Manufacturing Hub Research Articles

Patterns of Industrialisation and the State of Industrial Labour in Post-WTO-Accession Vietnam

Abstract Since the mid-2000s Vietnam has become an important manufacturing hub in garment and, increasingly, in electronics. However, the expansion of an FDI-dominated, export-oriented manufacturing did not contribute to a genuine national industrialisation process and the weight of manufacturing on GDP has actually declined. Low industrial wages (associated with poor working conditions) have emerged as a structural (rather than transitory) competitive factor for the country’s participation in global production networks.

Evaluating Lean Performance of Indian Small and Medium Sized Enterprises in Automotive Sector

Abstract Under new “make in India policy” India has started to become global manufacturing hub and many Indian organizations are looking to implement lean philosophy to gain sustainable strategic benefits over others. Therefore, a need was felt to develop comprehensive lean evaluation system for Indian automotive small & medium sized enterprises in order to measure its present lean status and potential improvements to gain significant strategic advantages. Research started with the identification of various lean factors and associated sub factors through literature survey. Fuzzy analytic hierarchy process was applied to assign weight to various extracted lean factors and sub factors because of its evident merits. Fuzzy comprehensive analysis was applied to assess present status of Indian automotive small and medium sized enterprises, where lean does not practice. Lean performance of Indian automotive small & medium sized enterprises was ascertained as poor. The proposed model could be useful to guiding the Indian automotive small and medium sized enterprises in judicial selection of lean practices to gain significant sustainable strategic advantage over its competitors. Novelty of this research is to emerge from the development of comprehensive lean measurement model for Indian small and medium sized enterprises in automotive sector.

The impact of 3D Printing Technology on the supply chain: Manufacturing and legal perspectives

3D Printing (3DP) technology has been receiving increased public attention. Many companies are seeking ways to develop new means of creating and disseminating 3DP content, in order to capture new business opportunities. However, to date the true business opportunities of 3DP have not been completely uncovered. This research explores the challenges posed in the development and deployment of 3DP and focuses on China, which is still the main manufacturing hub of the world. The main purpose of this research is to uncover the obstacles that resist mass-scale applications of 3DP. By means of empirical semi-structured interviews with 3DP companies in China, it is found that many companies can see the benefits of 3DP, but its potential has not been delivered as promised. One reason is due to the fact that 3DP has not been integrated well in the supply chain. The other reason concerns potential intellectual property issues that cannot effectively prevent counterfeiting. To tackle the above issues, several areas have been identified that could be improved further. In particular, the legal complications concerning 3D-printed content could be overcome by a licensing platform.

Green manufacturing drivers and their relationships for small and medium(SME) and large industries

Abstract Small and medium (SME) and large manufacturing industries are two vital contributors of industrial growth and development of any economy. The importance of both sectors increases many times in context to a developing country like India, which is sharply emerging as a manufacturing hub for the world. Both sectors depend and influence each other. Burgeoning pressures for green manufacturing (GM) from national and international agencies create an urgency for both sectors to switch over, to GM from conventional manufacturing. GM minimizes wastes and pollution and also leads to financial gains and better image, if implemented correctly. Therefore, it is crucial to understand GM drivers and underlying relationships between them. Accordingly, the purpose of this research is to answer two questions (1) Is GM and its drivers are same or different for SME and large industries? (2) How these drivers influence green manufacturing? The study also develops and compares GM models for both based on the identified GM drivers using interpretive structural modelling (ISM) approach; covering compliance to green standards/legislations, financial incentives, management commitment and support, marketing and other associated green drivers. The research enhances the understanding about the mutual influence of green drivers. It also guides about the identification of right set of drivers by utilizing the driving and dependency power to influence GM, for both. Thus, the study addresses the needs of both sectors and facilitates researchers and practitioners to effectively utilize appropriate set of green drivers in leveraging GM in a strategic manner.

