Industrial System- How we make things

Industrial System Questions Round 1

1. What does production mean?

Production is the process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output). It is the act of creating an output, a good or service which has value and contributes to the utility of individuals.

2. What is the difference between production & manufacturing?

Manufacturing is the process where machines produce goods from raw materials. Production is the process of converting resources into finished products. Manufacturing includes the production of goods which can be immediately sold off and are suitable for use.

3. What is the size of the global industrial system?

The global market for General Manufacturing is estimated to be US$649.8 Billion in the year 2020, and is projected to reach a revised size of US$732.2 Billion by 2027, growing at a CAGR of 1.7% over the period 2020-2027.

4. What types of waste are produced by the global industrial systems?

Chemical waste, solid waste, liquid waste, toxic/hazardous waste

5. Which industries cause the biggest CO2 emissions?

Electricity and Heat (between 11 Million and 14.5+ Million within 2001-2016)

6. How many physical products are manufactured per year?

Inconclusive

7. Which raw materials are used most?

Sand: Every year around 40-50 billion tonnes of sand and gravel is extracted, which is roughly half of the total weight of all materials extracted totally. In comparison, around 4 billion tonnes of oil and 2 billion tonnes of wood are being extracted yearly.

8. How much energy is used globally?

World primary energy consumption fell to 556.63 exajoules in 2020. The coronavirus pandemic and its impact on transportation fuel demand and overall economic performance resulted in primary energy consumption declining to 2016 levels.

9. How much capital is used for manufacturing?

Capital investments in manufacturing activities worldwide, 2016-2018. An analysis by Trendeo.

Only data from 2016 – 2018 but might be a good indicator. The data in here is quite interesting – related to investment projects, foreign direct investment etc.

10. How many Co2 emissions are used globally?

2020 34.81 billion metric tons

Co2 emission to produce

TV 638 kg/unit

Sofa 378 kg/unit

Bicycle 109 kg/unit

Mobile 50 kg/unit

Beef fillet 50 kg/unit

11. Which countries produce most physical products?

China – 28.7% Global Manufacturing Output

United States – 16.8% Global Manufacturing Output

Japan – 7.5% Global Manufacturing Output

Germany – 5.3% Global Manufacturing Output

India – 3.1% Global Manufacturing Output

South Korea – 3% Global Manufacturing Output

Italy – 2.1% Global Manufacturing Output

France – 1.9% Global Manufacturing Output

United Kingdom – 1.8% Global Manufacturing Output

Indonesia – 1.6% Global Manufacturing Output

https://globalupside.com/top-10-manufacturing-countries-in-the-world/

12. Which 3 companies produce most physical products?

Consumer goods: Nestle (92billion), PepsiCo, Protect & Gamble

https://consumergoods.com/top-100-consumer-goods-companies-2021?utm_source=2019list&utm_medium=website&utm_campaign=Top+100+2021

Building materials: Saint Gobain (50billion), LafargeHolcim, CEMEX

https://blog.bizvibe.com/blog/top-10-largest-building-materials-companies

Cars (Toyota 275milion), trains (CRRC Corporation 32billion), ships (China Shipbuilding Industry Corporation 42billion)

Electronics: Apple (365billion)

Based on annual revenue

Biggest Companies based on market capitalization (billion dollars)?

Inserting image...

13. How much is exported/ imported in physical products?

https://unctad.org/system/files/official-document/ditctab2020d4_en.pdf

14. What is the most produced/ manufactured product in the world?

Industries with the biggest market share all over the world:

Global Fastest Growing Industries by Revenue Growth (%) in 2021

Global Iron Ore Mining. 43.3% Global Airport Operation. 40.1% Global Travel Agency Services. 37.4% Global Airlines. 33.6% Global Heavy-Duty Truck Manufacturing. 29.0% Global Deep-Sea, Coastal & Inland Water Transportation. 23.6% Global Tourism. .21.9% Global Coal Mining. 21.6% Global Plastic Product & Packaging Manufacturing 17.4% Global Commercial Aircraft Manufacturing 17%

