Chapter 1

1. Chapter 1 Introduction to Manufacturing

2. Objectives • Selecting appropriate manufacturing processes • Strategies for establishing market superiority • Strengthening alliances • Manufacturing processes – tools, techniques, and technical systems

3. Magic on the Factory Floor • The right combination of material and processes will produce products that look great and perform well. • We continually search for a better way, for processes and materials that can be used to make our quality product faster, better, and cheaper than our competition that will result in a profit for our employer and job security and satisfaction for us and our employees. • Growth in manufacturing will require a global perspective. Entire industries (steel, ship building, furniture making, and textiles) have been lost to global competition. • Aerogel (water, alcohol, and silica)has the equivalent thermal insulating capability of up to 20 glass windowpanes. It is the strongest and lightest building material (figure 1-1, page 14). It will be used in the future for windows, oven doors, and many other applications.

4. The Global Challenge • There are 473 different types of manufacturing industries. • Robotics is one of Japan’s major strengths, with Japan owning 410,000 of the world’s 720,000 operational robots. • In the steel industry, Japan is one of the world’s leading exporters. It has accomplished this despite of having to import the basic raw material for steel production. • Japan has achieved its advantage in manufacturing based on significant advancements in management, productivity, and quality.

5. Lean Production vs. Mass Production • Lean manufacturing involves a whole new way of thinking about the process of making products faster, better, and cheaper. • The River Rogue automotive plant (mass production) by Ford Motor Company (http://www.thehenryford.org/rouge/ index.aspx) in Michigan has: • Approximately 454,000 square feet of assembly plant covered with sedum. The living plants will absorb carbon dioxide and emit oxygen, so green house gases are reduced. • Trellises for flowering vines and other plants provide shade and help cool the Rogue Office Building.

6. International Manufacturing • In fields such as space technology, aerospace, microprocessors, medical technology, food technology, and bio engineering, the United States maintains a competitive advantage. • The trickle-down effect of success in high growth areas will yield tremendous economic advantage to manufacturing and service industries.

7. Other Competitors for Manufacturing Superiority • China is the country to watch in terms of major competition with the U.S. because China has a large population, low wage rate, and people who like to work in teams. • Many U.S. based multinational corporations are shifting production to China including Lexmark (printers), Rubbermaid (kitchen products), Motorola (cell phones), and Samsonite (luggage). • Of all the companies that exported products from the U.S. , 93 percent are small and medium manufacturers (SMM). • Today Mexico is America’s second largest trading partner ranking behind Canada.

8. NAFTA (North American Free Trade Agreement) • NAFTA helped encourage free trade between the United States, Canada, and Mexico. • Maquiladora’s are industrial parks that in most cases are owned by Mexican or American corporations. One out of five manufacturing jobs in Mexico are in maquila plants. • A rule of thumb is that offshore production must be 5 to 8 percent lower in cost than domestic production.

9. Business Ethics in a Global Marketplace • In the years ahead the trend towards global manufacturing will continue at an increasing pace. • The top companies are applying innovative ideas to benefit people, limited natural resources, and the company’s bottom line.

10. Future of Industrial Production • Often cost saving is accomplished through low cost automation. • Hass Automation, Inc. of Oxnard, California, one of the largest manufacturers of machine tools has been able to reduce the cost of their machine tools by as much as 50 percent. • A vital consideration for any company competing in the European Economic Community is ISO certification.

11. What is Manufacturing? • Manufacturing is the application of knowledge demonstrated through the use of tools, processes, machines and systems to transform raw materials or substances into new products. • Manufacturing is the driving force behind any industrialized nation. • Nearly two third of all wealth producing activities in the U.S. comes from manufacturing. • North American Industry Classification System (NAICS) classifies manufacturing industries into 473 major groups and 1,500 product classes.

12. The Manufacturing Process • Manufacturing involves transforming or changing materials into products. • Manufacturing is normally done in a factory or mill or plant. • Even textiles, tobacco, pretzel, and chewing gum producers are classified under manufacturing.

13. Summary • We continually search for a better way, for processes and materials that can be used to make our quality product faster, better, and cheaper than our competition that will result in a profit for our employer and job security and satisfaction for us and our employees. • Japan has achieved its advantage in manufacturing based on significant advancements in management, productivity, and quality. • China is the country to watch in terms of major competition with the U.S. because China has a large population, low wage rate, and people who like to work in teams. • NAFTA helped encourage free trade between the United States, Canada, and Mexico. • Manufacturing is the application of knowledge demonstrated through the use of tools, processes, machines and systems to transform raw materials or substances into new products. • A rule of thumb is that offshore production must be 5 to 8 percent lower in cost than domestic production. • In the years ahead the trend towards global manufacturing will continue at an increasing pace. • Hass Automation, Inc. of Oxnard, California, one of the largest manufacturers of machine tools has been able to reduce the cost of their machine tools by as much as 50 percent. • Manufacturing is the driving force behind any industrialized nation. • Nearly two third of all wealth producing activities in the U.S. comes from manufacturing.

14. Home Work • 1. Why do we continually search for a better way to make our quality product faster, better, and cheaper ? • 2. Japan has achieved its advantage in manufacturing based on significant advancements in what? • 3. Why is China is the country to watch in terms of major competition with the U.S.? • 4. What has NAFTA helped encourage? • 5. What is manufacturing?