Green initiatives for logistics service providers: An investigation of antecedent factors and the contributions to corporate goals

Abstract Concern for sustainability has become more intense among business practitioners due to increasing societal demand for environmental care. Product sellers nowadays cannot sustain themselves in the competitive market only from greening the manufacturing processes, but all parties across the supply chain are also driven to be ‘green’, even logistics service providers (LSPs). This study aims to provide insights into the initiation of green policies within logistics companies by investigating the significant factors that influence the adoption of green practices, along with the ranking orders of several green activities in terms of their contributions to two corporate goals: cost reduction and environmental protection. The results were based upon a questionnaire-based survey on 311 LSPs in Thailand. Interviews with industry experts were also employed to supplement the questionnaire data. Thailand, as one of Asia's manufacturing hubs, represents developing countries distributing products worldwide, and its logistics industry is growing rapidly. The results indicate that ‘eco-driving’ and ‘vehicle routing’ activities are more acknowledged and commonly conducted across the industry. The contributions of ‘alternative energy’ and ‘modal shift’ are also highly recognised by the practitioners, but a number of concerns still obstruct the implementation of these approaches. In terms of the antecedent factors, ‘company size’, ‘financial status’, ‘service areas’, ‘pressure from customers’, and ‘organisational support’ appear to be statistically significant for the level of green logistics implementation. The findings make a contribution to strategic decision making for LSPs who need to improve their environmental performance by initiating green projects.

Ease of Doing Business in India: A Vision of Make in India

India has always been viewed as an economic power house and now it is among the top five fastest improving economies in the world which clearly is the result of various reforms launched under the Make in India campaign. There has been a paradigm shift in the approach towards governance as the government has unveiled multitude of reforms aimed towards improving the business climate in India. In the recent Ease of Doing business ranking released by the Worldank India is at 100th spot which indicates that all the efforts made to make India a manufacturing hub is bearing fruits still there are few challenges which needs to be dealt in order to help India to continue its glorious run. The present paper tries to analyze the indicators of ease of doing business ranking and the major improvements done to make them of international level, it also tries to thrive on the key issues which dampens the trust of investors, various suggestions are offered which when implemented will be helpful in rebuilding the confidence of investors to invest in India and make it a preferred business destination. Overall, the study indicates that Make in India campaign will be able to achieve its objective of transforming India into a manufacturing hub.

IMPACT OF 3D PRINTING TECHNOLOGY ON SUPPLY CHAIN IN CHINA

The 3D Printing (3DP) industry has been receiving increased public attention. Many companies are seeking ways to develop new means of creating and disseminating 3DP content, in order to capture new business opportunities. To date, however, the true business opportunities of 3DP have not been completely uncovered. This research explores the challenges posed in the development and deployment of 3DP, and focuses on China which is still the main manufacturing hub in the world. By means of empirical semi-structured interviews with 3DP companies in China, the current application of 3DP technology in the industry and the associated challenges are investigated. Although many companies can see the benefits of 3DP, its potential has not been delivered as promised. Several areas have been identified that could be improved further. The interviews with 3DP companies are used to learn about the gap between the 3DP technology in depth, and 3DP industrial applications which can further improve the growth of the 3DP industry.

Design of a manufacturing hub with modular automation units

In nowadays transportation, manufacturing processes are completed during the transportation. Complementally manufacturing processes may be done inside of a manufacturing hub. This strategy may decrease total transportation and manufacturing costs. By increasing the number of hubs, total establishment cost will be growth too. It is assumed that each manufacturing hub contains some automation modules and the manufacturing hub capacity depends on its allocated modules. During different periods, demands may be changed so located hubs should increase their capacities by adding new modules while some modules of other hubs may be non-activated in some periods. In this paper movable automation modules are proposed to be transferred among hubs, so a mathematical model is presented to determine location of manufacturing hubs and their automation modules and finally optimal modules transferring scheme during different periods. The model performance is considered by some numerical examples.

