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Chapter 1 Introduction to Manufacturing Magic on the Factory Floor It’s Magic — Full of Excitement and Adventure! Applying carefully guarded knowledge, principles, and techniques Making high-quality hard good products Picking the right materials and processes

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Chapter 1

Introduction to Manufacturing


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Magic on the Factory Floor

It’s Magic—Full of Excitement and Adventure!

  • Applying carefully guarded knowledge, principles, and techniques

  • Making high-quality hard good products

  • Picking the right materials and processes

  • Staying within specifications

  • Doing it the right way with zero defects

  • Made in America—faster, better, and cheaper


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Chapter Highlights

  • Selecting appropriate manufacturing processes

  • Strategies for establishing market superiority among global competitors

  • Strengthening alliances with maquiladoras under NAFTA

  • Manufacturing processes— using tools, techniques, and technical systems to convert raw materials into hard good manufactured products

  • Using NAICS to classify manufacturing industries



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AEROGEL

  • Dr. Stephen Jones and NASA received the record (Guinness World’s Records) for the world’s lightest solid (.00011 pounds percubic inch)—Aerogel

  • The space version of Aerogel was manufactured in space by NASA (April 3, 1996)

  • Aerogel has been used in space ever since

  • Today, it has hundreds of specialized applications


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AEROGEL

  • Aerogel has a thermal insulating capability equivalent to 20 glass windowpanes

  • On a per weight basis, it is the strongest and lightest transparent building material known

  • It is only three times the weight of air

  • The thermal insulating capability of Aerogel is so efficient it can protect the human hand from the heat of a cutting torch


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International Space Station

  • The ISS provides a great environment for making semiconductor crystals

  • Processes such as convection and sedimentation are reduced in space.Reduction means that fluids do not move and will not deform

  • Problem: Air bubbles do not escape when a material is melted in space, but are contained within the material. This results in porosity and reduces strength


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Global Competition

  • Market superiority cannot be judged solely by the number of companies on American soil

  • Many offshore manufacturing plants are American owned or joint ventures

  • Cost of production is reduced by locating firms close to the materials that are used

  • Offshore involvement or joint ventures between nations often leads to cost savings and increased trading opportunities

  • Key to success—employees who work hard, can work with others, can accept change, and will continue to learn


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What is NAICS ?

  • North American Industry Classification System (NAICS)

  • NAICS was developed jointly by the U.S., Canada, and Mexico (1997) to replace the existing Standard Industrial Classification (SIC) index

  • The purpose for NAICS is to provide statistical data used to compare firms and economic activity across North America

  • NAICS was developed under the auspices of the U.S. Census Bureau, Office of Management and Budget


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NAICS

  • There are 473 different types of manufacturing industries in NAICS

  • There are 1,500 different subclasses

    Examples: space vehicles, guided missiles, polystyrene foam, tortillas, surgical and medical equipment, semiconductors, electronic components, audio and video equipment, glass containers, textile carpet, nuts, pretzels, chewing gum, jaw breakers, DVDs, ships, motor homes, machine tools…and many more


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Manufacturing Growth

  • Growth requires thinking globally

  • Japan is viewed by many as the second most technologically powerful economy in the world

  • Offshore manufacturing ventures include Buick, Cadillac, Chevrolet, GMC, Pontiac, Saab, and Saturn


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Manufacturing Growth

  • U.S.-based joint ventures such as the New United Motor Manufacturing, Inc. (NUMMI) in Freemont, CA, which makes the Pontiac Vibe (GM/Toyota venture)

  • Other GM joint ventures include Isuzu, Fuji Transmission, Fiat, Daewoo Motors

  • Ford joint ventures include Aston Martin, Jaguar, Lincoln, Mercury, Volvo, Mazda, BMW


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Lean Manufacturing

  • Toyota is a model of lean manufacturing

  • Incorporates the best of mass production, and the best of craft (one of a kind) production

  • Emphasizes efficiencies in design, parts inventories, quality control, product rework, and reduced work in process (WIP)

  • Involves improved relationships with parts suppliers through Keiretsu


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Goals of Lean Manufacturing

  • To reduce the number of parts warehoused by a plant for immediate use

  • To reduce inventory costs through fewer parts kept on hand

  • To make products faster, better, and cheaper

  • To improve emphasis on quality


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Henry Ford’s River Rouge Plant

