Research Articles Base: Manufacturing Sector

A Research Paper on Electronic Workflow System on Hong Kong Manufacturing Sector

Discussion of the Research Question This project aims to know the effect of implementing EWS on the cost of production of manufacturing sector in Hong Kong and in the process investigate the cost-effectiveness of using EWS. Through the said research question the effects of EWS to the manufacturing system in Hong Kong. Through the said research question a better understanding of EWS can be seen and its importance can be realized more.  Brief Overview of the use of EWS Electronic workflow system is becoming more and more popular in Hong Kong. Electronic workflow systems are software systems that are used as support for coordinating complex business processes. This enables the execution of different processes more coordinated between members of the organization. The execution of processes through automated systems enable the company to cut down several steps in the production and thus enhancing their efficiency and lowering associated cost related to low value activities. The process of implementing workflow systems could be costly for the company. However, the cost-savings through time would definitely outweigh the cost of acquiring the program and the cost of implementation. There is a need to assess the return on investment potential of implementing electronic workflow system for the organization in order to assess the impact of the implementation on the company.   Perceived Benefits of EWS EWS although can cause the company some financial problems may give the company cost-savings and through time it can outweigh the cost of acquiring the program and the cost of implementation. Through EWS the company’s in Hong Kong can gain advantage against their competitors and increase its profitability and upgrade the market status it has. Through EWS more clients can be attracted to avail of the services and products of companies.  Lastly through EWS the company can improve the work status of the employees of the company.  Aims and Objectives of the Study Aim The main aim of this project is to assess the impact on cost of EWS on manufacturing companies.  Objectives A.     To provide an evaluation of the cost-savings that could be realized through the implementation of EWS. B.     To assess the cost of investment for manufacturing companies implementing EWS. C.    To assess how productivity and profit would be affected through the EWS. D.    To evaluate software features that manufacturing companies believe to be essential for the success of EWS. E.     To realize some challenges that may occur in implementing EWS and how this would affect realization of cost savings.  Chapter 2 Literature Review The Emerging Trends in the Use of EWS One of the trends in the use of EWS is it introduces new solutions on businesses. As mentioned in the article from Business Wire,  An electronic workflow system will be introduced to speed mortgage application processing and cut paperwork and costs, while enabling the company to offer a more responsive service to its home finance customers. The productivity of the 200-plus team of underwriters at InterMortgage which is UK’s Barclays Bank’s home mortgage operation will be increased by up to 40 percent, with a significant impact on turnaround times. Electronic imaging technology will play a major role in making InterMortgage a paperless environment, allowing processing teams to monitor the status of each application and staff the capability to redirect files instantly to any processing team’s workstation.  Different Software and Hardware used and the Function In EWS different software and hardware are used. One of the hardware used is networking materials, this technology makes sure communication takes place in the company. Another material used is the personal computers that are the main materials used in running the software. On the other hand the software used is specialized programs that enable the idea of EWS to transpire. These specialized programs are in the way the heart of EWS while the computers are the hands that can be instrumental in making the system work.   Assessment of the Cost and Benefits of EWS EWS can create huge costs for the company since it involves the use of too many resources and it may involve other companies that have to be paid. This cost may be replaced by the benefits that the company may get in the future. The cost a company might have is only for a shorter term unlike the benefits it may have that can have long term effect and effects the company might need in the future.   Different Kinds of Assessments Used to Evaluate the Impact of EWS To evaluate EWS different tools can be used. One tool is the figures the company has. Through analysis of the income and the revenue of the company the impact of EWS can be known. Increase in income and revenue means the impact of EWS is so effective while a decrease in income and revenue means that EWS has not done anything to that can create changes to the company. Another tool to assess the impact of EWS is the influx of customer the company has. More clients mean the EWS is doing good things while lesser clients mean that EWS is not affecting the company. Software and Hardware Requirement and Investment Costs As mentioned earlier different Software and hardware are required for the implementation of the EWS. Software programs like specialized programs and hardware programs such as PC and networking tools. The costs that will be used for such can be big thing for the company depending on how advanced the software and the hardware is and depending on how far or near these materials can come from. The investment costs may be a bit too much for the company but the rewards the company will receive from this will last for longer periods of time and it can boost not only the status of the company but the morale of its employees.   Chapter 3 Research Design Methods of Collecting Data First step would be to be able to identify the different processes in the organization and assign or segregate them into specific steps. Each step of the activity would have a specific cost to it. For example, in manufacturing, once a machine breaks down, this would mean stopping other processes. The manager’s decision-making time, and the time of no work for employees getting paid has specific cost. Secondly, the company must segregate the associated labor cost of that specific step. If the employee would normally take 15 minutes off their time in inquiring about steps to do after machine breakdown occurs, then the company must use the 15 minute rate of that employee to calculate the cost. Thirdly, calculate the total savings for that specific step and then this should be multiplied with the total number of occurrences that this step happens in the organization. This would be the total savings that could be realized in that specific step if automation would eliminate these costs. The next important step would be the calculation of the investment costs for the company. The cost of investment could of course include investments that could be depreciated and those cost of investments that could not be depreciated. Some of the important depreciable costs include the software and hardware that would be used. These components have a cost that could be spread through its lifetime. If the software and hardware have a life of four years, then the annual cost of the software should be the total cost divided by its lifetime. Non-depreciable aspects of the cost includes the cost of implementing the project, design of the system, additional training for the use of the system and maintenance of the system. These are cost that are not depreciated but could occur at one time process only. Through these steps the needed data can then be processed. Methods of Processing Data Monetary assessment of the value of EWS is very important because this could easily measure the financial returns that could be gained through the implementation of the project. The capacity of the proposal to express the value of savings and cost in monetary terms is very important in capturing the real value of the investment. The problem is there are lots of benefits that are not really tangible. Tangible benefits that could be gained from automation could include two categories. The first categories of tangible benefit are those benefits that are actually able to improve the level of productivity of the employees. The second category of tangible benefits is the reduction in the level of cost labor and materials for the company. Intangible benefits are benefits that could not be quantified but are very important in assessing the value of investments in human resource technology. Some examples of intangible benefits include increased in the satisfaction of employees, reduction in the attrition rate, and better compliance of the company with state and federal regulatory rules. Standard accounting of return of investment includes savings minus investments. The resulting value would be multiplied by 100 and this would be divided again to the total cost of investment. There are several ways that the company could robustly calculate the savings that could be realized through the project. The data collected and processed will then be presented. In the next part there will be discussion of how data will be presented.   Presentation of Data Data will be presented in a short but clear way. Through such presentation clearer understanding of the data can be made, the needed information can be gathered from the data to make an analysis out of it and afterwards make a proper conclusion and recommendation. Such is done so that lesser time will be wasted and more analysis can be done. Inconveniences and other problems that may arise can also be prevented.   Application of the ROI Model to be used The ROI model be applied to standard accounting of return of investment includes savings minus investments. The resulting value would be multiplied by 100 and this would be divided again to the total cost of investment. Through the said activity the effectiveness of the system can be analyzed.  Chapter 4 Evaluation Results of Processing of Data The data showed how EWS changed the two companies. Through the monetary analysis the effects of EWS can be seen visibly and it proved how valuable the system was to companies. The monetary analysis described the things that happened before the company had EWS and after the company had EWS. The data gathered from monetary assessment helps in understanding how vital EWS is to companies. The data also proves what happens to the growth of a company when EWS is used.   Findings Regarding the Cost-Savings of the Two Companies Both companies during the implementation of EWS had to use huge costs but afterwards cost savings were seen. Labor production increased with lesser people doing labor. Both companies’ don’t have to hire more employees. Both companies’ increased the clients they have thus they don’t have to use promotional materials. Lastly both companies’ don’t have to purchase again and again new materials.   Implications of the Results on Software Features The software increased efficiency and productivity in both companies. An improved software means better process that gives the company different kinds of benefits. An improved software also means that the employees will not have a hard time in doing the different tasks they have thus they can increase their productivity.   Chapter 5 Conclusions    Generalizations on the Cost-Savings Realized Cost Savings is good for the company; it maintains the stability of the company and gives it advantage over its rivals. Cost savings gives company a longer life. It also makes the company achieve its goals and desires. Lastly cost savings help the company increase the kind of product it offer and the way it serves its clients. As cost saving happens in the company the way clients are served can be given more focus thus it tends to increase.   Features of Software Vital to the Cost-Savings The software had lesser errors. Lesser error means that time will not be consumed thus cost savings may arise out of it. The software does not need more than one operator thus the company does not need to hire more employees. The software costs less maintenance it does not have to be maintained regularly and no costs can be released from that. Lastly the software is easily upgraded so that bugs and other problems can be fixed ahead of time.   Differences between Late Adopters of EWS and Old Adopters The late adopters of EWS will feel its effects in a later time, while the old adopters of the EWS can feel its effects earlier. The late adopters may have an upgraded and high technology EWS while the old adapters might not have such features but they can still upgrade their EWS.   Credit:ivythesis.typepad.com

