Agrifood Research Working papers 78 7 Agrifood Research Working papers 78 8 B e n e fi t s o f a g r i c u l tu Benefi ts of agricultural and forestry r a l a n machinery standardization d f o r e s in Finland t r y m a c h i n e ry Frederick Teye, Jukka Manni and Pekka Olkinuora s t a n d a r d i z a t i o n i n F i n l a n d Agricultural engineering MMTTTTSS 7788 kkaannssii..iinndddd 11 77..1122..22000044 1122::1100::4477 Agrifood Research Working papers 78 93 p., 5 appendices Benefits of agricultural and forestry machinery standardization in Finland Frederick Teye, Jukka Manni and Pekka Olkinuora MTT Agrifood Research Finland ISBN 951-729-915-X (Printed version) ISBN 951-729-916-8 (Electronic version) ISSN 1458-509X (Printed version) ISSN 1458-5103 (Electronic version) www.mtt.fi/mtts/pdf/mtts78.pdf Copyright MTT Agrifood Research Finland Frederick Teye, Jukka Manni and Pekka Olkinuora Publisher MTT Agrifood Research Finland Distribution and sale MTT Agricultural Engineering Research (Vakola) Phone + 358 9 224 251, Fax + 358 9 224 6210 e-mail [email protected] Printing house Dark Oy Cover picture Valtra and Timo Lötjönen Benefits of agricultural and forestry machinery standardization in Finland Frederick Teye1), Jukka Manni 1), Pekka Olkinuora1) 1)MTT Agrifood Research Finland, Agricultural Engineering Research (Vakola), Vakolantie 55, FI-03400 Vihti, Finland, [email protected], [email protected], [email protected] Abstract The goal of this research project was to evaluate the benefits of agricultural and forestry machinery standardization amongst companies and other stakeholders in Finland. The re- search project was carried out by a questionnaire study to enterprises and other organiza- tions involved. Some questionnaires were also sent to European standardization bodies. The results of the study showed that the benefits of standardization have been realized in the agricultural and forestry machinery sector, and manufacturers acknowledge the impor- tant role standardization plays in their work. It was established through the questionnaire that standards when adopted systemically place companies on the benefiting end and to some extent cause positive competition on the agricultural and forestry machinery market. All respondents agreed that safety standards clarify safety requirements of products and safety standards reduce accidents when machines and implements are used. Furthermore, 89 % of respondents were of the opinion that standards help in protecting the environment. The present way of organizing and financing agricultural and forestry machinery stan- dardization in Finland was acknowledged by almost all the responding companies to be very convenient and yield good results. However, there are certain problems that compa- nies face when using standards. These shortcomings must be improved. The companies and organizations pointed out that language and therefore the understand- ing of the technical contents of standards was a typical problem for most of them. A lot of companies will benefit, if there are translations of proposed standards during the inquiry stage rather than only when the standard are published. Generally, there is very low par- ticipation in standardization by smaller (SME) agricultural and forestry manufacturing companies in Finland. Almost all of the companies who stated that they do not have the necessary resources for obtaining information of the standards, were SME’s. In terms of standardization activity in the sector, SME’s must be encouraged to take active part in standardization work. About 70 % of the respondents of the questionnaire indicated that standardization is slow. The standardization organizations have already noticed this and for example changes have been made in CEN concerning standards preparation time. The results of this study affect probably the future competitiveness of the agricultural and forestry machinery industry both on the domestic and export markets. Index words: standardization, benefit analysis, agricultural machines, forestry machines 3 Maa- ja metsätalouskoneiden standardisoinnin hyödyt Suomessa Frederick Teye1). Jukka Manni 1), Pekka Olkinuora 1) 1) MTT (Maa- ja elinterviketalouden tutkimuskeskus) maatalousteknologian tutkimus (Vakola), Vakolantie 55, 03400 Vihti, [email protected], [email protected], [email protected] Tiivistelmä Tämän tutkimuksen tavoitteena oli arvioida maa- ja metsätalouskonealan standardisoinnin hyöty konevalmistajille ja muille yhteistyötahoille. Tutkimus toteutettiin yrityksille ja muille organisaatioille suunnattuna kyselynä. Lisäksi tehtiin joitakin kyselyjä Euroopassa. Tutkimuksen tulokset osoittavat, että standardisoinnin hyödyt on hahmotettu maa- ja met- sätaloussektorilla ja valmistajat pitävät standardisointia tärkeänä työssään. Standardien systemaattinen hyväksikäyttö yrityksissä antaa yrityksille positiivista kilpailuetua maatalo- us- ja metsäkonemarkkinoilla. Kaikkien vastaajien mielestä turvallisuusstandardit selven- tävät tuotteiden turvallisuusvaatimuksia ja ne myös auttavat vähentämään onnettomuuksia koneita ja laitteita käytettäessä. 