...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...
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...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. The...
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...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 interrelated...
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...Advanced Manufacturing Competency Model Updated April 2010 Employment and Training Administration United States Department of Labor 1 www.doleta.gov Updated April 2010 Advanced Manufacturing Competency Model Table of Contents About the Model 3 Tier One: Personal Effectiveness Competencies 4 Interpersonal Skills 4 Integrity 4 Professionalism 4 Initiative 4 Dependability & Reliability 4 Lifelong Learning 4 Tier Two: Academic Competencies 6 Science 6 Basic Computer Skills 6 Mathematics 7 Reading 7 Writing 7 Communication—Listening and Speaking 8 Critical & Analytical Thinking 8 Information Literacy 8 Tier Three: Workplace Competencies 10 Business Fundamentals 10 Teamwork 10 Adaptability/Flexibility 11 Marketing and Customer Focus 11 Planning and Organizing 12 Problem Solving and Decision Making 12 Working with Tools and Technology 13 Checking, Examining, and Recording 13 Sustainable Practices 14 Tier Four: Industry-Wide Technical Competencies 15 Entry-Level 15 Manufacturing Process Design/Development 15 Production 15 Maintenance, Installation, and Repair 17 Supply Chain Logistics 17 Quality Assurance and Continuous Improvement 18 Sustainable and Green Manufacturing 19 Health, Safety, Security, and Environment 19 Technician Level 21 Manufacturing Process Design/Development 21 Production...
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...and Personal Computers. With the huge demand for their products, there comes an enormous responsibility for manufacturing the devices in a quick and cost effective matter. With the rapidly growing market of Apple computers and the technology/electronic industry as a whole, Apple eventually had to rethink how they manufactured their products to create the most efficient outcome; the highest revenue with the lowest cost. The competitive nature of the technology industry causes companies to look for a competitive advantage, which will make them much more profitable than their competitors. For the majority of the company’s history, they have been known to manufacture their products in the USA and even prided themselves with building the Macintosh computer which Steve Jobs described as “a machine that is made in America”. In 2004, when the company was not nearly as financially profitable as they are today, they decided their best option was to start manufacturing their products in other countries. The company, who is now a leader in foreign manufacturing, was lagging behind many American companies in terms of manufacturing abroad at that point in time. The majority of their foreign manufacturing takes place in Asia, specifically in China. In the New York Time’s article, “How the U.S lost out on iPhone Work,” Charles Duhigg described Apple’s move to foreign manufacturing from the words of a former Apple executive, “For Mr. Cook, the focus on Asia “came down to two things,”… Factories...
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...Introduction SKS Manufacturing has recently hired Deloitte & Touche as they are in a critical cash position with various internal inefficiencies in their procurement and production processes. Deloitte & Touche and SKS Manufacturing will need to work together in order to solve the issues present at SKS Manufacturing so they can be successful within the automotive parts industry. Issues & Analysis There are three key issues that are present at SKS Manufacturing that need to be systematically tackled in order for stabilization of the business to occur and the long-term redesigning process to be effective. The key issues facing SKS Manufacturing are: (1) cash flow shortage (2) weak alignment and integration within the value chain and (3) lack of synchronization between production and procurement affecting customer satisfaction levels. The issues listed above have caused SKS Manufacturing to produce inefficient amounts of products and not meet delivery dates due to the weak internal alignment and poor control systems in place (A1). Cashflow Shortage SKS Manufacturing needs to resolve its current cash flow issue immediately as poor industry analysis and lack of information for adequate forecasting has led them to having high inventory levels. Additionally there is a second warehouse location that is not efficient and is taking up cash reserves, thus decisions need to be made regarding downsizing and better forecasting methods to stabilize the current environment. Additionally...
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...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...
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...Riodran Manufacturing Riodran Manufacturing is a company that specializes in the injections plastic molding for multiple different types of products ranging from bottles and storage containers to medical grade plastics. The main weakness that can be found with in Riodran Manufacturing’s system is the current inventory system that is in place for the manufacturing facilities. In order to run as a more efficient system and provide the best support and care to its customers Riodran Manufacturing’s inventory systems needs to be altered from the very start, i.e. raw materials receiving. In the current system Riodran Manufacturing plants around the country use outdated computer systems to run orders and inventory control for the entire facility. In order to improve the efficiency of the receiving area of these plants this system needs to be altered. The first thing that can be done is to add industrial scales that the supply trucks carrying raw materials to pass over when entering the receiving area of the plants. The scale will be calibrated and connected to a computer system that will give exact weight and amount of the raw material that is being delivered from the supplier. This will allow for a more accurate count of the amount of raw material in the inventory. Once that information is in the computer the delivery will be marked as complete on the schedule and a report will be automatically generated and linked to the supervisor and the inventory clerk for review. Once the...
