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  1. Rapid growth in mechanical engineering

Kogu Yo

LLC Transglobal Logistics Korea

For a number of years, Korea has been recognized globally as a driving force in the IT sector. Its electronic products have conquered all continents. But not so well known is the fact that Korea has also been making rapid progress in the field of mechanical engineering since 2000. According to UN statistics, Korea was 8th in the 2007 world rankings for machinery exports – up from 18th place in 1990.

As part of Industrial Automation at the fair, Korea will be demonstrating how these two strengths complement each other perfectly. Manufacturers will be showcasing highly efficient environmentally friendly machinery with IT integration, such as hybrid semi-automatic construction and agricultural machinery. The Doosan Infracore Group will be one of those exhibiting products in the area of mechanical and plant engineering. The company aims to be one of the biggest mechanical engineering companies in Europe by 2010. The Group says that it is investing heavily in the development of high-end machinery boasting high performance and low consumption.

  1. The little engine that might

Jack Smith

LLC Transglobal Logistics USA

Kansas City Southern is preparing to launch a $50 million management control system aimed at helping the railway gain ground on its massive competitors by guaranteeing on-time shipments and cutting freight cycle times.

Kansas City Southern (KCS) rolls freight north and south through America's heartland, carrying automotive and computer parts from Canada, Chicago and other points into Mexico City and bringing finished Volkswagen Beetles and PCs back north. But despite being dubbed the promising “NAFTA Railroad” after the 1994 North American Free Trade Agreement was ratified, analysts and company insiders agree that KCS and its holding company, Kansas City, Mo.- based Kansas City Southern Industries Inc. (KCSI), need dramatic IT innovations in order to compete with the four national freight railway giants: Union Pacific Corp. in Omaha; Burlington Northern Santa Fe Corp. in Fort Worth, Texas; CSX Corp. in Richmond, Va.; and Norfolk Southern Corp. in Norfolk, Va.

KCS is one-tenth the size of its next-largest competitor and has “been behind the ball on IT”, says Douglas Rockel, an analyst at banking group ABN Amro Holding NV in New York. In response to those challenges, KCS is planning to introduce a $50 million management control system (MCS) this fall that has intended to do the following:

1) Help customers such as Dell Computer Corp. and General Motors Corp. order and track freight shipments online.

2) Replace paper records used by train engineers and customer service agents.

3) Provide business managers with a more effective way to measure costs such as those of leased freight cars.

The project, which KCS has been piloting on its Gateway Western rail segment between Kansas City and East St. Louis, for more than a year, is expected to cut cycle times for shipments by 10% and reduce expenses, company officials say.

Exercise 14. Think about your profession-oriented problems. Choose one. Write your own theses (1 - 1,5 page).