SMC - July2020

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SMC CORPOR ATION OF AMERICA

DIGITAL REPORT 2020

Delivering competitivity through IT IN ASSOCIATION WITH


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SMC Corp of America: delivering competitivity through IT WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

MIKE SADR

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S M C C O R P O R AT I O N O F A M E R I C A

Michael Loggins, Global VP of IT at SMC of America, discusses the strategic and technological shifts driving the pneumatics leaders’ performance

S

MC, founded in Japan as Sintered Metal Corporation in 1959, is one of the world’s foremost pneumatic technology

developers and manufacturers with operations in 81 countries. In 1972, the SMC Corporation of America subsidiary was founded on the basis of providing local delivery and strategy for the 04

American market, with that expertise yielding a considerable degree of autonomy as the business grew over the following decades. In recent years and owing to shifts in customers’ technological capabilities and expectations, that localised strategy has changed. “Every subsidiary was focused almost solely on the customer base within their country,” says Michael Loggins, Global Vice President of IT at SMC USA. “Over the last several years, more and more companies have become unbound by geography - they work and get things done wherever they need to. We’ve created programmes to deal with the largest of those companies that have become global in nature to understand how we can be a better seller to them, to coordinate


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S M C C O R P O R AT I O N O F A M E R I C A

“ We want to make sure we continue to understand our local market, but our customers are expecting us to be and act like a global company” — Michael Loggins, Global Vice President, IT, SMC Corporation of America

our efforts from a manufacturing standpoint and so on.” These moves towards supporting global customers were only the beginning of a considerable shift in the way SMC operates. “Those major, globalised companies represent a small fraction of our customer base. We want to make sure we continue

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to understand our local market, but our customers are expecting us to be and act like a global company so we’ve been trying to figure out the best way to do that. With changes made over the last year, we’re ready to pivot into fully becoming a globally operating company.”

Recirculating chillers and heat exchangers are installed to provide thermal stability for applications in industrial and applied sciences from laser cutting, welding, marking and plastic injection molding. Lab science and analytical equipment applications include: mass spectrometry, gas chromatography, MRIs, CT scanners, radiation therapy machines and other medical equipment.


SMC Corporation Overview CLICK TO WATCH

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1:58

07 Loggins joined the firm in 2006

an IT perspective will be thorough,

as Manager of IT Operations and

considered, and effective. The crux

progressed through a handful of

of his projects and strategies, he

roles within the organisation before

says, is to use IT as the differen-

becoming Global VP of IT in December

tiator that supports SMC’s strategic

2019. The newly-created position is

competitiveness.

an expansion of his recent role as

“The responsibility we’ve taken

Director of IT from 2012 to 2019 which

in IT is to build the infrastructure on

was overlapped by an additional posi-

technological, operational, staff, policy

tion as European Director of IT from

and procedural levels; whatever it

2017 to 2019. With this experience and

takes from an IT standpoint to ensure

understanding of IT that transcends

we can share data and work with each

borders and SMC’s traditional model,

other geographic boundaries in a

Loggins’ leadership is well placed

productive manner,” he explains.

to ensure the necessary shifts from

“We want to make sure that we’re not w w w.smc u s a . com



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S M C C O R P O R AT I O N O F A M E R I C A

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The CQ2 compact cylinder is the world’s bestselling pneumatic cylinder and is supported globally. The CQ2 is available in 15 bore sizes from 12mm to 200mm. It comes standard with male or female piston rod threads. 42 standard options make it one of the most versatile cylinder series on the market. For mounting flexibility, it is possible to mount auto switches on any of the 4 surfaces.

a global company as a facade, but that

technologies such as IoT, automation,

we actually operate as one in front of

and the data streams that tie opera-

our customers and other subsidiaries

tions together as other major triggers

whilst enabling SMC to maintain its

for the transformation. “Our custom-

status as the world leader in pneu-

ers are changing,” Loggins notes.

matic manufacturing components.”

“You’re not just solving a mechanical

Loggins highlights the infusion

problem any more, you’re also solving

of tech capabilities with sales and

a data problem, a connectivity problem,

marketing, the use of authentically

a whole range of technological vari-

produced YouTube videos showcas-

ables.” Throughout the transformation,

ing the firm’s offering, and the need to

SMC has ensured that its product

react to the growing scope of smart

delivery meets the full suite of these


“ The cool thing, especially from an agile cultural standpoint, is that we’re not leading RPA’s implementation, the other areas of the business are guiding it” — Michael Loggins, Global Vice President, IT, SMC Corporation of America

needs, maximising value to customers by providing a single source of solutions that operate as moving parts of SMC’s product ecosystem, cutting the need for multiple vendors exerting influence on process success. Enacting change began with assessing and understanding value at a cultural level, guided by the need from a company standpoint for IT to add value both internally and externally. “One of the hardest questions from a cultural standpoint has been: how do you determine value without inherent,