15. What are different types of production?

Job production, where items are made individually and each item is finished before the next one is started. Designer dresses are made using the job production method. Batch production, where groups of items are made together. Each batch is finished before starting the next block of goods. For example, a baker first produces a batch of 50 white loaves. Only after they are completed will they start baking 50 loaves of brown bread. Flow production, where identical, standardised items are produced on an assembly line. Most cars are mass-produced in large factories using conveyor belts and expensive machinery such as robot arms. Workers have specialised jobs, for instance, fitting wheels. Mass production Continuous production

https://www.bbc.co.uk/bitesize/guides/z3fvcdm/revision/1

Industrial System Questions Round 2

16. What industries consume the most energy globally?

Chemical

Metal

Cement

Paper & Pulp

https://goenergylink.com/blog/top-industries-that-consume-the-most-energy/

17. What are the largest landfills in the world today, and where are they?

In acres:

Las Vegas, US 2200

Mexico City, Mexico 927

Shanghai, China 830

Los Angeles, US 680

Rome, Italy 630

Incheon, South Korea 570

New Delhi, India 500

Mumbai, India 326

Hong Kong 272

Guangzhou, China 227

https://www.statista.com/statistics/530481/largest-dump-sites-worldwide/

18. What harm do landfills cause to the environment/ neighboring natural resources?

The migration of gas and leachate from the landfill body into the surrounding environment present a serious environmental concern, which include groundwater pollution, air pollution with impact on climate through, methane emissions and potential health hazards.

Landfill present long-term threats to ground water and surface water that are hydrologically connected by creating a toxic soup of industrial and home cleaning chemicals.

Almost two third of landfill waste is biodegradable this waste rots and decomposes and produces harmful gases (co2 and methane) which are both green house gases and contribute to global warming. Landfill also pollute the local environment including the water and the soil.

Landfills are some way that humans modify how soil form, by changing the soil forming factors of the climate, exposure and the soil organisms,

Landfill can produce objectionable odours and landfill gas can move through soil and collect in nearby buildings. The gases produced in landfill is ammonia, sulphide, methane and carbon dioxide are of most concern.

Ammonia and hydrogen sulphide are responsible for most of the orders at landfill.

Unhealthy and illegal whats so bad about burning garbage, because smoke and ash pollute the air, water and food supply.

Health is at risk for those who live within five kilometre (5km) of landfill site. Hydrogen sulphide (used as surrogate for all pollutants co-emitted from the landfills) and death caused by lung cancer, as well as death and hospitalisation for

respiratory disease. When the landfill has reached its capacity, the waste is covered with clay and another plastic shield. Above that, several feet of dirt fill is topped with soil and plant

https://www.ijert.org/landfill-emissions-and-their-impact-on-the-environment

19. When were landfills first put into use, and what methods of industrial waste removal were utilized prior?

Landfills were first introduced early in the 20th century, but gained wide use in the 1960s and 1970s, to eliminate open dumps and other "unsanitary" waste disposal practices.

https://en.wikipedia.org/wiki/Landfill

The first known wastewater management system is located in present day Syria (El Kowm). Located in the Fertile Crescent, the Mesopotamian "oasis" shows evidence of wastewater management beginning around 6500 BCE.

The first occurrence of organized solid waste management system appeared in London in the late 18th century.[13] A waste collection and resource recovery system were established around the 'dust-yards'.

https://en.wikipedia.org/wiki/History_of_waste_management

20. What is the manufacturing Industry growth rate (how much bigger does the manufacturing industry grow annually)?

By the second quarter of 2021, global manufacturing production registered an annual output growth of 18.2 per cent. Furthermore, nearly all economies with available information have achieved two-digit annual growth rates owing to the low base of comparison a year ago as well as the gradual economic re-opening.

