Components Of The Value Chain

756 WordsApr 20, 20164 Pages
Manufacturing Blog Manufacturing, the process responsible for producing any goods manipulated from their raw form, whether transforming steel into an automotive vehicle or grains into cereal, this fundamental component of the value chain plays a central role in the world economy. Born during the industrial revolution, many of the processes remain the same, with executives running the factory, supervisors overseeing operations, shop floor workers creating the product, and maintenance workers ensuring the smooth running of equipment. While these processes have transcended time relatively unchanged, the technology and tools employed by workers to complete these processes has changed, albeit slowly in some cases. Driven by executive pressure to reduce costs and improve margins, factories through the ages have engaged in strategic moves to diminish the expenses of labor. Moving to areas with less stringent regulations and lower labor costs or investing in technologies that automate human tasks, competitive pressures has made the manufacturing sector one of the most technologically evolved. Assembly line equipment/technologies have reduced lead times and cost by automating processes and taking the place of a variable cost (labor). These capital investments in equipment will continue, especially as better access and distribution of information improves the efficiency of their use. Responding to market conditions and cutting or increasing production rapidly—just in time

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