Guest Editorial Special Section on the First Electron Devices Technology and Manufacturing (EDTM) Conference 2017

System performance continues to grow, even though device scaling is saturated. Based on strong manufacturing technologies, Asia has strong potential to take an initiative even for system integration. Deep-dive discussions among technical communities on materials, process/tool, and devices are aimed to accelerate manufacturing innovations. As semiconductor technology scaling challenges continue to grow, so the industries collaborative efforts to overcome them must increase. On these circumstances, the first device conference in Asia - Electron Devices Technology and Manufacturing (EDTM) Conference at Toyama International Conference Center, Toyama, Japan from February 28th to March 2nd, 2017, fully sponsored by the IEEE Electron Devices Society (EDS) ( http://ewh.ieee.org/conf/edtm/2017/ ). The EDTM is intended to serve as a forum for the electron devices community to collaborate on topics ranging from devices, materials, and process/tool, to create new and innovative technologies. The first EDTM 2017 provided the following new formats. Various device technology areas including packaging, process/tool, material, modeling/reliability and emerging technologies were intentionally discussed. The technical program had a plenary session as well as 17-technical and poster sessions. In total 117 papers were presented at the conference. The novel findings were presented by researchers across the globe with about 290 attendees. As the first EDS conference of this kind in Asia covered all the advanced technology areas, the first EDTM 2017 made an impact and initiated a forum for discussion by technology experts. This becomes more significant, as Asia is becoming the manufacturing hub and industry-academia collaboration in the region remarkably becomes stronger.

Upgrading of Developing Countries Industrial Clusters Firms: Conceptual-Theoretical Framework

Industrial clusters in developing countries exhibit the properties of labour intensive, low-tech and low-cost manufacturing hubs in the global production networks. This research argues that institutional architecture of global production networks provides an opportunity to these industrial clusters of developing countries to create value through 'knowledge links' between the firms and non-firms actors of global production networks and innovation systems (ISs) in which the clustered firms are embedded. The research develops a hypothesis for a potential upgrading of industrial cluster firms through the support of knowledge institutes embedded in the network structures of regional innovation systems, national innovation systems and global production networks. The conceptual-theoretical framework is designed by connecting the cluster theory, innovation system framework and global production networks theory for an assessment of the upgrading of developing countries industrial clusters within global production networks. From an institutional perspective, this research classifies the knowledge links as 'technological-knowledge' and 'organisational-knowledge' links between the firm and non-firms actors of global production networks and innovation systems. A further future research can empirically test this designed framework through data of the industrial clusters firms, participating in the global production networks.

(Analysis of the Manufacturing Sector in India and Its Implications for KoreaaIndia Cooperation)