A Research Paper on Electronic Workflow System on Hong Kong Manufacturing Sector

Discussion of the Research Question This project aims to know the effect of implementing EWS on the cost of production of manufactu...

Sample Manufacturing is an Important Sector in the Business and Without Manufacturing

Introduction   Manufacturing is an important sector in the business and without manufacturing there are no products that could be used by the consumers to make lives easier. Big companies from industrialized nations are the ones responsible for the massive scale of manufacturing in their own countries; an example is the Ford Motors in the United States. However, with the rapid embracement of huge companies in the concept of globalization, more and more companies are looking for possible locations for manufacturing. In addition, with the new technologies in the market boundaries is no longer an issue in the business. An organisation may have its headquarters in the West but can open a factory in the East. Statement of the Problem Research Aims and Objectives Hypothesis Significance of the Study Related Literature   Methodology   Research Design The research design described in this document is based on both quantitative and qualitative research method. The qualitative method permits a flexible and iterative approach, while the quantitative research method permits specification of dependent and independent variables and allows for longitudinal measures of subsequent performance of the research subject (Saunders, Lewis and Thorn hill, 2001). During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues and questions as they arise, and allows the investigators to drop unproductive areas of research from the original research plan. Actually, research requires an organised data gathering in order to pinpoint the research philosophies and theories that will be included in the research, the methodology of the research and the instruments of data interpretation. In this study, the Research Process “Onion” will be utilised so that the findings of the study can be thoroughly established. The inner part of the onion describes the methodology portion whereas the outer part discusses the strategies that can be utilised in interpreting the results of the findings. The descriptive research method uses surveys and interviews. Descriptive method of research is to gather information about the present existing condition. The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the cause/s of particular phenomena.   Feasibility of the Proposed Study The study would make use of the interview and survey questionnaire method to be able to lessen the expenses of the research. The primary source of data will come from a survey and interviews conducted by the researcher among randomly selected employees of 10 manufacturing companies, five for each sector. The biggest obstacle that needs to be resolved is the gatekeeper which is the HR managers, with whom the researcher will send the letter asking for the list of manufacturing employees in their company or organisation. In case this would happen, there are 2 companies in reserve that the researcher can tap to replace the lost number of respondents The research described in this document is partly based on flexible research methods. This permits iterative approach. During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues and questions as they arise, and allows the investigators to drop unproductive areas of research from the original research plan. Secondary sources of data will come from published articles from information technology management journals, theses and related studies on information systems.   Schematic Drawing of the Research Design The schematic drawing of the research design is adapted from the Input-Process-Output (IPO) Model. The research design is viewed as a series of boxes connected by inputs and outputs. According to Armstrong (2001), the input is the information that goes in while the process is the causes of the changes and the output is the result. Figure 1 illustrates the basic IPO model: Figure 2 Input – Process – Output Model                 The model will serve as a guide for a clearer understanding of the multi-method research design. For the purpose of this research, the variables of the basic model are substituted by the research variables of this study. This is shown in Figure 2.     Figure 3                       3.4 Data Collection Methods and Instruments For this paper, the researcher will use the survey to gather information. Questionnaires will be of a non-threatening nature and can be completed within 30 minutes. The respondents will grade each statement in the survey questionnaire using the Liker scale with a five-response scale. The respondents are given five response choices whose equivalent weights are as follows: Range                                                Interpretation 4.50 – 5.00                                        Strongly Agree 3.50 – 4.49                                        Agree 2.50 – 3.49                                        Uncertain 1.50 – 2.49                                        Disagree        0.00 – 1.49                                        Strongly Disagree   The results will then be analysed and presented in tables. However, with the use of Liker Scale, the researcher is also aware of its disadvantages and will elaborate them for clarification. The disadvantages are: the subjects may or may not give an accurate assessment of their beliefs, feelings, attitudes or behaviours.  The data is legitimate only to the extent that subjects are completely honest; subjects may answer according to what they feel the correct response should be, not how the subject really feels; a subject may give a higher score out of compassion, or a lower score out of anger; and scale construction is time consuming and takes a great deal of decision making. There would also be an interview for the managers of manufacturing department of a certain company.   According to Saunders, Lewis and Thorn hill (2001), the use of the interview is to help the researcher gather valid and reliable data which are relevant to the research questions. The use of structured interviews will be use in this research since it is more appropriate; however, it does not permit one to deviate from the list of questions such as to ask follow up questions regarding a response of the interviewee which in-depth interviews more than allow to be done. The researcher has sent request letters to the selected interviewees to set up the most convenient time for the interviews to be conducted.    