E X E C U T I V E P R OF IL E :

Michael Loggins Title: Global Vice President of Information Technology Industry: Industrial Automation Location: Indiana Michael Loggins is the Global Vice President of IT at SMC Corporation of America. Having joined in 2006 as a Manager of IT before rising to the Director of IT position in 2012. In 2017, this position was coupled with an additional role as European Director of IT, with both concluding in 2019 so he could assume his new and current position. w w w.smc u s a . com

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M O S E R I T. C O M

CONCENTRATED ON TECNOLOGY

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quantifiable indicators of this given to us for specific projects? How do you deliver against that value? We’re not picking tasks apart or doing large, epic, seemingly endless projects. We’re trying to break that down and ensure value at the point of delivery.” Loggins says that implementing

1972

Year founded

1,160 Number of employees

KPIs to measure deliverable value is a key project and a considerable chal-

new metrics, he says, can be a point

lenge, particularly as the traditionally

of friction, but they are essential to

structured and mechanically-minded

effectively communicating the value

organisation has operated for many

that SMC delivers. “Uptime, delivery

years on the basis of metrics relative

and lead-times have always been

to those qualities. The introduction of

captured but have not previously been


How does the SIF-400, the training system for Industry 4.0, work? CLICK TO WATCH

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4:18

13 viewed through the lens of what they

could only be scaled by adding more

mean to the culture or to the value

people.” The introduction of robotic

we provide.”

process automation (RPA) began in

From a technological standpoint,

Europe under Loggins’ leadership,

Loggins notes automation as one of

and is now being implemented for

the key and recent elements of the

the US operations as well. “The cool

transformation. “SMC’s bread and

thing, especially from an agile cultural

butter is making components that

standpoint, is that we’re not leading

allow other manufacturers to auto-

it, the other areas of the business

mate their processes. Despite that,

are. They’re assessing the processes

a lot of our back-end, knowledge-

they want to be automated while we

based processes are still very manual,

provide the guidance and solutions

time consuming and require large

for them to conduct their own system

systems to complete the work at

development and do what they need

scale. As we grew, those processes

to do.” w w w.smc u s a . com


S M C C O R P O R AT I O N O F A M E R I C A

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“ We’re not picking tasks apart or doing large, epic, seemingly endless projects. We’re trying to break that down and ensure value at the point of delivery” — Michael Loggins, Global Vice President, IT, SMC Corporation of America


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THE WORLD IS CHANGING Is your business positioned for

the new unknown?

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“ With changes made over the last year, we’re ready to pivot into fully becoming a globally operating company” — Michael Loggins, Global Vice President, IT, SMC Corporation of America LU CI DI A I T AN D DELL

The streamlining of processes through automation offers enormous benefits both to SMC and its customers, with faster delivery and the labour saved for its workforce being crucial. The core of the transformation, Loggins says, is SMC’s people. “Aptitude is important but attitude is critical,” he says and, as drivers of the transformation on the ground, SMC’s staff have been rewarded with an increase in knowledge-based tasks in tandem with the reduction of repetitive ones, and positive shifts in work-life

“Lucidia IT and Dell have been our infrastructure partners for around 10 years, and over the last three years they’ve been integral to designing and building our next generation end user compute platforms in the US and now, of course, globally. We’re in the process of building data centres in Europe and we’re in the architecture and design phase for Asia, and both Lucidia and Dell have done a great job of partnering with our teams to make sure they deliver exactly what we need.”

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S M C C O R P O R AT I O N O F A M E R I C A

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M O SER CO N SU LT I N G

“Moser originally came in to help SMC build security, governance and compliance frameworks around three years ago. Since then, we have been leveraging Moser Consulting to help with governance, risk and compliance maturity for our projects across

the globe. We’re trying now to scale our US-implemented framework and programmes with additional maturity across the globe, and Moser is essential to this. Moser has a great deal of talent, and its culture is very similar to our own which helps with adaptability.�


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balances. This focus on employees

behaviours that Loggins and his

ensures high retention, and there

team have been seeking to imbue

is considerable mobility between

across operations.

different business units that enable a breed of cohesion that is only possible through mutual understandings between departments. Not only that, but these qualities ensure the workforce is adaptable, emblematising the Agile methodologies and w w w.smc u s a . com


SMC CORPORATION OF AMERICA 10100 SMC BOULEVARD NOBLESVILLE IN 46060 USA www.smcusa.com

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