...Trends in manufacturing to 2020 A foresighting discussion paper Future Manufacturing Industry Innovation Council i Date: 30 September 2011 For more information, or to comment on the paper, please contact: Manager Future Manufacturing Department of Innovation, Industry, Science and Research GPO Box 9839 Canberra ACT 2601 Phone: (02) 6213 6000 Facsimile: (02) 6213 7000 Email: Futuremanufacturing@innovation.gov.au ii Future Manufacturing Council discussion paper: Trends in manufacturing to 2020 Table of Contents Executive summary ....................................................................................................................................1 Background.................................................................................................................................................2 Future Manufacturing Council................................................................................................................2 Defining manufacturing...........................................................................................................................2 Profile of Australian manufacturing........................................................................................................4 Trends to 2020 ... and beyond: Issues and opportunities for Australian manufacturing...................12 Terms of trade driving value and volatility of the Australian dollar and structural changes in the economy – an upside...
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...1. Production and manufacturing both are process to converting inputs into outputs by applying some operation or process. Both terms are used interchangeably, yet both are different. Difference is the raw material procurement. When raw materials are not procured from outside, the company owns it, after processing operations produce goods/service, then the process is called Production. While maufacturing also includes Design sales marketing, and is a narrow term. Whereas production is a broader term. 2. While mass production is effective for creating large quantities of one item, flexible production is usually more cost-effective for producing smaller runs. Whereas customer-driven production system evaluates customers demands in order to make the connection between products manufactured and products bought. 3. The Analytic production system reduces a raw material to its component parts in order to extract one or more marketable products. The part of production that physically or chemically changes materials. For Ex: Petroleum refining breaks down crude oil into several marketable products, including gasoline, heating oil, and aviation fuel. Synthetic production system is the reverse of an analytic system. It combines a number of raw materials to produce finished products. The part of production process that puts together components. For Ex: Canon’s assembly line produces a camera by assembling various parts such as a shutter or a lens cap. 4. Business sustainability requires...
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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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...NIKE CONTENTS The Manufacturing of NIKE • More than 900 contract factories • More than 1 million workers in 50 countries • More than 500,000 different products • ——– Each with its own environmental and social footprint ← From Nike’s manufacturing value chain analysis up to now to evaluate the advantage of the new trend------near shoring. ← We present some Primary Activities, which NIKE is doing. 1. Product Design and Development ▪ It’s one of the most core competitive advantages. ▪ Containing: Technological and scientific research\ Product produced not through labor, but through technology\ Sustainable, innovative and high-quality product 2. Supply ▪ Nike focuses on Building long-term characterized、Trust-based business partnerships, transparent interactions, ▪ NIKE also been developing tools and approaches to provide contract factories with tangible business incentives to aim for higher performance and stronger management practices. 3. Operations—it’s another strong core competencies of NIKE. Which are efficient operations. ▪ Including the hot topic in global souring. Such as NIKE launched a new business unit called Sustainable Business & Innovation, as well as a new business sub-unit called Sustainable Manufacturing & Sourcing. ▪ Such as: ----- At NIKE’s distribution centers, they have begun assessing its waste, most of which is corrugated cardboard, and most of which is recycled. We have also...
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...Competitive advantage is an edge that a firm has over its competitors, allowing it to generate greater sales or margins and retains more customers than its competition. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage. Competitive advantage has two main types that’s to say comparative or cost advantage and differential advantage. Comparative advantage is a firm’s absility to produce a good or service at a lower cost than its competition, which gives the firm the ability to sell its goods or services at a lower price than its competition to generate a larger margin on sales. Differential advantage when a firm’s products or services differ from its competitors and seen as better than its competitors products by customers. Most entrepreneurs and business owners know that one key to surviving in business is to have a sustainable competitive advantage and below are some of the different sources of competitive advantage: Strong research and development capabilities. A business can gain competitive advantage in its industry if it has strong research and development capabilities. It reflects the company’s product development process. Companies with strong research capabilities often lead the market with innovation. For instance, in the technology industry Apple and Sony are the two companies that have held their leadership position using innovation as a competitive advantage. Access to intellectual properties. The holding...
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...productivity of shoes and other athletic apparel comes with the cost of unethical work conditions and labor practices. Arguments have been made that the effort of Nike outsourcing it’s manufacturing to factories in Indonesia, is the wrong choice. Furthermore, Nike has a social responsibility to maintain a satisfactory standard in the facilities where its products are manufactured. Condoning mandatory overtime is unethical. Importance should be placed on upholding the dignity of its workers. We will determine if doing business in Indonesia is a decision that Nike should maintain, due to the negative back lash that they receive in the United States from the Media. Along with indicating what is the best strategy should be applied for doing business in Indonesia. Operation The name Nike is the Greek goddess of victory (Ballinger, 1997) .Nike Corporation was originated by Phillip Knight an athlete from Beaverton Oregon. Knight in his beginning started importing shoes from Japan in efforts to compete with athletic companies like Puma and Adidas. There are three segments for Nike which is footwear, apparel, sports equipment. Out of these segments footwear generates the most revenue. All three segments were outsourced to entrant countries for the best rates in manufacturing. Knight outsourced the manufacturing of his shoe in Japan because they are more cost effective there, the effective cost lead to Nike grossing...