Validity of Instrument For validation purposes, the researcher will initially submit a sample of the set of survey questionnaires and after approval; the survey will be conducted to five respondents.  After the questions were answered, the researcher will ask the respondents for any suggestions or any necessary corrections to ensure further improvement and validity of the instrument.  The researcher will again examine the content of the interview questions to find out the reliability of the instrument.  The researchers will exclude irrelevant questions and will change words that would be deemed difficult by the respondents, too much simpler terms. The researcher will exclude the five respondents who will be initially used for the validation of the instrument.  The researcher will also tally, score and tabulate all the responses in the provided interview questions. Moreover, the interview shall be using a structured interview. It shall consist of a list of specific questions and the interviewer does not deviate from the list or inject any extra remarks into the interview process. The interviewer may encourage the interviewee to clarify vague statements or to further elaborate on brief comments. Otherwise, the interviewer attempts to be objective and tries not to influence the interviewer’s statements. The interviewer does not share his/her own beliefs and opinions. The structured interview is mostly a “question and answer” session.             General Characteristics of the Study Population The subjects of this study are the employees of manufacturing companies in Hong Kong. The researcher will send a letter to the Human Resources Department asking for a list of all employees in manufacturing department and the purpose of such a request. The letter also discussed in detail the value of the research being conducted and assured the department that all information given will remain confidential with no sensitive data regarding company insider information on technology and design would be asked from the respondents. The sample size for the survey is expected to be 100. The respondents would be employees in the manufacturing department. A total of 10 employees would be taken from each company to participate in the survey. Simple random sampling would be conducted to select the actual respondents from the company. This method involves the selection of the sample at random from the sampling frame through the use of random number tables ( 2001). Numbers will be assigned for each employee in the master list. These numbers will be written on pieces of paper and drawn from a box until the sample size is reached. Then the researcher will draw 100 more for the reserve respondents.  The number of participants in the interview is 4 out of the likely participants from the 10 companies. Numbers will be assigned for each IT manager in the master list. These numbers will be written on pieces of paper and drawn from a box. Those who will be picked will be sent a letter asking their permission to participate in the in-depth interview.   The Location of Setting in which the Study is to take place. Geographic Dimensions of the Study Population The study will take place in Hong Kong, particularly 10 manufacturing organisations.   Data Analysis             In order to correctly interpret the data in such a way that its result will reflect what the study originally intends to show then the researcher must employ the correct and accurate way of data analysis. The method of data analysis then chosen for this study is through grouping the answers by category, then allowing them to be tabulated and analyzed through percentages. Tables may be used to present these findings in order to show the raw data tabulations and the percentage of people per category has chosen to answer the same.                     Thus, simple statistics can be done and applied, and it will be easier to determine the characteristic and status of procurement process of manufacturing industries in Hong Kong. Meanwhile, to interpret the data gathered, the researcher will use the following statistical formulae (1994): 1.       Percentage – to determine the magnitude of the responses to the questionnaire.             n % = ——– x 100        ;           n – number of responses             N                                 – total number of respondents 2.       Weighted Mean             f1x1 + f2x2  + f3x3 + f4x4  + f5x5 x= ———————————————  ;                         at where:             f – weight given to each response                         x – number of responses                         at – total number of responses                 The researcher will be assisted by the SPAS in coming up with the statistical analysis for this study.   Scope and Limitation of Research Design For this proposal, the author will employ a combination of qualitative and methods. The qualitative methodology that was employed in this research is appropriate since it seeks to interpret or illuminate the actions and/or subjective experiences of the business employees in manufacturing industry regarding their experiences in procurement strategies. This kind of research can utilize the qualitative method. For the particular study, the participants will be various business employees from different manufacturing industries. Basically, how the participants will be selected is only a matter of random. Before the study will be conducted, an approval to perform the study will be obtained from the ethics committee. The researchers will employ an interview method of data collection in two forms: (1) a questionnaire which will be sent by mail or email (2) a narrative interview through the telephone. Every participant in the study will be interviewed in the same manner and the data will all be collected in the same way. The timing of when the interviews will take place will also be within one timeframe – e.g. within a span of two weeks. The reason for this is because discrepancies in time could significantly affect the data collected.             Data analysis employed in the study will be carried out in steps. Every data form (audiotape-recorded or written and transcribed) will be carefully read in order to have an idea of the whole results concept. The text will then be read again and divided into meaningful units as the researcher see fit. The data gathered from the study will show the current statues and effectiveness of procurement strategies as part of business development of manufacturing industries in Hong Kong. These are all ideas which employees in manufacturing industry think of in the current status of procurement. Credit:ivythesis.typepad.com

