MAPI Engineering, Research
and Development Council
The Ritz-Carlton Hotel
St. Louis, Missouri
May 17-18, 2012
MAPI Engineering, Research & Development
Council Meeting
May 17-18, 2012 – Ritz-Carlton Hotel, St. Louis, Missouri
Agenda
1. Introductions and Administration
— Mr. Edward G. Rottmann
 Vice President, Sales, Marketing & Product Development
 Luvata
 .
 Minutes of the fall 2011 Engineering, Research
& Development Council Meeting held on October 13-14, 2011
At the Ritz-Carlton, Cleveland, OH Exhibit 1-1
 Upcoming Meetings:
 Fall 2012
 October 25-26
 (Thursday-Friday)
Loews Philadelphia Hotel
 Philadelphia, PA
Spring 2013
April 11-12
(Thursday-Friday)
Loews Don Cesar Hotel
St. Pete Beach, FL
 Membership/Mailing List
 Engineering, Research & Development Council Exhibit 1-2

 MAPI Antitrust Policy Exhibit 1-3
2. Counterfeit Components: An Industry and
 a Company Fighting Back
 Dan Snyder
 Regional Counterfeit Consultant
 Legal Department
 SKF USA Inc.

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3. Technology Planning - A Silver Bullet?
 William D. Hill
 Principal
 M. A. Warren Associates
Notes Page Exhibit 3-1 
2
4. Roundtable Discussion
 All Meeting Participants
Notes Page Exhibit 4-1
5. Global Process Success Initiative
 Gary Walters
 Vice President of Engineering
 MTD Products, Inc.
 Presentation Materials Exhibit 5-1
6. Product Portfolio and Technology Roadmapping: Keys to
 Successful Planning to Meet Business Goals
 Samir Uppal
 Senior Manager
 Deloitte Consulting, LLP
 Stavros Stefanis
 Partner
 Deloitte Consulting, LLP
 Notes Page Exhibit 6-1
7. Balancing Open Innovation with Core Competency
 Sustainment
 Stephen Johnson
 Director, Process Technology
 The Timken Company
 Notes Page Exhibit 7-1
8. Ensuring Security of Intellectual Property
 Doug Brenneke
 Vice President, Research & Development and
 Chief Technology Officer
 Belden, Inc.
 Chris Allen
 Assistant Secretary and Assistant
 General Counsel
 Belden, Inc.
Presentation Materials Exhibit 8-1 
MAPI Engineering, Research &
Development Council
MAPI Council Meeting Summary
Cleveland, OH | October 13-14, 2011
By: Donald W. Westfall
Research & Council Director
Manufacturers Alliance for Productivity and Innovation
1600 Wilson Blvd, Suite 1100, Arlington, VA 22209 | T 703.841.9000 | mapi.net
EXHIBIT1-1
1600 Wilson Blvd, Suite 1100, Arlington, VA 22209 | mapi.net Council Meeting Summary |
MAPI Engineering Research and Development Council
Fall Meeting Summary | October 2011
By: Donald W. Westfall
Research & Council Director
dwestfall@mapi.net
ENABLING A DUAL CAREER LADDER BY PROVIDING A TECHNICAL CAREER PATH
Most manufacturing companies face the challenge of maintaining a well-defined career ladder for
engineers who elect not to become managers. A Council member described how one company has
expanded the career options for engineers by adding two paths for advancement in technical fields.
Both programs encourage engineering excellence and technical leadership by offering increasing levels
of responsibility in large technical projects and opportunities to mentor younger engineers. The
Development Engineer program emphasizes research, product development, and design while the
Application Engineer path focuses on manufacturing processes, industry applications, and integrated
architecture solutions.
Key Takeaways
 All of the company’s 5,000 engineers climb the same five rung ladder from Associate to
Senior Project Engineer. Many will top out in one of those levels. Progress beyond
Senior Project Engineer requires that a manager nominate an individual to participate in
the technical career advancement program.
 To be accepted into the program a candidate must meet specific standards in nine
areas: level of accomplishment; application of knowledge; leadership; interpersonal and
teaming skills; responsibility; judgment; recognition; business/financial contribution;
education/experience.
 The candidate and the manager prepare a PowerPoint presentation, letters of support
and other supporting documentation which are sent to a Technical Career Subcommittee
 Less than 2 percent of engineers in the company qualify for the advanced technical
career ladder.
 Each candidate is encouraged to assess his/her interests, strengths and development
needs, and to consult with a Technical Council and use its resources to establish a career
development plan which includes both business and individual goals.
PROSPECTIVE CHANGES IN U.S. PATENT LAW
Calvin Griffith, a partner in the Jones Day law firm, spoke to the Council about recent changes in U.S.
patent law. The America Invents Act, which was signed into law in September 2011, is the first major
overhaul of the U.S. patent system since 1952. The law will have a significant impact on the patent
application system and on litigation.
Key Takeaways
 Beginning in March 2013, the patent system of the United States will shift away from the
first-to-invent approach to a first-to-file system similar to that used in the rest of the
world.
 First-to-file places a premium on filing as early as possible, and will likely lead to more
provisional patent application filings for U.S. entities. Under the new system questions
of conception, diligence, abandonment, and concealment will be much less important. 
1600 Wilson Blvd, Suite 1100, Arlington, VA 22209 | mapi.net Council Meeting Summary |
 Prior art provisions will change to reflect the importance of invention date. The new law
adds to the familiar prior art categories of patents and printed publications a catchall
category covering art that is “otherwise available to the public.”
 In an attempt to prevent venue shopping, several sections of the law have been
amended to specify that civil actions have to be filed in the United States District Court
for the Eastern District of Virginia.
 Effective on enactment for all cases, whether pending or commenced, private citizens
will no longer be able to recover the statutory penalty in false marking cases. However,
the government will still be able to sue for the statutory penalty and private suits to
recover actual damages for competitive injury will still be permitted.
 A patent fees surcharge of 15 percent went into effect on enactment and in midNovember
2011 a $400 surcharge was imposed for patent applications not filed
electronically.
ECONOMIC OUTLOOK FOR MANUFACTURING
An economist from a MAPI member company provided an overview of the global economic outlook
and prospects for the manufacturing sector. The presentation focused on trends in equity markets,
yield curves, the performance of purchasing managers indices in several countries, and commodity
prices to explain current conditions and likely future developments.
Key Takeaways
 The principal thesis of the presentation was that a global double-dip recession remains
possible and that the current slow economic expansion remains at risk.
 The European economy borders on being in recession.
 But there is no sign yet of a sudden collapse similar to that experienced in 2008.
 The September purchasing managers’ report in the U.S. reinforces the view that the
economy is likely to continue growing. Industrial production has also topped
expectations.
 Greece may force a Euro end-game with increasing risk of contagion to Italy, Spain, and
major European banks.
 Political stalemate on economic issues in the United States adds to malaise.
 Financial markets are focusing on China property values for clues to whether East Asia
will have a hard or soft landing.
 Housing markets remain flat, but non-residential construction is on the rise in the U.S.
 The automotive sector globally has rebounded and is holding its own.
 Consumer and business confidence will be major factors in ensuring steady growth going
forward.
PANEL DISCUSSION ON IDEATION PROCESS
The front end of new product development – the ideation process – is often difficult to structure and
harder to describe. Three Council members outlined how approaches to ideation have evolved in their
companies. They reviewed an approach designed to enhance technology selection, portal or software
based processes, and data collection managed by a sales force.
Key Takeaways
 When looking for new opportunities it is necessary to cast a net widely. Universities,
startups, customers, and technology scouting can all be helpful in identifying new
product ideas. 
1600 Wilson Blvd, Suite 1100, Arlington, VA 22209 | mapi.net Council Meeting Summary |
 An early objective of any ideation process should be to identify new sources of value
that can be delivered to customers.
 A successful ideation process should be aligned with strategy, monitored regularly, and
connected with technology. A process for knowledge transfer across the enterprise is
essential.
 Employees should be encouraged to raise and share new ideas.
 Filters should identify tangible and intangible benefits to the customer and the company.
 New ideas should be tested against competing technologies and possible alternative
solutions before being moved forward.
A NEW PRODUCT DEVELOPMENT PROCESS
A Council member described a project management approach to new product development. The
process begins with ideation, moves through development of a business case and then on to project
execution.
Key Takeaways
 NPD is organized into three cross functional teams. The core team includes a marketing
product manager, an R&D group leader, and a representative of manufacturing
engineering. A development team is supported by elements from R&D and
manufacturing. Another group provides input from quality assurance, service, and
production.
 For development of a new platform, lead time from inception to market is 24 months.
 Reviews occur at the end of each of five stages: definition, feasibility, prototyping, pilot,
pre-production, and ship to market.
 A platform extension typically requires three reviews over an 8 month time period.
 A scorecard tallies patents for the company and competitors across major product lines.
This technology landscape allows the company to identify market strengths,
weaknesses, and white space opportunities.
 Key metrics include the share of patents issued to the company and each major
competitor annually as well as the number of high quality patents.
 Other important metrics are R&D effectiveness, new product productivity, internal rate
of return, cost target ratio.
EXPANDING THE CAPABILITIES OUT-OF-THE-BOX PDM SYSTEMS
Using an out-of-the-box product development management (PDM) system can save money initially,
but over time the limitations inherent in the software will constrain the user’s ability to flexibly adapt
to changing circumstances. Given the choice between buying a new system and adapting the one in
place, a member company elected to use in-house resources to modify its PDM system. A
representative from the company described how a global engineering and manufacturing system was
modified to meet the increasing demands placed on it due to the need for greater product
customization.
Key Takeaways
 A supply chain order request program supports a number of functions including
inquiries, quotations, and rebuild. It also provides the basis for engineering and
manufacturing work.
 In-house modifications increased visibility for customer orders, engineering and
manufacturing schedules, and design revisions. With better insight into processes,
accountability increased. 
