Tag Archives: China

Is manufacturing shifting away from China due to wage increases ?

Posted on January 18, 2013 by aviyer2010

An article in the Wall Street Journal (January 17,2013) describes shifts in manufacturing out of China to compensate for the 20% wage increase compared to 2005, as well as an attempt by the government to shift to more value added … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged Capacity, China, Cost, disruption, Global, manufacturing, Supply Chain, Trends | Leave a comment

How should the excess steel capacity problem be solved ?

Posted on November 28, 2012 by aviyer2010

An article in the Wall Street Journal (November 28, 2012) describes the glut in steel capacity -an estimated 1.8 billion tons, compared to demand which is 1.5 billion tons. The reason, fragmented capacity with the top five companies comprising 18.2 … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged Capacity, China, competition, Consumers, Coordination, Cost, Design, Global, manufacturing, Supply Chain, Survival, Trends | Leave a comment

Do increases in accounts receivable by Chinese firms suggest anything ?

Posted on October 31, 2012 by aviyer2010

An article in CNN (http://www.cnn.com/2012/10/30/business/china-corporations-slowdown/index.html?hpt=hp_t3) describes increases in accounts receivable by Chinese firms – 83 % increase for machinery manufacturer Sany Heavy, 169 % increase for First Tractor, and a 69% increase for Zoolion. Some reports suggest that firms are … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged Capacity, China, Consumers, Growth, manufacturing, Risk, Suppliers, Supply Chain, Trends | Leave a comment

Global trade slows, but continues to be robust in pockets

Posted on October 8, 2012 by aviyer2010

An article in the Wall Street Journal (October 1, 2012) describes the slowing of global trade flows. The Los Angeles port claims a 10.5 % drop in US exports shipped, while the Shanghai port reports a 6 % slowdown. While … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged China, Consumers, Cost, exports, Global, Growth, India, Suppliers, Supply Chain, Trends | Leave a comment

Can cheap, flexible robots assist workers to make US manufacturing globally competitive?

Posted on September 22, 2012 by aviyer2010

An article in Bloombergbusinessweek (September 24, 2012) describes new robots announced by Rethink Robotics, priced at $ 22,000 and reprogrammable to assist workers with repititive tasks. Teaching the robot requires simulating the steps by moving its arms, after which the … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged Capability, China, Cost, Dual Sourcing, Efficiency, Global, manufacturing, Risk, Supply Chain | Leave a comment

Viruses inserted during manufacturing due to insecure supply chains

Posted on September 13, 2012 by aviyer2010

An article on the BBC website (13 September 2012) describes new computers built in China with viruses already installed. These viruses crept in when the manufactruers installed illegal software with malware, thus compromising user data from the moment the machines … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged China, Cost, Global, malware, manufacturing, Risk, secure, Suppliers, Supply Chain | Leave a comment

China slowdown and supply uncertainty for outsourcers

Posted on September 7, 2012 by aviyer2010

An opinion piece in the Wall Street Journal (September 7, 2012) describes supply issues faced by US companies that outsource manufacturing to plants in China. Some companies face demands for more money to buy raw materials, others find the company … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged China, disruption, Global, Insourcing, manufacturing, Outsourcing, Risk, Supply Chain | Leave a comment

Making shoes for the world in Ethiopia ?

Posted on September 2, 2012 by aviyer2010

An article in the Economist (June 9, 2012) describes demand for $2 shoes in Ethiopia, as protection against injuries, worms etc that affect bare feet. The population of Ethiopia is expect to double by 2040, chronic hunger impacts fewer Ethiopians … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged Capacity, China, Cost, Ethiopia, Global, Suppliers, Supply Chain | Leave a comment

Moving production to the US despite lower Chinese manufacturing costs

Posted on September 2, 2012 by aviyer2010

An article in Bloombergbusinessweek (June 25, 2012) describes several examples of companies that moved production to the US from China, despite up to 30% lower Chinese manufacturing costs. For Lightsaver, the 30% lower manufacturing costs were compensated by costs of … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged Capacity, China, Cost, Efficiency, Global, Imports, manufacturing, regulation, Risk | 1 Comment

Battery manufacturing capacity rampup and short and long term impact

Posted on June 1, 2012 by aviyer2010

An article in the Wall Street Journal (May 31, 2012) describes the US government’s $ 1.26 billion investment in battery capacity, and demands for rapid ramp up and hiring to create 6400 jobs. The slow growth rate implied only 2000 … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability | Tagged China, competition, Consumers, Cost, Global, government, manufacturing, Risk, Suppliers, Supply Chain | Leave a comment