https://stat.unido.org/content/publications/world-manufacturing-production

21. Examples of non-biodegradable materials?

Glass

Plastic

Metals

Hazardous substances

Pesticides

Fibers

Glass

E-waste

Artificial rubber

Artificial polymers

22. Which fabrics are the least bio-degradable?

Polyester

Acrylic

Cotton

Rayon

Nylon

https://www.eco-stylist.com/a-guide-to-the-most-and-least-sustainable-fabrics/

23. What fabrics are most biodegradable?

Organic or Recycled Cotton

Organic Hemp

Organic Linen

Tencel

Recycled Polyester

Econyl

https://www.eco-stylist.com/a-guide-to-the-most-and-least-sustainable-fabrics/

24. What materials are biodegradable?

Paper

Human waste.

Manure.

Sewage sludge.

Hospital waste.

Slaughterhouse waste

Dead animals and plants.

Food waste

https://www.geeksforgeeks.org/biodegradable-and-non-biodegradable-materials/

25. What are the main resources utilized in all manufacturing industries?

There are four categories of resources, or factors of production:

Natural resources (land)

Labor (human capital)

Capital (machinery, factories, equipment)

Entrepreneurship

https://courses.lumenlearning.com/wmopen-introbusiness/chapter/factors-of-production-2/

26. Which industries employ the most people?

Global Consumer Electronics Manufacturing 17,430,942

Global Commercial Real Estate 17,164,710

Global Fast-Food Restaurants 13,458,146

Global HR & Recruitment Services 11,988,376

Global Hotels & Resorts 9,690,013

Global Apparel Manufacturing 9,675,672

Global Coal Mining 8,918,489

Global Tourism 8,684,644

Global Commercial Banks 8,076,796

Global Auto Parts & Accessories Manufacturing 8,060,047

https://www.ibisworld.com/global/industry-trends/biggest-industries-by-employment/

Industrial System Questions Round 3

27. Top consumption societies?

In millions of US dollars, Household Final Consumption Expenditure, and year measured:

US 16,902,980 2018

European Union 8,300,055 2019

China 5,352,545 2018

Japan 2,756,919 2018

https://en.wikipedia.org/wiki/List_of_largest_consumer_markets

28. Predictions for consumption trends in 2030?

Under current projections, Asia will represent half of the world’s consumer spending by 2032.

https://www.brookings.edu/blog/future-development/2021/08/31/which-will-be-the-top-30-consumer-markets-of-this-decade-5-asian-markets-below-the-radar/

29. Countries with the highest manufacturing output?

By share of global manufacturing:

China 28.7%

US 16.8%

Japan 7.5%

https://globalupside.com/top-10-manufacturing-countries-in-the-world/

Country

Manufacturing Output (USD in billions)

Percent of National Output

Percent of Global Manufacturing

China

$2,010

27%

20%

United States

1,867

12

18

Japan

1,063

19

10

https://www.brookings.edu/research/global-manufacturing-scorecard-how-the-us-compares-to-18-other-nations/#:~:text=China%20leads%20the%20world%20in,South%20Korea%20(%24372%20billion).

30. Highest manufacturing output industries globally?

In terms of revenue, the biggest manufacturing companies are Apple, Toyota and Volkswagen.

In terms of countries:

https://blog.bizvibe.com/blog/largest-manufacturing-companies

31. What is manufactured in US, China, and Japan?

US

Circ 2017:

Food, beverage and feed: $133 billion.

Soybeans were the number one product in this category, with sales of $22 billion, followed by meat and poultry at $18 billion.

Crude oil, fuel and other petroleum products: $109 billion.

This is one of the fastest growing areas of US exports, up 37% in just the last year.

Civilian aircraft and aircraft engines: $99 billion.

This is what makes Boeing (BA) the nation's largest single exporter.

Auto parts, engines and car tires: $86 billion.

Many of these are shipped to assembly plants owned by both US and foreign automakers in Mexico and Canada. It's one of the reasons losing NAFTA would be so hard for the auto industry.

