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Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
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Index

A

American Motors, 73

AT&T semiconductor production, 48, 49, 58 n.8

AT&T telephone manufacturing

background, 22-24

domestic manufacturing capacity, 24

duty costs, 31

functional drivers for OEM costs, 25, 30-34

global manufacturing network, 24, 34, 36

labor costs, 3, 21-22, 23, 24-26

load costs, 25, 26-27, 36

make to order, 33

market share, 22

materials costs, 3, 22, 23, 25, 28-30, 35, 43-44 n.3, 89-90

offshore, 23, 33-34, 42, 80

product cost analysis, 24

product reliability, 22

Project Turnaround, 22-23

quality management, 32-33

risk factors, 33-34

supplier relationships, 83

transportation costs, 31-32

in U.S., 23

work-force skills, 23

Automation

in automobile production, 15, 66-67, 70

capabilities and applicability, 16

investment returns on, 40-41

and labor cost reduction, 15, 81

Automobile production

assembly time, 70

automation in, 15, 66-67, 70

background, 62-64

costs, 68-71

foreign investment in U.S., 11, 61, 65, 68, 88

fuel economy regulation and, 62, 71-73

government interference in, 69

international movements of production capacity, 18, 64-68, 73-74

lean production, 63-64, 68, 69, 70-71

local content requirements, 71, 72, 73, 75 n.15

and market access, 18, 68, 73, 90

mass production, 62-63, 69, 71

offshore manufacturing advantages, 61, 69

supply network, 68

technological change and, 62

Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×

trade protection, 62, 68, 69, 73

U.S. advantages, 4, 64

U.S. market share, 9, 61, 62-63

B

Benchmarking products, 79

Brazil, 65

C

Canada, automobile production, 65, 72, 73

Capacity utilization, 3

Capital

budgeting, 40-41

costs, 2

equipment investments, 26

Chrysler, 65, 73, 83

Color picture tubes, see Toshiba color picture tube manufacturing

Competitiveness

cost determinants, 2

firm size and, 18

management and, 70

strategic options, 12

see also U.S. competitiveness

Concurrent engineering, 16

Consumer electronics, see AT&T telephone manufacturing

AT&T experience, 22-36

foreign investment in U.S., 10

labor costs, 15-16, 17-18, 26, 92

Toshiba experience, 36-41

offshore production, 17-18, 84-85

U.S. withdrawal from, 9, 14, 28, 84-85

Corporate Average Fuel Economy regulations, 71-72

Cost of goods sold (COGS)

components of, 19 n.1, 24

labor component, 15, 21, 25, 90

load component, 25, 26

materials component, 25, 28, 90

sources of improvement in, 14-15, 16-17

telephones, 23

Costing, target, 15

D

Decisions model, strategic business, 2, 11-17

Demand enhancements, 14

Developing countries

automobile production in, 65

duty exemptions and reductions, 31, 46

Digital Equipment Corporation, 13, 53, 54-55, 80, 98 n.2

Duties, 31-32, 78;

