Global Manufacturing

In: Business and Management

Submitted By carloszepeda
Words 1770
Pages 8
Essay #1—Global Manufacturing

In this essay, I will be discussing the emerging trends that will affect manufacturing in the upcoming years. I will begin with focusing on the global nature of manufacturing and supply chain. One major issue concerning global manufacturing is the cost of manufacturing. Looking at Exhibit 1 from a study by the Boston Consulting Group titled, “The Shifting Economics of Global Manufacturing”, we can see the top 25 export economies as well as their cost of manufacturing. Considering all of the 25 countries mentioned in this study, the highest cost in each of these economies is labor. Labor is a huge expense for many companies around the world, which drives the global trend of outsourcing labor to countries where it is cheaper in an attempt to lower this cost. The cost of manufacturing in each of these countries is constantly changing since there are so many factors involved. Labor for example is constantly changing and generally becoming more expensive as a country’s economy begins to grow, since workers are becoming more skilled and demanding more rights and higher wages. There are many changes going on in manufacturing and supply chain processes. Particularly, there are 4 forces that are setting countries apart from each other and allowing them to be more competitive. Those are wages, exchange rates, labor productivity, and energy. In my opinion these forces are areas that countries need to focus on improving and maintaining in order to be able to compete effectively with the global manufacturing industry. In terms of wages there is always a constant increase in the hourly pay of workers. Although some countries may be growing at about 10-20 percent and other at 2-3 percent per year, they are all growing nonetheless. Median hourly wages among the 25 countries looked at by The Boston Consulting Group (BCG) was $17.64 per hour.…...

Similar Documents

Manufacturing

...Manufacturing: A brief global look by ??? April 9, 2011 Manufacturing is a key component of any country’s economy and many comparisons have been made between the United States (U.S.) and other countries. Since World War II the U.S. has been the leader of the manufacturing sector due mainly to the fact that the U.S. industrial plants were not devastated by the destruction of war as where most of Europe and Asia. This paper is a team effort and will give a brief look at the state of manufacturing and some of the incentives each government has used to entice the growth of manufacturing within their respective countries. The countries to be examined are the United States, China, Germany and Japan. You hear it on the news, read it in the newspapers and see the results in the stores that manufacturing is dead in the (U.S.); however, if you do a little research you find the U.S. is still the leader in manufacturing production. As Stephen Manning of the Associated Press acknowledged in a rare “just the facts” story in mid-February, the U.S. “by far remains the world’s leading manufacturer,” producing goods valued at a record $1.6 trillion in 2007 — nearly double the $811 billion produced a decade earlier. Indeed, the AP writer noted, “For every $1 of value produced in China’s factories [in 2007], America generated $2.50.” Not bad for a country that doesn’t produce anything anymore. Some other facts about U.S. manufacturing are: •The United States is the world’s...

Words: 4474 - Pages: 18

Manufacturing Sector

...INDIAN MANUFACTURING: OVERVIEW AND PROSPECTS ........................................................................................................................ CONTENTS 1. 1.1 1.2 1.3 2. 2.1 2.2 3. INDIAN MANUFACTURING SECTOR: AN OVERVIEW ......................................................... 5 Role of manufacturing in the Indian economy................................................................... 5 The sub-sectors that stand out in India's manufacturing sector .................................... 6 Manufacturing sector's recent growth spurt: Clues from IIP.......................................... 7 TAPPING THE GLOBAL MARKET ........................................................................................... 9 India's growing manufacturing exports .............................................................................. 9 The main export markets: US, Western Europe, and the Middle East ............................ 12 INCREASING COMPETITIVENESS OF INDIAN MANUFACTURING .................................... 13 3.1 3.2 3.3 Sector has an edge in the global arena ............................................................................. 13 Encouraging research and fostering innovation .............................................................. 15 Government support for developing a skilled workforce ................................................ 17 4. CURRENT TRENDS IN INDIAN MANUFACTURING ............................................

