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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
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
Product Development Performance by Region NA = not available
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
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
Operating Principles of World-Class Manufacturing Organizations • Foundations of Manufacturing - fundamental truths - rules - laws - doctrines - motivational forces
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
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
Foundations of Manufacturing • Management Philosophy & Practice • Goals & Objectives • The Customer • The Organization • The Employee • The Supplier or Vendor • The Management Task
Foundations of Manufacturing • Measuring, Describing, & Predicting Performance • Metrics • Models • Improving Performance • Experimentation • Technology
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
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
Classification of Service Industries • Capital-Intensive - utilities, transportation, communication • Labor-Intensive - hospitals, consulting, entertainment • Technology-Intensive - public utilities, airline travel, health care, communication
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
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