Sample Manufacturing is an Important Sector in the Business and Without Manufacturing

Introduction Manufacturing is an important sector in the business and without manufacturing there are no products that could b...

MANUFACTURING AND SUSTAINABILITY

Manufacturing and Sustainability I. Background to Sustainable Development and Manufacturing Sustainability 1.1 Sustainable Development       Sustainable development has been defined as the development that meets the needs of the present without compromising the needs of the future generations. This concept can be applied to acquire win-win scenarios (, 1999, ). It must equal the production so that the capital and the natural resources are maintained. In other words, sustainable development means living with one’s means while ensuring that the economic growth protects and preserve both the present and the future social welfare and the environment (, 2000, ). The issues of sustainable development affect many businesses. Environmental performance is increasingly becoming a determinant of the company’s reputation among employees, customers and other stake holders. A poor environmental reputation can damage recruitment, retention and morale as well as damage the sales and threaten the company’s license to operate. On the other hand, good performance can have a number of positive effects.              The increase globalization also results to the growing influence of consumers in the design and marketing of products. With commodities and a variety of consumer and industrial products flowing freely around the world, corporations must be aware that they have a stake in the economic health and development of all the societies where they conduct their business( and , 2000, ). The society is becoming more concern with the health of the environment and in the role of corporations in affecting the ecosystem and human health. For instance, companies such as Ben & Jerry’s, The Body Shop and Smith & Hawken are considered as green companies while other companies such as Exxon and American Cyanamid are considered to be environmentally unfriendly (, 1996, ) Managers in many industries are realizing that in order to become competitive they must think globally. In order to become competitive by striving to achieve international standards, they must include the to their management processes the environmental and social impacts of their operations ( & , 1999, ). Reasons for these demands include regulatory requirements, environmental stewardship, enhanced public image and potential to grow the customer base and gain competitive advantage in the market (, 2005, )             Moreover, if companies fail to respond to environmental pressures, they will miss the important opportunities to gain a competitive advantage that accrues the early movers. For instance, the introduction of new technologies ahead of regulatory requirements prevents delay and higher costs. Similarly, firms that prioritize resource productivity, process change and product innovation will increase its performance and gains at lower costs. Aside from this, there will be new business opportunities from meeting the need for added value products and services. 1.2 Manufacturing Sustainability Sustainable development cannot be achieved with the absence of sustainable manufacturing. Sustainable manufacturing is one of the processes and strategies used to achieve the goal of sustainable development. It is a strategy that requires the re-engineering of the organization to change its design, process, work attitudes and perceptions. It also requires the organization to become environmentally conscious and will need the support and the cooperation of the top management. More importantly, it requires more investments for the future and retraining of its work force (, 2000, ).             Sustainable manufacturing is a capital venture that must be undertaken by the company and is a risk that may not be readily accepted by others. It requires the least use of resources and the least pollution. From this perspective, industrial production can achieved sustainability when limited resources are optimized the environmental waste and pollution is minimized. Corporations are thus responsible for promoting co efficiency. This they can do by adding the most value to their products and services with the most efficient use of the resources that generate environmental pollution and target environmentally clean production systems.             Thus, corporations must achieve sustainable development by producing environmentally conscious products, that is, promoting eco efficiency and contributing to the society by fully utilizing technological abilities. Eco efficiency balances the business activities toward a sound ecology and profitable operations. Its distinctive features include: emphasis on value creation; emphasis on targeting long term improvements; linking the environmental excellence to business excellence; and considering sustainable consumption and sustainable production ( and , 2000, ). Preventing the waste of energy, water, materials and other resources entails the company to alter its production systems and operations. One way to achieve this is through the adopting a fresh approach to the process design. For instance, the Interface Corp. a producer of commercial interiors used simple designs in its Shanghai factory to cut its power requirements by 92 percent (, 2000, ). 1. 3 Processes and Techniques             The essential challenge for the operations management is to position the corporation so that it can improve, innovate and create products and services. Because the environment plays a central role in this process, the management must learn new roles. Environmental innovation and organizational synergy involve not only the new technologies but as well as the management systems. However, environmental innovation at present barely shows up in product design, new manufacturing processes and new management initiatives.              A good starting point in considering eco-efficiency in production is through cleaner production. It is the continuous use of industrial processes and products so that all kinds of pollutions are prevented minimizing the risks to the human population and the environment. Thus, cleaner production encompasses the entire product life cycle, from the extraction of raw materials through manufacturing and use to the ultimate disposal of the product.  The cleaner production also encompasses the service sector. It can be achieved in three ways: (1) changing attitudes (2) applying know-how (3) improving technology ( & , 2000, ).             The development of motivation and personal responsibility for the improvement of the environment is a pre requisite for eco-efficiency. This change alone can contribute significantly in the reduction of pollution and wastes in many companies. The application of know-how entails the improving efficiency, implementing better management techniques, changing practices and revising policies and procedures. For instance, timely and preventive maintenance can reduce leakages and improve yields and energy usage. Good inventory management can also reduce waste while better scheduling reduces the need to clean the equipments between batches.             In terms of technology, there are four means for improvement: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Changing the process or manufacturing techniques. Major changes to the production process usually require R&D but even the small changes can yield positive results</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Changing input materials. For example, water based methods can be replaced with organic solvents</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Changes to the product such as the elimination of heavy metals and other hazardous materials from the product design</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Reuse the materials as with the separation and treatment techniques to recover reusable materials from wastes ( & , 2000, ). </li> </ul>  Cleaner production and eco-efficiency go well beyond waste minimization. This approach can be applied by carefully analyzing how things are done to how they can be done better. Finally, such initiatives produce quick wins that creates support and enthusiasm.              