Words: 1581 - Pages: 7

Riodan Manufacturing

...Riordan Manufacturing Riordan Manufacturing is a “wholly owned subsidiary of Riordan Industries, a Fortune 1000 company” with a projected income of $46 million and around 550 employees (University of Phoenix, 2013). Riordan Manufacturing is a global manufacturer in the plastics industry, including fans, medical devices, and bottles. Riordan Manufacturing strives to meet the increasing customer demands for plastics. The company recently identified some issues with its current production plan, such as the need for technology and the need of timely and shared information among departments, plants, and customers. Riordan Manufacturing has plans to achieve higher capacity ratio, cost-effective transportation, reduced levels of inventory, decreased wastage, and the implementation of an Enterprise Resource Planning. In this study, there will be a review of Riordan Manufacturing’s operational strategy and an addition of the topic of process design to it. “The process design includes the selection of appropriate technology, sizing the process over time, the role of inventory in the process, and locating the process” with quality management as its main focus (Chase, Jacobs, & Aquilano 2006, p. 24). A proposal for a Process Design for Riordan Manufacturing in regard to the electric fans system will be given. It will include Material Requirements Planning for the manufacturing of the electric fans, process design for production, and new supply chain taking advantage of global......

Words: 2207 - Pages: 9

Virtue Ethics and the Global Manufacturing Process

...accountable to the same virtues even if local laws and customs allow the behavior. One should apply virtue ethics to both their personal lives as well as their professional lives. In the 1990’s major concerns were exposed in the manufacturing community about working conditions in factories located in third-world countries (Sethi, Veral, Shapiro, & Emelianova, 2010). Major pressure was then placed on numerous manufacturing companies in an attempt to force them to change their practices and improve working conditions in their factories. While it is the goal of every company to continually increase profits, a company should not do so at the expense of another person or culture. Mattel is a company that took it upon themselves to change the way they did business, and improve the lives of their employees working in their overseas factories. Mattel saw the looming public relations storm, and worked to make changes to their policies in order to improve the quality of life and safety for their overseas factory employees. Since Mattel sells toys for children, it was definitely in their best interest to make sure that the factories manufacturing their toys didn’t use child labor in “sweatshop” conditions to make them. Mattel created “Global Manufacturing Principles” that all of their manufacturers were required to follow that would ensure that the conditions in their factories were satisfactory. Mattel made a conscious decision to change in order to ensure that they were......

Words: 1771 - Pages: 8

Riordan Manufacturing

...Riordan Manufacturing Wayne D. Lewis, Kylie Guillotte, Michael Schuldaski, Robert Phelps University of Phoenix Riordan Manufacturing Riordan Manufacturing owned by Riordan Industries is a Fortune 1000 company and a world leader in using polymer materials to provide solutions to major businesses in the automotive parts manufacturing industry, aircraft manufacturing and the Department of Defense. Riordan Manufacturing is dedicated to being a leader in research and development (R&D) while setting the trends within the industry by the hiring and training of qualified personnel focused on creating a strong long term relationships with customers by providing solutions that meet their needs. This focus must be maintained to ensure the success, profitability and continued growth of Riordan Manufacturing as an industry leader. Riordan Manufacturing corporate headquarters is in San Jose, California with plants in Albany, Georgia, Pontiac, Michigan and Hangzhou, China. The company acquired several of its assets through planned expansions and acquisitions. This growth has left Riordan Manufacturing with three separate operating organizations in Georgia, Michigan and California. There is also a joint project with the People’s Republic of China managed of the Hangzhou facility with its own operational and financial concerns. Each organization operates on different finance and accounting. This is one of the challenges Riordan Manufacturing faces with the financial and accounting......

