Manufacturing Processes

Introduction

Historical Overview

Enero de 2005 3

Manufacturing Across History

1/2

Enero de 2005 4

Manufacturing Across History

2/2

Manufacturing Defined

Enero de 2005 6

Definition of Manufacturing

manufacturemanusfactus

Latin words

+

= Made by hand

Enero de 2005 7

DualityTechnical Activity Economic Activity

Added value

Enero de 2005 8

Manufacturing as a Technical Activity

ProcessedPartStarting

material

Scrap and waste

Manufacturing Process

MachineryPowerLaborTools

Enero de 2005 9

Example

Enero de 2005 10

Manufacturing as an Economic Activity

ProcessedPart

Starting material

Material inProcessing

$ Value added $$

Manufacturing Process

$$$

Enero de 2005 11

Economic Role of Manufacturing

Enero de 2005 12

Gross National Product (GNP)

Enero de 2005 13

Manufacturing and Service Industries Share of U.S. GDP, 1977 to 1998

12%

14%

16%

18%

20%

22%

24%Percent of GDP

ManufacturingServices

Source: U.S. Department of Commerce, Bureau of Economic Analysis

Enero de 2005 14

Manufacturing in the Economy

Enero de 2005 15

Manufacturing in the Economy “The reason for manufacturing's stability is that there is a synergy

between manufacturing and other sectors. Manufacturing generates most of the economy's productivity and technology, while other sectors such as services generate the largest share of new employment. The productivity generated by manufacturing raises the wages of workers employed in all sectors. The productivity enhancements generated in manufacturing boost activity in other sectors. As these sectors become more successful, they, in turn, create more demand for manufactured goods and its high-paying jobs.”

http://www.vpmep.org/mfgstats.htm

Relatively stable over time, even though the number of people involved has declined

Significant manufacturing management remains in the U.S. 98% of U.S. mfg companies < 500 employees

Enero de 2005 16

Contributions to Economic Growth, 1992-1997

Manufacturing also contributes to technological advances, with significant investments in R&D

http://www.vpmep.org/mfgstats.htm