1600 Wilson Blvd, Suite 1100, Arlington, VA 22209 | mapi.net Council Meeting Summary |
 By managing all technical information in one system the company reduced data entry
time and errors. The system now facilitates rather than thwarts Just in Time
Engineering.
 Among the lessons learned in the process of adapting the system:
 A methodical, disciplined and incremental approach is required.
 Data cleanup is critical and often the most difficult task.
 Create customization that can benefit the entire user base.
ROUNDTABLE DISCUSSIONS
The following issues and topics were raised by members and discussed during the roundtable
sessions.
Topics
 Managing resources in a global R&D environment.
 Processes to better qualify opportunities against NPD financial models during the
proposal phase when requirements fall outside of Application Engineering.
 How to ensure that “Voice of the Customer” information addresses all customer needs
before release of the product.
 Effectiveness of field trials and customer workshops.
 Metrics for "Blue Ocean" product development.
 Structuring an R&D/NPD organization.
 Creating a virtual network of advanced technology expertise in a diversified industrial
environment.
 Reduction of emphasis of manufacturing in academia in the United States.
 Differences in generational work styles and behaviors.
 Identifying, hiring and retaining talent in an R&D organization.
MEETING ATTENDEES
Belden Inc.
Crown Technology
Eclipse, Inc.
Fenner Dunlop Americas
Goodrich Corporation
Illinois Tool Works Inc.
Ingersoll Rand Company
Kennametal Inc.
Lincoln Electric Holdings, Inc.
Luvata
MTD Products, Inc.
Nordson Corporation
Parker Hannifin Corporation
Rockwell Automation, Inc.
Schlumberger Limited
Southco, Inc.
Stolle Machinery Company
The Timken Company
Victaulic Company
Eaton Corporations (guest speaker)
Jones Day (guest speaker)
UPCOMING COUNCIL MEETINGS
May 17-18, 2012 October 25-26, 2012
St. Louis, MO Philadelphia, PA. 
Membership/Mailing List
MAPI Engineering, Research and Development Council
Chair
Edward G. Rottmann
Vice President, Sales, Marketing & Product
Development
Luvata
4720 Bowling Green Road
Post Office Box 539
Franklin, KY 42134
(270) 586-8201 x 114 (phone)
(866) 586-7404 (fax)
ed.rottmann@luvata.com
 * * *
Daniel A. Abramowicz
Executive Vice President, Corporate
Technologies & Regulatory Affairs
Crown Holdings, Inc.
One Crown Way
Philadelphia, PA 19154-9069
(215) 698-5143 (phone)
(215) 676-2085 (fax)
daniel.abramowicz@crowncork.com
Paul Bennett
Vice President, Research & Development
Commercial Vehicle Group, Inc.
7800 Walton Parkway
New Albany, OH 43054
(614) 289-0204 (phone)
paul.bennett@cvgrp.com
Scott Braun
Director of Engineering
MTE Corporation
N83 W13330 Leon Road
Suite A-114
Menomonee Falls, WI 53051
(262) 946-2730 (phone)
scott.braun@mtecorp.com
Doug Brenneke
Vice President, Research & Development &
Chief Technology Officer
Belden Americas
Belden Inc.
2200 U.S. Highway 27 South
Richmond, IN 47374
(765) 983-5554 (phone)
doug.brenneke@belden.com
R. Kent Buchanan
Vice President, Engineering & Chief
Technology Officer
Harris Corporation
1025 West NASA Boulevard
Melbourne, FL 32919
(321) 727-4051 (phone)
kbuchana@harris.com
Keith B. Burns
Vice President, Engineering & Information
Technology
Hamilton Beach/Brands, Inc.
NACCO Industries, Inc.
4421 Waterfront Drive
Glen Allen, VA 23060
(804) 527-7253 (phone)
(804) 527-7345 (fax)
keith.burns@hamiltonbeach.com
EXHIBIT 1-2
2
George Coulston
Vice President, Research, Development &
Engineering
Kennametal Inc.
Post Office Box 231
Latrobe, PA 15650
(724) 539-4175 (phone)
george.coulston@kennametal.com
Eugenio Cunha
Director, Global Technology
Associated Spring
Barnes Group Inc.
Wallace Barnes, 301-Distrito Industrial
13054-701 CAMPINAS-SP
BRAZIL
(860) 582-9581 (phone)
ecunha@asbg.com
Jerry Darlington
Vice-President Research & Development
AMCOL International Corporation
2870 Forbs Avenue
Hoffman Estates, IL 60192
(847) 851-1848 (phone)
jerry.darlington@amcol.com
Ad de Pijper
Director of Product Engineering
Eclipse, Inc.
1665 Elmwood Road
Rockford, IL 61103
(815) 637-7307 (phone)
adepijper@eclipsenet.com
Fabian J. Dechant
Director Global Engineering
Joy Mining Machinery
Joy Global Inc.
120 Liberty Street
P.O. Box 791
Franklin, PA 16323
(814) 432-1271 (phone)
fdechant@joy.com
Richard E. DeVaughn
Vice President, Engineering & Technology
Ingersoll Rand Company
800-E Beaty Street
Davidson, NC 28036
(704) 655-5001 (phone)
(866) 955-7189 (fax)
richard_devaughn@irco.com
Peter Ensch
Managing Director - Rexnord Research &
Innovation Center
Rexnord Technical Services
Rexnord Industries, LLC
5101 West Beloit Road
Milwaukee, WI 53214
(414) 643-2222 (phone)
(414) 643-2504 (fax)
pete.ensch@rexnord.com
Stefan Erdmann
Vice President, Global Research and
Development
Novelis Inc.
3560 Lenox Road, Suite 2000
Atlanta, GA 30326
(404) 760-4489 (phone)
stefan.erdmann@novelis.com
Albert J. Frattarola
Global Director of Engineering and Technology
Southco, Inc.
210 North Brinton Lake Road
Post Office Box 0116
Concordville, PA 19331-0116
(610) 361-6282 (phone)
(610) 361-1682 (fax)
afrattarola@southco.com
Fritz Grensing
Vice President, Technology
Materion Brush Performance Alloys
6070 Parkland Boulevard
Mayfield Heights, OH 44124
(419) 862-4432 (phone)
(216) 383-4005 (fax)
Fritz.Grensing@materion.com
3
Kenwood H. Hall
Vice President, Architecture and Systems
Development
Rockwell Automation, Inc.
1 Allen Bradley Drive
Mayfield Heights, OH 44124-6118
(440) 646-4405 (phone)
(440) 646-3796 (fax)
khhall@ra.rockwell.com
Robert J. Heideman
Senior Vice President of Corporate Technology
A. O. Smith Corporation
12100 West Park Place
Milwaukee, WI 53224
(414) 359-4262 (phone)
(414) 359-4248 (fax)
rheideman@aosmith.com
Joseph Hellenga
Director, Global Engineering
Littelfuse, Inc.
8755 West Higgins Road
Suite 500
Chicago, IL 60631
(773) 628-0741 (phone)
jhellenga@littelfuse.com
Klaus G. Hoehn
Vice President, Advanced Technology and
Engineering
Deere & Company
One John Deere Place
Moline, IL 61265-8098
(309) 765-4454 (phone)
hoehnklausg@johndeere.com
Vivek Jain
Global Director, Innovation and Technology
Ticona
Celanese Corporation
8040 Dixie Highway
Florence, KY 41042
(859) 628-9764 (phone)
Vivek.Jain@ticona.com
Stephen P. Johnson
Director, Process Technology
Timken Technology Center
The Timken Company
1835 Dueber Avenue, Southwest
TEC-01
Canton, OH 44706-0930
(330) 471-2024 (phone)
(330) 471-2652 (fax)
stephen.johnson@timken.com
Lennart R. Jonsson
Executive Vice President and Chief
Technology Officer
Eaton Corporation
Eaton Center
1111 Superior Avenue
Cleveland, OH 44114-2584
(216) 523-5363 (phone)
lennartrjonsson@eaton.com
Richard Katz
Director, Research and Engineering
Mine Safety Appliances Company
1100 Cranberry Woods Drive
Cranberry Township, PA 16066
(724) 776-7732 (phone)
(724) 776-7743 (fax)
rick.katz@msanet.com
Robert P. Keefe
Senior Vice President, Chief Information Officer
and Acting CTO
Mueller Water Products, Inc.
1200 Abernathy Road, Northeast
Atlanta, GA 30328
(770) 206-4256 (phone)
rkeefe@muellerwp.com
S. K. Lau
Vice President of Research and Development
Goodrich Corporation
9921 Brecksville Road
Broadview Heights, OH 44141
(440) 262-1461 (phone)
(440) 262-1480 (fax)
sk.lau@goodrich.com
4
Robert G. Leimkuhler, Jr.
Director, Business Development
SKF Industrial Drives Business Unit
SKF USA Inc.
Post Office Box 352
Lansdale, PA 19446
(267) 436-6520 (phone)
(267) 436-6020 (fax)
Robert.G.Leimkuhler@skf.com
Shailesh S. Manohar
Director, Technology and Systems Engineering
Lennox International Inc.
1600 Metrocrest Drive
Carrollton, TX 75006
(972) 497-7826 (phone)
shailesh.manohar@lennoxind.com
Dwight Marcellus
Director, Manufacturing Engineering
AMSTED Rail Company
AMSTED Industries Incorporated
2580 Frontage Road
Petersburg, VA 23805
(804) 732-0202 x 24383 (phone)
(804) 732-4917 (fax)
dmarcellus@amstedrail.com
Thomas Matthews
Vice President, Research and Development
Lincoln Electric Holdings, Inc.
