Insourcing and Competing With Advanced

Transcript:Insourcing and Competing With Advanced:
Insourcing and Competing With Advanced Manufacturing Techniques Sharon Ward May 14,2011 2 The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD. Safe Harbor Statement QAD Planning and Scheduling Workbenches 3 Manufacturing is essential to America’s economic well-being. It accounts for the bulk of United States exports, is key for innovation, and provides many high-wage jobs…… You All Know This Competing With Advanced Manufacturing Techniques Brookings Institute: Strengthening American Manufacturing: A New federal Approach by Susan Helper and Howard Wial 4 A Government Study Proves It. Competing With Advanced Manufacturing Techniques 5 Between 2000 and 2009, The US lost 31% of its manufacturing jobs Along with the jobs, the ability to innovate was compromised – manufacturing employs 36% of engineers By exporting manufacturing expertise, the ability to compete in emerging industries like solar panels was jeopardized Asleep At The Wheel Competing With Advanced Manufacturing Techniques Brookings Institute: Strengthening American Manufacturing: A New federal Approach by Susan Helper and Howard Wial 6 A focus on “core competencies” was perceived as the way to become world class Some companies decided their core competency was idea creation or marketing, not manufacturing The assumption that outsourcing manufacturing always results in lower costs, making companies more competitive, became widely accepted The Manufacturing Exodus Competing With Advanced Manufacturing Techniques 7 Companies have ALWAYS outsourced some work Lower wage regions start to develop manufacturing based economies Some companies begin to off-shore Competition and cost pressures increase Rush to off-shoring in late 20th and early 21st century as a result of increased competition from emerging regions How Did We Get Here? Competing With Advanced Manufacturing Techniques 8 Difficult to evaluate all costs – additional inventories, communications, tracking, loss of control, longer lead times, quality, IP protection, customer satisfaction Meanwhile, our outsourcers took what they learned and used it to launch their own products/companies Companies found that it’s easy to copy ideas and marketing but harder to develop process skills Flies In The Ointment Competing With Advanced Manufacturing Techniques 9 Understanding The Basis Of Wealth Competing With Advanced Manufacturing Techniques