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...solutions to the environmental crisis. Columbia Sportswear Mission Statement: Design and deliver authentic, outdoor, high-value products for active consumers of all ages. Mission Statement Analysis Both Patagonia and Columbia Sportswear principle market sector involves outdoor apparel and equipment. Patagonia’s mission statement does not directly state what their product is but focuses more on the quality and impact of manufacturing on the environment. Based upon Patagonia’s annual report from 2013, the company has gone to endless measures to ensure they maintain their social responsibility as guardians of the environment. “[C]ause no unnecessary harm”, is reflected in one instance in 1996 when the company stopped using traditionally grown cotton in their clothing because of chemicals and pesticides used in growth. In 2001, founder Yvon Chouinard cofounded 1% for the Planet, a collective of organizations dedicating 1% of their sales to support environmental efforts. Patagonia consistently sets the bar for environmental awareness in business and manufacturing practices. As a consumer of their products for close to a decade, I can attest the “[b]uild the best product” is an accurate statement, comparative to other outdoor clothing producers. Even with “build the best product” as their initial statement, clarity is lacking as to what exactly Patagonia’s products are. Granted brand recognition exist after several decades of being in business, but as an initial mission statement...
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...Quality is not just a feature, but also a core philosophy and all members of the firm, even top management have to be dedicated to quality. Quality refers not only to products but also refers to the manufacturing, which is done without defaults. Quality also means the fact that the firm is involved in improving customer value and maintains the satisfaction of customers and participates in constant R&D (research and development). In the case of Colgate, it is easier to keep the level of quality because the firm’s products are deemed suitable for use and consumers have not complained much about the quality. Unilever also struggles to maintain quality but is always tarnished by the constant criticism of the Greenpeace. Unilever, which makes the famous Dove product buys palm oil from suppliers who destroy Indonesia’s rainforests. This will result in forest destruction, extinct animals, and climate change. In Unilever’s “sustainable development report index, Unilever is promising to purchase all their palm oil from certified sustainable sources by 2015. By 2015, maybe there will not be any rainforests left, so this statement did not convince me at all. “In May 2008, following a public challenge from Greenpeace, we formalized our commitment to draw all our palm oil from certified sustainable sources by 2015.”...
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...possible cost at fastest possible time; they don’t just train their people for their work, they also ensure that they are trustworthy and responsible; they have more than 300 branches situated in major towns and cities nationwide to serve you. They want to be the leading courier company meeting the daily needs of the mailing public and build sustainable competitive strengths and gain leading position in the industry. 5. What trend suggesting future change in economics and technical characteristics are apparent? Megatrends. This includes major high-level, non- sector specific, global trends affecting the evolution of manufacturing around the world. These “megatrends” are recognized as critical drivers in many countries, shaping future manufacturing challenges and opportunities. They include phenomena affecting industrial activity at the global and national levels: the increasingly complex and globalized nature of manufacturing; the drastic reduction in manufacturing timescales and associated acceleration of technological innovation; and the growing need for sustainable, resource efficient production. Enablers of future manufacturing competitiveness. Describes qualities and characteristics that, according to many of the exercises analysed, will trigger industrial development in the face of the above- described global trends and drivers. These are attributes that will need to develop and sustain in order to remain competitive in the future. Some of the most evident qualities...
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...www.thetimes100.co.uk Supply chain from manufacturing to shelf Introduction The Kellogg’s Cornflake Company began in 1906 with the Kellogg brothers who originally ran a sanatorium in Michigan, USA. They experimented with different ways to cook cereals without losing the goodness. Their philosophy was ‘improved diet leads to improved health’. Between 1938 and the present day Kellogg’s opened manufacturing plants in the UK, Canada, Australia, Latin America and Asia. Kellogg’s is now the world’s leading breakfast cereal manufacturer. Its products are manufactured in 19 countries and sold in more than 160 countries. It produces a wide range of cereal products, including the well-known brands of Kellogg’s Corn Flakes, Rice Krispies, Special K, Fruit n’ Fibre, as well as the Nutri-Grain cereal bars. Kellogg’s business strategy is clear and focused: • to grow the cereal business – there are now 40 different cereals • to expand the snack business – by diversifying into convenience foods • to engage in specific growth opportunities. By acting responsibly, businesses win respect and trust from communities, governments, customers and the public. This enables the business to grow. In the community, Kellogg’s is known for its approach to Corporate Social Responsibility (CSR). For example, its programme to promote the benefits of breakfast clubs has provided over one million breakfasts to schoolchildren throughout the UK. Businesses focus primarily...
