be provided by all hospitals.

3. Regular performance reviews with all employees of the hospitals including physicians incorporating rewards based on customer satisfaction.

4. Asking for a small up front fee from everyone except the destitute when they visit the hospital for treatment.

5. Allowing private clinics to compete with our public system with restrictions on fees for service.

6. Demanding the services of physicians graduating from taxpayer subsidized programs for a specific period of time at assigned locations. 

Think about it. Is there another way or should we be throwing more money at what we presently have?

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Is terrorism threatening our freedom?

The terrorist bombs that killed over 50 people in London, England raise questions regarding the freedom we enjoy in democratic countries. These terrorist groups, able to convince people to become suicide bombers, intolerant of people who do not follow their religious beliefs, are creating havoc in free societies around the world.

Well intentioned, democratically elected governments, wanting to protect their populous, are enacting more and more new laws in the name of national security. Many of these laws are taking away personal freedoms and create secret government agencies with  powers that override existing laws that guarantee our freedoms. Eventually, if things continue to develop the way they are now, all we need is a "benevolent dictator" to come along. He or she will have all the laws in place to implement a one party system.

We must realize that, no matter how many laws we develop or how many video cameras we install, non can ultimately prevent terrorist attacks. Granted, the new laws and video equipment will allow us to hunt down the culprits in a swift manner and arrest them. Unfortunately, arresting them or killing them will not solve our problems although revenge is called for. As one American soldier, who just returned from Iraq, put it during a television interview "every time I kill one, we create 3 others". This comes back to the eye for an eye philosophy. If you kill my son, his father and brothers will be trying to kill you. As Ghandi said, "an eye for an eye and the whole world will be blind".

The problem is worse if the terror is based on blind, unquestioning religious or political beliefs. Especially if those beliefs include going higher in heaven by killing as many "non-believers" as possible and that killing the "non-believers" is really doing them a favour.

It is a very good thing that not all religions of the world hold this view, otherwise there would be mass murder all around us. Certain religions have become cultures and rule several countries. The countries ruled by religious sects, in most cases, do not want democracy as we know it. No matter how it looks to us from the outside, their populous is largely satisfied with the way things are, otherwise they would revolt as some east European countries did against communism. Imposing our system on these countries spell trouble and result in increased terrorist reaction against us.

We are beginning to see laws passed in the name of national security which are dangerous to our freedoms. Various people are held as suspected terrorists, not knowing the charges against them with their fate being decided in secret trials. The problem with this is that the trials are secret or there are no trials at all. This is routine procedure under dictatorships and should be frowned upon in democratic countries. There should be demonstrations against these trials but instead, our population at large is quite receptive to these laws in order to be protected from terrorist attacks. Many take the position that "I have nothing to hide, so let the government monitor my movements, bank transactions or anything else they wish to monitor". Someone reflected on what happened during WWII in Germany by saying; "when they came for the foreigners I said nothing, when they came for the dissidents I said nothing and when they came for me there was no one left to say anything".

Detentions and secret trials are even more scary when one considers the organizations entrusted with carrying out these tasks. What if these organizations are basically incompetent? What if the charges presented to the secret courts are based on hearsay without facts? What if they are influenced by pure politics? There have been several examples of these shortcomings during the recent past and there is no reason to think that the problems have been corrected. The problem is, we don't know, can't judge, because the trials and detentions are secret!  Even worse, the falsely accused have no recourse due to "national security".

More recently, various governments have decided to compile lists of "suspected terrorists" to ban them from flying on airplanes. Moreover, they plan to "tighten the security" on public transport systems, search back-packs and brief cases for explosives and install metal detectors. Furthermore, there will be laws to prevent people from "inciting terrorist acts". Who will decide what constitutes "inciting terrorist acts"?   Who decides which names go on the lists? What if they make a mistake? Where is this information stored and who has access to it now and in the future? What is the cost of all this?

Whether we like it or not, our fate seems to rest in the hands of a few, misguided lunatics who, by threatening to blow us up, are able to dictate how we live our lives and erode the freedoms we enjoy in free societies. 

Thinking about all this, one has to wonder, who is winning the war on terror?

Could we win the war if we gave up all our civil rights and leave our destiny in hands of our government?