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...Riordan Manufacturing has production plants located in Albany, GA, Pontiac, MI, and their overseas plant in Hangzhouz, China. Each location is responsible for different production lines and inventory. The Research and Development department is located in San Jose, CA, Riordan’s headquarters. Riordan Manufacturing’s Vice President (VP) of Operations has a service request for an implementation of a Manufacturing Resource Plan (MRP) among Riordan’s three plants into one system. This request will make it easier to maintain the inventory of raw materials and finished products (Apollo Group, Inc., 2013). An MRP will improve the current computer systems. The VP of Operations, Mark Neitzel, made a request for the system. The system includes Inventor Oversight, which is broken into two components: The Inventory PC and the Customer Shipping and Billing. The further breakdown of the system needs to track all incoming raw materials, the manufacturing of product followed by product inventory, the shipping of all products to clients, and the billing of clients. The system is broken down into workflows performed daily by each plant. Incoming raw materials workflow. 1. The Supply truck arrives at Receiving Dock with raw materials 2. The Dock Supervisor compares shipping documents against scheduled incoming orders 3. Once orders are concurred, the receiving team unloads truck and moves raw materials into the factory. 4. At the end of the day, the Dock Supervisor gives the log of all...
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...Riordan Manufacturing Scott Wissel OPS/571 February 24, 2013 Kristina Limon Riordan, a chemistry professor, found some ways to increase the tensile strength on polymers and patented the ideas. Eventually he was able to get some capital and started to manufacture his product. Riordan Manufacturing is a company that has 550 people. They are also looking to have $46 million of projected annual earnings. Riordan Industries owns the company that is a fortune 1000 enterprise that has over $1 billion in revenue. The company produces containers, custom parts, and fan parts all in plastic. This can be seen in any of their Albany, Georgia; Pontiac, Michigan; and Hangzhou, China manufacturing plants. Their Chinese plant was set up as a joint venture between Riordan and small consortium of Chinese nationals. Capacity planning is a strategy that can be used to identify what is needed to produce what is being asked of the business in the way of demand for the goods and services. A capacity plan depends on accurate input and constructive feedback from the planners that supports the company’s long range strategy ("What Is Capacity Planning?", 2013). The market for fans and custom plastic parts will be affected by the economic conditions people are facing. Riordan has to take in account the economic impact from their customers and this is crucial in determining the future direction of the company. Riordan must avoid a decrease in the manufacturing of electric fans...
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...Make to Stock Strategy Riordan Manufacturing implements the make to stock strategy in their business. This strategy involves having the manufacturing company match production with consumer demand forecasts. This strategy forecast demand to determine how much stock should be produced. (Jacobs & Chase, 2011). This strategy is beneficial to the company because the fans are seasonal and it allows the company to produce the product during the slow season and can be used during the peak season. This allows for the process to run at a constant rate throughout the year (Jacobs & Chase, 2011). Riordan manufacturing forecast the demand of fans by taking the average of sales for the last three years and extrapolating it into the next year (rorodan 2013). Riordan believes that the same amount of sales will be estimated for the future years. In order to focus on ways to improve Riordan’s current method of operation is by forecasting the customers demand in order to minimize waste Cite tiorodan.). Riordan Manufacturing employs about 550 employees and has projected annual earnings of $46 million. Their sales and production levels fluctuate slightly month over month (Riordan Manufacturing, 2013). Riordan has a stable work force and has enough employees to be able to produce the demand for the goods. Riordan hires the right amount of employees to avoid the tangible and intangible costs of hiring and laying off employees due to not needing them. This strategy allows the...