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...Special report│Carbon management Towards a carbon footprint sustainable supply chain As the planet is heats up, so do mandates for manufacturers to reduce their carbon emissions. While manufacturers have been doing their bit in their manufacturing units, their carbon efficient initiatives has ceased to become a mere CSR activity, a movement, or a political leaning. It has transformed into business and economic viability. Today, manufacturers are pushed out of their production silos to consider the entire supply chain and look for new opportunities to erase the carbon footprints effectively – from sourcing to production, to distribution and product afterlife. The need today is for manufacturers to integrate an effective carbon reduction strategy into supply chain to reduce footprint, enhance their corporate image and reap the cost advantage. Attempting to please the ecological police with environmental initiatives and stakeholders with improved savings upon energy consumption, manufacturing companies have come a long way in their energy efficient initiatives. They have come out of their manufacturing facilities’ silos and have started to take an integrated view of their supply chains to erase the most villainous presence of the ‘carbon footprints’. Although manufacturing companies traditionally limited their supply chain optimisation vision to minimising costs to partners in the supply chain and maximising service to the customers, the current scenario is quickly moving...
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...framework for adoption in production management Fadi Shrouf a, b, *, Giovanni Miragliotta a a b Department of Management, Economics and Industrial Engineering, Politecnico di Milano (POLIMI), Italy Department of Industrial Engineering, Business Administration and Statistics, ETSII, Universidad Politcnica de Madrid (UPM), Spain e a r t i c l e i n f o a b s t r a c t Article history: Received 6 November 2014 Received in revised form 5 March 2015 Accepted 18 March 2015 Available online 27 March 2015 In today's manufacturing scenario, rising energy prices, increasing ecological awareness, and changing consumer behaviors are driving decision-makers to prioritize green manufacturing. The Internet of Things paradigm promises to increase the visibility and awareness of energy consumption, thanks to smart sensors and smart meters at the machine and production line level. Consequently, real-time energy consumption data from manufacturing processes can be collected...
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...answers are not clearly identified, your work will not be graded and you will receive a ZERO for your submission. Based on the information presented in the case: 1. Discuss AB Electrolux’s ability to develop global initiatives to reduce costs and increase the speed and precision of product development? 2. How can AB Electrolux compete with local Chinese consumer manufacturers? 3. What are the advantages of shifting manufacturing to low cost regions? 1. Electrolux’s ability to develop global initiatives to increase efficiency and cut costs began in the early 2000’s. Through the implementation of a production-restructuring program, they managed to reduce overall energy consumption as well as reduce costs by relocating its facilities to low-cost countries. By repositioning their location of manufacturing plants, Electrolux was able to reduce the cost of goods sold specifically in the appliance sector. By opening up a global market and implementing factories in low cost countries such as Mexico and China, they managed to save money in both the manufacturing and delivering processes. 2. In order for AB Electrolux to compete with local Chinese consumer manufacturers it must find a way to meet that demographics’ needs. Price must be within range of its competitors and quality has to correspond as well. It is key to understand your target market to the fullest in order to manufacture something that won’t gather dust on the shelf. Even though income in this region is increasing...
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...Intensive situation of manufacturing industry in china China is the largest exporter and the second largest importer in the world. There became the largest manufacturing country in the world, overtaking the U.S. in 2010. This has raised debate that whether China has lost edge as world’s factory. In recent years, the average income in China has steadily gone up as China’s labor cost has grown by over 60 percent since 2009. However, Vietnam’s labor cost is 40 percent of that in China, while in Bangladesh and Myanmar labor costs are as little as one-fifth of China’s labor cost.9 Other factors are also contributing to foreign manufacturers’ profit decline in China, such as: the appreciation of the Renminbi, variability of various local tax rates, stricter regulations on environment protection, as well as government’s policies towards a more service-based economy. In addition to cheaper labor cost, some Southeast Asian countries have put more effort into attracting foreign investment, such as lowering or exempting import tariffs on equipment required by manufacturing activities. However, unsettled political situations, undeveloped infrastructure, unskilled workers, incomplete industry chain systems, and a smaller domestic market in the Southeast Asian countries remain the biggest concerns for foreign investors. Throughout the years, China is still remains competitive manufacturing base while some foreign manufacturers moved out and relocated to Southeast Asia. Many foreign manufacturers...
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... A firm with a competitive advantage may experience higher profits than the average profit in the industry while competing for the same customers. In the case of Honda, this is true. Honda has many distinctive competencies based on its resource and capabilities that allow it to have a competitive advantage in the auto manufacturing industry. Three areas that give Honda a competitive advantage in the auto industry include Honda's engineering and design, research and development, and brand equity. In order to determine whether Honda's competitive advantage in these three areas is sustainable, we analyze and apply each one to the VRIO framework. Honda is unique in that its corporate structure is made of three companies. Honda Research and Development is in charge of research and development of innovative products for the company. Honda Motor produces, sells, and services the all Honda products. Honda Engineering develops manufacturing processes, systems and equipment used to build all Honda products. Honda's superior design capability has enabled it to build high-quality reliable products and has also added value to the Honda brand. Honda's efficient manufacturing processes have also kept production costs low relative to other automakers in the industry (Snipes 2008). In terms of value, Honda excels at using its engineering expertise and design skills to build reliable cars that simply work. This ability is quite valuable to the company and its industry. Although valuable, Honda's...
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