A counterargument to cutting staff and inventory.

One of those rituals that takes place around this time is developing the business plan and related budgets for the new year. Deciphering the crystal ball, discerning optimism from reality in the sales forecast, determining budget capital investments and human resource needs, and so on, is always a complex task. The very unusual pandemic/post-pandemic world we are now in makes it even more so.

As we look to 2022, we see some unusual and especially onerous hurdles: a more strained supply chain, deteriorating consumer sentiment, increasing inflation, and segments of the economy still reeling from the worst days of the pandemic. While no single hurdle can be compensated for, the combination of threats can tempt the planner to take a conservative approach and decide it’s time to hunker down.

But what does a conservative approach to planning and budgeting really mean? Typically, plans might include reducing inventory, cutting back capital spending and trimming staff (or hours worked by staff) to “right size” expenditures with the projected (feared?) lower levels of business. All are prudent steps that in normal times should be considered when an industry or the economy shows symptoms of fatigue. The problem is these are not normal times!

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Twenty-one years.

That’s how long I’ve sat in this chair as an editor for this publication.

That’s 21 years of writing editorials. Never missed an issue. Many times, I’ve written them on planes, heading to or from someplace afar. (I may work from home, but traveling from Boston to China, as I have done many, many times, still means ample commuting time.)

I wrote one on my honeymoon. I wrote one from the recovery room after my first child’s birth. (With little else to do, I spent the time counting all the circuit boards in the equipment around me. Yes, I’m a nerd.)

There may even be a reader or two who was born about the same time I assumed this role in January 2000, first as editor in chief of PC FAB, to which my boss Pete Waddell then added Printed Circuit Design, and finally, in 2005, CIRCUITS ASSEMBLY. (Now I feel old. Thanks a lot.)

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Get agreement on what constitutes “rework” – and a capable operator.

This month we look at etching defects and their removal – or presence, as in the case of FIGURE 1. A customer was surprised to find a batch of bare boards with this level of rework.

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Reading minds is outside our capability.

Running a business is hard. There are many moving parts to contend with, both from the customer’s side and that of the enterprise itself. A knife’s edge of difference enables those parts to work symphonically rather than as a cacophony. The cacophony often prevails. Not for nothing is the practice of good management often characterized as more art than science, especially when “good” is a matter of perspective and bias.

We’re dealing with humans. Most simply want to make a living and provide for those closest to them. For that reason, when studying economics in college long ago, I always found incongruous the assertions of those theorists who tried to reduce human behavior and all its attendant unorthodoxies and irrationality to a series of simultaneous equations. Despite the mathematical elegance, something didn’t fit into such a neat solution. People aren’t abstractions, but I was too young and inexperienced to adequately express my misgivings about the incongruity. Plus, I wanted an A.

Time has added depth, and depth comes from time-tested experience. Experience, and hitting many walls, reveals a range of motivations.

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