Korean Abstract: 본 연구는 인도 제조업의 세부 업종별 구조와 특성을 연구했다. 특히 본 보고서는 기업 수준의 자료를 이용하여 인도 제조업을 24개 소분류 및 137개 세부 분류로 구분하여 분석을 수행했다. 먼저 본고는 세부 업종별 분석 전 인도 제조업의 현황, 제도, 정책을 조사했다. 특히 주요 신흥국과 인도와의 비교를 통해글로벌 경제에서 현재 인도 제조업의 상황을 파악하는 데 주력했으며, 제조업 관련 정책을 세부산업별, 지역별로 파악했다. 또한 선행연구를 면밀히 검토하여 인도 제조업의 실태를 조사했다. 세부 업종별 분석에서는 시장지배력, 성과, 연구개발, 글로벌화, 생산성으로 구분하고 산업집중도, 허핀달-허쉬만지수, 러너지수, 매출액, 총자산, 영업이익률, 연구개발비, 수출, 수입, 노동생산성을 산출했다. 다음으로 인도 제조업의 총요소 생산성을 확률적 프런티어 모형을 이용한 회귀분석을 통해 추정하고 이에 대한 결정요인을 세부 업종과 기업특성별로 비교분석했다. 또한 인도 제조기업을 인도 국내기업, 해외기업(한국기업 제 외), 한국기업으로 나누어 이들의 특성을 비교분석했으며, 본 연구의 결과를 바탕으로 한·인도 제조업 유망업종을 선정했으며, 우리기업의 인도 제조업 진출관련 우리정부에 대한 정책적 시사점을 제시했다. English Abstract: Make in the well-known national manufacturing policy of India, has raised attention around the world as it presents its vision of developing India into a global manufacturing hub. First and foremost, it will be significant for Korea to establish additional strategies toward the Indian market in order to diversify its exports. Furthermore, India is growing in its importance for Korea when considering its increasing need to re-adjust from dependence on the G2 economies, amidst rapidly changing circumstances surrounding the Korean Peninsula. Therefore, this research explores the structure and characteristics of each sector of the Indian manufacturing industry. In particular, this study analyzes the manufacturing industry in India, categorized into 24 sections and 137 divisions, by using firm-level data. First, prior to the analysis, this research investigated the current status, system, and policy of the overall manufacturing industry in India. Particularly, we focused on pinpointing the status of India’s manufacturing industry within the global economy through comparison with other major emerging economies. Our study also examines related policies at the sectoral- and state-level. In addition, this research conducted a thorough review of the literature available on the Indian manufacturing industry. For the sectoral analysis, this research examined the areas of market power, performance, research & development (R&D), globalization, and productivity and estimated industrial concentration, HHI (Herfindahl-Hirschman Index), Lerner index, sales, total assets, operating margin, R&D expenses, exports, imports, and labor productivity. Next, our research performed a regression analysis using a probabilistic frontier model to estimate the total factor productivity (TFP) of Indian manufacturing industries, with the determinants analyzed through comparative analysis of industrial sectors and firm characteristics. Moreover, this research conducted a comparative analysis on the characteristics of Indian domestic companies, foreign companies (excluding Korean companies), and Korean companies in the Indian manufacturing sector. Based on the research results, our study first and foremost strove to provide qualified guidelines for Korean companies to select potential industries for entry into the Indian market. Finally, this paper aims to provide valuable insights in different manufacturing sectors to determine whether the Indian economy is better suited as a production center, or as an export market.

The diffusion and embeddedness of innovative activities in China

China’s unprecedented growth largely results from industrial development having critically sustained the country’s economic transition after 1978. As common to the developmental context, catching-up capabilities have been both absorbed from external sources and generated by indigenous activities. These also represent exogenous and endogenous seeds of innovative activities respectively. The relative emphasis on the two has evolved over progressive industrialization–transition stages in China, leading the country to grow a global manufacturing hub. The volume and quality of innovative activities has however resulted unevenly distributed at a local level. Literature considers embeddedness, in particular, as one of the key features in the development of the local innovative environment. This paper investigates if the mixes of seeds may have delayed the innovative activities to gain embeddedness along their diffusion in the Chinese prefectural cities. In a great deal of stylization and methodological design, innovative activities are here approximated by the applications to the European Patent Office from China collected in the OECD REGPAT database as originally rearranged by the applicant’s and inventor’s prefectural locations. These locations are taken to build three indicators to be combined in a clustering procedure set to measure separate levels of embeddedness. The results suggest a growing diffusion and embeddedness of the innovative activities in the Chinese prefectural cities since the early-2000s, despite they remain highly concentrated in some regions, that is, mainly those having historically hosted the Special Economic Zones where more exogenous seeds appear to have actually delayed the innovative activities to gain embeddedness.