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...not sold is reported on the current period's balance sheet as ending finished goods inventory. Manufacturing Statement P2 Prepare a manufacturing statement and explain its purpose and links to financial statements. A company's manufacturing activities are described in a manufacturing statement, also called the schedule of manufacturing activities or the schedule of cost of goods manufactured. The manufacturing statement summarizes the types and amounts of costs incurred in a company's manufacturing process. Exhibit 14.17 shows the manufacturing statement for Rocky Mountain Bikes. The statement is divided into four parts: direct materials, direct labor, overhead, and computation of cost of goods manufactured. We describe each of these parts in this section. EXHIBIT 14.17 Manufacturing Statement 1. The manufacturing statement begins by computing direct materials used. We start by adding beginning raw materials inventory of $8,000 to the current period's purchases of $86,500. This yields $94,500 of total raw materials available for use. A physical count of inventory shows $9,000 of ending raw materials inventory. This implies a total cost of raw materials used during the period of $85,500 ($94,500 total raw materials available for use − $9,000 ending inventory). (Note: All raw materials are direct materials for Rocky Mountain Bikes.) 2. The second part of the manufacturing statement reports direct labor costs. Rocky Mountain Bikes had total direct labor costs of $60...
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...Contract Manufacturing/ Outsourcing of production facilities Contract Manufacturing/ Outsourcing of production facilities 419, TFEMR, XLRI, Circuit House Area, Jamshedpur 9901478733 [Type the fax number] 5/17/2015 419, TFEMR, XLRI, Circuit House Area, Jamshedpur 9901478733 [Type the fax number] 5/17/2015 Siddharth Joglekar An assessment of the advantages, risks, challenges associated with the field of contract manufacturing and the steps to tackle them Siddharth Joglekar An assessment of the advantages, risks, challenges associated with the field of contract manufacturing and the steps to tackle them With the proliferation of globalization, most of the top producers of consumer goods have set up or are trying to set up shop in India. A vast demography spread across an equally diverse geography makes the process of making goods available for the populace enormously challenging. With a majority of the population (68%) dispersed across the rural areas as opposed to a more concentrated (32%) urban population, accessibility to the forces of the market is an exacting task as is integrating the supply with the demand functions. As a solution to this problem, several contract manufacturers have lent their capacities to these producers. This article aims to assess the various advantages and risks faced by both the hirer and the manufacturer associated with outsourcing production facilities. It also takes a step further and determines the challenges associated in...
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...main focus was on (R&D) research and development along with licensing. Then in 1992, Dr. Riordan invested in a fan manufacturing facility in Pontiac, MI. and changed the name of the facility to “Riordan Manufacturing, Inc.” Then again in 1993, Dr. Riordan purchased another manufacturing facility, this time it was in Albany, GA. The company expanded into the production line and started making plastic beverage containers. Riordan Manufacturing made its most resent expansion in 2000 by moving there fan making operations from Michigan to China. During this transition time period, all the parts and tools were switched out so that they could accommodate there custom plastic parts company. Currently, Riordan Manufacturing employs over 550 workers based in four different locations and has an annual earning of approximately $46 million. Some of its products manufactured by Riordan Manufacturing include: ▪ Fans ▪ Plastic Bottles ▪ Custom Plastic Parts ▪ Heart Valves ▪ Medical Stints Although Riordan Manufacturing has been successful from the beginning of there operations, there are still improvements that can be made. This review has identified the necessary changes needed in order to help make Riordan Manufacturing a much more efficient operating company. Human Resources Department The Human Resources Department (HR) plays an important roll for Riordan Manufacturing. The HR Department helps manage the day-to-day operation of the organization. Some of the responsibilities of the...
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...The major problem in the Deloitte & Touche Consulting Group case was the lack of support that Maria Chen had during the first few weeks of the engagement at SKS Manufacturing. The cause of the problem with the engagement at SKS Manufacturing was multi-pronged. Maria Chen could have very easily become the sole scapegoat for blame. However, upon analyzing the underlying causes, Maria lacked 100% support from the two most senior members of the engagement team. First, David Hendry, Partner had just accepted additional responsibilities of bringing in new business. This meant that he would have competing demands with a less proactive focus and attention to SKS Manufacturing as a client during the initial engagement. Secondly, Annette Wattley-Davis, Senior Manager, assigned to the SKS Manufacturing engagement was working on another concurrent project in Dallas. She was in Texas for 2-3 days per week overseeing a project with another client with limited oversight to the SKS engagement during a lucrative period (first six weeks) of the engagement. Thirdly, Maria Chen was a fairly new consultant and inexperienced to lead a vague and difficult situation on her own. Her lack of experience coupled with the lack of support from David Hendry and Annette Wattley-Davis was detrimental and derailing. She was assigned specifically to lead and address the production scheduling processes and synchronize production operations with purchasing while working along side Ben Rohan. He was tasked...
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