Words: 4363 - Pages: 18

Manufacturing

...MANUFACTURING Manufacturing is the production of merchandise for use or sale using labor and machines, tools, chemical and biological processing, or formulation. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as aircraft, household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users – the "consumers". FACTS ABOUT MANUFACTURING IN THE PHILIPPINES: * Manufacturing accounts for nearly 24% of the Philippines' total GDP, while manufactured goods comprise 90% of Philippine exports, including furniture and fixtures, transport equipment, petroleum products, miscellaneous manufactures, electrical machinery, leather products, beverages, paper and paper products, basic metal, fabricated metal products, non-metallic mineral products, rubber and plastic products, textiles, and many more. * The Philippines is now considered one of the most competitive areas for manufacturing. After the unfortunate events in Japan, flooding in Thailand, the rising costs of countries such as Vietnam and China, the Philippines now is in position to lead manufacturing growth in the Asia. * The bulk of the Philippine manufacturing industry is concentrated in Manila, the capital.......

Words: 1924 - Pages: 8

Riordan Manufacturing

...Request SR-rm-022, Part 1 BSA/375 Service Request SR-rm-022, Part 1 Riordan Manufacturing is a global plastics manufacturer employing 550 people with projected annual earnings of $46 million. All though Riordan Manufacturing Industries is a Fortune 1000 enterprise and a global manufacturer of plastic they currently do not have an integrated system that brings all the sites together as one.Currently, there are three sites that they manufacture from in Hangzhou China, Pontiac, Michigan, and Albany, Georgia. Riordan’s headquarters are located in San Jose, California, here the research needed to maintain Riordan’s success is done. Riordan Manufacturing, like any company, would not be able to experience any success without their loyal customers and the company’s steak holders. The key stakeholders within the Riordan Manufacturing Company that I would gather requirements from first would be would be management. After the management I would gather information from the employees. No one knows a company better then its staff. I would hold a meeting with the entire staff to decipher what the company’s current business challenges and future requirements this will as help me identify the company’s current and future business process flow. Once this is done key requirements which were gathered during the focus group will be consolidated into what will be foundation of the new system Riordan Manufacturing Company. The analysis tool I would propose for this project would be SDLC......

Words: 799 - Pages: 4

Global Trends: Manufacturing and Outsourcing

...Gardner International Economics Group Written Assignment 1 Global Trends: Manufacturing and Outsourcing Over the past decades various businesses across the globe have made shifts in the way manufacturing is handled in their companies. Some have outsourced the full scope of their manufacturing. While others have done partial outsourcing, where partial assembly is returned to the US industry. When manufacturing is outsourced, whether for goods or services, many companies downsize their work force. This creates a loss of jobs for the American industries while increasing jobs in places such as China, India and Indonesia, just to mention a few. Outsourcing, undoubtedly has its comparative advantages as far as having lower wages but it also has risks such as rising costs and trade barriers. It is some of these challenges that is believed to have created a slow re-routing of manufacturing to return to the US Industry. The global trend in manufacturing and outsourcing is that many countries rely heavily on China and other developing nations for manufacturing. For this reason many countries outsource their manufacturing to China. In the article, “The end of cheap China,” the writer reminds us that, “China is the world’s largest manufacturing power and they account for a fifth of global manufacturing.” The primary reason for this trend is due to the cheap labor. It should be noted that global manufacturing is also advantageous to China and other developing nations,......

Words: 1083 - Pages: 5

Manufacturing

...ME 303 MANUFACTURING ENGINEERING PROBLEM SETS Prepared by: Kamil Özden Ural Uluer Salih Alan Mehmet Bilal Atar PROBLEM SET FOR CHAPTER 2 Q2.1 A copper bar is to be cold rolled into a section which must have a min. tensile strength of 390 MPa. If the final cross-sectional area is 20.13 mm2 and assuming the flow properties of the workpiece material are given as K = 450 MPa, n = 0.33. Calculate the followings: a) The tensile strength of the annealed material. b) The initial diameter of the copper bar. Solution It is important to understand the question well. In this question, the copper bar is annealed first then a cold rolling operation is done on it. Initial diameter of the copper bar is same before and after the annealing operation. a) Flow stress of the plastically deformed bar could be shown as shown in Course Slides at UTS Then UTS of the original bar (no annealing, no cold working) is found as below: = 450 (0.33)0.33 = 312.12 MPa . As u u Since before necking occurs ( < n) area stays constant at the whole bar, the formula below could be used: By putting the area ratio into the formula (i) UTS of the annealed material is found as: b) For this question d0 can be found by using the ratio: if < n (which means necking is not started yet) with the UTScw value given in the question as UTScw = 390 MPa, to check the value So > n which means that necking started, then UTScw becomes equal to flow stress of the deformed material, Q2.2 A...