Photograph

Courtesy of

Detroit 1701.org

University of

Michigan


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Ford River Rouge Plant (1947)— A model of mass production —

Photograph Courtesy of Detroit 1701.org University of Michigan


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About the Rouge Plant

  • Ford shifted production of the Model T in 1927 to the Rouge plant—The plant is still running today

  • During WW II, it was the largest single manufacturing complex in the U.S., with peak employment of 120,000

  • The plant included dock facilities, blast furnaces, open hearth steel mills, foundries, a rolling mill, metal stamping, an engine plant, glass manufacturing, a tire plant, and its own power station


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Some Comparisons

  • Craft Production—unique one of a kind (high cost)

  • Mass Production—many “look alike products” made in a batch or job lot (lower cost)

  • Today, the Ford River Rouge plant has mixed manufacturing with the best of craft and mass production coupled with best practices from lean manufacturing


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Global Joint Ventures

  • NUMMI (New Motor Manufacturing, Inc.)Toyota and GM

  • Covisint, Inc (Global Internet supply chain efficiency in automotives) Renault/Nissan and Delphi Parts

  • UTC Fuel Cells (U.S., Japan, China, Germany, and others)

  • ABB Inc (100 countries)


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Global Joint Ventures

  • Diamond Chain (produced propeller chain for Wright Brothers Aircraft) 50 plants worldwide

  • Sumitomo Heavy Industries, Ltd(30 subsidiaries in Japan/Asia, Europe, and the U.S.)




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North American Free Trade Agreement (NAFTA) 1996

  • Agreement between Canada, the U.S., and Mexico to encourage free trade between these countries

  • Anticipated expansion to include Argentina, Brazil, Chile, Colombia, Paraguay, Peru, Uruguay, and Venezuela


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Maquiladoras

  • Industrial parks, in most cases owned by Mexican or American corporations

  • Operating under the Mexican Secretariat of Commerce and Industrial Development (SECOFI)

  • First located on the U.S.-Mexican border; now expanded further into Mexico

  • Utilize excess labor in border

  • Encourage Mexican exports

  • Help develop Mexican industrial base


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Maquilas

  • These are the factories that are located in Maquiladoras

  • They can temporarily import into Mexicoduty-free machinery, equipment, materials, parts, and components needed for manufacture of finished goods for export

  • Ownership: U.S. (79), Mexico (6),Korea (2), Germany (2), Netherlands (1), Canada (1)

  • One in five manufacturing jobs in Mexico is in a maquila plant


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Maquilas and Locations

  • #1 is American-owned Delphi Automotive Systems (47 plants in Mexico with 49,586 employees)

  • #2 is Japanese-owned Yazaki Corporation(28 Mexican plants with 27,500 employees)

  • Highest concentration of plants are inEl-Paso-Ciudad Juarez (254 plants),San Diego-Tijuana (554 plants), and Brownsville-Matamoros (96 plants)


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ISO Certification

  • ISO Standards, developed bythe International Standards Organization,are recognized and agreed-upon methods of determining product quality.

  • Standards cover all features, of a product or service, that are required by the customer

  • The ISO 9000 standard is primarily concerned with quality management

  • The ISO 14000 standard addresses environmental management—what the firm does to minimize harmful effects on the environment


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What Is Manufacturing?

  • The application of knowledge demonstrated through the use of tools, processes, machines, and systems to transform raw materials or substances into new products

  • There are primary (raw material production) and secondary (hard good production) industries

Our focus is on secondary manufacturing industries that make hard good products


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Classifying Manufacturing Industries

  • Standard Industrial Classification Index: 20 major industries

  • North American Industry Classification System: 473 major sub-classifications

  • North American Product Classification System (NAPCS), developed by Canada, U.S., and Mexico: Phase I developed 12 sectors in Service industry


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Manufacturing Process

  • Transforming or changing raw materials into hard good manufactured products

For example, raw material, called industrial stock, in the form of thermoplastic pellets, is melted in an injection molding machine. The liquefied material is then injected under pressure into a two-piece mold to produce a case for a camping lantern. This manufacturing process is referred to as injection molding.


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