A new study that compares leading Chinese manufacturing facilities with US plants finds that while low labour costs may have fuelled
’s production growth, that country’s vigilant pursuit of Western manufacturing standards and capabilities may eventually secure it industrial preeminence.
The study – The
The new Grant Thornton LLP analysis, based on research conducted by the Manufacturing Performance Institute (MPI) and IndustryWeek magazine, assessed 406 Chinese facilities with ISO 9001 certification and 681 US manufacturers.
Among other findings, the survey reveals that the best of
53% of the
65% of Chinese plants reported their primary improvement methodology to be Total Quality Management, compared to 14% of
An 73% of
Second to quality, US plants said service and support was their next priority (53%), while
And for the category of wages, China’s leading manufacturers offer wages dramatically lower than those offered by US plants -- $121 per month, excluding overtime, compared to $2,160 per month in the US.
But is sending a product design overseas for manufacture really the only cost-effective solution, or would US companies benefit from taking the time to redesign products and keep manufacturing in the
A new article from Boothroyd Dewhurst examines some of the hidden costs of outsourcing that US manufacturers may not be taking into account.
The company claims that product redesign could be a cost-effective alternative to outsourcing, and offers two case studies that quantify costs associated with manufacturing and assembling products in
Check it out here: http://www.dfma.com/truecost/index.html