Words: 6030 - Pages: 25

Cotract Manufacturing

...Electronics Contract Manufacturing: Global Production and the International Division of Labor in the Age of the Internet Boy Lüthje Institute of Social Research Johann Wolfgang Goethe-Universität Senckenberganlage 26 60325 Frankfurt Germany E-mail: luethje@soz.uni-frankfurt.de Submitted for publication to Industry and Innovation – special issue on “Global Production Networks, Information Technology and Local Capabilities”, coordinated by Linsu Kim and Dieter Ernst Comments welcome, please do not quote December 2001 2 The role of information technology for production networks in developing countries cannot be assessed without an analysis of the profound changes in the productive structure of global capitalism. In contrast to the general perception of the “informational economy” (Carnoy e.a. 1993, Castells 1996) as service- or science-based, it has to be stressed that in the "new economy" manufacturing continues to matter (Cohen/Zysman 1987). In the electronics industry, a new model of outsourced manufacturing has emerged as a centerpiece of globalized production networks: Contract Manufacturing (CM) or Electronics Manufacturing Services (EMS). This form of network-based mass production closely linked to the emergence of the “Wintelist” (Borrus/Zysman 1997 model of competition and the rise of “fabless” product design companies in key sectors of the information technology (IT) industry. Our analysis of electronics contract manufacturing explores three......

Words: 10486 - Pages: 42

Manufacturing

...Vol. 3, No. 5 Modern Applied Science A Study of an Evaluation Model on Manufacturing Execution System in Paper-making Enterprises Zhihong Xu Key Lab for Paper Science and Technology of Ministry of Education Shandong Institute of Light Industry Shandong 250353, China E-mail: xzh1385@163.com Feng Huang The State Key Laboratory for Microbial Technology Shandong University, Shandong 250100, China Jiachuan Chen & Guihua Yang Key Lab for Paper Science and Technology of Ministry of Education Shandong Institute of Light Industry Shandong 250353, China Abstract Manufacturing execution system (MES) is a production management technology and real-time information system which lies between the enterprise upper layer (ERP) and the bottom layer (PLC/DCS) and faces to workshop layer. MES's concept, its functional model and its important status in the manufacture industry are introduced in this article. Based on the production practice in Kunshan Banknote Paper Mill, an evaluation model of EMS is set up. The model also has a certain reference value to the construction of management information system (MIS) for the relative industries. Keywords: Pulp and paper industry, Manufacturing execution system, Furzzy evaluating method 1. Introduction The construction of informationization has made considerable progress with years of development in domestic paper industry. Large and medium-sized paper-making enterprises has widely adopted Enterprise Resource Planning (ERP) for enterprise......

Words: 3133 - Pages: 13

Applying Virtue Ethics to Mattel Inc. Global Manufacturing Principles

...Abstract In this paper I will analyze the case study of Mattel Inc. and their Global Manufacturing Principles (GMP) and applying it to three different virtue ethics; fairness, honesty and justice. Then I will apply deontology, “always act in such a way that you can also will that the maxim of your action should become a universal law.   Public concerns about worker exploitation and environmental degradation arose with the expansion of outsourcing and production in emerging economies where poverty, abundant labor, and need for job creation provided unprecedented opportunities for large multinational corporation (MNCs) to shift production from high-wage countries to low-wage countries. Starting with isolated complaints from civil society organizations, human rights groups, and organized labor in the mid-eighties, the anti-sweatshop movement became a major force by early nineties in the United States, Canada, Europe, and other industrially advanced countries. Global companies were under fire for operating factories with working conditions that violated basic human rights and labor laws in terms of wages and working conditions. Instances of worker exploitation and employment of underage workers were widespread. Mattel was in the middle of all of this and had also taken steps to respond to public concerns with regard to sweatshop-like conditions and worker exploitation in toy manufacturing factories in China and other developing countries. These efforts were quite......