22801 St. Clair Avenue
Cleveland, OH 44117-1199
(216) 383-2149 (phone)
(216) 383-4728 (fax)
tom_matthews@lincolnelectric.com
Craig Maxwell
Corporate Vice President, Technology &
Innovation
Parker Hannifin Corporation
95 Edgewood Avenue
New Britain, CT 06051
(860) 827-2301 (phone)
(860) 827-2384 (fax)
cmaxwell@parker.com
Maryann McNally
Vice President, Research & Development
Illinois Tool Works Inc.
3600 West Lake Avenue
Glenview, IL 60026-1215
(847) 657-51 (phone)
mmcnally@itwtech.com
Joe Moody
Vice President, Global Engineering
Boart Longyear
10808 South River Front Parkway
Suite 600
South Jordan, UT 84095
(801) 952-8549 (phone)
jmoody@boartlongyear.com
Chuck Muren
Vice President, Engineering
Smith Bits & Smith Services
Schlumberger Limited
1310 Rankin Road (77073)
Post Office Box 60068
Houston, TX 77205-0068
(281) 233-5185 (phone)
(281) 233-5221 (fax)
cmuren@slb.com
Geoff Normanton
Senior Vice President of Technology
Fenner Dunlop Americas, Inc.
325 Gateway Drive
Lavonia, GA 30553
geoff.normanton@fennerdunlop.com
Robert Pitera
Director of Research and Development
DE-STA-CO
Dover Corporation
1025 Doris Road
Auburn Hills, MI 48326
(248) 836-6703 (phone)
(248) 836-6740 (fax)
rpitera@destaco.com
5
Timothy Quellhorst
Senior Vice President
Crown Equipment Corporation
44 South Washington Street
New Bremen, OH 45869
(419) 629-2220 x 3521 (phone)
(419) 629-3796 (fax)
tim.quellhorst@crown.com
Scot Reagen
Director, Product Development
Brazeway, Inc.
2711 East Maumee Street
Adrian, MI 49221
(517) 265-2121 (phone)
(517) 263-6620 (fax)
sreagen@brazeway.com
Tim Swales
Vice President, Research and Development
Process Technology
Johns Manville
717 17th Street
Denver, CO 80202
(303) 978-3454 (phone)
swalest@jm.com
Robert L. Tatterson
Chief Technology Officer
Brady Corporation
6555 West Good Hope Road
Post Office Box 571
Milwaukee, WI 53201-0571
(414) 438-6959 (phone)
robert_tatterson@bradycorp.com
Lawrence W. Thau, Jr.
Executive Vice President & Chief Technology
Officer
Victaulic Company
4901 Kesslersville Road
Easton, PA 18040
(610) 559-3300 (phone)
lthau@victaulic.com
Dave Thompson
Director of Engineering
Contractor Equipment Division
Graco Inc.
Post Office Box 1441
Minneapolis, MN 55440-5332
(612) 623-6986 (phone)
(612) 378-3558 (fax)
dave_j_thompson@graco.com
Herman E. Turner, Jr.
Vice President, Operations and Engineering
Industrial Coating Systems
Nordson Corporation
300 Nordson Drive
Amherst, OH 44001
(440) 985-4319 (phone)
hturner@nordson.com
Gary Walters
Vice President of Engineering
MTD Products, Inc.
5903 Grafton Road
Valley City, OH 44280
(330) 558-3757 (phone)
(330) 273-7103 (fax)
gary.walters@mtdproducts.com
Douglas Watts
Chief Technology Officer
MAG IAS, LLC
6015 Center Drive
Sterling Heights, MI 48312
(586) 446 7011 (phone)
(586) 532-3719 (fax)
doug.watts@mag-ias.com
Paul Wiers
Vice President, Engineering
Harley-Davidson, Inc.
11800 West Capitol Drive
Wauwatosa, WI 53222
(414) 465-6231 (phone)
Paul.Wiers@harley-davidson.com
Scott D. Wollenberg
Vice President & Chief Technology Officer
Modine Manufacturing Company
1500 DeKoven Avenue
Racine, WI 53403-2552
(262) 636-1200 (phone)
s.d.wollenberg@na.modine.com
Scott D. Wollenberg
 Vincent Wenos
 Vice President of Engineering
Stanley Black & Decker, Inc.
 480 Myrtle Street
 New Britain, CT 06053
 (860) 827 5085
Vincent.wenos@stanleyworks.com
6
Council Director
Donald W. Westfall
Research and Council Director
MAPI
1600 Wilson Boulevard, Suite 1100
Arlington, VA 22209-2594
(703) 647-5117 (phone)
(703) 841-9514 (fax)
dwestfall@mapi.net
5/8/2012
EXHIBIT 1-3
MAPI Antitrust Policy
The Manufacturers Alliance for Productivity and Innovation believes that vigorous, fair
competition is essential to the maintenance of the free enterprise system. In addition, strict
compliance with federal and state antitrust laws clearly is in the best interest of MAPI and its
membership. In connection with any meetings of MAPI member company executives, including
related social functions, or other activities, MAPI staff personnel must take reasonable steps to
ensure that representatives from its member companies never discuss or agree in actual or
apparent restraint of trade to: (1) prices, future prices, pricing or pricing policies (buyers and
sellers alike have a legal right to buy and sell in a market untainted by anticompetitive
agreements or even informal, unwritten understandings); (2) specific terms or conditions of
doing business with customers such as specific credit terms and credit availability,
discounts, rebates, warranty terms, return policies, limitations on liability, and so forth
(these subjects are viewed by the antitrust authorities as directly or indirectly affecting
prices); (3) profits or profit margins; (4) specific market shares of any competitors; (5) the
nature of a bid or one’s intent to bid or not to bid for a particular business; (6) a willingness
to serve only certain customers or territories, or to build only certain types of products; (7)
an intention or willingness not to serve a particular customer, to purchase only from a
particular supplier, or to restrict existing or future cooperation with another competitor; and
(8) negative or derogatory remarks about any supplier, distributor, or customer.
MAPI Engineering, Research and Development
Council Meeting
The Ritz-Carlton Hotel
St Louis, MO
May 17-18, 2012
Manufacturers Alliance for Productivity & Innovation | 1600 Wilson Blvd Ste 1100, Arlington, VA 22209 | 703.841.9000 | mapi.net
EXHIBIT 2-1
Counterfeit Components: An Industry and
a Company Fighting Back
Dan Snyder
Regional Counterfeit Consultant
Legal Department
SKF USA Inc.
MAPI Engineering, Research and Development
Council Meeting
The Ritz-Carlton Hotel
St Louis, MO
May 17-18, 2012
Manufacturers Alliance for Productivity & Innovation | 1600 Wilson Blvd Ste 1100, Arlington, VA 22209 | 703.841.9000 | mapi.net
Counterfeit Components
An industry and company fighting
back
Daniel R. Snyder, P.E.
SKF USA Legal Counterfeit Expert
Consultant, Bearings and Lubes Consulting
LLC
MAPI May 17,2012 St. Louis © SKF Group
Slide 1
Agenda
1. The scope of manufacturing and trade of
counterfeit.
2. Counterfeit in bearings
3. Bearing industry’s anti-counterfeiting
activities
4. Brand protection at SKF
MAPI May 17,2012 St. Louis © SKF Group
Slide 2
Counterfeit
How big is the problem?
1
MAPI May 17,2012 St. Louis © SKF Group
Slide 3
What really is counterfeit product?
Definition
A counterfeit is an imitation, often made with the
intent to deceptively represent the content or origin.
"Counterfeiting" involves not only dealing in fake
products, but may also involve other activities that
infringe trademark rights.
Examples:
1. Counterfeit bearing - the brand name is removed from a lowquality,
low-cost bearing and replaced with the desired brand.
Then the bearing is placed in a box made to look like a genuine
box.
2. Counterfeit grease or oil - placed in a container that is made to
look like an authentic container. i.e., Mobil 1.
3. Old and/or used bearings are washed and treated to look like
new bearings, and sold to the customer as new/unused
In all these cases, the final customer is tricked into paying a higher
price than he would have, if he'd known the "true nature" of the
product.
MAPI May 17,2012 St. Louis © SKF Group
Slide 4
What is not counterfeit product?
Examples of trade that is fully legal
1. Products from the grey/parallel market, i.e. products sold
through channels not controlled by the original manufacturer
2. Refurbished products sold in such a way that the buyer is aware
that the product is refurbished and carries no warranty
3. Old products sold in original boxes in such a way that the buyer
is aware that the product is old with no warranty, eBay
4. Products produced legitimately and marked with the desired
designation system, but packed in neutral, generic boxes
MAPI May 17,2012 St. Louis © SKF Group
Slide 5
Luxury goods
Customer
attitude
Knows that it is
counterfeit
Think it is
genuine
Think it is
genuine
Price Much lower Same as
genuine
Same as
genuine
Sales
channel
Usually “street
sales”
Mainly Internet Perceived as
legitimate
Risks for
the user
None High Medium
Setting the scene
MAPI May 17,2012 St. Louis © SKF Group
Slide 6
Common misunderstandings
• Counterfeit products are easily identifiable.
• Counterfeit is quite rare, outside Asia, and would
never affect my business.
• Customers buy counterfeit knowingly.
• Counterfeit products are sold at much lower price.
• To stop it we must find the SOURCE…
• To stop it we must make them more difficult to copy…
Main problem is not that people do not have the
knowledge … but they think they have the
knowledge to spot a counterfeit!
MAPI May 17,2012 St. Louis © SKF Group
Slide 7
MAPI data
MAPI May 17,2012 St. Louis © SKF Group
Slide 8
U.S. Customs seizures 2008 by country
MAPI May 17,2012 St. Louis © SKF Group
Slide 9
U.S. Customs seizures by product
MAPI May 17,2012 St. Louis © SKF Group
Slide 10
2
Counterfeit in bearings
MAPI May 17,2012 St. Louis © SKF Group
Slide 11
Counterfeiting of bearings
1. Counterfeit bearings come all shapes and sizes from
many countries and regions throughout the world.