There are also several strategies developed to promote sustainable manufacturing. One is through inverse manufacturing wherein the life of the product is prolonged including its component. This process is referred to as a close-loop product life cycle. The life of the product is simply extended by disassembling the original product at the end of its original life into components that can still be reused, recycled, maintained or upgraded. The focus is to limit the amount of disposed wastes and minimize the environmental costs (, 2000, ). For example, old computers are constantly upgraded by retaining much of the unit and putting additional features. Also, important metals such as silver and platinum can be extracted and reused for newer models when it is nom longer feasible to upgrade the unit.             A better known strategy for sustainable manufacturing is through recycling. Most communities mandate the involvement in recycling programs. Economic growth is greatly dependent on the limited resources and thus an efficient recycling policy is needed. Such policy must encourage people to participate in the program. Re-manufacturing is another strategy that can be utilized. This process involves rebuilding the unit or the machinery so that it will be as good as new. This may require the use of existing components, replacement of some parts and quality control to ensure that the remanufactured product will meet the capabilities of the new product. 1.4 Challenges for the Management             Sustainability requires major changes in philosophy, products and processes. There is a growing evidence for companies that such change can be implemented that reduces environmental impacts and increases sustainability. However, there are internal and external barriers towards this process. Some of these barriers are created by the framework conditions from which the business operates. There are also external barriers that served as challenges for the company. <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Lack of awareness on the environmental and sustainability issues and of the extent of change needed for sustainable development</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Despair on the enormity of the problem and the inability to deal with it</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Absence of senior management commitment </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Lack of motivation among middle and lower level staff</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Lack of systems that will bring environment into the business decision making processes</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Focus on the own effects of the company and lack of knowledge about the suppliers and the customers</li> </ul> II. Case Study                     Hornby Plc is a medium sized company involved in the UK toy and games market. Every year, the company produces hundreds of new lines of toys and games to the market. The business process begins through research wherein consultation with car magazines is conducted. Aside from these, researchers attend shows to predict potential car models. The design of the toys is derived from these models. Designers will then determine the exact dimensions of the model so that it can be reduced to its real size. After which the data is fed to the machine to produce plastic prototypes. All parts of the car are ensured to fit together before the model goes into production. The finished prototypes are sent to the car maker for their approval. During the previous years, the company produces its own toys until the production is done under contract for the company by the local firm. The company contracted with the production of cars in Shenzen where the government grants incentives to foreign direct investments. Indeed, the investment has provided employment opportunities for many Chinese people.             However, there are several issues that affect the employees with regards to the management practices and the production process. Many of the employees live on site in apartment block. While the employees are content with the factory conditions, it has been found out that they are subjected to excessive work hours, dangerous equipments and chemicals, cramped in dormitories, abused by their managers and paid below China’s minimum wage. Based from these conditions, the China based manufacturing facility cannot be considered as fostering sustainability. The welfare of the employees is not well promoted as evidenced by their poor working conditions, lack of protection from hazardous equipments and chemicals and their relatively low salaries.             Sustainable development cannot be achieved without the productive labor force that is free to demand for better working conditions, fair wages and benefits. It is becoming more widely recognized that the literal bottom line for sustainable development is the individual. Motivating and empowering people are the key to achieve a sustainable living. Without this, sustainable development cannot be achieved and the society is likely to be riven by inequities.             Indeed, one of the primary challenges for the company is the long-run widening inequalities. As a foreign direct investment, the company will be in better position to negotiate the working conditions of the workers. Unsafe working conditions brought about by the speed of production, exposure to excessive heat or noise and hazardous materials and equipments may lead to a wide range of health problem to the workers. Hence, it must promote sustainable manufacturing were the use of such materials is prevented. Aside from minimizing the health risks, the company must also contribute to the sustainability of the environment. This can be done by applying the concept of sustainable development to its manufacturing operations that will include the selection of materials, production and full cost accounting. It can also incorporate the concept of sustainable manufacturing to its health, environment and safety policies. Such policy is critical for the protection of the employees especially with their frequent exposure to harmful chemicals and equipments. Most corporations with overseas facilities are undertaking increased scrutiny of their international operations. There has been a growing recognition that safety and environmental issues can subject the company to liabilities. As such, companies extended their domestic health, safety and environmental assessments to their international operations (, ).  Companies with chemical and Manufacturing Corporation such as the Hornby Plc that are susceptible to catastrophes must develop this awareness.             Under any circumstances, management commitment and good organizational structure will serve as the foundation for a sustainable development. Thus, Hornby Plc must implement major changes in its products, processes and policies if it is to remain sustainable in the future. As evidenced from its business processes, there are no indications of strategies used for sustainable manufacturing. It must strive to promote environmental excellence and relate it to the business so that sustainability is fostered.                                 References Books Journals Credit:ivythesis.typepad.com

MANUFACTURING AND SUSTAINABILITY

Manufacturing and Sustainability I. Background to Sustainable Development and Manufacturing Sustainability 1.1 Sustainable Development ...