Inter-provincial trade driving energy consumption in China

China’s energy saving at the provincial level has important policy implications for the mitigation of the greenhouse gas emissions in the world. Therefore, this study uncovers the driving forces of the changes of the provincial energy consumption by distinguishing the domestic and interregional trade based on the MRIO-based SDA technique for the period of 1997–2011. We find that (1) final demand per capita was the top determinant of the increments in provincial energy consumption, while both energy intensity and production structure offset the provincial energy changes; (2) most of 30 provinces were outsourcers due to the close interprovincial linkages; (3) product flows from utility and raw materials of upstream resource-dependent provinces were supplied to the coastal provinces, which are the manufacturing hubs. This implies policy making for the reduction of provincial energy in China should simultaneously implement measures on production-side and consumption-side. This is even more important when considering the embodied energy due to the interprovincial linkages within China.

Making ‘Make in India’ a green development project: A social cost-benefit analysis

‘Make in India’ is an initiative program of the Government of India to encouragemultinational and domestic companies to manufacture their products in India. It is aninternational marketing strategy, conceptualised by the Prime Minister of India, Sh. NarendraModi, to transform India into a global manufacturing hub. In this study, an effort has been madeto analyse this new investment project of Indian government. The main focus of the study is ondoing a social cost- benefit analysis of the ‘Make in India’ project. The benefits that Indianeconomy and Indian people will get, and also the costs in terms of natural environment thatwould be affected by this project, are discussed under this study. The inflow of foreigninvestments in India in the form of setting up of new manufacturing units will bring countlessbenefits for its people and economy as a whole, but at the same time they will certainly bringwith them several hidden costs that risks Indian natural environment resulting in deterioratedpeople’s health and ecological scarcities. India cannot afford such hidden costs as it alreadyrank slow (112th) on Social Progress Index as far as the Environmental Quality is concerned(Source: http://www.socialprogressimperative.org/). This social cost- benefit analysisconcentrates on identifying such hidden social and environmental costs of ‘Make in India’project and finally providing some suggestions/recommendations so that ‘Make in India’ canbecome a remarkable step in promoting a transition to a green economy.

Interstitial Occupancies: From Industrialization to Informal Urbanism in Monterrey, Mexico

As the third largest city in Mexico, Monterrey is a manufacturing hub that offers a provocative counterpoint to industrial cities in developed countries. Suburban sprawl, political instability, violence, social injustice, and de-industrialization illustrate increasing fragmentation—or terrain vague—where the conventional urban fabric unravels and less formal occupancies unfold. Defined by Catalan architect and theorist Ignasi Solà-Morales, terrain vague is expressed through obsolescence and various organic practices that react to depopulation and under-productivity. Investigating production and city-building, this article positions post-industrial Monterrey as a place of difference reflecting hybridized Latin American and American normative conditions. It surveys processes of industrialization and changing technology to situate iconic European and American architectural and urban precedents as forerunners of similar conditions in Monterrey.

Empowering the empowered? Slum tourism and the depoliticization of poverty

Mumbai’s Dharavi slum occupies a plot half the size of Central Park. It is home to one million people, with almost half of residents living in spaces under 10m2, making it over six times as dense as daytime Manhattan. Using ethnographic fieldwork and online analysis, this article examines slum tourism and the perceptions and experiences of western visitors. Local tour operators emphasize the productivity of the slum, with its annual turnover of $665 million generated from its hutment industries. Its poor sanitation, lack of clean water, squalid conditions and overcrowding are ignored and replaced by a vision of resourcefulness, hard work and diligence. This presentation of the slum as a hive of industry is so successful that visitors overlook, or even deny, its obvious poverty. Dharavi is instead perceived as a manufacturing hub and retail experience; and in some cases even romanticized as a model of contentment and neighbourliness, with western visitors transformed by ‘life-changing’, ‘eye-opening’ and ‘mind-blowing’ experiences. This article concludes that the potential of slum tours as a form of international development is limited, as they enable wealthy middle-class westerners to feel ‘inspired’, ‘uplifted’ and ‘enriched’, but with little understanding of the need for change.