89 % vastaajista oli sitä mieltä, että standardisointi auttaa ympäristön suojelussa. Nykyistä maa- ja metsätalouskoneiden standardisointijärjestelmää pidettiin ajanmukaisena ja tuleviin haasteisiin hyvin vastaavana. Myös standardisointijärjestelmän rahoitusta pidet- tiin ajanmukaisena. Järjestelmässä on kuitenkin joitakin epäkohtia, joihin tulisi vaikuttaa. Useimpien yritysten ja organisaatioiden mielestä standardien teknisen sisällön ymmärtämi- nen pelkästään englannin kielellä tuottaa usein vaikeuksia. Siksi pidettiin tärkeänä, että standardista laaditaan käännös suomen kielelle mahdollisimman varhaisessa standardin käsittelyvaiheessa. Pienet ja keskisuuret yritykset seuraavat standardisointityötä ja ottavat itse osaa standardisointityöhön isoja yrityksiä harvemmin. Siksi niitä tulee rohkaista osal- listumaan työhön selvästi nykyistä aktiivisemmin. Noin 70 % vastaajista piti standardisoin- tityötä hitaasti etenevänä. Tähän on jo kiinnitetty huomiota standardijärjestöjen toimesta ja mm. CEN on virtaviivaistanut standardien käsittelyn. Tutkimuksen tuloksia voidaan hyödyntää koko maa- ja metsätalouskoneteollisuuden kil- pailukyvyn turvaamiseksi. Asiasanat: standardisointi, hyötyanalyysi, maatalouskoneet, metsätalouskoneet 4 Foreword The membership of Finland in the European Union and the global networking emphasize the importance of standards to Finnish companies and the society as a whole. The Council of the European Union urged on its resolution that public authorities should examine how the viability of the overall standardization system and its finances in their nations, can best be guaranteed in the light of the rapidly changing European and International environment. If necessary, the authorities should finance and take part in the standardization processes. The need for standardization work is increasing because of globalization. With this pro- gress society’s political and social responsibilities grow. The need is also visible when the society is developing into a network and knowledge society; growing service sector, inte- gration of technologies and the shortening of products life cycles. In the future standardization will affect among other things the society’s export and import trade, workers occupational health, the safety of products and the environment. The benefits of standardization in agriculture and forestry can be found on other hand as a support to the Finnish agricultural and forestry machinery industry in the form of competi- tive advantage and on the other hand as suitable and safe machinery for farmers. Typical of the Finnish agricultural and forestry machinery industry is the big amount of small and medium size enterprises (nearly 800 places of business). In 2002 the gross production va- lue of the agricultural and forestry machinery industry was about 900 M€ of which 500 M€ were exported. Finnish enterprises hold a remarkable sales share on European machinery markets compared to the country’s size. The agricultural and forestry machinery industry employs about 4 000 people mainly in the countryside and thus greatly increases the vital- ity of rural communities. Efficient standardization work is substantial when developing the sector’s competitiveness both in domestic and export markets. By the help of standards, manufacturers’ attention is drawn to the requirements of machinery placed on the export markets and for that matter demands that suit Finnish conditions. Standardization work aims at the future in a 3-10 year’s arc. By influencing the future this way, standardization affects the farmer’s future technological solutions. The goal of this research project was to find out the benefits of standardization in agricul- tural and forestry machinery sector. We found out in this research project how and at what level standardization should be done in the future. We hope that this research project will affect the future competitiveness of the agricultural and machinery industry both in domes- tic and export markets. We thank most sincerely all the enterprises and organizations that took part on this re- search project. Frederick Teye, Jukka Manni and Pekka Olkinuora 5 Esipuhe Suomen jäsenyys EU:ssa sekä yleismaailmallinen verkottuminen korostavat standardien merkitystä suomalaisille yrityksille ja koko yhteiskunnalle. Mm. Euroopan unionin neu- vosto on kiinnittänyt huomiota standardisointityön tärkeyteen päätöslauselmassaan ja pyy- tänyt, että viranomaiset huolehtivat omalla hallinnonalallaan standardisointityön puitteista kansallisella rahoituksella ja tarvittaessa osallistuvat standardisointiprosessiin. Standardisoinnin tarve korostuu tulevaisuudessa mm. yhteiskuntapoliittisten ja sosiaalisten vastuiden lisääntyessä kun yritysten toiminnat laajenevat maailmanlaajuisiksi. Tarve näkyy myös yhteiskunnan verkottumisessa ja tietoyhteiskunnan kehittymisessä; palveluala kas- vaa, teknologiat integroituvat ja tuotteiden elinkaaret lyhenevät. Standardisointi tulee vaikuttamaan yhteiskunnan tasolla mm. kotimarkkina- ja vientikaup- paan, työntekijöiden työturvallisuuteen ja -terveyteen, kuluttajille tarjottavien tuotteiden turvallisuuteen ja ympäristöön. Maatalouden konesektorilla standardisoinnin suora vaikutus näkyy toisaalta tukena suoma- laiselle maa- ja metsätalouskoneteollisuudelle selkeänä kilpailuetuna ja toisaalta viljelijöil- le tarkoitukseen soveltuvina turvallisina koneina. Luonteenomaista suomalaiselle maa- ja metsätalouskoneteollisuudelle on pienten ja keskisuurten yritysten suuri lukumäärä (noin 800 toimipaikkaa). Tuotannon bruttoarvo vuonna 2002 oli noin 900 