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y Manufacturing is the use of machines, tools and
labour to move things for use or sale .the term refers to the range of human activity from handicraft to hightech but it is most commonly applied to industrial production , in which raw materials are transformed into finished goods on a large scale .
Manufacturing Systems: The Changing Methods Of Manufacturing
y Mass production y Just in time manufacturing y Lean manufacturing y Flexible manufacturing y Agile manufacturing y Rapid manufacturing
y Mass production is the production of large amounts of
standardized products including , especially and on assembly line
y Mass production is capital intensive and energy
intensive and it uses high proportion of machinery and energy in relation to workers
JUST IN TIME MANUFACTURING
y Just-in-time (JIT) is an inventory strategy that strives to improve a business's return on investment by reducing inprocess inventory and associated carrying costs. To meet JIT objectives, the process relies on signals or Kanban(Kanban) between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT can improve a manufacturing organization's return on investment, quality, and efficiency. y
y Lean manufacturing or lean productions, which is often known
simply as "Lean", is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination.
y Basically, lean is centered on preserving value with less work. Lean
manufacturing is a generic process management philosophy derived mostly from the Toyota Production System (TPS) (hence the term Toyotism is also prevalent) and identified as "Lean" only in the 1990s.  It is renowned for its focus on reduction of the original Toyota seven wastes to improve overall customer value, but there are varying perspectives on how this is best achieved. The steady growth of Toyota, from a small company to the world's largest automaker, has focused attention on how it has this.
y Flexible manufacturing is a manufacturing system in which
there is some amount of flexibilty that allows the system to react in the case of changes, whether predicted or unpredicted .
y This flexibilty generally considerd in two categories 1.
MACHINE FLEXIBILTY:- it covers the system ability to be changed to produce new products type and ability to change the order of operations executed on a part
2 . ROUTINE FLEXIBILTY:-which consists the ability to use multiple machine to perform same operations on a part,as well as the system ability to absorb large scale changes , such as in volume capacity or capability
y It is a term of light to an organisation that has created
the processes, tools and training to enable it to respond quickly to customer and market changes by still controlling cost and quality y Agile manufacturing is seen as the next step after lean in the evolution of production and methodical .
y It is an additive fabrication technique for
manufacturing solid objects by the sequential delivery of energy and materials to specify points in space to produce that part y Crane practice is to control the manufacturing process by computer using a mathematical model created with the aid of computer
y Chemical industry
y Construction y Electronics
y y y y
Biotechnology Emerging technologies Nanotechnology Synthetic biology, Bioengineering
y Energy industry y Food and Beverage
y Agribusiness y Brewing industry y Food processing
y Industrial design
y Interchangeable parts
y Smith y Machinist y Machine tools y Cutting tools (metalworking) y Free machining y Tool and die maker y Global steel industry trends
y Metalcasting y Plastics y Telecommunications y Textile manufacturing
y Clothing y Sailmaker y Tentmaking
y Aerospace manufacturing y Automotive industry y Bus manufacturing y Tire manufacturing
TA MANUFACTURING STRATEGY FOR INDIA
y Nevertheless there is concern with the relatively poor performance of
the manufacturing sector. A principal concern is with the need to create more jobs in which the manufacturing sector should have a larger role to play at our stage of development. It is estimated that an additional 200 million Indians will enter the job market by 2025, with overall population growth and the large numbers of young people who will be joining the workforce. Moreover, with desperately needed improvements in agricultural productivity, there will be a shift towards manufacturing and services for jobs. Therefore manufacturing must pull its weight and contribute more for inclusive growth of the country. Therefore, we must develop an effective manufacturing strategy to achieve its goals. Strategy is about making choices about what to do to achieve the desired results.
y Choices must be made about which manufacturing sectors will be more important for inclusive and sustainable growth in the next 25 years. Choices must also be made about the best ways to stimulate that growth. Improving the physical infrastructure for manufacturing must be an essential element of the strategy. Here too policymakers must make choices. Should we have more rails and trains than roads and commercial vehicles for transportation of goods? Should the focus of urban infrastructure be on public rather than personal transportation, and if so what modes? Similarly in power generation, which technologies should be promoted with a view to environmental sustainability? Such choices about infrastructure will, in turn, determine the manufacturing industries required for building the infrastructure.
y Thus the selection of manufacturing sectors that should get higher priority is not a trivial exercise because there are linkages between industrial sectors and also linkages with overall economic needs for inclusion and sustainability. In a world in which not only companies, but countries too, are rated on their competitiveness, and a world in which all must strive to climb that scale, the only sustainable source of competitive advantage can be a company s or country s ability to learn, change, and improve faster than any potential competition. y Therefore a country s competitive ability lies in the capability of the collaborative process between producers and policymakers to produce effective strategies and policies.
y India cannot copy the collaborative processes between
policymakers and domestic producers used by Japan, Korea, or China, whose rapid industrial growth in the last 50 years has contributed to the rise of Asia within the global economy. Those countries may have set aside labour rights and environmental concerns by today s standards in their pursuit of industrial growth. While opening India s industrial policy to the world, the question of which flag investors and managers of industrial enterprises fly will come up in matters of national strategy. The 21st century global corporations hire the best talent from everywhere, sell wherever they can, buy from wherever it is best for their business, and invite investors from everywhere to whom they promise good returns.
y In summary, growth numbers suggest that the panoply
of reforms so far has been better for the overall economy than for manufacturing. The country needs a strategy for manufacturing to become a powerful engine for inclusive and sustainable double-digit economic growth.