see also Trade policies

E

Eads, George C., 70

Economies of scale, 63

Equipment depreciation, 26, 50, 53

Electronics

semiconductor industry links with, 46

see Consumer electronics

England, 64

Europe

automobile manufacturing, 65, 70, 73

semiconductor manufacturing, 80

trade barriers, 46

Exchange rate differentials

and effective U.S. industrial base, 88, 89

and foreign investment in U.S., 68, 69, 88

and manufacturing costs, 3, 22, 39, 41, 42, 43, 49, 56, 83

Expansion of business

factors affecting, 12-13, 79

minimum scale requirements and, 13

Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×

F

Ford, Henry, 62

Ford Motor Company, 64-65, 71, 72, 73, 83, 91

Foreign direct investment in, 7

Fujitsu, 48

G

General Motors, 48, 64, 65, 66-67, 70, 73, 83

Germany

automobile production, 72

worker productivity, 40

Government incentives, 55-56

Greenfield factories, 16

advantages, 90

automobile production, 65

salary of key positions, 27

purpose of, 43, 82

H

High-technology products

load costs, 26

Hitachi, 48, 49, 58 n.8

Honda, 64, 73, 74

Hong Kong, 23, 24

Hyundai, 65

I

IBM, 48, 49, 80

Intel, 47, 48, 53, 58 n.7

Inventories

carrying costs, 4, 33, 78

just-in-time systems, 16

work-in-process, 63, 78

J

Japan

automobile industry, 14, 61, 65, 68, 70, 72, 73, 74, 86

investments in U.S., 14, 49, 61, 65, 68, 73, 88

keiretsus, 50

labor costs in, 38

manufacturing costs in, 3

materials costs in, 37

productivity rates, 39-40

semiconductor industry, 47-48, 49, 50, 52-53, 58 n.6

technology access in, 80

Joint ventures, 7, 47, 57, 70, 98

K

Korea, 23, 65

L

Labor costs, 53-54

analysis, 24-26

automation as method of reduction, 15, 70

as a component of COGS, 15, 21, 25

direct, 1-2, 15-16, 21, 22, 24, 38, 39-40, 69, 78, 80, 81

exchange rates and, 39, 41

fringe benefits, 39

imbedded, 69

importance of, 5, 38, 69, 78, 81, 90

indirect, 26, 27, 78

offshore production and, 1-2, 9, 15-16, 21, 22, 80

reduction strategies, 15, 69-70

wage-rate differences across countries, 24, 26, 39, 41

working hour efficiency, 39

Lean production, 4, 5, 63-64, 68, 69, 70-71, 74 n.3, 82, 88, 91, 93

Less developed countries

as component source, 72, 73

automobile production in, 65, 71

Load costs, 26-27, 36, 78

Low-margin products, 96-97

M

Make to order, 3, 33, 63, 80, 93

Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×

Malaysia

salary of key positions, 27

semiconductor assembly, 54, 97

Management, and cost competitiveness, 70

Manufacturing

continuous improvement, 16

cost assessment, 68-69

as an integrated process and, 2, 16, 17

labor-intensity trends, 92

lean production, 4, 5, 63-64, 68, 69, 70-71

performance standards, 6

Margins, 13, 15, 96

Market access importance of, 5, 79

local content/local presence considerations, 42-43, 80

offshore manufacturing and, 2, 3-4, 18

in U.S., 3, 18, 21, 37, 41

and technology access, 57, 89

Mass production, 62-63, 69, 71, 92

Massachusetts Institute of Technology, International Motor Vehicle Program, 69

