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
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.
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
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
3. Availability of new manufacturing technologies (3D printing, automation, robotics) Antje
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. Increased automation puts workers out of work Thalia
9. Scarcity of natural resources Thalia
10. Economic shift ( from 3rd world economy to 1st world economy) Shubashree