IMPACT OF BUDGET 2010-11 ON MANUFACTURING SECTOR:y Capital and Engineering Goods:POSITIVE IMPACT: y Government announced reduction in customs duty on imports of specified machineries used in processing, storing and preservation of agriculture products. Further, this budget has also increased allocation on various infrastructure and rural development projects which will benefit manufacturers of capital goods and engineering products used in infrastructure, construction and agriculture industry. However, decrease in customs duty on imports of machineries and equipments used in infrastructure, construction and power generation is expected to increase competition for domestic manufacturers from foreign imports
CEMENT:y NEGATIVE IMPACT:y
The increase in rates of duty applicable to Portland cement and cement clinker will result in increase in cement prices. The cess on imported coal is likely to increase input costs of cement companies using imported coal .
POWER:y Positive Impact:The two fold hike in the plan allocation for the power sector is likely to result in increased capacity addition in the power sector and address the power shortage faced in different parts of the country. Similarly, enhanced allocation for new and renewable energy sector, establishment of National Clean Energy Fund coupled with concessions in machineries required for the initial setting up of photovoltaic and solar thermal power generating units reiterates the government s effort to augment the alternative source of energy and achieve its target of establishing 20,000 MW of solar power by the year 2022 under the Jawaharlal Nehru National Solar Mission. None theless,the increase in the Minimum Alternative Tax (MAT) from 15% to 18% would affect the profitability of the power generation and distribution companies. The government has directed its efforts to ensure that bottlenecks for acquiring coal for thermal power generation is mitigated (as 75% of the power generation is currently coal based) by introducing a competitive bidding process for allocating coal blocks for captive mining. Further, setting up of a Coal Regulatory Authority would further aid in creating a transparent and competitive environment in the coal sector which would lead to economic pricing of coal and establish a benchmark
for standard of performance.
PHARMACEUTICALS AND HEALTHCARE SECTOR:y Marginally positive:y Increase in weighted deduction on R&D from 150% to
200% is expected to promote the R&D activities of pharmaceutical companies.The Union Budget has increased the excise duty on bulk drugs from 8% to 10%. This would make raw materials for the medicines slightly expensive. However, the impact may be limited as a number of companies have shifted production to excise-free zones
y The reduction in the customs duty on imports of
medical equipments and accessories and parts thereof, from 7.5% to 5% coupled with the exemptions from special additional duty to help in reduction of capital cost for the hospitals and healthcare centres
OIL AND GAS:NEUTRAL IMPACT:y In recognition of the fact that the average price of Indian basket of crude oil has come down from the increased levels experienced during 2008, the Government has only restored back the basic customs duty of 5% on crude petroleum and 7.5% on motor spirit (petrol) and HSD (diesel) and also hiked the excise duty. Nonetheless, it is going to put pressure on the profit margins of the oil and gas companies unless the Government allows the companies to hike the prices of petrol and diesel.On the other hand, continuance of extending the Government subsidy in cash instead of issuing bonds would help in faster realisation of subsidy for the companies
MICRO, SMALL & MEDIUM ENTERPRISES
POSITIVE IMPACT:y The extension of existing interest subvention of 2% to the small and medium enterprises is a positive development for the sector which is recovering from the aftermath of the global financial crisis. Further, the increase in allocation of around 33.78% (y-o-y) for the Micro, Small & Medium Enterprises sector also augurs well for the overall development of this sector. The increased allocation for Credit Support Programme to provide guarantee cover to banks for extending loans to small/tiny units without collateral is likely to help increase the flow of credit to this sector
Consumer Goods:NEUTRAL IMPACT:y The across the-board increase in central excise duty from 8% to 10% is likely to result in overall increase in the prices of consumer goods. The increase in the central excise duty is likely to result in increased prices of cigarettes. However, the rise in disposable income because of the relaxation in personal tax rates will boost demand for consumer goods. The exemption of mobile phone accessories from special additional duty has been extended till March 31, 2011 which is likely to result in stability of prices of the product. The reduction in central excise duty on replaceable kits for household type water filters other than those based on RO technology is likely to result in a fall in prices of the product
Real Estate and Construction:POSITIVE IMPACT:y The continuation of interest subvention scheme on housing loans coupled with reduction in personal income tax rates would drive the demand for residential housing, especially from the lower and middle income groups. Several projects of real estate companies were delayed and halted on account of the economic slowdown last year; extension in the period of completion of pending projects by one year for claiming tax deductions would provide substantial relief to such real estate players. The budget speech indicated continued thrust on growth of SEZs in the next fiscal; approval of more SEZ projects in the next fiscal would provide a great impetus to the growth of the real estate sector
y A 2 percentage points increase in the ad valorem
component of excise duty on large cars,multi-utility vehicles and sports-utility vehicles to 22%. y Imposition of central excise duty at 4% on electrically operated vehicles. y Exemption from basic customs duty and special additional duty for some critical parts/subassemblies of electric vehicles. These parts to also enjoy a concessional counter veiling duty of 4%.
