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THE MANUFACTURING & SERVICE INDUSTRIES PowerPoint PPT Presentation

THE MANUFACTURING & SERVICE INDUSTRIES World-Class Manufacturing Manufacturing organizations are vehicles for the creation of goods To compete in global market, manufacturing firm must be a world class organization

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THE MANUFACTURING & SERVICE INDUSTRIES

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THE MANUFACTURING

&

SERVICE INDUSTRIES


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World-Class Manufacturing

  • Manufacturing organizations are vehicles for the creation of goods

  • To compete in global market, manufacturing firm must be a world class organization

  • U.S. manufacturers have recognized the need to respond to global competition in manufacturing


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Product Development Performance by Region

NA = not available


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Operating Principles of World-Class Manufacturing Organizations

  • The Manufacturing System

    - Applied Sciences provide the technical base

    - Material transformation process are the means used to convert materials into components

    - Computer-based systems provide the tools enhance the capability and performance of the design, planning, scheduling, control & sales


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The Integrated Manufacturing Enterprise

Marketing

Sales

Service

Community

Customers

Administration

Human Resources

Finance

Accounting

Operations

Product and

Process

Engineering

Applied Science

Vendor and

Suppliers

Government


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Operating Principles of World-Class Manufacturing Organizations

  • Foundations of Manufacturing

    - fundamental truths

    - rules

    - laws

    - doctrines

    - motivational forces


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Operating Principles of World-Class Manufacturing Organizations

  • Benefits and Opportunities

    - foundation provides body of knowledge that industrial and manufacturing executives could use to predict outcome of specific products

    - foundation should indicate some opportunities for more meaningful interdisciplinary interactions


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Operating Principles of World-Class Manufacturing Organizations

  • Benefits and Opportunities

    - foundation can help guide the experimentation and learning process that is important in achieving future improvement


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Foundations of Manufacturing

  • Management Philosophy & Practice

    • Goals & Objectives

    • The Customer

    • The Organization

    • The Employee

    • The Supplier or Vendor

    • The Management Task


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Foundations of Manufacturing

  • Measuring, Describing, & Predicting Performance

    • Metrics

    • Models

  • Improving Performance

    • Experimentation

    • Technology


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The Service Industry

  • The engines of the U.S. economy can be divided into clusters

  • The service sector is the largest engine

  • Service sector accounts for more than 70% of U.S. GNP

  • Employment in the U.S. service sector reached approximately 80% in 1995


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Engines of the U.S. Economy

Aerospace/

Defense

Fashion,

Apparel &

Textiles

Health

Services

Automotive

Industrial

Machinery

Consumer

Product/Services

Advanced

Manufacturing

Home &

Lifestyle

Products

Electronics

Bio-Medical

Products

Agricultural

& Food

Processing

Info/Media &

Entertainment

Business

Services

Educational

Services

Construction

Materials

Energy &

Processed

Materials

Business

Services

Resources

Financial

Services

Transport &

Distribution

Metals

Forest

Products

Tourism &

Recreation


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Classification of Service Industries

  • Capital-Intensive

    - utilities, transportation, communication

  • Labor-Intensive

    - hospitals, consulting, entertainment

  • Technology-Intensive

    - public utilities, airline travel, health care, communication


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The Service Industry

Lessons Learned from Wal-Mart

1. The use of technology to gain competitive advantage is as effective in the service industry as in the manufacturing industry

2. Technology can reframe the competitive challenge

3. A two-pronged approach focusing on customer satisfaction and mastery of technology is a winning combination


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The Service Industry

Lessons Learned from Wal-Mart

4. Treating employees and suppliers as partners improves efficiency and responsiveness

5. The leader of an organization has a strong influence on its culture

6. In Wal-Mart, better logistic technology lowered the cost of merchandise and contributed to greater customer demand


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