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Revitalizing U.S. Manufacturing: Key Trends and Effective Strategies

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The U.S. manufacturing sector is experiencing a resurgence, showcasing growth across states like Michigan, California, and Texas. Major companies, including ExxonMobil and General Motors, are leading the charge. Effective operations management has become essential, emphasizing customer focus, quality improvement, and cost reductions. Innovations in production processes, including flexible and lean manufacturing, are increasing productivity. This document explores trends in manufacturing effectiveness, efficiency metrics, and quality control practices, providing insights into the industry's future.

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Revitalizing U.S. Manufacturing: Key Trends and Effective Strategies

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  1. Chapter 9 Operations and Production Management

  2. Leading U.S. Manufacturing States The U.S. is regaining its losses in manufacturing. Michigan New York Illinois Ohio California Pennsylvania Texas Source: Britannica Student Encyclopedia, 2006

  3. Top Ten US Manufacturers • ExxonMobil • Chevron • General Motors • ConocoPhillips • Ford Motor • General Electric • Altria Group • IBM Corp. • Hewlett-Packard • Valero Energy Source: Industry Week, June 1, 2006

  4. How Manufacturers Have Become More Effective • Focus on customers • Maintain close relationships • Continuous improvement • Focus on quality • Save costs • Rely on the Internet • New production techniques

  5. An Efficiency ExampleLabor Hours / Vehicle • Ford – 35.79 hours • Daimler/Chrysler – 33.71 hours • GM – 33.19 hours • Honda – 32.51 hours • Toyota – 29.4 hours • Nissan – 28.46 hours Source: Detroit Free Press, June 2, 2006

  6. An Effectiveness Example:Profit/ Vehicle • Ford – ($590) • Daimler/Chrysler – $223 • GM – ($2496) • Honda – >$1200 • Toyota – >$1200 • Nissan – >$1200 Source: Detroit Free Press, June 2, 2006

  7. Plant Capacity Used • Ford – 79% • Daimler/Chrysler – 94%-106% • GM – 90% • Honda – 91% • Toyota – 94%-106% • Nissan – 94%-106% Source: Detroit Free Press, June 2, 2006

  8. From Production to Operations Management • Production • Creation of value using wealth drivers • Production Management • Overseeing the change of capital into goods • Operations Management (OM) • Overseeing the change of capital into goods and services

  9. Production Processes • All come together to make form utility. • Process Manufacturing • Physically or chemically changing materials. • Assembly Process • Puts together components. • Continuous Process • Same process over and over. • Intermittent Process • Custom design, runs stop frequently

  10. Three Requirements For Production • Quick response to the demands of the customer • Acceptable quality level • Lowest possible cost

  11. Production Efficiency • Krispy Kreme Doughnuts – 5,208 a minute • Twinkies – 972 a minute • LifeSavers 5 Flavor Roll – 100 rolls a minute • Jell-O Gelatin Boxes – 764 a minute • Chips Ahoy! – 4,000 a minute • Hershey’s plant tour Source: World Features Syndicate

  12. What Is Increasing Productivity? Source: 2005 National Innovation Survey, Council on Competitiveness

  13. Product Improvements With Computer Technology • Computer-Aided Design – CAD • The computer helps to design the product. • Computer-Aided Manufacturing – CAM • A robot puts together parts. • Computer-Integrated Manufacturing – CIM • Design on the computer, then robot manufactures.

  14. Production Techniques • Flexible Manufacturing • Designing machines to do multiple tasks/switch out • Lean Manufacturing • Continually whittling down the inputs to production • Mass Customization • Adjusting the manufacturing process to be able to tailor it to a vast number of market segments.

  15. Operations Management Planning • Facility Location • Facility Layout • Materials Requirement Planning • Purchasing • J-I-T Inventory Control • Quality Control

  16. Quality Control • Six Sigma Quality • Statistical Quality Control (SQC) • Statistical Process Control (SPC) • The Baldrige Award • ISO 9000 • ISO 14000

  17. Control Procedures • Program Evaluation & Review Techniques (PERT) • Gantt Chart

  18. PERT Steps • Analyzing and sequencing tasks that need to be done • Estimating the time needed to complete each task • Drawing a PERT network illustrating the information from steps 1 and 2 • Identifying the critical path

  19. Learning from Failure • Formalize forums for analyzing failure • Move the goalposts • Share personal stories • Bring in outsiders • Prove yourself wrong, not right • Celebrate smart failures Source: Business Week Online, July 10, 2006

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