Industrial machines: $57 billion.

Passenger cars: $53 billion.

American auto plants supply much of North and South America with cars, and also ship to other markets as well. BMW's largest plant is in South Carolina, where it builds all of its X series SUVs. Last year it exported nearly three-quarters of the 371,000 cars it built there, making it the biggest car exporter in the United States.

Pharmaceuticals: $51 billion.

https://money.cnn.com/2018/03/07/news/economy/top-us-exports/index.html

China

Mobile Phone Manufacturing in China $134.2B

Integrated Circuit Manufacturing in China $123.3B

Smart Phone Manufacturing in China $118.7B

Computer Manufacturing in China $107.5B

Computer Peripheral Manufacturing in China $78.3B

Building Construction in China $54.2B

Software Development in China $51.3B

Apparel Manufacturing in China $50.9B

Steel Rolling in China $50.2B

Computer Tablet Manufacturing in China $42.6B

https://www.ibisworld.com/china/industry-trends/biggest-exporting-industries/

Japan

Vehicles: US$122.6 billion (19.1% of total exports)

Machinery including computers: $121.8 billion (19%)

Electrical machinery, equipment: $102.6 billion (16%)

Optical, technical, medical apparatus: $37.5 billion (5.8%)

Plastics, plastic articles: $25.6 billion (4%)

Iron, steel: $22.8 billion (3.6%)

Organic chemicals: $14.9 billion (2.3%)

Gems, precious metals: $13.3 billion (2.1%)

Other chemical goods: $12.2 billion (1.9%)

Ships, boats: $10.8 billion (1.7%)

32. Average wage paid to labor per industry?

I think we would need wages for US, China and Japan

33. What resources/materials do they need?

34. Where do they source their material/resources?

US:

China:

Japan:

34. Trade restrictions worldwide;

Source: https://www.oecd.org/trade/topics/trade-in-raw-materials/

35. How does each of these industries produce their end products?

36. How many CO2 emissions are produced by each industry?

https://en.wikipedia.org/wiki/Greenhouse_gas_emissions

37. Where do the top manufactured products go at the end of life cycle?

38. What is each industry's main product's life cycle?

Driving Forces

1. Availability of more eco-friendly materials Shubashree

2. Increase of consumer awareness on environmental issues Antje

Description

An increasing part of the population is considering more sustainable behaviours and is mindful on their impact on the environment. This is not only theoretical awareness, but also more and more people are willing to take personal action to combat environmental and sustainability issues and take according decisions.

Enablers

Social media Easy access to information (internet) Measurability of environmental change Green governments The pandemic Growing wealth

Inhibitors

Fake news Conspiracy theories Convenience Habits

Paradigms

Establishment of an environmental awareness month; growing google search statistics on environmental topics; increasing news on environmental topics; increasing demand on eco-friendly consumer goods

Experts

Green party members Environmental activists Environmental physicist Statistician

Timing

still to come

Resources

https://www.umweltbundesamt.de/en/topics/sustainability-strategies-international/environmental-awareness-in-germany https://www.mastercard.com/news/research-reports/2021/consumer-attitudes-environment/ https://www.climateaction.org/news/wwf-huge-rise-in-demand-for-sustainable-goods-during-pandemic https://www.charities.org/news/environmental-awareness-month

3. Availability of new manufacturing technologies (3D printing, automation, robotics) Antje

Description

The deployment of innovative manufacturing technology is constantly rising, and workflows are constantly further optimized and automized.

