Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.
MANUFACTURING in the U.S.
• Some areas in the U.S.
economic growth while
others are declining.
• Manufacturing in the
U.S. is so productive
fewer workers are
WHAT’S MADE in the USA?
Leading U.S. Manufactured Goods
Source: Parade Magazine, www.parade.com, accessed November 2014.
The Top Ten U.S. Manufacturers
Source: Industry Week, www.industryweek.com, accessed November 2014.
TOPPAYING SERVICE JOBS
• The U.S. economy is no longer manufacturing
• 85% of jobs are in the service sector.
• The toppaying service jobs in the U.S. are in:
- Legal services
- Medical services
- Management consulting
REMAINING COMPETITIVE in
• U.S. is still the leader in nanotechnology and
• How can U.S. businesses maintain a competitive
Focusing on customers
Maintaining close relationships with suppliers
Practicing continuous improvement
Focusing on quality
Saving on costs through site selection
Relying on the Internet to unite companies
Adopting new production techniques
• Production The creation of goods using land,
labor, capital, entrepreneurship and knowledge (the
factors of production).
Management All the
activities managers do to
help firms create goods.
• Operations Management A specialized area in
management that converts or transforms resources
into goods and services.
• Operations management includes:
- Inventory management
- Quality control
- Production scheduling
- Followup services
in the SERVICE SECTOR
• All about creating a good experience for those
who use the service.
• In hotels, like Ritz
includes fine dining,
fresh flowers, and
training for every
• What have U.S. manufacturers done to regain a
• What must U.S. companies do to continue to
strengthen the country’s manufacturing base?
• What led companies to focus on operations
management rather than production?
The PRODUCTION PROCESS
• Form Utility The value
producers add to materials
in the creation of finished
goods and services.
PROCESS and ASSEMBLY in
• Process Manufacturing
The part of production that
physically or chemically
• Assembly Process The
part of the production process
that puts together components.
KEY PRODUCTION PROCESSES
• Production processes are either continuous or
• Continuous Process Long production runs turn
out finished goods over time.
• Intermittent Process Production runs are short
and the producer adjusts machines frequently to
make different products.
Production of Some of America’s Favorite Products
DEVELOPMENTS MAKING U.S.
COMPANIES MORE COMPETITIVE
1. Computeraided design
2. Flexible manufacturing
3. Lean manufacturing
4. Mass customization
COMPUTERAIDED DESIGN and
• ComputerAided Design
(CAD) The use of computers
in the design of products.
Manufacturing (CAM) The
use of computers in the
manufacturing of products.
The uniting of computer
aided design with computer
• CIM is expensive but it cuts
as much as 80% of the time
needed to program machines
to make parts.
• Flexible Manufacturing Designing machines to
do multiple tasks so they can produce a variety of
• AllenBradley uses flexible manufacturing to build
• 26 machines and robots build, test and package
• Lean Manufacturing Using less of everything
than in mass production.
• Compared to others, lean companies:
- Take half the human effort.
- Have half the defects in finished products.
- Require onethird the engineering effort.
- Use half the floor space.
- Carry 90% less inventory.
• Mass Customization
Tailoring products to meet
the needs of a large
number of individual
• More manufacturers are
learning to customize.
• Mass customization
exists in the service
ROBOTICS and SENSING
• The use of robotics allows manufacturing to
continue 24 hours a day.
• Sensors can detect problems immediately and
changes can be made quickly.
• What is form utility?
• Define and differentiate the following: process
manufacturing, assembly process, continuous
process and intermittent process.
• What do you call the integration of CAD and
• What is mass customization?
• Operations management planning helps solve
- Facility location
- Facility layout
- Materials requirement planning
- Inventory control
- Quality control
• Facility Location
The process of
selecting a geographic
location for a compan
• Rising numbers of Internet businesses means
brickandmortar retailers must find great
• Service vs. Manufacturing