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Information-Based Manufacturing by Michael J. Shaw download in iPad, ePub, pdf

All of these negative outcomes are the impact of one feature of the current sourcing strategy the pseudo belief that large inventories cost less and are the foundation of profits and sustainability. Globally integrated manufacturers must constantly assess and fine-tune their strategy across these above eight stages. This solution attacks discount and overproduction dumping losses while limiting cost to product sold.

The industry should continue to look for efficiency in manufacturing, but until we attack the loss side of the equation we will not enjoy sustainable domestic manufacturing. The way in which a company handles inventory risk is the driving decision-maker in every choice from their accounting system to their personnel structure. Large brands can flood the market with a volume of product, using discount structures to drown their competition. One of the most stubborn and widely damaging effects of this evolution is the continued dedication of major world economies to the out dated dependence on mass production. The byproduct of this drive for efficiency and lower costs is an increase in the size of the inventory related to cost not sales.

This enables you

This enables you to see at a glance where the delays are in your process, any restraints and excessive inventory. Product differentiation is too slow under this mass paradigm to keep up with the information age. Fundamentally, we are all dealing with the transition from the mechanical systems of the industrial revolution to an information based digital age. Excuses range from conspiracy theories about international corporations, money in politics, media bias, international trade agreements and many more.

They have invested tremendous amounts of capital, personnel, and international agreements into the perpetuation of this outdated manufacturing system. All opinions are entirely my own and may be often flawed. Our value stream map can then concentrate on either a single product or a family of them sharing common processes. Therefore, reducing the unit cost of the available inventory that is offered for sale. The simplest solutions to this conundrum are either, make less and charge more or make more and sell more for less.

Make no mistake, whatever the theory or well-meaning government program we have fallen behind and are not catching up. Since the ultimate goal of mass manufacturing is to create an environment with the lowest possible costs of production. Often, the object or goal of the previous structure turns out to be at the center of the actions required to affect the change. We've now have replaced the uniqueness of the product with simply the price of the product. Global Manufacturing is evolving from an Asset based industry to an Information based Digital industry.

Second, securing the lowest labor cost, which usually means bad working conditions. Collateral costs like environmental protection, worker safety, health insurance and other benefits can destroy the profits in a cost-based system. In fact every new product introduction becomes a share market almost immediately.

Product differentiation is too slow