Electronic Controls and Communications

1. Electronic Controls and Communications

2. The Global Challenge Of Strategic Standardization Management Alec McMillan Rockwell Automation Director , Global Standards & Trade March 23rd 1999

3. Agenda • Who is Rockwell • Market Trends • International Standards, and • One-Standard-One-Test-One-Mark • Components Of A Standards Strategy

4. Rockwell An electronic controls and communications company holding leadership positions in its global markets Industrial automation controls — #1 in North America Avionics & communications equipment — used by every major airline worldwide Leading supplier of customer call center systems

5. A Family of Brands More than 350,000 industrial control and system solutions Additional 150,000 motor- and control-based solutions Mechanical power transmission equipment Programming, man-machine interface, communication and component software solutions

6. Wide Range of Industries Forest Products Printing Automotive Oil & Gas/HPI Fibers Tires Cement Machine Tool Transit Food & Beverage HVAC Entertainment Mining Packaged Goods Semiconductor/ Electronics Material Handling Packaging Applications Metals Water/ Wastewater Transmission/ Distribution Power Generation Pharmaceuticals/Health Care

7. Hierarchy of Rockwell Participation MGMT First Priority STANDARDS OVERSIGHT Commercial Participation TC SC SC AG SC WG Only when commercially justified WRITING OF DRAFT STANDARDS Technical Participation WG TF TF WG WG WG

8. Important Benefits • Important benefits to Rockwell available only through participation in the standards and certification processes worldwide: • Uninterrupted product flow • Prevent product obsolesce • • Determine the content of the standard by influencing the definition of: • Intended purpose • Conformance criteria - Certification • • Early warning • • technology transfer & market cooperation • Rate of standards development • • And, as described in to IEC/ISO Guide 2, determine the attributes of the standard by influencing standard content on subjects of – • • Variety control • Interchangeability • • Compatibility • Economic performance, Usability • • Mutual understanding •Trade, removal of NTBT • • Protection of the environment, Health and Safety

9. Public Standards Participation IEC ISO NEMA IEEE CELELEC EEMAC EIA CANENA NCMS DIN ISA VDE ANSI BSI NARM SCC ASTM CSA NFPA U.L.

10. Resource Deployment

11. Agenda • Who is Rockwell • Market Trends • International Standards, and • One-Standard-One-Test-One-Mark • Components Of A Standards Strategy

12. Some Key Trends & Forces • Products & Technology • Open System and System Accessibility • Merging Technologies • Integrate control and information • Integrate communications - -LAN/WAN wire and wireless • Focus shifting from products to solutions • Product Regulations & Market Needs • A standard is only as good as the market it protects • Intentional restriction of Conformity Marks availability • Trade Agreements and Customs Unions controlling product flow • “Worse regional case” will become global minimum • PAC-Rim and LA are maturing their regulatory systems

13. Some Key Trends & Forces • Regionalization of Trade is increasing (representative listing): • Mega-Regions: APEC, FTAA • Multi-National Regions: EU, MERCOSUR, ASEAN • Inter-regional Agreements: MERCOSUR and EU

14. Some Key Trends & Forces • Expanding Markets - Western Hemisphere & Pacific Rim • Opening of previously closed markets (e.g., Mexico, China) • Largest market growth potential • Regionalization of Standards Activities is Increasing • Each regional trade group has at least one regional standards group • MERCOSUR MERCOSUR Committees • EU CEN, CENELEC, ETSI . . . • NAFTA NAFTA Committees, CANENA • IEC Continues to be Perceived as Euro-Centric

15. Some Key Trends & Forces • Increasing Demand for Bilateral (trade) Agreements • Most common is the recognition of certification systems MRAs • Only in EU under regional control • Many use template (e.g., APEC) • Proliferation of 3rd-party Certification • Proliferation of regional/international accreditors of certification schemes • Proliferation of national 3rd-party certification schemes • Proliferation of national product conformance marks

16. Commercial Services Marketing Manufacturing Regulatory Environment Quality Assurance System Integrators Customer Design Engineering Enhancing Market Share Opportunities What standards should the product comply with? What standards should the process follow? What regional marks are needed? Are there region specific regulations? Prefers a safe, reliable, high-quality, cost-effective product that meets industry standards ! What technology meets the standard? What tests are required to self-certify per conformity rules? What are the safety-related system standards?

17. Component & Equipment Suppliers to Automation Vendors Users of Industrial Automation Products Utilities, Equipment & Materials Suppliers Consumers Standardization Across the Supply Chain Electronic Commerce, Customs, Marking, and Other Regulatory Standards Components & Services Safety, Environmental, and Quality Standards Supplier of Automation Products Product, System, Application, and Industry Standards Raw materials & fuels Automation Vendor Products & Services Materials & equipment Customer Products & Services Raw materials, fuels & equipment Material, Component, Design, Manufacturing, and Distribution Standards

18. Agenda • Who is Rockwell • Market Trends • International Standards, and • One-Standard-One-Test-One-Mark • Components Of A Standards Strategy

19. International Standards • WTO definition by international trade • Definition by trade use • Not by source of standard, name of SDOs • Single standard solutions do not reflect reality • Need for regional and national ability to make deviations and common modifications (for health, safety, environment) • Withdrawal of national conflicting standards • Considering the actual commerce in world trade - - • Why can’t the IEC adopt the de jure and de facto standards existing in other nations and regions of the world?

20. One Test, Suppliers Declaration of Conformity and One Mark • One “international accepted” standard • One Test means executed once, accepted everywhere • Supplier’s Declaration of Conformance includes choice of 3rd party test and certification • Objective to minimize government involvement • IECEE CB Scheme can be altered to facilitate the one-test-one-mark operating as a full, global Conformity Assessment scheme that is recognized and used in both none-regulated and regulated product verification. • One Mark requires certification records be maintained in a public file, may also be on/with the product

21. Agenda • Who is Rockwell • Market Trends • International Standards, and • One-Standard-One-Test-One-Mark • Components Of A Standards Strategy

22. Strategy Definition • Key Customers, Markets, and Business drivers • Objectives and Approach • By Industry • By Business • By Technology • Assess current standards position • Business focus ( strategic, operational/tactical) • Success factor (critical, necessary, nominal) • Standards Participation (lead, influence, observe) • Standards Participation Investments ( time, expenses) • Business Plan Integration • Impact areas- product, process, procedure • Key benefits and risks • Near term and long term plans