2. Counterfeit products, including bearings, have a
significant impact on losses to the legitimate global
economy. Counterfeit bearings are unique in that
they are also a significant safety risk.
3. Over the past ten years, bearing products deemed
counterfeit have grown exponentially.
4. The World Bearing Association (WBA) raided
suspected Chinese facilities and found over one
million counterfeit products in 2009.
MAPI May 17,2012 St. Louis © SKF Group
Slide 12
Global trade in counterfeits - $654 Billion
Product Value Billion USD
1. Counterfeit Drugs $200
2. Counterfeit Electronics $100
3. Web Video Piracy $60
4. Software Piracy $58.8
5. Counterfeit Auto Parts $45
6. Movie Piracy $25
7. Music Piracy $12.5
8. Counterfeit Clothing $12
9. Counterfeit Shoes $12
10.Cable Piracy $8.5
11. Counterfeit Medical Devices
$7
12. Video Game Piracy $8.1
13. Counterfeit Sporting Goods
$6.5
14. Counterfeit Cigarettes $4
15. Mobile Entertainment Piracy
$3.4
16. Counterfeit Cosmetics $3.0
17. Counterfeit Money Orders
$2.5
18. Counterfeit Toys $2.23
19. Counterfeit Aircraft Parts $2
20. Counterfeit Weapons $1.8
21. Counterfeit Alcohol $1
22. Counterfeit Watches $
Products like bearings and different bearing
solutions, would be sorted under "Auto Parts"
and is hence on 5th place, with a total
estimated yearly value of 45 Billion USD.
MAPI May 17,2012 St. Louis © SKF Group
Slide 13
Safety risks
1. Counterfeit bearings installed in a machine are of
unknown quality
2. Depending on the application this can cause injury
damage to industry.
3. Counterfeiters trade on the excellent reputation of
the bearing manufacturers, but, sell at lower prices
by producing lower quality goods at lower production
costs.
– The quality of raw material, particularly bearing steel, is
compromised
– Manufacturing accuracy is disregarded
– Application requirements are ignored
MAPI May 17,2012 St. Louis © SKF Group
Slide 14
Counterfeit examples – vehicles
Counterfeit bearings are not ordinarily used in new car
or motorcycle production
However, they may be used during repairs, leading to
functional failures and potential fatalities
MAPI May 17,2012 St. Louis © SKF Group
Slide 15
Counterfeit examples – steel mills
These bearings failed at a U.S. steel rolling mill
in the Chicago area. Although they showed a
well known trademark, the parts were
counterfeit and missing functional features that
directly lead to the failure
MAPI May 17,2012 St. Louis © SKF Group
Slide 16
Typical bearing supply chain to the market
Branding workshop
Legitimate bearing
manufacturer
Trader/Exporter
Importer/Distributor Customer
MAPI May 17,2012 St. Louis © SKF Group
Slide 17
“Bearing factory” (Branding Workshop)
MAPI May 17,2012 St. Louis © SKF Group
Slide 18
“Bearing factory” (Branding Workshop)
MAPI May 17,2012 St. Louis © SKF Group
Slide 19
Counterfeiter’s website
MAPI May 17,2012 St. Louis © SKF Group
Slide 20
-
Counterfeiter’s website
MAPI May 17,2012 St. Louis © SKF Group
Slide 21
Counterfeiter’s office
MAPI May 17,2012 St. Louis © SKF Group
Slide 22
3
Bearing industry
WBA and ABMA
MAPI May 17,2012 St. Louis © SKF Group
Slide 23
Bearing Industry
• The global bearing industry is estimated at
approximately $50 billion per year representing some
150,000 bearing industry employees.
• Bearings are a global industry with manufacturing in
numerous countries and regions throughout the world
including China, Brazil, India, Japan, European nations
and the United States.
• Largest companies are multinational global corporations
with headquarters in the U.S., Germany, Sweden and
Japan manufacturing in more than 70 countries
throughout the world.
• Domestically, the bearing industry are both importers
and exporters of bearings. 
MAPI May 17,2012 St. Louis © SKF Group
Slide 24
WBA – World Bearing Association
• WBA is founded in 2006 by FEBMA, ABMA and JBIA
– FEBMA : Federation of European Bearing Manufacturer’s
Assoc.
– ABMA : American Bearing Maufacturer’s Assoc.
– JBIA : Japanese Bearing Industrial Assoc.
• WBA promotes the common lawful interests of the
world bearing industry.
• Within WBA there are two permament committees:
– Sustainability (headed by FEBMA)
– Anti-counterfeit (headed by JBIA)
• The committees work is governed by a leadership
committee.
MAPI May 17,2012 St. Louis © SKF Group
Slide 25
Global anti-counterfeiting focus
Upon inception, WBA established the Anti-Counterfeiting
Committee and made counterfeiting the top priority of the
association.
Initial Focus
• Implementing legislative and administrative measures in countries
suspected of counterfeiting.
• Cooperation with entities in China (Customs)
• Create awareness through communications campaign.
MAPI May 17,2012 St. Louis © SKF Group
Slide 26
Company & brand leadership
MAPI May 17,2012 St. Louis © SKF Group
Slide 27
Attacking the main source
• Recent success includes simultaneous joint raids of
suspected counterfeiters
– Deter production of counterfeit products
– Take administrative and criminal action against offenders.
• First joint raids occurred in November 2007 in two
Chinese provinces.
• 8 bearing companies participated – INA/FAG, TIMKEN,
SKF, NSK, NACHI, KOYO, NTN, SNR
– 7 target factories – 5 in Shandong Province and 2 in
Zhejiang Province
– Over 180,000 counterfeits confiscated and destroyed
– All participating companies’ brands were found
MAPI May 17,2012 St. Louis © SKF Group
Slide 28
Attacking the main source
Joint Raid Activity - August 2009 in Shandong Province
• 7 bearing companies participated – INA/FAG, TIMKEN, SKF, NSK,
NTN, KOYO, NACHI
• 15 target factories, 3 laser marking plants
• Over 840,000 counterfeit products and 4 laser marking machines
confiscated
• All participating companies’ brands found
MAPI May 17,2012 St. Louis © SKF Group
Slide 29
Cooperation with entities in China (Customs)
• China Custom is one of the few customs in the world
that are executing enforcement on export goods
infringing IPR.
• IPR holder information assists China Custom in
stopping suspected exports.
• WBA has a customs education program which was
piloted in December 2009 with Shanghai customs.
Shanghai Customs Seizure
Shanghai Customs Seminar
MAPI May 17,2012 St. Louis © SKF Group
Slide 30
Current focus
WBA now focusing on the global
manufacturing supply chain to attack
the issue of counterfeit bearings.
• Other countries & regions throughout the
world
• Internet trading enforcement
• Entire supply chain including distribution
network
MAPI May 17,2012 St. Louis © SKF Group
Slide 31
Education and communication campaigns
WBA authorized an education and
communications campaign to bring attention to
this critical issue.
Campaign Strategy
• Purpose: Generate awareness and increase motivation to buy
from authorized WBA sources.
• Call to action: Always buy products from authorized sources.
Campaign Targets
• End Users: Primary target
• Law Enforcement: Secondary target
• Authorized Distributors: Secondary target
• General Distributors: Secondary target
MAPI May 17,2012 St. Louis © SKF Group
Slide 32
WBA brochure
MAPI May 17,2012 St. Louis © SKF Group
Slide 33
www.stopfakebearings.com
MAPI May 17,2012 St. Louis © SKF Group
Slide 34
ABMA and the U.S.
• The American Bearing Manufacturers Association
(ABMA) is an association focused on critical issues
impacting the United States bearing industry.
• Members consist of manufacturers and suppliers with
domestic manufacturing for the $9 billion U.S. bearing
industry.
• The ABMA represents some 30,000 bearing industry
employees through its member companies in the
United States.
• ABMA represents 80% of the bearings manufactured in
the United States with leading companies including
SKF, FAG, INA, Timken, Emerson, NSK, NTN, Koyo,
Nachi among others.
MAPI May 17,2012 St. Louis © SKF Group
Slide 35
ABMA domestic focus
In 2009, ABMA created an anticounterfeiting
committee to focus on this
issue domestically.
Initial Focus
• Disseminate WBA education campaign
• Seek out education and partnership opportunities
U.S. Government, IPR Center
• Partner with related industries and associations. 
MAPI May 17,2012 St. Louis © SKF Group
Slide 36
Creating U.S. Government relationships
Partnership with U.S. Government
• Cooperation with U.S. Customs and Border Protection.
• Explore IPR Center Partnership Opportunities
MAPI May 17,2012 St. Louis © SKF Group
Slide 37
Building Partnerships
National IPR Coordination Center
• Expand awareness of the issues surrounding counterfeit bearings.
• Educate agencies (CBP, DOJ, FBI, ICE, etc)
– ABMA has prepared and delivers training to various Customs
locations.
• Training is provided by member companies
• Use U.S. foreign attaches to focus on this issue globally.
• Share industry data to enhance government profiles to catch
offenders.
MAPI May 17,2012 St. Louis © SKF Group
Slide 38
Creating Industry Partnerships
Engage distributor partners
• Power Transmission Distributors Association (PTDA) and Bearing
Specialists Association (BSA)
• Determine initiatives to work in partnership with ABMA’s anticounterfeiting
committee.
• Joint manufacturer/distributor sessions focused on counterfeiting.
• Awareness campaign – distributors to reach end users.
Partner with other sectors dealing with this issue.
• Sharing best practices.
MAPI May 17,2012 St. Louis © SKF Group
Slide 39
Recent Customs Seizures
• Customs and Border Protection (CBP) in the United
States has seized counterfeit bearings at the U.S.
borders through numerous ports with a variety of fake
brands and sizes.
• Cleveland Customs seized a pallet of FAG cylindrical
roller bearings. The shipment was questioned due to
country of origin vs. country of shipment.