Words: 1463 - Pages: 6

Riordan Manufacturing

...Riordan Manufacturing, a leading global manufacturer of plastic containers, parts, and fan parts, is wholly owned by Riordan Industries, Inc. Riordan’s fan manufacturing plant was purchased in 1992 when it was located in Michigan. In 2000, the company moved its fan manufacturing operation to China where it now resides. Riordan schedules manufacturing of fan parts based on forecasted production needs using an averaged three year sales history. Riordan’s make-to-stock system benefits customers who need products quickly with orders filled from inventory when received. Riordan employs a robust shipping department including a variety of reliable shipping solutions from the plant in China to worldwide customers. Riordan Manufacturing’s electric fan production plant is continually analyzing its strategies. Process flows, performance metrics, supplier relationships and supply chain efficiencies, lean production principles, and sales forecasting are essential to the success of Riordan. The company uses reports and plans for material acquisition, production, and scheduling in its manufacturing facilities. Riordan’s Manufacturing Strategy Riordan’s manufacturing strategy is a stable workforce for two reasons; first, “it schedules production of fans to meet the forecasted sales” and the forecast is calculated by “taking the average of sales for the last three years and extrapolating it into the next year” (Riordan Mgf. Operations - Supply Chain (Hangzhou, China), 2014). Second,......

Words: 1740 - Pages: 7

Manufacturing Excellence

...18 MANUFACTURING not Just a cog in the wheel manuFacturing excellence is increasingly guiDeD By the usage oF aDvanceD analytical tools that also equip Firms to Deal with challenges relateD to innovations, green practices anD regulatory compliance N S Bala Senior Vice President, Manufacturing & Hi-Tech Globally, manufacturing has become a key talking point in government and industry circles in view of its critical role in GDP growth and sustainable development strategies. However, the sector’s share of GDP has declined considerably over the years in advanced and emerging economies alike owing to the rapid expansion of the services sector. Today, manufacturing is staging a strong comeback, powered by renewed policy focus, adoption of new technologies and intelligent systems, market demand for higher-end manufactures, and rise of new global markets. MANUFACTURING 19 Certain manufacturing segments are also adopting a services approach, which is a distinct breakaway from conventional manufacturing delivery. For example, Xerox is leasing out machines as a service. This approach spells a paradigm shift in the manufacturing sector’s strategic thinking. Over the next decade, manufacturing competitiveness, growth and development will increasingly hinge on the quality of inputs that go into the strategic planning. Towards this end, the importance of analytics can hardly be overstated. Analytics locates itself in the data that is related to the particular business. With......

Words: 1380 - Pages: 6

Manufacturing

...Valery Marinov, Manufacturing Technology Cutting Forcess 71 5.3 CUTTING FORCES Introduction Cutting is a process of extensive stresses and plastic deformations. The high compressive and frictional contact stresses on the tool face result in a substantial cutting force F. chip tool F` cut F workpiece Total cutting force F and reaction force F` in orthogonal cutting Knowledge of the cutting forces is essential for the following reasons: v v v v proper design of the cutting tools proper design of the fixtures used to hold the workpiece and cutting tool calculation of the machine tool power selection of the cutting conditions to avoid an excessive distortion of the workpiece Cutting force components In orthogonal cutting, the total cutting force F is conveniently resolved into two components in the horizontal and vertical direction, which can be directly measured using a force measuring device called a dynamometer. If the force and force components are plotted at the tool point instead of at their actual points of application along the shear plane and tool face, we obtain a convenient and compact diagram. chip tool cut F FC FD workpiece Total cutting force F is conveniently resolved into horizontal component FC and vertical component FD The two force components act against the tool: ΠCutting force FC : this force is in the direction of primary motion. The cutting force constitutes about 70~80 % of the total force F and is used...

Words: 785 - Pages: 4