Materials

access to, 2, 9, 29, 80, 82

costs, 5, 22, 28-30, 34, 37-38, 78, 82, 90

waste, 4, 41

Matsushita, 48

Mexico, 24

automobile production, 65, 71, 72, 73

salary of key positions, 27

Mitsubishi, 48

Models/modeling

semiconductor production processes, 50

strategic business decisions model, 2, 11-17

Motorola, 47, 48, 49, 53, 58 nn.7 & 8

Myths of offshore manufacturing

automation, 81-82

communications barriers, 85-86

costs, 82-83

emigration, 81-82

foreign OEM suppliers vs. internal capacity building, 83-84

repatriation of production, 84-85

N

NEC, 48, 49, 58 n.8

New United Motor Manufacturing, Inc., 70

Nippon Sanso, 58 n.8

Nissan, 72

O

Offshore manufacturing

advantages, 23-24, 34, 82, 85

of automobiles, 64-68

communications barriers, 85-86

of components, 72-73

determinants of, 11

duties on, 23, 31-32

exchange rate differentials and, 22

hidden cost disadvantages, 6, 83

labor costs, 1-2, 3, 9, 15, 22, 23, 78

low-technology products, 25, 34

make-to-order capabilities, 33

and market access, 2, 3, 79

materials costs and, 3, 9, 22, 23, 34

OEM suppliers vs. building internal capacity, 83-84

quality management costs, 32-33, 35

risk factors, 33-34, 79, 97

taxes and, 23

and technology access, 9, 78-79, 80

time-to-market impact, 34, 35

transient competitive pressures and, 84-85

transportation costs, 23, 31-32

Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×

turnaround time on parts and supplies, 33

U.S. competition with, 21

by U.S. manufacturers, 9-10

work force skills and, 9, 78-79, 80

Onshore manufacturing

cost reduction programs, 35-36

and infrastructure, 97

Opel, 64

Original equipment manufacturers

inventory carrying costs, 33

load rates, 27, 30

materials cost advantages, 28-30

quality management costs, 32-33

risk factors in doing business with, 33-34, 83-84

strategic information transfer to, 33-34

telephone manufacturing, 23

transportation and duty costs, 31-32

See also Suppliers

P

Peugeot, 73

Process control and management

advances in, 16

importance of, 2, 3, 38, 49-53, 81-82

improvement, 3, 27

R&D expenditures, 43 n.2

Processes, access to, 2, 13-14

Product

quality, 2, 13, 22

prices, 13-14

Production costs

definition of, 15

Q

Quality

acceptable failure rates, 32

and cost competitiveness, 2, 13, 22, 42

demands of consumers, 2-3, 63, 93

management, 16, 32-33, 43, 53, 81-82

R

Recommendations

to government, 6-7, 99-100

to industry, 5-6, 98

Renault, 73

Report

purpose, 10-11

structure, 17-19

Rover, 73

S

Scotland, semiconductor facilities, 54-56

SEMATECH, 49

Semiconductor manufacturing

analog devices, 45

application-specific integrated circuits, 45, 47, 51, 52

background, 46-48

capital management, 57

capital requirements, 49, 50, 55, 56

chip geometries, 49, 50-51

competitive factor in, 3

corporate alliances, 49

custom device fabrication, 53

determinants of costs, 45

dynamic random access memories, 45, 46-48, 49, 50, 51-52, 58 nn. 7 & 8, 94, 100 n.9