Make in India and Foreign Direct Investment (FDI) - A Realism Towards Indiaas Manufacturing Hub

Make in India is an Expansion and growth strategy, launched by Govt. of India, under the Leadership of Prime minister, Sri Narendra Modi on September 25, 2014, to foster Economic Development and strengthen India’s manufacturing sector. The main Objective of make in India program is to promote Manufacturing sector and protect Intellectual property, by inviting the investors across the Globe in invest in India and use India most skilled manpower for Growth and development of the country. The campaign aimed at creating jobs to the millions of people in the country and it also attracts Foreign Direct Investment to the country (FDI).

Involvement of Local Products of Technological Intensity in External Fragmentation of Production: Case of Republic of Moldova

The theoretical backgrounds of integration of country in Global Value Chains of technological intensity are resumed in the work paint main attention at the European countries and OECD experimental studies. SWOT Analysis for engagement of Republic of Moldova in technology intensity global value chains is presented in research paper. The novelty of the research is that for the first time the measure of engagement of local products of technological intensity of RM in fragmentation of trade are studied, using the wide range of WEB simulation tools of International institutes. The work provides the status quo of technological product specialization of trade fragmentation of country, as well as its market concentration. The research shows that backward participation is predominant type of engagement of Republic of Moldova in network activity. Goods from Moldova are insufficiently penetrated in income value chains and mostly presented in low income ones of European countries. Privilege of geographical position near the Europe the one of the main manufacturing hubs around of which is concentrated GVC is weakly used by Moldova. The results of study can be applicable for elaboration of set the appropriate policies in the process of improving the governance of the research and innovation systems as well as implementation of FTA with EU.

Energy and Industrial Growth in India: The Next Emissions Superpower?

India is often referred to as the next development superpower and is widely seen as a potential destination for large scale manufacturing hubs. In this work we draw comparisons between India, Indonesia and China and find that all countries have a carbon intensive energy sector. However, there is a staggering difference between industrial energy intensity between them where India and Indonesia require double the amount of energy to produce the same output as China. We look into the decomposed industrial sectors and find that iron and steel and non-metallic minerals present the highest energy intensity in India. We argue that a production transition from China to India and Indonesia would result in a dangerous global emissions growth which has to be countered with rapid adoption of innovative energy technologies and policies.

Make in India-Great Indian Dream

India is its youth. If the youth are awesome, nothing can stop the nation from being awesome. Everyone has a right to prosper and succeed through hard work, innovation and excellence. Make India a Manufacturing Hub, Generating Employment, Eliminating the unnecessary laws and regulations, Time bound project clearances through a single online portal. India’s space program stands out as one of the most cost‐effective in the world. The Indian Government has brought about various changes in its standing policies to encourage the MAKE IN INDIA program. These changes are in form of New Initiatives, increased FDI, and improved IPR. Development of industrial cluster and new smart cities will foster India’s manufacturing infrastructure and innovation capacity. Make in India is not a brand. Nor is it simply a slogan on a smart lion! It is a new national movement. And, it covers the whole spectrum of our government, society and business. The Prowling Lion in the Logo for Making in India stands for strength, courage, tenanacity and wisdom, expects your foot prints to future generation. The Asoka Wheel in the Make in India logo denotes the peaceful progress and dynamism reminds you that next Gen Kids will place your contribution on top in annals of Indian History. Manufacturing sector is the backbone of any economy as it fuels growth, productivity, employment, and strengthens other sectors of the economy. Make in India is aimed at making India a manufacturing hub and economic transformation while eliminating the unnecessary laws and regulations, making bureaucratic processes easier, make government more transparent, responsive and accountable and to take manufacturing growth to 10% on a sustainable basis. Physically linking every corner of the country to domestic and international markets through roads, railways, ports and airports. Digitization of all the government departments to improve the ease of doing business.Government of India is building a pentagon of corridors across the country to boost manufacturing and to project India as a Global Manufacturing destination of the world.