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
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: Since around 2000
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 The internet of things
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: Since around 1990
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
Description: Growing economies that transition from a production society into a consumer society do so in a different era compared to their Western peers. Wellbeing and quality of life in urban areas are more important and receive greater attention from policymakers, allowing these countries to make a ‘green transition’ as opposed to a ‘grey transition’. Culturally, individualism and short-term orientation in these markets is lower compared to western societies, allowing these economies to adopt new methodologies and frameworks that propel sustainable growth.
Enablers; The evolution of the role of the consumer, Growth of the middle class in the eastern hemisphere, Rebalance of geo-political power, Convergence of business and politics, Crisis of capitalism.
Inhibitors; Family and community wellbeing are highly valued, and congestion and air quality in urban area’s are important concerns for policy makers. Knowledge distribution through digital tools increases speed of adoption of new trends; for example the implementation of true omnichannel propositions and construction projects that are developed and used as a blueprint for rapid roll-out to other cities.
Paradigms; Digitalization of manufacturing processes. Shift of focus from individualist capitalism to societal wellbeing.
Experts; Kishore Mahbubani Xiaoqin Zhang
Timing; 2015 - 2025
Web Resources; https://journals.sagepub.com/doi/full/10.1177/21582440211013780 https://unctad.org/system/files/official-document/tir2020_en.pdf
6. Supply chain transparency. Erik
Description: With the increase of the ‘power of the consumer’ and the increased concerns about the environmental impact of consumption patterns in the advanced societies, companies are increasingly challenged on their ESG impact and performance. Origins of ingredients and methods of construction and manufacturing are scrutinized and publicly evaluated – and even lead to boycotting and serious reputational damage for organizations. Technological developments and advances in digital communication allow for a more activist stance against those organizations that do not make visible efforts to act responsible.
Enablers; Blockchain technology allow consumers to track exactly where components of products originate from. Digital communication technology. Awareness of the impact that organizations have on the environment (in the broadest sense of the word).
Inhibitors; Global versus local sourcing and supply chain management. Transparency versus competitive advantage.
Paradigms; Shift from Supply chain and manufacturing as a means of competitive advantage towards Distribution. The power and influence of consumers and reputational risk.
Experts; Patagonia Nike
Timing; 2015 - 2030
Web Resources; https://hbr.org/2019/08/what-supply-chain-transparency-really-means
7. Labor and skill availability Tobi
8.
Driving force: The rise in automation effecting the manufacturing labor force (Thalia)
https://www.scenariothinking.org:10443/index.php?title=A_Rise_in_Automation_Effecting_the_Manufacturing_Labor_Force_-_Thalia_Fry
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)
https://www.scenariothinking.org:10443/index.php?title=Scarcity_of_Natural_Resources_-_Thalia_Fry
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