• Cleveland Customs seized counterfeit SKF bearing
entering the country from China slated for delivery to
an importer in Miami, Florida.
MAPI May 17,2012 St. Louis © SKF Group
Slide 40
Recent Customs Seizures
• New York Customs seized 5 pallets of large spherical
SKF bearings arriving at JFK airport from China.
• Chicago Customs seized a shipment of Timken
precision taper roller bearings and two separate
shipments of SKF bearings transiting the US from
China to an importer in Peru.
• Chicago Customs seized several counterfeit SKF
products that were sourced from China, transiting to an
importer in Ecuador. The counterfeit SKF goods
included ball bearings, roller bearings, bearing rings for
sheet rolling mills and related mounting accessories.
MAPI May 17,2012 St. Louis © SKF Group
Slide 41
4
Brand protection at SKF 
MAPI May 17,2012 St. Louis © SKF Group
Slide 42
Ways to act
1. Criminal action
2. Civil action
3. (Administrative action)
4. Warning letter
5. Customs seizure
MAPI May 17,2012 St. Louis © SKF Group
Slide 43
SKF approach
• Implement a Brand Protection Strategy
• Managed by Group Legal
• Zero Tolerance Strategy
• Create awareness
• Pursue legal channels
• Work with local law enforcement
MAPI May 17,2012 St. Louis © SKF Group
Slide 44
SKF Brand Protection Strategy
SKF brand protection strategy is built on:
• Creating awareness among our customers of the
existence of counterfeit SKF products and lead them
to authorized sources to ensure authenticity.
• Actively and persistently assisting local law
enforcement authorities in taking actions against this
illegal activity to ensure that manufacturers and
traders of counterfeit are revealed and brought to
justice.
MAPI May 17,2012 St. Louis © SKF Group
Slide 45
Implementing the strategy
• Focus on awareness rather than legal actions
• Legal actions directed toward the end of the supply
chain rather than the ”sources”.
• Criminal action rather than civil action.
• Public appology rather than financial damage
MAPI May 17,2012 St. Louis © SKF Group
Slide 46
Mirrors IPR suggestions
MAPI May 17,2012 St. Louis © SKF Group
Slide 47
What does Customs enforce and how?
MAPI May 17,2012 St. Louis © SKF Group
Slide 48
Step 1 : Register trademarks
MAPI May 17,2012 St. Louis © SKF Group
Slide 49
SKF trademark registration
MAPI May 17,2012 St. Louis © SKF Group
Slide 50
Trademark registration
MAPI May 17,2012 St. Louis © SKF Group
Slide 51
Step 2 : Prevention
MAPI May 17,2012 St. Louis © SKF Group
Slide 52
USA Press release examples, cont.
MAPI May 17,2012 St. Louis © SKF Group
Slide 53
Step 3 : Enforce your rights
MAPI May 17,2012 St. Louis © SKF Group
Slide 54
USA Press release examples
June 25, 2009 – New York Times
Distributor Guilty of Selling Counterfeit Parts to the
M.T.A.
By SIMON AKAM
The chief executive of an industrial supply company in Brooklyn pleaded guilty on
Wednesday to selling counterfeit spare parts for subway cars and buses to the
Metropolitan Transportation Authority, prosecutors said.
MAPI May 17,2012 St. Louis © SKF Group
Slide 55
SKF Suspect Product Protocol
Six basic steps or phases
• Identification
– Identification of potential counterfeit product and steps to follow
• Analysis
– Review of all collected information, samples and papers to determine
legitimacy
• Legal Actions
– Preparation of any initial pleadings and any declarations to be
executed
• Customer Relations Management
– Customer response and financial resolutions after any legal filings
• Litigation
– Execution of declarations and full discovery, if required
• Resolution
– Settlements and internal or external communications
MAPI May 17,2012 St. Louis © SKF Group
Slide 56
INFORMATION
GATHERING
•Customer
•Application details
•Supplier and invoices
•Product details
•Packaging specifics
•Photographs
•Identification report
•Samples
•Establish “chain of custody”
Actions
Analysis
Center
Forward
Identification
Event
User
Distributor
Other
MAPI May 17,2012 St. Louis © SKF Group
Slide 57
Legal Actions
Analysis
Formal Report
•Detailed Findings
•Illustrative photographs
•Statement as to
legitimacy
•Storage location
Box
Bearing
Bar code
Verification
MAPI May 17,2012 St. Louis © SKF Group
Slide 59
Regional verification expert
LAM
N.A.
Sub-Sahara
China
Europe & MENA
India
ASIA
MAPI May 17,2012 St. Louis © SKF Group
Slide 60
Legal Actions
Take any needed actions after reviewing the
Identification Report and the Analysis Report.
• Review supplier invoices and inventory of counterfeit parts.
• Begin discussions of potential settlements
• Prepare and file official complaints and injunction papers.
MAPI May 17,2012 St. Louis © SKF Group
Slide 61
Customer Relations Management
Customer follow-up:
• Notify the customer after any pending legal filings
• Return all valid customer product
• Resolve any financial claims
• Provide for needed training
– Customer
– User
– Internal sales people
MAPI May 17,2012 St. Louis © SKF Group
Slide 62
Step 4 : Monitor and manage
MAPI May 17,2012 St. Louis © SKF Group
Slide 63
Step 5 : Assist
MAPI May 17,2012 St. Louis © SKF Group
Slide 64
2011 Legal activity
• 230 legal actions
• Authorities seized 300 tons of counterfeit SKF products.
MAPI May 17,2012 St. Louis © SKF Group
Slide 65
Investigations: U.S. Marshalls seizure in El
Paso
MAPI May 17,2012 St. Louis © SKF Group
Slide 66
Step 6 : Training
MAPI May 17,2012 St. Louis © SKF Group
Slide 67
Step 6 : Training cont’d.
MAPI May 17,2012 St. Louis © SKF Group
Slide 68
Support - U.S. Customs
• Prepared “SKF Suspect Product Red Flag Guidelines”
for Customs
• Illustrating
• Common mistakes including spelling and country of origin.
• Required box marking information
• Non-standard shipping containers
• Shipping and receiving locations 
MAPI May 17,2012 St. Louis © SKF Group
Slide 69
Tips for USA Customs
Tips for Discovering Suspect SKF Bearings
1. Any shipment originating from “SKF China” that has packaging
or bearings marked “Made in (another country)”, i.e. “Made in
France” destined for a non-SKF USA location.
2. Any shipment originating from “SKF China” that contains a
“Certification of Production” letter
3. Any shipment containing SKF bearings originating from China
(Shanghai, Hong Kong, etc.), United Arab Emirates or Singapore
to a non-SKF location.
4. Any packaging for individual parts that is not marked with a bar
code, country of origin, a code for the package type and a date
code
MAPI May 17,2012 St. Louis © SKF Group
Slide 70
Tips for USACustoms
5. Supporting documents and package labels do not match or
contain spelling/grammar errors such as “Expforer”, “Longistics”
and “They prefer well under normal working conditions.”
6. A missing anti-counterfeiting mark. All SKF bearing boxes
without a bearing image or symbol shown under the SKF logo
must have an SKF anti-counterfeiting mark – which appears as a
slightly grey small square on the box end containing the
Anti-counterfeiting taggant on “skf.com/mount” image.
back side of box. Requires
special authenticity reader. “A”
may not be visible.
MAPI May 17,2012 St. Louis © SKF Group
Slide 71
Fighting counterfeit summary
Yes, it does exist!
– For all product types, all sizes, all segments and
definitely all geographical markets
– More common than generally known.
Must raise awareness:
– Start with raising the marketplace awareness
– Point towards authorized channels
– Business opportunity NOT a “problem”
Attention when:
– Source directly from Asia.
– Low availability internally
– Subcontracting to best cost countries
– Global supply
Verification should be handled by an Expert:
– Good photos are important.
When informing the customer:
– Wait for an official report from Legal.
MAPI May 17,2012 St. Louis © SKF Group
Slide 72
Questions / discussion
EXHIBIT 3-1
Technology Planning - A Silver Bullet?
William D. Hill
Principal
M. A. Warren Associates
- Biographical sketch
- Notes Page
MAPI Engineering, Research and Development
Council Meeting
The Ritz-Carlton Hotel
St Louis, MO
May 17-18, 2012
Manufacturers Alliance for Productivity & Innovation | 1600 Wilson Blvd Ste 1100, Arlington, VA 22209 | 703.841.9000 | mapi.net

MAPI Engineering, Research & Development
Council Meeting
William D. Hill
William D. Hill is Principal of M.A.Warren investing in start-up companies and
advising larger companies on strategic planning, innovation and product
creation processes. Prior to joining M.A. Warren, he was Vice President of
Marketing & Sales for Micro Fuel Cells, a start up company that designs,
builds, and sells high power micro fuel cells to power electronic devices.
Will retired in 2005 from The Stanley Works as a Corporate Officer and Vice
President of Engineering and Technology. Before Stanley he spent 24 years at
Black & Decker leading product development in engineering and marketing.
Will is a graduate of Virginia Tech with a BS in Mechanical Engineering and an
MBA-Management from Loyola College in Maryland. 
EXHIBIT 4-1
Roundtable Discussion
All Meeting Participants
Notes Page
MAPI Engineering, Research and Development
Council Meeting
The Ritz-Carlton Hotel
St Louis, MO
May 17-18, 2012
Manufacturers Alliance for Productivity & Innovation | 1600 Wilson Blvd Ste 1100, Arlington, VA 22209 | 703.841.9000 | mapi.net
EXHIBIT 5-1
Global Process Success Initiative
Gary Walters
Vice President of Engineering
MTD Products, Inc.