y Textiles:y Negative:y The increase in standard rate of excise duty to 10% from 8%
would have an adverse impact on the textiles sector as it is expected to affect the margins of textile companies. The players capacity expansion and modernization plans are also expected to be affected by the higher textile machinery prices on account of increase in excise duties. The negative impact of excise duty increase would only be marginally mitigated by the positive announcements, such as the extension of interest subvention for export credit by one year. The proposed Skills Development Programmed for textiles and garments sector would provide longterm benefit to the textile industry, which has been facing shortage of skilled labour since the last few years. The installation of effluent treatment plant in Tirupur cluster would not only contribute towards greener environment, but could also provide a greater thrust to exports, by improving the global brand image of Tirupur products and by mitigating any environmental non-trade barriers levied in the international markets
GEMS & JEWELLERY:NEGATIVE IMPACT:y Budget announcements have not met the expectations of the Indian gems and jewellery sector. Increase in customs duty on gold, platinum and silver is expected to have an adverse effect on the cost of manufacturing jewellery. Further, the hike in excise duty as part of a partial roll back of stimulus measures is also expected to make gold and silver costly. However, the reduction on basic customs duty on gold ore will encourage domestic refining capacity for gold.
SWOT ANALYSIS:STRENGTH :y Integrated manufacturig y Cost competitveness like TATA NANO ,etc. y Cross-border merger&aquition. y Skilled labour y Major raw material within country. y Laregest english speaking country and young workforce. y Good r&d base and quality human resource. y Rapid growth in information technology.
y Infrastructure y Cost of power y Cost of finance
y Lack supply chain management
y Opportunity:y Prosumer (producer+consumer) y Indian companies need to focus on product
development. y Leverage automation and information technology to overcome the challenges. y Globlisation y Collebration y Emerging domestic and international market y Diversification of product
THREATS:y competition in domestic and international market y Chinese aggression over the market y Moist and terrorism y Regional politics y Pirated product
WHERE INDIA IS LACKING :y The infrastructure still poses huge constraints and is
an important reason why the economy is growing only at 7%to8%. y India power supply is equally bleak some 60%of rely on private power suppliers and nearly 17 significant outages p.month compared with china 5. y India has one of the best educated workforce in developing country it adds 9 million new workers each year but workers tend not to go into manufacturing ,prefering software and tech sector.
y Multiplicity of taxes y Politics of India,ex-TATA NANO plant in W.Bengal
,JHARKHND GOVT. y Administration of India for exJharkhand,Urisa,Chhattisgrah,W.Bengal all these states are rich raw material but plant not establish properly cause of Maoist and terror activity y Lack of entrepreneurships compared to china. y Literacy
ECONOMIC TIME NEWS
y Arvind brand is perusing license agreement for Energie that includes manufacturing deal. y The govt. ban FDI in cigrette mfg.sutting the doors permanently on foregin companies such as Japan tobacco,British American tobacco and the Altria group. y Ahok leylands new commercial vehicle plant at Pantnagar in Uttarakhand.Its one of the most integrated manufacturing facilities in the indian commercial vehicle industry. y Manufacturing which a/c for 80%of overall industrial output has grown at a double digit rate over the last six month.
y The manufacturing sector will be major contributer to new employement and is likely to generate 27.95 million jobs by 2015. y Peter Hane Weijaman MD of Tetra Pack of South Asia market said that I was a part of the team that started operation in india 12 years ago looking at ourselves today we can see the difference in efficiency-less waste and more speed. y Wabaco-Tvs India's director P .Kaniappan said that I have observed India's recent growth as a manufacturing force ,focus on lean manufacturing in India is a great thing to see. y Dpt. of industrial policy and promotion secretary Ajay Shankar told media ,India is emerging as a globally competitive manufacturing hub for small fuel efficient cars.
y Over all conclusion is that India manufacturing sector
developed very fast in current era .but not equal to china .so you can say that it s a good time for India because most of the developed country wants to establish own plant in India
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