Essay on Operations Management

Submitted By Hooker06
Words: 870
Pages: 4

The Manufacturing Performance Institute (MPI) and the INDUSTRYWEEK have conducted a special study on “China as both Public Enemy No. 1 and the Land of Opportunity” the findings of this study after looking at selected groups of Chinese manufactures and their business practices and performance verses the US manufactures came up with the Chinese has being underscore when it comes to how competitive the are in the area of manufacturing and performance metrics. It was also founded that the Chinese on the current Global Slope their economic cycle and hiring outlook in the area of manufactured are similar to that of the United States. However the study showed that in China the expectancy of people being added to the payroll I 2005 is 68% compared to 64% in the United States. The gross domestic product focus is expected to increase the following year according to the survey at an annual average rate over 10% which compared to the United Stated of only a third of this amount.
The driving force being the improved quality of manufacturing higher quality products in China is spelled out with the work “INNOVATION” followed by “HIGH QUALTIY” and supported by “LOW CAST”, this same questions was posed to manufactures in the United States and the term “innovation” showed up seventh on the list of how to improved quality manufacturing.
Wages and production costs also play an important part in determine the manufacture growth of industries. Comparing plants used by the US in low-cost countries compare to China the study shows that China’s median wages is $1,450 per year while the US pays that amount in less than three weeks. Employees training also top the list with China in an effort to upgrade the workers skills in the manufacturing industries have raise the bar when it comes to affording the opportunity for training for works by dedicating an average of 20 hours per year compare to the US with a little less than one third of manufactures offering skills improvement to workers. It is also noted that the average Chinese company spends 5% of their annual budget on training for employees compared to US spending only 2% of labor costs for same agenda.
The survey addresses the employee turnovers in the two countries, as compared to China having a 5% turnover rate comparer to 6% for US manufactures. The contributing factors that were looked at in this portion of study was the fact that in developed countries employees were prone to switching jobs for a few pennies more an hour or shy away from low-skills jobs.
Areas such as primary operational improvement and processing customer orders faster are two areas that China and the US manufactures have improvements. Two thirds of the manufactures in China have stated in the survey that they follow the “total quality management” philosophy of quality oriented along with its US counterparts of whom have a 55% manufactures overall operational improvement. In the area of getting to products and services to the customer faster China over the past three years have decrease the customer lead time by 60% compare the to two thirds of US manufactures have down likewise. The manufacture cycle time has contributed greatly to the reductions and has enhanced a more rapid shipment process for both countries.
Maintaining profits margins have become under tremendous pressure between the…