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Manufacturing Processes
Introduction
Historical Overview
Manufacturing Across History
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1/2
3
Manufacturing Across History
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2/2
4
Manufacturing Defined
Definition of Manufacturing
manufacture
manus
factus
Latin words
+
= Made by hand
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6
Duality
Technical Activity
Economic Activity
Added value
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Manufacturing as a Technical Activity
Machinery
Power
Labor
Tools
Processed
Part
Starting
material
Manufacturing Process
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Scrap and
waste
8
Example
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9
Manufacturing as an Economic Activity
Manufacturing Process
$
Value added $$
Starting
material
$$$
Processed
Part
Material in
Processing
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Economic Role of Manufacturing
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11
Gross National Product (GNP)
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Manufacturing and Service Industries Share of U.S. GDP, 1977 to 1998
Percent of GDP
24%
Manufacturing
Services
22%
20%
18%
16%
14%
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Source: U.S. Department of Commerce, Bureau of Economic Analysis
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77
12%
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Manufacturing in the Economy
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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


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Contributions to Economic Growth,
1992-1997
Manufacturing
also contributes
to technological
advances, with
significant
investments in
R&D
http://www.vpmep.org/mfgstats.htm
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