M€. Vienti oli noin 500 M€. Suomalaisilla yrityksillä on maan kokoon nähden huomattava osuus EU:n maa- ja metsätalouskonekaupassa. Maa- ja metsätalouskoneteollisuus työllistää noin 4000 henkilöä lähinnä maaseudulla ja siten lisää suuresti sen elinvoimaisuutta. Tehokas standardisointityö on oleellista pyrittäessä kehittämään teollisuudenhaaran kilpailukykyä sekä kotimaan että vientimarkkinoilla. Standardien avulla valmistajat osaavat ottaa huomioon vientimarkki- noilla tarpeelliset koneiden vaatimukset ja toisaalta standardisoinnin avulla koneille (myös tuontikoneille) saadaan asetettua Suomen olojen mukaiset vaatimukset, jotka suoraan vai- kuttavat koneiden käytettävyyteen. Standardisointityö tähtää tulevaisuuteen 3-10 vuoden tähtäimellä. Tällöin vaikuttamalla tulevaisuuteen vaikutetaan maatilojen tulevaisuuden kokonaisvaltaisiin teknologisiin ratkaisuihin. Tämän tutkimuksen tavoitteena oli selvittää maa- ja metsätalouden sektorilla tehtävän standardisointityön hyöty. Tutkimuksessa määritetään maa- ja metsätalouden sektorilla tulevaisuudessa tarvittavan standardisointitoiminnan taso ja yhteistyökumppanit. Vaikutta- vuus kohdistuu erityisesti maa- ja metsätalouskoneteollisuuden kilpailukykyyn sekä koti- että vientimarkkinoilla. Kiitämme kaikkia tutkimukseen osallistuneita yrityksiä ja organisaatioita. Frederick Teye, Jukka Manni ja Pekka Olkinuora 6 Contents 1 Introduction...................................................................................................................9 2 Objective of study........................................................................................................10 3 Literature review..........................................................................................................11 3.1 Standards and standardization..............................................................................13 3.1.1 Nature of standards....................................................................................14 3.1.2 Conformity assessment and certification...................................................16 3.1.3 Participating in standardization work.........................................................17 3.1.4 Standardization process..............................................................................17 3.2 International standardization................................................................................20 3.3 Regional standardization......................................................................................21 3.4 National standardization.......................................................................................24 3.5 Standardization in Finland....................................................................................25 3.5.1 Initiation of standardization in Finland......................................................25 3.5.2 Cooperation of Finland in international standardization............................29 3.5.3 Cooperation of Finland in European standardization.................................30 3.6 Agricultural and forestry machinery standardization in Finland..........................30 3.6.1 Initiation of agricultural and forestry machinery standardization in Finland and in Vakola...........................................................................................30 3.6.2 International work in agricultural and forestry machinery standardization33 3.7 Agricultural and forestry machinery manufacturing and market in Finland........34 3.7.1 Agricultural and forestry machinery manufacturing industry....................34 3.7.2 Agricultural and forestry farms in Finland.................................................35 3.7.3 Agricultural and forestry machinery sales in Finland................................36 3.8 Patents and standards............................................................................................37 3.9 Benefits of agricultural and forestry machinery standards...................................39 3.9.1 Benefits to the manufacturer......................................................................40 3.9.2 Benefits in production and management....................................................40 3.9.3 Benefits in manufactured products.............................................................42 3.9.4 Reduced product development time and costs...........................................43 3.10 Other benefits of standards...................................................................................44 3.10.1 Protection against obsolescence.................................................................44 3.10.2 Product safety and liability........................................................................44 3.11 Standards and the farmer......................................................................................45 7 3.11.1 Accidents, health and safety of the farmer..................................................45 3.11.2 Other benefits of standards.........................................................................52 3.11.3 Impacts of standardization on the environment..........................................53 4 Results of the questionnaire on standardization of agricultural and forestry machines..............................................................................................................................54 