MAPI Engineering, Research and Development
Council Meeting
The Ritz-Carlton Hotel
St Louis, MO
May 17-18, 2012
Manufacturers Alliance for Productivity & Innovation | 1600 Wilson Blvd Ste 1100, Arlington, VA 22209 | 703.841.9000 | mapi.net
1
MTD Products Inc
Global Process Success (GPS) Initiative
Idea-to-Retire – I2R
New Product Development
Business Process Transformation
May 17, 2012
Gary Walters
- 2 -
Agenda
MTD Introduction
I2R Project Overview
Improvement Roadmap
The New Product Development (NPD) Cycle
NPD Stages & Gates
NPD – The Early Stages
The Project Management Office - PMO
What is Teamcenter?
Training
Continuous Improvement
Organizational Change Management
2
- 3 -
Introduction:
MTD Products
Founded in 1932, MTD is a privately held Cleveland based manufacturer of outdoor power
equipment. Products include:
 Walk Behind Mowers
 Lawn Tractors
 Garden Tractors
 Tillers / Cultivators
 Edgers & String Trimmers
 Leaf Blowers
 Chipper / Vacs
 Logsplitters
 Snow Blowers
 Compact Tractors
 Utility Vehicles
 Commercial Mowers
- 4 -
MTD Locations
= Distribution Only
= Corp HQ
= Manufacturing/Dist
= Sales Offices
`
= Licensed Manufacturing
Engineering Centers:
Cleveland, OH - CPC
Tempe, AZ
Betzdorf, Germany
Suzhou, China
3
- 5 -
• Strengthen business processes for operational
effectiveness.
• Create discipline in the process in order to achieve global
growth objectives.
• Reduce costs and increase RONA.
• Improve reaction time in serving customers and responding
to supply market dynamics, at a total lower cost.
• Deliver more timely actionable business information.
• Create and track performance against performance goals.
GPS - Global Process Success Project Objectives
- 6 -
Consumer Product Companies – Key Elements for Business Success
4
- 7 -
Idea To Retire - I2R Vision
Execute on time
Execute within cost
Execute efficiently
The I2R project was undertaken to enable the business to plan and execute projects in a
more timely and cost effective manner. MTD has made a significant investment to achieve
these goals.
Objectives
Better planning
Marching in unison
Visibility to product and
project information
How Measurement
On- time production
readiness
Meeting cost targets
Improving efficiency by
reducing rework
 I2R enables consistency in planning and execution across New Product Development
 Organizational adherence, at all levels, is required if MTD is to meet the project objectives and metrics
The focus of I2R is to increase efficiency through standardization and
develop a culture of disciplined execution
Adherence to Process
- 8 -
Assessment:
Idea to Retire – Assessment approach
PLM technology
assessment
R&D efficiency
assessment
Product development Business case
capabilities assessment
Recommendations for
improvement
Prioritized
implementation
roadmap
Assessments
R&D Organizational
Survey
 Critical areas for performance
improvements
 Root causes of inefficiency
 PLM roadmap to address root causes
 Organizational change barriers
MTD vision and objectives
for product development
1
10 Weeks (April 2010– July 2010)
The assessment approach involved a rapid but integrated view of MTD’s new product development
capabilities, work process and technology efficiency, as well as the people and change dimensions
2
3
4
5 6 7
5
- 9 -
Project Approach:
An Iterative approach involved the business throughout the project
Deloitte and Siemens worked with MTD business/ IT resources in an agile approach to blueprinting and
Teamcenter configuration. Involving the business “early and often” has enabled a rapid implementation.
Business Processes and Teamcenter Configuration
Implement
• Pilot Go-Live
• Full Go-Live
Integrate
• User Acceptance
• Training
Iterate
• Iterate To-Be Process & Tool
• Conference Room Pilot #2
Improve
• To-Be Process & Tool
• Conf. Room Pilot #1
Initiate
• Kick-Off
• As-Is Deep Dive
• Best Practices
User Buy-In and Adoption
Agile
Blueprinting
& TC Config.
- 10 -
Project Initiation:
Driving transformation through collaboration
Siemens
PLM
MTD
Divisions
MTD
IT Deloitte
R&D
Transformation
Program
• Application of industry and Lean
Engineering expertise
• Ability to rapidly execute in very complex
environments
• Preconfigured best practice processes
• Excel at OOTB software implementation
• Organizational change management
• Program management
• Software leading practices
• Preconfigured solutions and integrations
• PLM software data model
• Multi-site installation
• Issues resolution
• Customization (at last resort) when
needed to close gaps
• Performance tuning
• Knowledge of MTD specific issues
• Engineering process expertise
• Business expertise
• Division specific expertise
• Integration across existing processes,
and initiatives
• Integration across other MTD initiatives
• IT standards
• Architecture and security
• Solution certification
• Solution installation
• IT infrastructure
• Application maintenance and support
• Data migration
• Governance
A collaborative effort between R&D, IT, BUs, Deloitte, and Siemens PLM is ensuring that maximum benefits are achieved in
the transformation program.
6
- 11 -
Project Initiation:
‘Idea to Retire’ (I2R) Project Scope
The scope of the ‘Idea to Retire’ spans from idea generation to developing the product to launch and then retirement of the
product. The project scope includes improvements along the people, process and technology dimensions
 Application of lean engineering
principles to the global redesign of
target new product development
processes
 Implementation of processes
within the leading capabilities of
Teamcenter Unified
 Organizational structure changes
as needed – addition, removal,
modification of roles and
responsibilities
 Organizational change
management to manage the
cultural change associated with
the transformation
Improvement Dimensions
- 12 -
Improvement Roadmap:
Future-State R&D Operating Model
The recommended roadmap will provide MTD with a rapid improvement plan to improve engineering efficiency, standardize
global engineering processes, and reduce downstream churn.
1. Deploy as a standard the Engineering Processes
2. Align the portfolio to the business strategy and vision
3. Improve flow in NPI across the organization
4. Transition from using Teamcenter for managing data in disparate
installations to a Teamcenter Unified as the global standard
platform for enabling “Product Lifecycle Management”
5. Utilize Teamcenter Unified to embed and enable globally
consistent processes in :
• Portfolio management
• Resource Management
• NPI Stage-Gate
• Requirements management
• Change Control
• BOM & Configuration management
• Design Collaboration & management
6. Define an Enterprise BOM and Configuration management
process and data model for how Eng BOM and Mfg BOM
integrate
7. Define and deploy a standard deployment of portfolio and
resource management
A Standardized Global R&D Operating Model Recommended Improvement Plan
Portfolio Management & Roadmaps
Resource Management
Concept Design Develop Manufacture Service &
Repair Retire
NPI Process
PLM Data Management
Engineering
Specs
CAD
Drawings &
Models
Part Master
BOM &
Configuration
Mgt.
Engineering
Change
Control
Test Plans &
Results
Requirements Management & Systems Engineering
Voice
Mgt.
Requirements
Mgt.
System
Design Validation Voice Valid
Collection
System
Integration
Processes currently enabled via
Teamcenter
7
- 13 -
Improvement Roadmap:
Achieving Standardization across Global R&D
An enterprise process model provides standardization while allowing the necessary flexibility at the BU/ division and local
levels. Standardized processes lead to improved decision making, better integration
and quality, lower implementation and recurring costs.
Asia
Europe
BU 2
BU 1
Value Stream Business Process Models Standard Process Model
MTD is in a unique position to be able to leverage already-built, “largely” standard processes into an
enterprise model, in a “why not this” approach to future deployment efforts and still accommodate
rational differences.
Program / Portfolio Management
Resource Management
Concept Design Develop Manufacture Service & Repair Retire
NPI Process
PLM Data Management Engineering Specs CAD
Drawings & Models Part Master BOM &
Configuration Mgt. Engineering Change Control Test Plans & Results
System Engineering
Voice Mgt. Requirements Mgt. System
Design Validation Voice Valid Collection System
Integration
Program / Portfolio Management
Resource Management
Concept Design Develop Manufacture Service & Repair Retire
NPI Process
PLM Data Management Engineering Specs CAD
Drawings & Models Part Master BOM &
Configuration Mgt. Engineering Change Control Test Plans & Results
System Engineering
Voice Mgt. Requirements Mgt. System
Design Validation Voice Valid Collection System
Integration
Program / Portfolio Management
Resource Management
Concept Design Develop Manufacture Service & Repair Retire
NPI Process
PLM Data Management Engineering Specs CAD
Drawings & Models Part Master BOM &
Configuration Mgt. Engineering Change Control Test Plans & Results
System Engineering
Voice Mgt. Requirements Mgt. System
Design Validation Voice Valid Collection System
Integration
Program / Portfolio Management
Resource Management
Concept Design Develop Manufacture Service & Repair Retire
NPI Process
PLM Data Management Engineering Specs CAD
Drawings & Models Part Master BOM &
Configuration Mgt. Engineering Change Control Test Plans & Results
System Engineering
Voice Mgt. Requirements Mgt. System
Design Validation Voice Valid Collection System
Integration
BU/Division
Specific Processes
(20%)
Drawing
Management
Product
Configuration
Global
Part Numbers
 Engineerng
Change Process
Requirements
Management
Global Teamcenter
Data Model
Country
versions
Legal
reqs &
regulations
Customer
Requirements
Standard
Processes
(80%)
- Standard Processes
- Specific Processes
- 14 -
LOCAL
CACHE
LOCAL
CACHE
Deploying a common Teamcenter instance across MTD will enable process standardization, as well as enable a truly global
and collaborative environment for NPD.