equipment availability, 55

equipment investment requirements, 45, 46, 50, 53

exchange rate differentials and, 49, 56

fabrication facilities, 3-4, 49, 54-55, 56, 80

government grants, 55-56

industry structure, 48-49

Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×

infrastructure, 55, 92

joint ventures, 47, 57

labor costs, 53-54, 82, 92

location decisions, 3-4, 18, 54-56

logic devices, 47, 52

market access, 3-4, 18, 45, 46, 49, 55, 56-57, 80

market segments, 46-47

materials costs, 53

memory devices, 46-47, 52

merchant producers, 48

microcontrollers, 45, 47, 58 n.6

microprocessors, 45, 47, 49, 51, 52, 53, 54-55, 58 n.5

multichip modules, 54

packaging, 18, 45-46, 53-54, 81

process control, 45, 47, 49-53

product cost determinants, 50-51

quality management, 53

R&D, 45, 46, 50, 57

skills access, 4, 45, 54, 55, 57, 92

static random access memories, 47, 51

technology access, 57

testing, 46, 52, 53, 54

trade barriers, 46, 57

U.S.-Japan trade agreement, 49

U.S. market share, 9, 14, 46, 100 n.9

world production, by region, 10, 46, 47

Semiconductor Research Corporation, 50

Siemens, 49

Singapore

offshore manufacturing in Batam Island, 89

telephone production in, 21, 23, 24, 31

Site location

attributes, 17, 77-80

costs and, 77, 78

determinants of, 19, 41-43, 54-56, 71

manufacturing as an integrated process and, 2

market access and, 77-78, 79

quality demands of consumers and, 2-3

skills access, 78-79

strategic business decisions model, 2, 11-17

technology access and, 77, 78-79

Small manufacturers, 18

Sony, 48

South America, automobile production, 73

Spain, 72

Suppliers

base, 18, 48

customer relations with, 2, 18, 29, 48-49, 57, 83, 84

electronics, 33

national/cultural links with, 29

outside, 13

strategic information transfer to, 33-34

turnaround time on parts and supplies, 33, 79

yield improvement, 43

see also Original equipment manufacturers

Supply enhancements, 14

T

Taiwan, 23, 24

Taxes, 23

Technology access to, 2, 5, 9, 13-14, 41, 57, 78-79, 89

flows, 7, 98-99

investments in, 81-82

level of product and offshore production, 25, 27, 28, 32, 34, 42

shifts, 56

Telecommunications, deregulation, 22, 42

Telephones, see AT&T telephone manufacturing

Texas Instruments, 48, 49, 58 nn.6 & 8

Thailand, 24, 37, 80

Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×

Time to market, 2, 34, 43, 81, 96

Toshiba color picture tube manufacturing

automated production, 40

background, 36-37

capital budgeting, 40-41

exchange rate differentials and, 39, 41, 42, 43, 83, 89

factory overhead, 37

labor costs, 37, 38-40, 41

market access, 21, 37, 41, 42, 43, 90

materials costs, 37-38, 41

nineteen-inch CPT, 38

quality management, 36

twenty-inch, 39

in U.S., 3, 22, 38-41, 43, 83

worker skills, 41

Toshiba Display Devices, 36-39, 48, 49, 58 n.8, 84

Toyota, 63-64, 70, 86

Trade policies

cost effects, 83

Generalized System of Preferences status, 23, 31

and foreign ventures in U.S., 41, 42-43, 56, 73

local content requirements, 46, 71, 80

market access and, 79

negative effects of, 90

protectionist, 5, 41, 56, 69, 90, 95

recommendations, 6

unfair practices, 57, 94

U.S.-Japan semiconductor trade agreement, 49, 58 n.1

Voluntary Restraint Agreement, 68

Transportation costs, 23, 31-32, 78

U

U.S. competitiveness

in automobile industry, 64, 70

determinants, 2, 6, 95, 98

foreign direct investment and, 91, 95, 98-99

future of, 9, 94-97

interfirm cooperation, 91, 95

labor costs and, 10, 81

macroeconomic conditions and, 6-7, 98

market access and, 3, 90, 91, 98

market-share losses, 9, 14

quality of market and, 91

responsibility for losses in, 5-6, 98

in semiconductor industry, 47

trade policies and, 91, 95, 98

in value-added industries, 94, 95, 98

worker skills and, 10, 93, 95, 97, 98

United States

advantages of manufacturing in, 3, 4, 5, 6, 19, 38-39, 42, 64, 86, 95, 98

capital budgeting in, 40

desired state of industrial base, 94-97

effective industrial base, 86-90, 97

exchange rate differentials, 22

foreign direct investment in, 7, 10, 11, 49, 61, 65, 68, 73

industrial infrastructure, adequacy of, 5, 91, 94

joint ventures, 7

labor costs in, 22, 38-39, 87

materials costs in, 3, 38-39

productivity rates, 39-40

semiconductor industry, 46, 47, 48, 50, 56, 57, 58 n.5

trade policies, 5, 56

wage levels and standard of living, 87

V

Value-added, 6, 14, 79, 87-88, 92-94, 95, 97, 98

Volkswagen, 73

Volvo, 73

Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×

W

Wage rates, 2;

see also Labor costs

Westinghouse Corp., 36, 37

Work in process, minimization, 4

Worker empowerment, 4

Worker skills

access to, 2, 4, 9, 13-14, 23, 54, 78-79, 80, 92

education and, 7, 99

and effective U.S. industrial base, 93, 95, 96

foreign engineers and managers, 27

learning curve effect, 38, 41

mass production and, 63

mobility, 7, 64

and turnover rates, 39-40, 41

Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×
Page 105
Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×
Page 106
Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×
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Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×
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Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×
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Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×
Page 110
Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×
Page 111
Suggested Citation:"INDEX." National Research Council. 1992. Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace. Washington, DC: The National Academies Press. doi: 10.17226/1890.
×
Page 112
Dispelling the Manufacturing Myth: American Factories Can Compete in the Global Marketplace Get This Book
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Conventional wisdom holds that high wages, high capital costs, and worker inflexibility have cost America its ability to compete in the world manufacturing marketplace. This book demonstrates that U.S.-based manufacturing can compete in terms of quality, product features, and timely delivery--the real measures of competitiveness in the 1990s.

The committee identifies attributes that attract manufacturers to given locations and assesses the attractiveness of the United States as a location for different kinds of manufacturing. The volume dispels myths that have guided management decision making in the past and offers recommendations to promote the United States as a manufacturing site.

The volume discusses new approaches to understanding and controlling costs. With case studies from three important industries--consumer electronics, semiconductors, and automobiles--the book explores factors in site location decisions, highlighting advantages the United States can offer as a manufacturing site over low-cost rivals.

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