For decades, U.S. companies have been outsourcing manufacturing in the belief that it held no competitive advantage. That's been a disaster, maintain Harvard professors Pisano and Shih, because today's low-value manufacturing operations hold the seeds of tomorrow's innovative new products. What those companies have been ceding is the country's industrial commons—that is, the collective operational capabilities that underpin new product and process development in the U.S. industrial sector. As a result, America has lost not only the ability to develop and manufacture high-tech products like televisions, memory chips, and laptops but also the expertise to produce emerging hot products like the Kindle e-reader, high-end servers, solar panels, and the batteries that will power the next generation of automobiles. To rebuild the commons and restore its wealth-generating machine will require government and industry in the U.S. to make two drastic changes: First, the government must change the way it supports basic and applied scientific research to promote the broad collaboration with business and academia needed to tackle society's big problems. Second, corporate management practices and governance structures must be overhauled so they no longer exaggerate the payoffs and discount the dangers of outsourcing production and cutting investments in R&D. Restoring the ability of enterprises to develop and manufacture high-tech products in America is the only way the country can hope to pay down its enormous deficits and raise its citizens' standard of living.
This note describes four broad categories of process architectures and then examines the nature of task assignment that typically would be found in a factory organized along the lines of each process type. It then delves more deeply into work flow policies, materials handling, and line pacing for the assembly line, since this process architecture is so widely used for the mass production of everything from smartphones to automobiles.
Shih, Willy, and Michael W. Toffel. "Production Processes." Harvard Business School Background Note 618-023, September 2017. (Revised August 2019.)
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This note on supply chain management provides background for the seven class supply chain module in the Technology & Operations Management required curriculum course taught at the Harvard Business School. This module includes four broad topics: sourcing and supply chain structure, supply chain coordination, coping with uncertain demand, and supply chain visibility.
In today's global economy, what are the factors that go into production location choice? This case is set in the world's second largest automotive glass producer as it expands from China into the United States. To meet a very aggressive cost target, management is faced with the alternatives of fulfilling the contract from its new Ohio factory, which can only produce above the target cost because it is still on a learning curve, or it can fulfill from its Tianjin, China, factory, which can produce below the cost target but will incur extensive shipping costs and require a far greater amount of inventory holding. This case examines a core question facing managers who want to produce physical products for world markets.