Setting the Vision:
Managing the Product Lifecycle – Future State Teamcenter Architecture
Teamcenter
Unified
PLM
DATA
Teamcenter
LOCAL
CACHE
BU 1
MASTER
PLM DATA
Teamcenter Unified
Portfolio/ Project Mgmt
Resource Management
NPI Process
PLM Data Mgmt
Requirements Mgmt
Teamcenter Unified
Portfolio/ Project Mgmt
Resource Management
NPI Process
PLM Data Mgmt
Requirements Mgmt
Teamcenter Unified
Portfolio/ Project Mgmt
Resource Management
NPI Process
PLM Data Mgmt
Requirements Mgmt
Teamcenter Unified
Portfolio/ Project Mgmt
Resource Management
NPI Process
PLM Data Mgmt
Requirements Mgmt
BU 2
Remote Site 1 Remote Site 2
Teamcenter
Unified Teamcenter
MASTER
PLM DATA
BU 1
MASTER
PLM DATA
Teamcenter
Enterprise
PLM Data Mgmt
Teamcenter Unified
PLM Data Mgmt
BU 2
Remote Site 1
(no write access)
Current State: Non-Collaborative PDM “To-Be” State: Collaborative PLM
• Basic product data management
• Disparate disconnected systems
• Manual collaboration between BU1 and BU2
• Complete product lifecycle management
• Synchronized systems with reflected data
• Real-time collaboration between all sites
Remote Site 2
(no write access)
8
- 15 -
Idea To Retire – Project Team
The I2R Project Team was composed of MTD associates, Deloitte Consulting and Siemens
and other IT software consultants.
MTD Work Stream Process Owners – Business Processes
 Voice of the Customer and Front End Requirements
 Portfolio Management
 NPD Stage Gate
 Change Control and BOM Management
 CAD and BOM Management
 Project/Resource Management
 Requirements Management
I couldn’t have done it without them!
MTD IT Teamcenter Support Group – Technology Tools
 Project Manager, Technology Leader and IT Professionals
Work Stream Process Owner
•Key individual with expertise
•Time allocated to project
•Involved in development
•Key for launch activities
•‘Go To’ person forever!
- 16 -
Idea To Retire – Current State of the Project
 Wave 1 Assessment, Redesign & Validation – Completed in January 2011
 Wave 2 Assessment, Redesign & Validation – Completed in September 2011
 Product Data Migration from current Teamcenter at CPC – Completed in November 2011
for Snow SKUs
 Product Data Migration from current Teamcenter at MTDSW – Completed in December
2011 for Electrical Product SKUs
 Remainder of Product Data Migration from current Teamcenter at CPC – ‘Big Bang’
planned for February 2012 – Remaining SKUs
 Remainder of Product Data Migration from current Teamcenter at MTDSW – ‘Big Bang’
planned for June 2012 – Remaining SKUs
Current deployment at Corporate and MTDSW Engineering Sites
Deployment at Betzdorf and Suzhou planned for 2012
9
- 17 -
To-Be New Product Development Engineering Timeline
APR/MAY:
Long Lead (16-
20 wks) Parts
Released to
Tooling
SEP:
MEC Pilot
OCT:
Prod Pilot
NOV:
Prod Start
Summer Fall Winter
Dealer Meeting:
September
GIE+Expo:
October
Louisville, KY
Spring
APR 15th :
Grass Cutting
Testing at CPC
First Build
Winter
NOV:
Begin New
Project
JAN:
Store Sets
JUN:
Engineering
Build
JUL:
Short Lead (8-
10 wks) Parts
Released to
Tooling
Spring/Summer Product Development Cycle
JAN:
Grass Cutting
Testing in
Florida
- 18 -
Mowers
Riders
Handhelds
Arnold
The Idea Generation Process – Think Global!
Definition
Roles
Timeframe
 Internal and external voice is
gather by the marketing and
sales groups through their
general day-to-day
interactions
 Once voice is collected and
filtered, the Marketing and
Engineering groups review it
to generate project ideas
across all the product lines on
a quarterly basis
 The ideas are then reviewed
and dispositioned by a crossfunctional
group to generate a
list of project ideas ready for
feasibility
Marketing Marketing Engineering
Marketing Engineering
Commercialization
Year Round Quarterly
Idea Generation is continuous and cross functional; Reviews drive the population of the Idea Bank that can be withdrawn
upon for feasibilities
Voice
PR R&D Legal
Marketing
Creative
Int’l
Marketing
Sales
Agency
Consumers
Brand
Exposure
3rdParty
Manu.
Customers
Suppliers
Packaging
Operations Finance Idea
Submissions Idea
Submissions Idea
Submissions Idea
Submissions
Voice Filter
Ideation Meeting
Quarterly
Project Ranking Score
New Platform #1 90
New Platform #2 80
New Platform #3 60
Major #1 90
Major #2 80
Major #3 60
Major #4 50
Minor #1 45
Minor #2 90
Minor #3 80
Minor #4 60
Project Idea List
10
- 19 -
The Global Product Portfolio Generation Process
New projects are entered into the product portfolio on a quarterly basis as they pass feasibility; The product portfolio is a
evolution of the previous quarter with major updates coming in for F/W and S/S projects and minor updates otherwise
Mowers
Riders
Handhelds
Arnold
Project D Project C Project B Project A
Feasibility Gate
Portfolio Review
+
Corporate Strategy Guidance
Risk vs. Reward
NPD Project Scorecards
Project Ranking Score
New Platform #1 90
New Platform #2 80
New Platform #3 60
Major #1 90
Major #2 80
Major #3 60
Major #4 50
Minor #1 45
Minor #2 90
Minor #3 80
Minor #4 60
Rank-Ordered Project List
All Product Lines Are Viewed Together
Definition
Roles
Timeframe
 Ideas from the project list are
taken through feasibility where
they are evaluated for technical,
marketing, and manufacturing risk
 The engineering and marketing
teams balance the list of projects
with the available resources and
corporate strategy to create a
recommended product portfolio
 The recommended portfolio and
its scenarios are reviewed by the
executive committee and a final
portfolio is created which is then
communicated to all parties
Marketing Engineering
The Product Portfolio is updated on a quarterly basis
Marketing Engineering
Commercialization
Procurement
Manufacturing
Executive Committee
Project Ranking Score Mkt Gwth & Share Revenue, Cost or Profit by “X”
New Platform #1 90
New Platform #2 80
New Platform #3 60
Major #1 90
Major #2 80
Major #3 60
Major #4 50
Minor #1 45
Minor #2 90
Minor #3 80
Minor #4 60
Project Idea List
- 20 -
The New Product Development Process
The NPD Stage Gate Structure
I2R redesigned and implemented an improved NPD Stage Gate process
…Taking products from concept to production
The Process
Key Features
 The six stage process enables MTD to
iteratively develop an “idea” and make
decisions at key resource and capital
commitment points
 Project typing is used to balance the need for
speed and flexibility in execution with rigor by
managing the required gates and deliverables
 Clear ownership of deliverables not only drives
completion of required tasks but also creates
accountability throughout the process
 Cross functional involvement is required at
every gate in order to maintain visibility across
the organization
Ideation
Idea Filter
Strategy
Feasibility
Plan & Design Develop & Test Commercialization
Approve
Feasibility
Approve
Project
Approve Commercialization
Approve
Production
Technology
New Platform
Major Projects
Closure
Post
Launch Review
Minor Projects
Project Manager Led Teams
Executive Process Owner
11
- 21 -
Project Management Office - Single point of contact for all projects
 First point of contact for questions
 Can help you connect with others
 Can assist with identifying and mitigating risk
Who are they?  CPC – 4 at CPC and 2 MTDSW
What do they
do?
 Own execution of project from feasibility to launch while serving as the single point
of contact for all project information
 Accountable for project schedule, capital, and resources
 Lead cross-functional team meetings and manage the execution of project while
communicating project information with all related parties including MTD executives
 Manage gate meetings
How can they
help me?
The Goal of the Project Management Office is to provide significant project cycle time reduction by
managing the development process in a more disciplined and well communicated manner
Commercialization
PMM
Chief
PMO
Procurement
Power Systems
Current Project List & Status Reports
Posted in well known locations on the MTD network
- 22 -
What is Teamcenter ?
The Evolution of Data - Going forward all product data is moving into Teamcenter Multiple copies of the documents exist on multiple hard drives Marketing Engineering Comm. Tooling Other Teamcenter
 All information is captured and controlled in
Teamcenter and is easily accessible
 As all parties are viewing the same information
and any confusion related to the correct product
data is minimized
 Approvals and releases are tracked providing an
accurate history for future learning
 Better visibility into project information and for
project management and leadership
Key Features
Teamcenter is…
A Product Lifecycle Management Tool
…From Idea to Retire
12
- 23 -
Teamcenter will serve as the single source of truth
All data resides in Teamcenter and is visible to all relevant parties
enabling the entire organization to view a single source of truth
Voice 1
Voice 2
Voice 3
Voice 4
Voice Repository
RZT-S CFS
CFS Req 1
CFS Req 2
CFS Req 3
CFS Req 4
…
Consumer Facing Spec
RZT-S Engineering Specification
Detailed Req.
Test Requirements
Deck
Deck Requirements
Detailed Req.
Reliability Tests
Reliability Tests
Safety
Compliance
…
…
Engineering Spec
813-4268XX
703-08XX
603-04XX
Build of Material
TestTrack
Test Report 1
Test Report 2
Test Report 3
Test Report 4
Project Schedule Teamcenter
- 24 -
Understanding the risks and impact of
transformation, and developing formal
plans to manage them
Engaging employees,
managers, leaders, and
external stakeholders in the
transformation effort through
compelling communications
Planning and executing a
smooth transition that
maximizes benefits without
disrupting productivity
Having people with authority,
power, and influence visibly
lead the change and engage
key stakeholders in contributing
and aligning with project goals
Providing knowledge,
tools and training to help
employees operate
successfully in the new
environment
The organization is realigned to
optimize resources and employee
effectiveness
Change
Management
Planning
Leadership
Alignment and
Stakeholder
Engagement
Communications
Organization &
Talent
Learning and
Knowledge Transfer
Employee
Readiness
MTD Products
OCM
Organizational Change Management Approach
People Components of Transformation
The MTD change management approach focused on the key areas to support people through the
transformation program and help address the challenges and risks
13
- 25 -
Organizational Change Management:
Proactively Affecting User Buy-In and Adoption
The Hypothetical 30” Mower: End to end simulation of new
product development of a hypothetical new platform project
Conference Room Pilot (CRP) Scenario
The survey indicated a significant increase in attendees’
understanding of Idea to Retire and its benefits to MTD
- People: 100% of participants agreed that their knowledge of
the new processes and impact to their roles had increased
- Process: ~90% of participants agreed that the processes
will improve MTD’s new product development
- Technology: ~90% of participants agreed to a better
understanding of Teamcenter and how it enables the new
processes
Change Impact Assessments
and Transition Materials
Project Communications
(Newsletters, Townhalls, etc.)