Macro-Environment and Industrial Factors Affecting the Motor Car Manufacturers

A.           Threats of New Entrants             Threats of new entrants are moderate because entry to the automotive industry is unlikely to be successful on a small scale because huge amount of capital is needed in order to set-up large-scale production plants. Aside from that, factors including difficulty in accessing distribution channels are a problem because dealers and distributors tend to stock well-established branded automobiles as an answer to the demand of the consumers. Aside from that, top players in the market, including the 5 stated in this paper hold licenses to use numerous patents, copyrights and trademarks which focus on engineering and technical expertise to maintain their competitive advantage through innovations. In addition, there are different governmental standards and regulations that are connected to safety, fuel economy, emissions control, noise control, vehicle recycling, substance of concern, engines and equipment manufactured for sale in the world. Above all, manufacturing and other assembly facilities are subject to different stringent standards which regulate air emissions, water discharges and waste management (Datamonitor, 2008). B.           Bargaining Power of Buyers             Buyers in the automotive industry are commonly large companies with a vital financial power. Therefore, they can be authorized dealer for a number of manufactures and they can make large purchases and put pressure on market players in order to reduce prices. However, the brand strength or the image of the brands weaken the buyer power, because the leading car manufacturer have already established their relationship with the customers, thus, buyers are more likely to enter into different contracts with specific manufacturers to meet the demand of the customers, at the same time, increase sales. Aside from that, there are number of market players that have integrated forward into retailing, which put pressures on buyers (Datamonitor, 2008). C.           Bargaining Power of Suppliers             Inputs to the global automobiles market include a variety of raw materials, assembled and semi-assembled components, energy, freight and transportation. On the other hand, suppliers have a strong power over the industry because the suppliers, which are commonly large companies, are not dependent on the automotive industry but operate in a diverse market. In addition, the power of supplier is being strengthened because the automotive industry requires raw materials of high quality. However, this is complemented because motor car manufacturers does not focus on one suppliers, thus reliance to suppliers keep to minimum by using wide range of companies as their suppliers  (Datamonitor, 2008). D.           Threats of Substitutes             The presence of used car market is a threatening player in the new cars market. As a matter of fact, the volume of used car sold had exceeded that of the new cars market. However, this lessens because most of car manufacturers are focusing on producing affordable new cars. On the other hand, with connection with the awareness of environmental issues, people tend to substitute automobiles for more environmentally friendly forms of transport such as walking, cycling and even public transportation. However, the said substitute is unlikely to happen on a large scale or to become a complete substitute for automobile, thus it does not have that much impact on the industry (Datamonitor, 2008).             Furthermore, hybrid is growing in terms of sales, however market players play a vital role in the said green market (Datamonitor, 2008), therefore, making the threat of substitute low. E.           Rivalry among Existing Firms             It is important to consider that the global automobiles industry is highly concentrated with the top three players in the industry, which holds 40% of the entire market value. Competition is increasing and intensifying because different developed and newly developed countries such as Japan and Korea are starting to compete in the global market. Aside from that, most of car manufacturers are now ramping in terms of production which put pressures on their rivals. Besides, the industry is becoming consolidated because increase in raw material cost resulted to increase in production costs and put pressure on the players in the market (Datamonitor, 2008). Therefore the rivalry in the industry is strong.   VI.          Conclusion After analyzing the information gathered, it had been found out that the industry is facing problems because of the current financial crisis. Customers tend to save money and stop buying cars for the future. As a result, the sale of automobile is forecasted to decline. On the other hand, because of the said financial crisis, people tend to go for second-hand cars, cycling, walking and transportation. However, the said factors do not have a long-lasting and strong impact because of the current effort of major players in the industry including introduction of affordable and reliable cars in the market. Furthermore, most of companies are also focusing on green market, which enables them to manufacture and sell hybrid cars, as an answer to the concerns of the customer towards the different environment issues.   