Archive for the ‘Manufacturing’ Category

When you think about United Parcel Service (if you ever do), you like think about the big brown truck that brings boxes to your house. But UPS does much more than deliver e-commerce purchases to residential addresses. They also have a significant business handling supply chain logistics. That business is potentially threatened by the evolving technology of additive manufacturing. Who needs a logistic purveyor when parts and components can be reduced to a file, sent around the world, and then printed at its point of use?

That concern has led UPS to experiment with 3D printing, investing in a start up and setting up a facility at UPS’s hub in Louisville. They currently have 100 printers and are planing to to expand to 900 (UPS Tests a 3-D Printing Service, Wall Street Journal, Sep 18). Just what are they doing with these printers?

UPS expects more companies will migrate some production to 3-D printing from traditional manufacturing on an aggressive growth curve, according to Rimas Kapeskas, head of UPS’s strategic enterprise fund. And UPS is also talking with customers about taking on a bigger role as a light manufacturer using 3-D printers. …

Late last month, the operation received an order for 40 mounting brackets for paper towel dispensers from a division of Georgia-Pacific LLC that makes dispensers, Dixie cups and cutlery. CloudDDM printed the mounts and UPS shipped them to a Georgia-Pacific engineer by the next morning. The brackets were slated for a month-long “stress test,” said Michael Dunn, senior vice president of innovation development for Georgia-Pacific.

Whirlpool turned to the operation recently when its own 3-D printers were all occupied. The maker of Maytag and KitchenAid products uses the printing method for prototypes of items like trays for refrigerators and venting systems for dryers, as a way to test parts on smaller scale.

The article also reports that UPS has used the service itself to produce parts for its fleet of planes. (more…)

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Many, many years ago, I began collecting music. By the time I was in college, I had several crates of records that meant helping me move was a good way to hurt your back. I finally broke down and switched to CDs when the Replacement’s All Shook Down was released only as a CD. Of course, now CDs have given way to files and streaming while my old LPs gather dust in the basement. But vinyl records are making a comeback — they now account for 9% of sales for music sold in a physical form. Last year that amounted to 13 million records — the highest total in 25 years — which has led to some interesting production issues (Vinyl LP Frenzy Brings Record-Pressing Machines Back to Life, New York Times, Sep 14).

Independent Record Pressing is an attempt to solve one of the riddles of today’s music industry: how to capitalize on the popularity of vinyl records when the machines that make them are decades old, and often require delicate and expensive maintenance. The six presses at this new 20,000-square-foot plant, for example, date to the 1970s. …

But the few dozen plants around the world that press the records have strained to keep up with the exploding demand, resulting in long delays and other production problems, executives and industry observers say. It is now common for plants to take up to six months to turn around a vinyl order — an eternity in an age when listeners are used to getting music online instantly.

Here’s a video that goes with the article.


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The vicissitudes of American manufacturing has been a long running topic on this blog. But whether one focuses on firms that have always kept their production in North America or those that have reshored manufacturing, there is the question of whether China or other Asian countries are going down without a fight. A recent article in The Economist suggests that manufacturing in Asia in general and in China in particular is going to be around for a long, long while (A tightening grip, Mar 14).

First, one has to recognize that the growth in Asian manufacturing over the last 20-plus yeas has been spectacular. Check out this graphic.


As the article notes, these numbers get a little more extreme if one looks at “intermediate inputs,” doohickeys like displays and circuit boards that go into finished products that may be assembled elsewhere. (more…)

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Fast Company named American Giant one of its most innovative companies of 2015 (American Giant Guns For Gap By Doubling Down On The USA, March 2015). American Giant is purveyor of T-shirts, sweatshirts, and (most famously) hoodies. We have posted about them several times before. Part of American Giant’s pitch is that they make everything in, well, America. They cut and sew all of their items in facilities in California and North Carolina. This TechCrunch video offers a tour of their Brisbane, CA, facility.

Now one of the challenges of producing sweatshirts in the US instead of overseas is the increased labor cost. Check out this graphic from the New York Times (U.S. Textile Plants Return, With Floors Largely Empty of People, Sep 19, 2013)


Assembling garments in the US roughly triples the labor costs. These are partially offset by lower duties and logistic costs, but they remain the primary reason why a US-made costs about 20% more than an Asian one.

But what can be done to make an American sewer more productive to reduce the labor cost gap? (more…)

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Have you ever thought about how drugs get made? Not your Walter-White kind of drugs but proper ethical pharmaceuticals. As the Wall Street Journal tells it, major players in the industry like Novartis and Johnson & Johnson are taking new approach to producing drugs (Drug Making Breaks Away From Its Old Ways, Feb 8).

For decades, drug makers have used cutting-edge science to discover medicines but have manufactured them using techniques dating to the days of the steam engine. …

Under the new approach, raw materials are fed into a single, continuously running process. Many other industries adopted such a “continuous-manufacturing” approach years ago, because quality can be checked without interrupting production—with weeks shaved off production times and operating expenses cut by as much as 50%.

Until recently, pharmaceutical companies have been stuck making drugs the old-fashioned way, mixing ingredients in large vats and in separate steps, often at separate plants and with no way to check for quality until after each step is finished. Any desire to modernize was partly blunted, industry officials say, by the high margins netted on the industry’s string of billion-dollar-selling drugs.

To give you an idea of the scope of what is happening, the article reports that J&J is aiming to have 70% of its highest volume products produced under a continuous-manufacturing approach within eight years. (more…)

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Sustaining manufacturing in the US (or any high wage location) has been one of the recurring themes in this blog. Manufacturing has long meant well-paying jobs for those without advanced education. The loss of manufacturing jobs consequently causes much hand wringing as policy makers and workers about how a large number of people will achieve a modicum of middle-class financial security. Consequently, firms that are finding away to compete with US-based manufacturing are interesting.

That brings us to Zuzii, an LA-based firm producing made-to-order shoes that retail for $90. Here is a video from Marketplace about the company (A visit to LA-based shoe company Zuzii, Feb 16).

Here is the accompanying radio report that has some additional information.

So what is it about Zuzii that lets them succeed?  (more…)

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What can a major company learn from the sports world? I am not thinking here about inspirational speeches from a coach or anything like that. Rather, can people with a background in sports competition actually offer ways of improving business processes?

It turns out the answer to that question is yes as the Financial Times reports in discussing McClaren Applied Technologies relationship with GlaxoSmithKline (McLaren speeds up GSK with racetrack expertise, Dec 10). That’s McClaren as in Formula 1 racing and they have turned their expertise in organizing pit crews and monitoring racing cars into a side consulting business. In the case of GSK, they have produced some interesting results.

Perhaps the clearest dividend of the partnership so far has come not in drug development but in GSK’s consumer healthcare business. McLaren was asked to scrutinise a toothpaste manufacturing facility in Maidenhead and work out how to boost efficiency.

“We noticed that they were making lots of small batches of different products with a lot of down time in between,” says Mr McGrath. “They said: ‘If you can change four tyres on a racing car in two seconds why does it take us two hours to do a changeover?’”

Within a year, lost time had been cut by 60 per cent, using principles similar to those that govern the pit-stops for Mr Button’s racing car. “It’s about everyone knowing their job and doing it well,” says Mr McGrath. “Afterwards, we analyse every detail — what went well, what didn’t and how we can improve.”


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