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Technology Stocks : Perceptron (PRCP)

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To: Don C. who wrote (16)12/13/1997 9:41:00 AM
From: Richard Makowiec  Read Replies (1) of 34
 
FWIW. I have no position, nor do I intend to.

I used to work at Toyota for 6 years and now am a Project Manager/Manufacturing Engineer for a Machine Tool manufacturer in Michigan (been here my whole life). Anyway, I have been to many automotive plants in the US (All 3 Toyota, 8 GM, 4 Chrysler, 5 Ford). I am also periodically involved in meetings where Perceptron systems are discussed. Many times approved...many times cancelled (by the customer).

First part: Perceptron systems are technologically needed for quality control systems in many Auto plants. However, they are expensive initially. Many sheet metal assemblies need to be checked for dimensional integrity prior to being "Built-up" into larger assemblies..thus becoming a car. The technology is kind of new and sometimes we have cutomers who do not fully understand how it works. This is a minor hurdle...since the reputation of Perceptron usually gains approval at the Customers engineering level. This would be a department separate from the manufacturing level (like a plant manager).

Second part: Speaking of Plant managers...they are the ones which usually object strongly to perceptron systems. I have visited many plants and seen these systems disconnected. This is (IMHO) due to the lack of training to diagnose little operation quirks when it is online. Usually the production facility will choose to disconnect the system -vrs- diagnose it and bring it back online. Why? They have to make production quantities of course. This is a major hurdle for Perceptron (and it's competitors like Sammi). to overcome.

Perceptron offers the production facility a method to identify part defect trends before they become out of control and result in the rejection/destruction of costly sheet metal assemblies (remember scrap costs are high too, you just can't throw it out the window into the back of the plant...they must be properly disposed of).

Trend analysis is crucial for the Big 3 and others. If they do not train their maintenance departments properly though it is of no use. Usually the plant maintenance workers will blame the system as being "No good...had to shut it down", when a simple sensor examination, wire connector tightening, lense cleaning, re-positioning of a camera angle, investigation of the "Work piece" fixture or many other simple tasks which could have been corrected and the system brought back online in minutes.

Also, remember that Perceptron identifies a defect. This defect may have an origin from a process that is 5 feet away....or 200 feet away (eg, spot-welding machine in station # 8 out of 20 stations). Many times. Laziness of the production facility in searching for this defective station and shutting down the line also causes the Perceptron's to be disconnected. It's kind of like "sweeping it under the carpet" disconnect the unit, tell your supervisor, "It's down again". Make your production quantities and nobody knows of the defect...short term anyway. It is the easiest "Band-Aid" fix...just turn it off.

It's Saturday morning and that's about all that comes to mind right now. I'll try to post some other thoughts about this Co. if the thread believes it may be helpful to their investments in Perceptron.
Have to take my kids bowling now:):):)

Have a nice day everyone,
Rich
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