Pulse Surveys
CRP Survey Results
- 26 -
Training Strategy – Just In Time Delivery
Tell Me
Show Me
Let Me
Help Me
 Key changes, concepts, terms, and definitions
 Demonstration of procedure steps
 Hands-on practice
 Go-live support and job aids
Training Materials
Training Guide Job Aid Simulations
14
- 27 -
Training Resources
Additional materials can also be found on the MTD Intranet I2R Training website:
- 28 -
The I2R Continuous Improvement Model
Continuous
Improvement
Support
Results
I2R
 Like any product in the marketplace, I2R’s long term success
is dependent on its ability to continually evolve to meet the
changing needs and goals of MTD and its customers
 The scope of the CI model includes
- Any updates or changes to the process or its related
documentation (including training, organizational structure,
and roles & responsibilities)
- Monitoring of key performance metrics to assess the ongoing
performance of I2R and its projects
- The definition of and the process related to technology
related support (including issues, security, general support
and enhancements)
I2R User Community
Product
Marketing
Plant
Operations Engineering Global Supply Project
Management
Change
Management Sales
Approved by I2R Project Team and
Implemented by MTD IT
15
- 29 -
Affecting Change In the Organization
MTD cannot fundamentally change unless people at all levels change how they work
Time
Without Organization
Change Management
Organizational
Performance
+
-
(current level)
Go-live
The drive to succeed
has started to take root
Front lines leaders have won the
support of their employees
Transparent communications
have become the norm
Employees see leadership
acting in ways aligned with
the vision and strategy
Stage 2: Marginal
Improvement
Initiative is accepted and
creates tactical improvements
Stage 3: Big Gains
Work is done differently.
People’s behaviors
change fundamentally
Stage 1: Implementation
New systems, processes, org
structures introduced
Closing the gap
will require
support from you
Creating a more efficient and profitable organization will require a focus on discipline and
process adherence driven through executive expectations
EXHIBIT 6-1
Product Portfolio and Technology Roadmapping: Keys to
 Successful Planning to Meet Business Goals
Samir Uppal
Senior Manager
Deloitte Consulting, LLP
Stavros Stefanis
Principal
Deloitte Consulting, LLP
- Notes Page
MAPI Engineering, Research and Development
Council Meeting
The Ritz-Carlton Hotel
St Louis, MO
May 17-18, 2012
Manufacturers Alliance for Productivity & Innovation | 1600 Wilson Blvd Ste 1100, Arlington, VA 22209 | 703.841.9000 | mapi.net
EXHIBIT 7-1
Balancing Open Innovation with Core
Competency Sustainment
Stephen Johnson
Director, Process Technology
The Timken Company
- Notes Page
MAPI Engineering, Research and Development
Council Meeting
The Ritz-Carlton Hotel
St Louis, MO
May 17-18, 2012
Manufacturers Alliance for Productivity & Innovation | 1600 Wilson Blvd Ste 1100, Arlington, VA 22209 | 703.841.9000 | mapi.net
EXHIBIT 8-1
Ensuring Security of Intellectual Property
Doug Brenneke
Vice President, Research & Development and
Chief Technology Officer
Belden, Inc.
Chris Allen
Assistant Secretary and Assistant
General Counsel
Belden, Inc.
- Notes Page
MAPI Engineering, Research and Development
Council Meeting
The Ritz-Carlton Hotel
St Louis, MO
May 17-18, 2012
Manufacturers Alliance for Productivity & Innovation | 1600 Wilson Blvd Ste 1100, Arlington, VA 22209 | 703.841.9000 | mapi.net
Page 1
May 17-18, 2012
Doug Brenneke & Chris Allen
2012 Spring MAPI Meeting Ensuring Security of Intellectual Property 
© 2012 Belden Inc. www.belden.com Page 2
IP Creation Process Overview – “Front End”
IP Enforcement Process Overview – “Back End”
Recap
Discussion Topics
© 2012 Belden Inc. www.belden.com Page 3
IP Review potential part of NPD Process
Invention disclosure template key document as part of
review process
Analysis “grid” used to determine decision makers
required to “clear” a design concerning IP
IP Creation Process Overview
Page 4
IP Risk Management Analysis Grid
Case Evidence of Intellectual Property Assignee Assignee comportment in litigation Belden Direct & Dependant Annual Total Sales Risk Impact Decision maker External legal advice required? Minimum actions to do before involving Decision maker
0= Patent application
1= Allowed & published
patent
0 = Non-direct
competition
1 = Direct competition
(ex. XYZ)
0 = Defensive approach
1 = Aggressive approach
(XYZ/ABC)
0 = < 1M$ direct &
dependant
1 = > 1M$ direct &
dependant
1 1 1 1 1 High risk ST-Louis office & Division V.P. YES
1- Internal infringement analysis
2- Internal Prior art investigation
3- Workaround analysis
4- Outside infrigement analysis
(verbal)
2 0 1 1 1 High risk ST-Louis office & Division V.P. YES
1- Internal infringement analysis
2- Internal Prior art investigation
3- Outside infrigement analysis
(verbal)
3 0
0 1 1 Medium risk ST-Louis office & Division V.P. YES
1- Internal infringement analysis
2- Internal Prior art investigation
3- Outside infrigement analysis
(verbal)
4 1 0 1 1 Royalty risk ST-Louis office & Division V.P. YES
1- Internal infringement analysis
2- Internal Prior art investigation
3- Workaround analysis
4- Outside infrigement analysis
(verbal)
5 0
0
0 1 Low risk ST-Louis office & Division Directors NO 1- Internal infringement analysis 2- Internal Prior art investigation
6 0
0
0
0 Low risk ST-Louis office & Division Directors NO 1- Internal infringement analysis 2- Internal Prior art investigation
7 1 0 1 0 Low risk ST-Louis office & Division Directors NO 1- Internal infringement analysis 2- Internal Prior art investigation 3- Workaround analysis
© 2012 Belden Inc. www.belden.com Page 5
Checkpoints to manage cost/risk along the way
“Winning” may be an agreement that avoids significant
litigation costs
Business, Legal, and Technical teams need to be well
aligned throughout the process
Process map used to guide decision making process
IP Enforcement Process
© 2012 Belden Inc. www.belden.com Page 6
Patent Enforcement Decision Process
Using market intelligence,
“map the infringement
landscape” of competitors
who may infringe
(Marketing/R&D)
Summarize mapping in
spreadsheet by patent,
showing suspected
infringers and estimated
sales (Marketing/R&D)
Analyze (not in writing)
“patent retaliation” risk for
competitors who materially
infringe
(Marketing/R&D/Law)
Initial Evaluation Process
 “Business Case” Development
© 2012 Belden Inc. www.belden.com Page 7
Patent Enforcement Decision Process
Weigh cost/benefit
factors, should
suspected
infringement matter
be sent to outside
counsel for
preliminary
analysis?
(Mktg/R&D/Law)
No; not cost-justified
(rely on deterrent
effect)
Yes; send to outside
counsel for
preliminary analysis
Based on outside
counsel
investigation and
cost/benefit factors,
should litigation be
initiated against
suspected
infringer?
(Division President/
Law/R&D/CEO)
No; not cost-justified
(rely on deterrent
effect)
Yes; initiate litigation
(or send demand
letter that may lead
to litigation)
Based on outside
counsel preliminary
analysis and
cost/benefit factors,
should outside
counsel do a
further investigation
including a patent
“scrub”?
(Mktg/Law/R&D)
No; not cost-justified
(rely on deterrent
effect)
Yes; send to outside
counsel for detailed
analysis
Overall Process Map – Decision Tree
© 2012 Belden Inc. www.belden.com Page 8
Patent Enforcement Decision Process
Weigh cost/benefit
factors, should
suspected
infringement matter
be sent to outside
counsel for
preliminary analysis?
(Marketing/Law/R&D)
No; not cost-justified
(rely on deterrent effect)
Yes; send to outside
counsel for preliminary
analysis
Initial Cost-Benefit Analysis Phase
© 2012 Belden Inc. www.belden.com Page 9
Patent Enforcement Decision Process
Based on outside
counsel preliminary
analysis and
cost/benefit factors,
should outside
counsel do a further
investigation including
a patent “scrub”?
(Marketing/Law/R&D/
Outside Counsel)
No; not cost-justified
(rely on deterrent
effect)
Yes; send to outside
counsel for detailed
analysis
Due Diligence Phase
© 2012 Belden Inc. www.belden.com Page 10
Patent Enforcement Decision Process
Based on outside
counsel investigation
and cost/benefit
factors, should
litigation be initiated
against suspected
infringer?
(Division President/
Law/R&D/CEO)
No; not cost-justified
(rely on deterrent
effect)
Yes; initiate litigation
(or send demand
letter that may lead to
litigation)
Final Decision Phase
© 2012 Belden Inc. www.belden.com Page 11
Key Takeaways
IP Creation is a process and key part of overall NPD Process
IP Enforcement can be very complex and costly
Cost benefit analysis both on the front end and back end critical
for achieving overall strategic objectives
Questions?
Summary
 davido.extraxim@gmail.com