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In a word, what is the essence of manufacturing

in a word, the essence of manufacturing is to allocate resources optimally to realize the continuous flow of customer value! After thinking systematically about the essence of enterprises, Drucker, a master of management, founded the system and method of modern enterprise management. And those well-known entrepreneurs, such as Kazuo Inamori, Zhang Ruimin and Ren Zhengfei, have brought doing business to the level of philosophical thinking

throughout the thousands of years of human development, from the primitive gathering tribes, to the agricultural revolution, to the modern industrial revolution, the change of human production and life style has been carried out around the effective utilization of resources. Gathering tribes to obtain food and other resources depends solely on luck. If you are lucky, you can have a full meal if you hunt prey or collect edible plants, otherwise you will starve

the ancients were very smart. They soon learned to domesticate animals and plants, started the agricultural revolution, and the population began to flourish. The most important resource became the land that could bring food. Due to the slow development of agricultural technology, in order to quickly seize resources, war became the best way. With the rapid development of modern science and technology, each of us can enjoy the convenience of transportation, communication and computing at a low cost. I believe that war is far away from modern civilization, because the best way to obtain resources is no longer war, but technology

symbols of modern civilization, such as tap water, urban sewers, highways, etc., have greatly changed our way of production and life. Imagine how much effort and time it will take if you carry water bucket by bucket every day, like using barreled water, including highways, which can reduce your travel time by at least half. I have to marvel at the wisdom of the ancient Romans, who saw through the essence of water supply 2000 years ago, and is still the most efficient way of urban water use

why is China's agriculture not competitive? China's wheat planting cost is twice as expensive as Canada, corn is 50% more expensive than the United States, and soybeans are 40% more expensive than the United States. If 600 million tons of grain are sold at competitive prices in the international market, Chinese farmers will lose 1.16 trillion yuan. No wonder the recent Sino US trade war and agricultural products. What is the reason for the high cost? The labor cost of corn, rice, wheat, soybean and cotton in China is 14.78 times, 4.11 times, 16.33 times, 8.5 times and 28.23 times that of the United States, respectively. The core is that the efficiency is too low

compared with 1000 years ago, China's agricultural production mode has not changed substantially. The reform and opening-up in the 1980s contracted to households, which released the enthusiasm of farmers and improved a certain efficiency, but the essence of production has not changed. It is still the traditional farming mode. Compared with the industrialized mode in the United States (mechanized production has been achieved in terms of farmland, land preparation, sowing, field management under the "promotion" of different light sources, harvesting, drying, etc.), The average level of grain labor productivity in China is only about 1% of that in the United States. Therefore, the only way out for our agriculture is industrialization, otherwise we can only rely on government subsidies for relief

so what is the essence of manufacturing

for example, for some highly standardized industries, such as mineral water, beer, food and beverage and other fast-moving consumer goods, as well as papermaking, ceramic tiles and other consumer goods, have formed a large-scale and automated production mode. The production line moves more than 1 meter per second, and the output per minute can be as high as thousands. The characteristic of this kind of products is that there is a large demand, and the automated high-speed production line has become the only choice for an efficient production mode. Its production is like a tap water pipeline. Materials are moved and processed quickly and continuously between different processes, which is also the most efficient production mode so far

in great contrast, there are some non-standard discrete industries, such as ships, aircraft, large equipment, including the construction industry. The characteristics of this kind of products are personalized customization according to customer needs. There are many kinds of specifications in July last year, and the batch is small. The products of each order are different. The production cycle is usually as long as several months or even more years. The workshop is full of WIP, and the idle time of equipment is more than processing time, The product is expensive and inefficient

the production mode of most other industries is between the two. There is no doubt that the efficient production mode of FMCG is the development direction of all manufacturing industries! The only problem is how to solve personalized customization? What if consumers are no longer satisfied with standardized products

at the beginning of last century, Henry Ford learned from the experience of slaughterhouse assembly line and developed the world's first automobile assembly line, which made Ford Model T drive into thousands of households and become the first in the world's top 500. However, after people's basic material needs were met, people wanted more abundant automotive products. At this time, Ford's Model T was abandoned and ushered in the rise of Toyota

Toyota's greatness lies in that it has created a new lean production method suitable for multiple varieties and small batches. In a word, it is continuous single piece flow production. Isn't this the way of tap water? For discrete industries, the production of most industries is still in the barreled water mode, and Toyota has improved it to tap water. No wonder it wants to sweep away the overlords of the European and American automobile industry

not only that, Toyota has made great efforts in research and development, designed continuous and parallel development processes, shortened the development cycle by half, built a shared parts platform, made it modular and standardized, realized the standardized large-scale automated production of FMCG at the part level, and realized the personalized production of consumers at the assembly level. Obviously, Toyota has improved the use of resources

similarly, in other industries, Uber and didi have seen the essence of the taxi industry, realized the connection of human and vehicle resources through interconnection, improved the utilization efficiency of travel human and vehicle resources, and redefined the industry. Musk saw the essence of rocket launch and realized the recycling of resources through technological innovation, making it possible for human beings to explore space at a low cost

in a word, the essence of manufacturing is to allocate resources optimally to realize the continuous flow of customer value! Whether Henry Ford in those days or Toyota and Zara today, whether they are intentional or unintentional, they are all practicing this principle and have achieved the position of industry leader. Neither 3D printing nor intelligent manufacturing will change the essence of manufacturing, but these additives will do harm to human body. These technical conditions will accelerate the evolution of manufacturing industry! 3D printing may soon replace injection molding, casting and other industries, because it makes it easier to realize the personalized value of customers, and continuous production anytime, anywhere, at a lower cost

intelligent manufacturing connects all things. People, equipment, products and materials, people and equipment, equipment and products can communicate independently, automatically configure production resources, realize the continuous flow of value stream, and complete each link of production until it is delivered to customers. It is as convenient, cheap and personalized as tap water

before the real arrival of intelligent manufacturing, there is still great room for improvement for most industries, especially non-standard discrete industries, because if they produce cars in their existing way, the cost is estimated to be several times or even more than ten times the current car price. Starting from the essence of manufacturing, transform your industry like Henry Ford and Toyota transform the automobile industry, and you are the winner

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