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From the archives of Patrick Cain

What’s new today?

Some really neat things happen, working for a company like Crosslink Technology Inc..

For example, you get a call from a company that wants to make an epoxy floor tile.  Well we certainly can’t sell epoxy to a manufacturer that will compete in the flooring industry.  Must be something unique about this tile.   

We get together & discuss the challenges and go from there.

Lets make it hard. And Yellow. And very strong.

Lets cast raised sections within the tile, so it is obvious through touch that your feet are on or approaching this new tile.

Not too big a challenge for a company like Crosslink. Another successful prototype then on to the next challenge.  Like how can we stick these tiles in place and be ready for traffic in a couple hours?

Traffic?  Commuters.

Rush hour traffic in the subway must count as traffic.

You ever notice the yellow rows of tiles approaching the tracks?  I notice them every time I ride the subway in Toronto. And every other movie I see, where a subway is the location. New York subway? Sure, but it all started here in Toronto.  And Crosslink Technology Inc. got to be part of it.

Big Deal?

It is to the people that see pretty poorly, or not at all, and need to know when they approach the tracks.

Not bad eh?

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The price of dismissing customer complaints out of hand..

It is surprising how many suppliers assume that they can do no wrong. The better suppliers, when they receive a customer complaint, will look at their own internal specifications and, if they find no obvious defects with the material being supplied, will tell the customer that the problem is likely in the way they use the product in question.

This is not only true in the epoxy and urethane formulating business where subtle differences can occur in some chemistries but can take place in just about any manufacturing industry.

Let us think about this. One must assume that a customer will not complain just to pass the time of day or because there is nothing else to do. Most complaints are genuine and are made because something is wrong or at least different from what the customer is used to. If one is to accept this fact, then it follows that the complaint is the result of at least one or a combination of the following:

1. The product being supplied is in fact defective or out of specification in some characteristic that is important to the customer.

2. The supplier has failed to sell or impress the customer on the consequences of mishandling the product at the time of the sale.

3. There have been some subtle changes occurring in the product itself or the way the material is used or processed by the customer.

All of the above could result in a legitimate complaint and all of the above would be, in large part, the fault of the supplier. Regardless of the complaint, the bottom line is that the customer is unable to use the product in question the way it was intended. Dismissing such complaint out of hand will cause the customer to struggle for awhile and, sooner or later, will cause him or her to seek a better product elsewhere.

The lesson must be that no complaint is groundless and when a customer has a problem the supplier also has a problem. The best suppliers will take all complaints to heart and work with their customers until the problem is solved no matter what the cause may be.

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Selling Product Benefit vs. Price

All products are purchased to obtain a certain benefits. The benefit could be solving a problem or satisfying a need. The price the purchaser is willing to pay for a given product or service depends on the value of that product as perceived by the purchaser.

The perceived value will depend on what benefits are important to the buyer. This is true in retail as well as industrial sales. After careful determination of the customers' needs, the sales offer must be made in terms of "if you buy this product or service, you will obtain these benefits". To be successful, the "benefits" portion of the offer must meet or exceed the customer's needs.

The most difficult part of the sales process is being able to determine precisely what benefits the customer is looking for. Without this knowledge, it is not possible to present the customer with the advantages a given product may possess over another or there is a probability that the feature being promoted may not be considered important by the purchaser. The focus usually shifts to the selling price when none of the available products or services completely satisfy the benefits the customer is looking for or if all the available products have the same benefits.

Every product has some unique perceived benefits otherwise it would not exist in the market place. It is being sold because someone perceived it to be valuable either based on its own merits or based on the way it is being delivered.

In technical sales, it is surprising how often sales people do not understand  exactly what the customer really needs. Frequently they are unable to explain the true purpose of the customer's product or the way the customer would like to manufacture it. Being unfamiliar with the needs of the customer, the sales process usually shifts to focusing on the technical details of the product being offered rather than satisfying the needs at hand. Lacking such understanding, the focus inevitably shifts to the selling price as the deciding factor. In these cases, it is not possible to promote the advantages of a given product or service because we do not know what the customer considers as value.

Although price can be an advantage, it is usually short lived because someone will soon sell for less. Misleading or "ripping-off" the customer will also lead to short term sales.