VII.         References 2007 Production Statistics. (2007). Retrieved May 4, 2009, from Organization International des Constructeurs d’Automobiles: http://www.oica.net/category/production-statistics/ Automotive Industry – Industry Overview. (n.d.). Retrieved May 4, 2009, from Automotive Components & Parts: http://www.automotive-online.com/auto-industry.html Collins, S. (2006, April 20). International Trade Commission (ITC) Public Hearing on the Economic Effects of a US – Korea FTA on the US Automotive Industry. Retrieved May 4, 2009, from Automotive Trade Policy Council: http://www.keia.org/images/04.AutomotiveTradePolicyCouncilRemarks.pdf Datamonitor. (2008). Global Automobiles. Retrieved May 4, 2009, from Datamonitor: http://www.datamonitor.com/ Evans, F., & Bishop, D. (2001). Valuation for M & A: Building Value in Private Companies. John Wiley and Sons. Györffi, M. (2006). Common Policies. Retrieved May 4, 2009, from European Parliament: http://www.europarl.europa.eu/parliament/expert/displayFtu.do?id=74&ftuId=FTU_4.8.4.html&language=en Haberberg, A., & Rieple, A. (2008). Strategic Management: Theory and Application. Oxford University Press. Hsu, J. (2002, July 1). Globalization Withint the Auto Industry: A Major Benefit of Globalization for GM has been Access… Retrieved May 5, 2009, from AllBusiness: http://www.allbusiness.com/management/benchmarking-key-business-process-benchmarking/219142-1.html IHS. (2006, October 31). Frost: Intellectual Property Rights Protection to Reduce Counterfeiting Risk in Chinese Auto Industry. Retrieved May 9, 2009, from IHS: http://auto.ihs.com/news/2006/frost-counterfeit-china-auto.htm Johnson, D., Sun, J., & Johnson, M. (2007). Integrating Multiple Manufacturing Initiatives: Challenges for Automotive Suppliers. Measuring Business Excellence , 11(3), 41 – 56. KMPG. (2008, November 27). Automotive: A Rough Road: The Effects of Today’s Financial Crisis in the Global Automotive Industry. Retrieved May 4, 2009, from KMPG International: http://www.kpmg.com/SiteCollectionDocuments/A-rough-road-financial-crisis.pdf Lepeak, S. (2008, January 1). “What’s happening in outsourcing trends? Manufacturing, automotive, and high-tech industries are looking mostly at information technology and business process outsourcing.”. Retrieved May 4, 2009, from Implement & Tractor. Scissortail Productions LLC. HighBeam: http://www.highbeam.com/doc/1G1-175526082.html OICA. (2006, November 29). The World’s Automotive Industry. Retrieved May 5, 2009, from The International Organization of Motor Vehicles Manufacturers: http://www.oica.net/wp-content/uploads/2007/06/oica-depliant-final.pdf Partridge, L., & Sinclair-Hunt, M. (1997). Strategic Management. Select Knowledge Limited. Raver, E. (2006, February 16). The Effect of NAFTA on the US Auto Industry. Retrieved May 2, 2009, from Associated Content: http://www.associatedcontent.com/ Singleton, K. (2004, March 14). Hybrid Cars Are Gaining Popularity. Retrieved May 5, 2009, from World Internet News: http://soc.hfac.uh.edu/artman/publish/article_105.shtml UNCTAD. (2009, January 19). Assessing the Impact of the Current Financial and Economic Crisis on Global FDI Flows. Retrieved May 5, 2009, from United Nations Conference on Trade and Development: http://www.unctad.org/templates/Download.asp?docid=10973〈=1&intItemID=2068 Wilson, R., & Gilligan, C. (2005). Strategic Marketing Management: Planning, Implementation and Control. Butterworth-Heinemann. Yagi, T. (2002). Recent Trends in the Robotization of the Japanese Automotive Industry. Industrial Robot: An International Journal , 29(6), 485 – 499. Zhang, J. (n.d.). Outsourcing to China Part 1. Retrieved May 4, 2009, from SourcingMag.com: http://www.sourcingmag.com/content/c050802a.asp     VIII.       Appendices Appendix A: Automotive Industry and the Economy of the World   		 		(2004 or latest available figures) 		 		 		(In Million) 		 		 		Turnover 		 		 		Investments 		 		 		Public Revenue 		 		Argentina 		 		3,519* 		  		  		 		Australia 		 		18,929 		  		 		887 		 		Austria 		 		13,900 		 		580 		 		8,315 		 		Belgium 		 		18,225 		 		302 		 		7,155 		 		Brazil 		 		26,997 		 		1,141 		  		 		Canada 		 		77,469* 		 		2,496** 		 		9,701 		 		China 		 		86,984 		 		5,330 		  		 		Croatia 		 		205 		 		20 		1 		 		Czech Rep. 		 		12,091 		 		663 		 		1,032 		 		Denmark 		 		1,165 		 		46 		 		5,867 		 		Egypt 		 		2,901 		 		1,661 		 		1,911 		 		Finland 		 		1,076 		 		36 		 		3,807 		 		France 		 		111,901 		 		4,196 		 		34,000 		 		Germany 		 		227,666 		 		11,900 		 		44,314 		 		Greece 		 		162 		 		17 		 		3,200 		 		Hungary 		 		8,144 		 		432 		  		 		India 		 		16,893 		 		1,014 		 		11,122 		 		Indonesia 		 		3,858 		 		1,071 		  		 		Italy 		 		54,135 		 		3,450 		 		40,954 		 		Japan 		 		435,610 		 		6,450 		 		66,444 		 		Korea 		 		62,993 		 		2,239 		 		16,615 		 		Malaysia 		 		6,084 		 		1,263 		  		 		Mexico 		 		3,348 		  		  		 		Netherlands 		 		7,876 		 		81 		 		10,837 		 		Poland 		 		16,202 		 		893 		  		 		Portugal 		 		4,457 		 		176 		 		6,897 		 		Romania 		 		1,836 		 		308 		  		 		Russia 		 		7,019 		 		223 		 		654 		 		