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From page 105... ... 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, 2830, 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, 23 105 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, 6468, 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 Read the entire page →
From page 106... ... 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, 8485 U.S. Read the entire page →
From page 107... ... INDEX 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 automobile production, 72 Korea, 23, 65 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 Japan automobile industry, 14, 61, 65, 68, 70, 72, 73, 74, 86 investments in U.S., 14, 49, 61, 65, 68, 73, 88 107 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 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 Read the entire page →
From page 108... ... building internal capacity, 83-84 quality management costs, 3233, 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 Read the entire page →
From page 109... ... 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, 42 109 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, 5455, 56, 80 government grants, 55-56 industry structure, 48-49 Read the entire page →
From page 110... ... 0 infrastructure, S5, 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 INDEX 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 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 Read the entire page →
From page 111... ... competitiveness in automobile industry, 64, 70 determinants, 2, 6, 95, 98 foreign direct investment and, 91, 95, 98-99 111 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, 9294, 95, 97, 98 Volkswagen, 73 Volvo, 73 Read the entire page →
From page 112... ... 2 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 INDEX 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 Read the entire page →

From page 105...

... 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, 2830, 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, 23 105 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, 6468, 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

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From page 106...

... 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, 8485 U.S.

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From page 107...

... INDEX 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 automobile production, 72 Korea, 23, 65 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 Japan automobile industry, 14, 61, 65, 68, 70, 72, 73, 74, 86 investments in U.S., 14, 49, 61, 65, 68, 73, 88 107 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 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

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From page 108...

... building internal capacity, 83-84 quality management costs, 3233, 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

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From page 109...

... 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, 42 109 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, 5455, 56, 80 government grants, 55-56 industry structure, 48-49

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From page 110...

... 0 infrastructure, S5, 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 INDEX 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 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

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From page 111...

... competitiveness in automobile industry, 64, 70 determinants, 2, 6, 95, 98 foreign direct investment and, 91, 95, 98-99 111 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, 9294, 95, 97, 98 Volkswagen, 73 Volvo, 73

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From page 112...

... 2 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 INDEX 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

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INDEX Pages 105-112

INDEX
Pages 105-112