The best sales efforts are composed of "win/win" propositions where the benefits offered meet the perceived needs of the customer at prices that reflect those benefits. Customers will frequently pay higher prices for products that meet or exceed their needs which, in the case of technical products, also lowers their overall manufacturing costs thereby increasing their bottom line profits.

Even commodity type products can be sold on advantage through better availability, packaging or delivery all of which are valued by many customers. More unique products such as epoxy and polyurethane compounds, marketed by our company Crosslink Technology Inc. , must be developed and promoted based on the needs of the customer.

In conclusion, every product or service has one or more advantages that, when matched with the customer's needs and properly promoted based on those needs, will sell based on advantage rather than just price. The most important phase of the sales cycle is identifying the customer's value system by carefully listening and precisely assessing the needs at hand. 

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What are the benefits provided by a product or service?

The short answer is; it depends on what the customer wants from the product or service he or she is looking for. This is where the salesperson's ability to listen comes into play. The customer must be given a chance to describe his/her requirements and the sales person must listen intently. Given the chance, the prospective customer will provide 99% of the required information concerning what he/she hopes to obtain from purchasing the product or service. The benefits described may be tangible or  intangible based on the customer's perception.

In the case of epoxy or polyurethane products, a tangible benefit would be that the product will protect a particular device while an intangible benefit may be that the product is easier to use than employing other methods to achieve the same result. The main focus of the sales process must be to define the benefits sought by the customer.

Customers buy benefits and not product features. The "what is in it for me" syndrome.

Sales people often make the crucial error of promoting the features of a product without really knowing what the customer hopes to obtain from the purchase.

A good supplier, in our case an epoxy and urethane formulator, will recommend or develop a product having the features or characteristics that will provide the benefits the customer is seeking. In fact, the features or characteristics of the products offered will largely depend on the customer's perception of what is important.

Of course, especially with technical products, it is rarely possible to supply everything the customer desires. There are usually some trade-offs. The goal must be to fulfill the most important benefits and present the other advantages the candidate product can provide that the customer may not have considered previously.

Frequently, especially in technical sales, the customer will approach a supplier with a set of desired product characteristics and the supplier attempts to provide those characteristics without knowing the real desires of the customer. Unless the customer happens to be an expert in the supplier's products, chances are that he/she has assumed that the only way to obtain the desired benefits are through products having those specific properties. This often leads to a lot of needless work by the supplier. It would be much better to define what the customer hopes to obtain from the product and provide one that will most closely match the desired end result, even if  the specific characteristics are different from those specified by the customer.

A somewhat valid example of this is a person buying an expensive drill. He really does not need a drill, he wants to make a hole in something. If we can find out the details of what he wants to do (the material he wants to drill, the size of the hole etc) we may be able to provide him with an easy to use, inexpensive hole punch for the task. In this case, he specified the drill because he believes that it is the only way to make a hole. Taking him at face value we would just provide the drill but if we question him regarding the task, we may suggest the hole punch.

The ability to listen and precisely define the customer's desires followed by emphasising the product features and characteristics that support those desires is crucial in a win/win sales process.

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Don't stop on the first page if you are searching for industrial products!!

In a "nut shell", search engines are not real smart when it comes to technical products. It appears that some of the best, most complete web sites have the lowest "rank" probably because they have not been "optimized" for search engine marketing. They have not been stuffed with "key words" to the point where they don't make sense and have used very few slogans to promote their products.

It appears that the prominent search engines, although they all strive for meaningful results, are much better in determining the quality, and therefore ranking, of retail oriented web sites. It is much easier to rank at the top if you are selling shoes than if you are selling industrial products.

Technical web sites are much harder to rank because they contain technical phrases which are searched less frequently than the more common phrases used in retail. This makes technical content harder to find, often having to peruse a large volume of information before obtaining the desired answers.

Our web site, www.crosslinktech.com  is full of technical information concerning formulated epoxy and urethane products yet our ranking is the same as similar sites that do not have a lot of helpful content. We do not expect this situation to change real soon and we therefore recommend that people looking for technical information look past the first few pages of listings, no matter which search engine is used to find information.

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Last modified: June 20, 2007