4.1 Results of the domestic questionnaire...................................................................54 4.1.1 Method........................................................................................................54 4.1.2 Agricultural and forestry standards usage by companies............................54 4.1.3 Participation of companies in standardization............................................59 4.1.4 Companies’ perception about standards and standard services..................65 4.1.5 Benefits of standards to companies............................................................68 4.1.6 Difficulties in using standards....................................................................72 4.1.7 Companies’ wishes for organization of standardization.............................73 5 Results of the international questionnaire....................................................................75 5.1 Method..................................................................................................................75 5.2 Agricultural and forestry standardization in Germany, France and the Netherlands....................................................................................................................76 6 Discussion....................................................................................................................81 7 Conclusions..................................................................................................................85 8 Summary......................................................................................................................87 9 References....................................................................................................................90 10 Appendices...................................................................................................................94 8 1 Introduction The realization of the importance and benefits of standardization took place a long time ago. National standardization in Finland was initiated by the Engineering Machinery Ma- nufacturers Association (Konepajainsinööriyhdistys) in 1922. At the constitutive meeting of the national standardization board in 1924, a proposal was made to fit, if possible the products of Finish industries according to the conditions of international trading countries for the benefit of the general industry. Early efforts were made to give information about the purpose and benefits of standards for example in the annual reports of the national standardization organization after its establishment (Kaartama 1984). In the field of agri- cultural machinery, the first standards concerning agricultural implements were published in 1930 by the then national standardization association in Finland currently known as the Finnish Standards Association SFS (Olkinuora 1987). Standardization has been acknowledged to have an effect on the industry, the citizens and the government of every nation (CEN 2002). A statement from the 1947 annual report of SFS says, “ Standardization is a fight against the biggest problem of welfare spending, this spending can be found in the form of time, money, raw materials, work and labor. Espe- cially under Finnish national conditions, standardization is a poor man’s weapon for ac- hieving better living standards. It is a road to better welfare of the people” (Kaartama 1984). A well functioning standardization body is crucial in the promotion of growth of the economy. In many instances standards efficiently take care of established technology and this allows resources to be focused on innovation. In this way, standardization helps to increase competition and for that matter lower output and sales costs, benefiting the econ- omy as a whole (DIN 2000). Unfortunately, the real benefits of standardization are not easily noticed or appreciated unless they are lacking in our daily lives (Temple & Williams 2002). Without standardization, it will be very difficult for the farmer to connect the power take-off (PTO) of the tractor to farm machines and implements or in the first place, have the right direction and speed for smooth operation of agricultural implements. Various factors have combined to make standardization become an important in the agri- cultural and forestry machinery manufacturing industry. Some decades ago, active partici- pation in standardization was a reserved field for a few specialists. Presently, standardiza- tion is regarded as an essential discipline for all players within the economy. The parties’ involved endeavour to master the motivating forces and implications surrounding stan- dardization to attain the best out of it. Furthermore, due to the importance of standardiza- tion, companies have integrated standards as a major technical and commercial element into their operations. Companies have also become aware that they must play an active role in this field, or then be prepared to accept standardization established without them, or without the consideration of their interests. The membership of Finland in the European Union (EU) emphasizes the importance of standards to Finnish companies and the society as a whole. The Council of the European Union on its 10th October 1999 resolution, urged national standards bodies and public au- 9