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Technology Stocks : Year 2000 (Y2K) Embedded Systems & Infrastructure Problem

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To: John Mansfield who wrote (377)5/16/1998 10:53:00 AM
From: John Mansfield  Read Replies (1) of 618
 
[MANUFACTURING] 'Y2K Concerns Move Out of the Data Center and Onto the Factory Floor

The fourth in a series exploring the
global impact of the "Year 2000
Bug" on businesses and consumers
by Ann Howe

As CIOs, programmers and
consultants pour over Y2K problems in
the data center, many continue to
overlook a serious area of concern that
lurks right under their noses -- the
factory floor. Recent research indicates
that the cost of fixing the
manufacturing problems at the
plant-level may be at least half of what
a company spends to fix overall data
center issues.

Machines on the factory floor are very
sensitive to incorrect dates - more so
than was expected. For example, a
modern pharmaceutical plant maintains
83 computer systems with three million
lines of code. Within that code are
120,000 date references with potential
Y2K problems. In addition, the plant
runs 138 automated production
systems with 400 date references plus
200 machines with embedded
software.

Manufacturers, in general, use dates
and calculations to drive many different
business processes from product
tracking and bar coding to scheduling
and monitoring. In addition, the
popularity of just in time delivery
methods and supply chain
methodology have created an
interdependence that traces its
success back to a calendar - the Y2K
culprit! Computers tell manufacturers
when components arrive, when to ship
components and when a product
should be destroyed. Date errors could
cripple a manufacturer's supply chain,
bringing some plants to a screeching
halt.

The problem on the factory floor began
20 years ago when manufacturing
found that computers could streamline
their operations, making a company
more efficient and thus more profitable.
In those early days, off-the-shelf
software was practically non-existent
so each plant developed programs that
suited individual manufacturing
specifications. The result was that
custom software ruled the factory floor.

During this time period, about half of
the software written for manufacturing
was written in Cobol. The remaining
software was written in a variety of
computing languages that might as
well be gibberish. What this means is
that although there are tools currently
to hunt for zero-zero (00) date errors in
Cobol and a few other languages, few
exist for the vast number of so-called
embedded systems.

Embedded systems are chips and
programs (not readily accessible or
even visible) which are integral parts of
control and production equipment.
Many must be decoded and fixed
individually. Repairing devices and
software programs is tricky since it is a
'given' in the industry that new program
errors will be introduced in seven
percent of routine repairs.

Compounding the problem is that many
of these programs can't be fixed
because they are inscribed on silicon
chips. In those cases, manufacturers
are forced to scrap any date driven
plant equipment. The only good news
is that these moves force
manufacturers to purchase
leading-edge products that will improve
their efficiency and overall
competitiveness.

To date, the majority of U.S.
manufacturers haven't even completed
a plantwide assessment to learn the
depth of the Y2K problem. With the
economy booming, manufacturing
plants are running three shifts, seven
days a week. Companies find it difficult
to replicate Year 2000 conditions
before they happen. Because the
factories can't afford to close down, the
solution involves testing during off-peak
hours, over planned shutdown periods
or buying expensive back-up
equipment.

General Motors serves as a good
example of how traumatic the situation
is. With over two billion lines of code,
GM is the world leader in the number of
computerized systems. As part of its
Y2K program, the company is retiring
1,700 obsolete computer systems.
Estimates to eradicate the millennium
bug at GM run between $400 and $550
million.

The severity of the problem at the giant
auto manufacturer was recently
brought to light when the company ran
a test with some of its robotic devices.
Y2K problems caused the robots to
freeze - an act that could shut down
the entire assembly line.

Misguided robots aren't the only Y2K
threat to GM's assembly line. GM, like
its competition, is worried that
suppliers who aren't in compliance for
the Year 2000 will be unable to provide
the company with the necessary
components to build automobiles. To
put pressure on suppliers, GM and
other interested auto manufacturers
formed the Automotive Industry Action
Group. The goal is to get the message
to suppliers that either they become
Y2K compliant or they face losing
some very big customers.

If you have ideas on what you would
like to know about Y2K just send them
to us via the Feedback form at the
bottom of this article. We'll try to
address your concerns in future
installments.

marketspace.altavista.digital.com
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