Enablers

Digitalization Technological invention More effective human-machine interfaces

Inhibitors

Labour protection organizations Supply chain scarcity for chips

Paradigms

Increasing material diversity for 3D printing; constant rise in production efficiency;

Experts

Technicians Engineers IT experts

Timing

still to come

Resources

https://www.ilo.org/global/topics/future-of-work/trends/WCMS_555548/lang--en/index.htm https://en.wikipedia.org/wiki/3D_printing https://en.wikipedia.org/wiki/Automation

4. Availability of technology to optimize supply chains in different respects – time, cost, CO2, … Tobi

5. Growth Markets have the opportunity to learn from existing consumer markets and ‘leapfrog’. Erik

6. Quest to provide ‘proof’ and ‘transparency’ in environmental footprint and ESG goal attainment through goalsetting and reporting (also helped by blockchain solutions to help combat counterfeit etc.). Erik

7. Labor and skill availability Tobi

8. Driving force: The rise in automation effecting the manufacturing labor force (Thalia)

Description: As AI and IOT technologies transform manufacturing as well know it today, there is great potential for increased automation in manufacturing to displace workers. It has been found that nearly half of paid activities and tasks could be automated. Additionally, automation would also have a positive effect on industrial productivity and fuel economic growth. 30 percent of hours worked globally could be automated by 2030 – which would have a dramatic effect on the global labor force who specialize in manufacturing.

Enablers: The automation industry is projected to increase at a CAGR of 9% between 2021 and 2028. This growth is projected based on the emphasis on process automation, which is designed to minimize costs and human labor by proxy. Corporations are increasingly more interested in adopting robotic assistance to mass produce products.

Inhibitors: There are some tasks that still will require a human touch, and in this way it would not be possible to fully replace a factory with robots. Where creativity and complex problem solving are needed, process robots are not advanced enough to replace a human. In addition, while AI may displace some jobs, this industry will also create a host of new jobs to help support AI growth and development across the manufacturing industry.

Paradigms:

Old:

Number of staff would shift to produce as much as possible prior to automation

New:

Today robots can produce with demand (not at max volume, but rather, a more precise demand) while lowering labor costs with fewer workers on site.

Experts: Jonathan Tilley

Timing: 2021 - 2028

Web Resources:

https://www.mckinsey.com/featured-insights/future-of-work/jobs-lost-jobs-gained-what-the-future-of-work-will-mean-for-jobs-skills-and-wages https://www.grandviewresearch.com/industry-analysis/industrial-automation-market https://www.forbes.com/sites/forbestechcouncil/2019/01/17/the-alleged-threat-of-ai-taking-away-human-jobs-is-not-what-we-think-it-is/ https://www.valuetransform.com/automation-paradigm-shift/

9. Driving force: Scarcity of Natural Resources (Thalia)

Description: As global warming persists; it is possible that resource scarcity could have large impactions on the global industrial system. As population grows, so does demand for products comprised of resources in danger of scarcity. Some scarce materials used in many products include metals, minerals, and fossil resources, which cannot be created by humans, only by way of mining the earth. In addition, water and mineral-rich soil are in danger of scarcity due to climate change and agricultural pollutants. Should we run out of such resources, manufacturers could not sustain mass production as they do today. In this instance, prices of mass-produced goods utilizing precious natural resources would soar, causing a global economic disruption.

Enablers: Supply scarcity can be attributed to crop failures due to changes in weather, or if a natural resource has been polluted or tainted by its enviroment. Over mining of oil and metals that cannot be replicated are eventually likely as there is a limited reserve of such substances on earth.

Inhibitors: Smart factories allow for the most efficient uses of raw materials, which would translate to an emphasis on sustainability and cost reduction. Alternative metals and materials are in the process of being developed to aid this issue.

Paradigms:

Old: Climate change and resource scarcity is not a concern.

New: Alternative fuels are in development to combat resource scarcity

Experts: Dave Young, Rich Hutchinson and Martin Reeves

Timing: 2021 - 2030

Web Resources:

https://www.kuka.com/en-de/future-production/sfpl/megatrends/scarcity-of-resources https://www.economicshelp.org/blog/151207/economics/causes-of-resource-scarcity/ https://media.rff.org/documents/RFF-IB-00-tahvonen.pdf https://hbr.org/2021/07/the-green-economy-has-a-resource-scarcity-problem

10. Economic shift ( from 3rd world economy to 1st world economy) Shubashree