Slovakia 		 		8,711 		 		1,056 		  		 		Slovenia 		 		1,544 		 		40 		  		 		South Africa 		 		20,602 		 		277 		 		3,459 		 		Spain 		 		75,104 		 		277 		 		3,459 		 		Sweden 		 		24,784 		 		861 		 		5,590 		 		Switzerland 		 		4,252 		  		 		4,689 		 		Thailand 		 		116,58* 		 		443 		 		2,871 		 		Turkey 		 		28,196 		 		502 		 		10,127 		 		UK 		 		58,238 		 		1,590 		 		46,099 		 		USA 		 		425,106 		 		30,416 		 		64,289 		 		Total 		 		 		1,889,840 		 		 		84,801 		 		 		433,160 		 		* 		gross productive value ** gross fixed capital formation   Source:  (OICA, 2006) Appendix B: 2007 Car Production Statistics   		 		 		Country 		 		 		Cars 		 		 		Commercial Vehicles 		 		 		Total 		 		 		% Change 		 		 		Argentina 		 		350,735 		 		193,912 		 		544,647 		 		26.0% 		 		 		Australia 		 		283,348 		 		51,269 		 		334,617 		 		0.9% 		 		 		Austria 		 		199,969 		 		28,097 		 		228,066 		 		-17% 		 		 		Belgium 		 		789,674 		 		44,729 		 		834,403 		 		-9.1% 		 		 		Belgium 		 		789,674 		 		44,729 		 		834,403 		 		-9.1% 		 		 		Brazil 		 		2,388,402 		 		582,416 		 		2,970,818 		 		13.8% 		 		 		Canada 		 		1,342,133 		 		1,236,105 		 		2,578,238 		 		0.3% 		 		 		China 		 		6,381,116 		 		2,501,340 		 		8,882,456 		 		22.0% 		 		 		Czech Rep. 		 		925,778 		 		12,749 		 		938,527 		 		9.8% 		 		 		Egypt 		 		67,149 		 		36,403 		 		103,552 		 		13.1% 		 		 		Finland 		 		24,000 		 		303 		 		24,303 		 		-25.8% 		 		 		France 		 		2,550,869 		 		464,985 		 		3,015,854 		 		-4.8% 		 		 		Germany 		 		5,709,139 		 		504,321 		 		6,213,460 		 		6.8% 		 		 		Hungary 		 		287,982 		 		4,045 		 		292,027 		 		53.5% 		 		 		India 		 		1,707,839 		 		598,929 		 		2,306,768 		 		14.4% 		 		 		Indonesia 		 		309,208 		 		103,580 		 		412,788 		 		39% 		 		 		Iran 		 		882,000 		 		115,240 		 		997,240 		 		10.3% 		 		 		Italy 		 		910,860 		 		373,452 		 		1,284,312 		 		6.0% 		 		 		Japan 		 		9,944,637 		 		1,651,690 		 		11,596,327 		 		1.0% 		 		 		Malaysia 		 		347,971 		 		93,690 		 		441,661 		 		-12.2% 		 		 		Mexico 		 		1,209,097 		 		886,148 		 		2,095,245 		 		2.4% 		 		 		Netherlands 		 		61,912 		 		76,656 		 		138,568 		 		-13.1% 		 		 		Poland 		 		695,000 		 		89,700 		 		784,700 		 		9.8% 		 		 		Portugal 		 		134,047 		 		42,195 		 		176,242 		 		-22.5% 		 		 		Romania 		 		234,103 		 		7,609 		 		241,712 		 		13.2% 		 		 		Russia 		 		1,288,652 		 		371,468 		 		1,660,120 		 		10.4% 		 		 		Serbia 		 		8,236 		 		1,667 		 		9,903 		 		-11.4% 		 		 		Slovakia 		 		571,071 		0 		 		571,071 		 		93.3% 		 		 		Slovenia 		 		174,209 		 		24,193 		 		198,402 		 		29.6% 		 		 		South Africa 		 		276,018 		 		258,472 		 		534,490 		 		-9.1% 		 		 		South Korea 		 		3,723,482 		 		362,826 		 		4,086,308 		 		6.4% 		 		 		Spain 		 		2,195,780 		 		693,923 		 		2,889,703 		 		4.0% 		 		 		Sweden 		 		316,850 		 		49,170 		 		366,020 		 		9.9% 		 		 		Taiwan 		 		212,685 		 		70,354 		 		283,039 		 		-6.7% 		 		 		Thailand 		 		315,444 		 		971,902 		 		1,287,346 		 		7.8% 		 		 		Turkey 		 		634,883 		 		464,531 		 		1,099,414 		 		11.3% 		 		 		Ukraine 		 		380,061 		 		22,530 		 		402,591 		 		39.7% 		 		 		UK 		 		1,534,567 		 		215,686 		 		1,750,253 		 		6.1% 		 		 		USA 		 		3,924,268 		 		6,856,461 		 		10,780,729 		 		-4.5% 		 		 		Uzbekistan 		 		170,000 		 		14,900 		 		184,900 		 		68.1% 		 		 		Others 		 		429,430 		 		168,466 		 		597,896 		 		12.5% 		 		 		Total 		 		 		53,049,391 		 		 		20,103,305 		 		 		73,152,696 		 		 		5.7%   Source:  (2007 Production Statistics, 2007)                 Appendix C: Direct Employment in Automotive Industry             		 		Countries 		 		 		Employment 		 		Countries 		 		 		Employment 		 		Argentina 		 		12,166 		 		Korea 		 		246,900 		 		Australia 		 		43,000 		 		Malaysia 		 		47,000 		 		Austria 		 		32,000 		 		Mexico 		 		137,000 		 		Belgium 		 		45,600 		 		Netherlands 		 		24,500 		 		Brazil 		 		289,082 		 		Poland 		 		94,000 		 		Canada 		 		159,000 		 		Portugal 		 		22,800 		 		China 		 		1,605,000 		 		Romania 		 		59,000 		 		Croatia 		 		4,861 		 		Russia 		 		755,000 		 		Czech Rep. 		 		101,500 		 		Serbia 		 		14,454 		 		Denmark 		 		6,300 		 		Slovakia 		 		57,376 		 		Egypt 		 		73,200 		 		Slovenia 		 		7,900 		 		Finland 		 		6,530 		 		South Africa 		 		112,300 		 		France 		 		304,000 		 		Spain 		 		330,000 		 		Germany 		 		773,217 		 		Sweden 		 		140,000 		 		Greece 		 		2,219 		 		Switzerland 		 		15,500 		 		Hungary 		 		40,800 		 		Thailand 		 		182,300 		 		India 		 		270,000 		 		Turkey 		 		230,736 		 		Indonesia 		 		64,000 		 		UK 		 		213,000 		 		Italy 		 		196,000 		 		USA 		 		954,210 		 		Japan 		 		725,000 		  		  		 		Grand Total (39 countries only) 		 		 		8,397,451   Appendix D: Market Share   		 		Company 		 		 		Share (%) 		 		Toyota Motor Corporation 		 		15% 		 		Ford Motor Company 		 		12% 		 		General Motors Corporation 		 		11.40% 		 		Daimler AG 		 		10.30% 		 		Other 		 		51.30% 		 		Total 		 		100%  Source: (Global Automobiles, 2008) </div> Credit:ivythesis.typepad.com

Macro-Environment and Industrial Factors Affecting the Motor Car Manufacturers

A. Threats of New Entrants Threats of new entrants are moderate because entry to the automotive i...