The Self Is Not Something Ready-Made, But Something in Continuous Formation Through Choice of Action. John Dewey
The Self Is Not Something Ready-Made, But Something in Continuous Formation Through Choice of Action. John Dewey
The Self Is Not Something Ready-Made, But Something in Continuous Formation Through Choice of Action. John Dewey
The self is not something ready-made, but something in continuous formation through choice of action. John Dewey
At the beginning of any venture that entails the investment of large amounts of capital into a complex asset, owners have a certain vision in their mind. Clearly, they would not enter into the venture and all the associated risk if this vision seemed likely to end in losses and an uncertain future. The vision must include an asset that: Costs an amount very similar to the amount originally estimated Is completed very close to the time described in the schedule Produces the anticipated product at the expected rate Costs very close to the anticipated amount to operate Costs very close to the anticipated amount to maintain Is reliable, available, and maintainable 203
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206 Chapter 10 perform as advertised, the owner will have the right to complain. On the other hand, if the conditions in which the asset is used change dramatically, the owner will have less of a basis for complaining. 3. How will the sellers and the owners use the information included in the forecasts? Many of us have worked with individuals and companies that always take the position the other person is always wrong. If you did exactly as I asked you to do and things went wrong, you should have been smart enough to know that I gave you bad instructions. You are the expert; you should have taken steps to keep me out of trouble, so you are to blame. We also know people who will find ways to reinterpret any words or any contract to their advantage. If the sellers do not trust the owners to use the DFR products in a mature and ethical manner, it is likely they will withhold information or provide it only in a manner that protects the sellers from future liability. This situation is likely to minimize the value of the information being shared. 4. How willing are you to invest scarce resources on issues that will not come into play for more than twenty years? During economic downturns, many companies get into a position where they do not spend resources unless they have a oneor two-year payout. In other words, unless the Return on Investment is large enough to provide pay back in the immediately visible future, the investment is not made. Unfortunately, repeated economic downturns have taught some companies to operate in that manner, even when times are good. This habit results in companies buying assets that are capable of performing reliably for only a short period of
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time. Although the overall asset may be expected to be a part of the thirty-year business plan, many of the decisions made on key features of the asset will be based on much more short-sighted analysis. As for the executives question, Is it possible to perform the analysis that will describe the reliability, available, and maintainability for the thirty-year life of an asset?? the answer is Yes. But that response comes with several caveats, including the following: All the participants need to play like mature adults. By this I mean that representatives of both the sellers and the owners must take into consideration the fact that no form of analysis is perfect. It is possible that some aspects of the analysis may be flawed; the reason is neither incompetency nor unethical behavior. Although the businesses of the sellers and the owners are different, it is in the best interest of both to solve the problems and create an asset that is reliable, available, and maintainable. Then both need to act in a transparent manner and share all the available information. Everyone must recognize that the forecast has a number of inherent assumptions. Some may not have been clearly written down. However, that fact does not preclude the fact that they exist and were a part of the design premises. Again, if poor assumptions existed at any point in the design and they led to problems, the best approach is complete candor. Key elements of the design and manufacturing process are likely to change. Even with the best of intentions, someone
208 Chapter 10 in the supply chain or the manufacturing process will make some change that will produce a negative result. When this kind of change occurs, it is best to identify the change as quickly as possible and to do whatever is needed to make it right. When elements that affect the design or manufacturing process but are beyond our control change, we will be best off if we adapt. Progress is a constant. Sometimes progress produces changes we would rather not see happen because they make our lives more complicated. Although that is unfortunate, it is a part of life. Your best response is to develop resiliency to change. Adapting does not mean diluting your requirements. Instead, it means meeting your requirements in a new way. The owners and sellers are in different businesses and have different business models. Despite the fact they make money in a different way, both the sellers and the owners can be successful if things will work out best they choose to act like partners and support the others business needs.
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met. The relationship may not be as cordial as the one described above, but you will live through it. In the end, you may have a few less hairs and the ones you retain may be a little more gray, but you will survive.