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THE MANUFACTURING & SERVICE INDUSTRIES

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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  1. THE MANUFACTURING & SERVICE INDUSTRIES

  2. 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

  3. Product Development Performance by Region NA = not available

  4. 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

  5. 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

  6. Operating Principles of World-Class Manufacturing Organizations • Foundations of Manufacturing - fundamental truths - rules - laws - doctrines - motivational forces

  7. 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

  8. 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

  9. Foundations of Manufacturing • Management Philosophy & Practice • Goals & Objectives • The Customer • The Organization • The Employee • The Supplier or Vendor • The Management Task

  10. Foundations of Manufacturing • Measuring, Describing, & Predicting Performance • Metrics • Models • Improving Performance • Experimentation • Technology

  11. 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

  12. 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

  13. Classification of Service Industries • Capital-Intensive - utilities, transportation, communication • Labor-Intensive - hospitals, consulting, entertainment • Technology-Intensive - public utilities, airline travel, health care, communication

  14. 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

  15. 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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