{"id":422,"date":"2012-06-04T06:25:20","date_gmt":"2012-06-04T10:25:20","guid":{"rendered":"http:\/\/at-scm.com\/?p=422"},"modified":"2012-06-04T06:25:20","modified_gmt":"2012-06-04T10:25:20","slug":"robots-lift-chinas-factories-to-new-heights-can-you-eat-your-free-lunch","status":"publish","type":"post","link":"http:\/\/at-scm.com\/index.php\/2012\/06\/04\/supply-chain-management\/robots-lift-chinas-factories-to-new-heights-can-you-eat-your-free-lunch\/","title":{"rendered":"Robots lift China&#8217;s factories to new heights : Can you eat your free lunch?"},"content":{"rendered":"<p>Ladies and Gentlemen, I give you evidence #1 that it is well nigh impossible to eat your free lunch. Now, I\u2019m of the opinion that there is only 1 free lunch in the world : \u201cLearning from the mistakes of others.\u201d But just because there is such a free lunch, please don\u2019t assume that you can even eat it.<\/p>\n<p>Why did we outsource\/offshore everything to China? Labor cost? Heck, the chinese think that the true cost of labor is still too expensive. By true cost, I mean not just the hourly pay. From the article: <a href=\"http:\/\/www.reuters.com\/article\/2012\/06\/03\/us-china-economy-automation-idUSBRE8520F620120603\" target=\"_blank\">Robots lift China\u2019s factories to new heights<\/a>,<\/p>\n<blockquote>\n<p>From car plants to microchip foundries, China&#8217;s industrial sector increasingly runs by machine.<\/p>\n<p>According to Nomura, 28 percent of factory machines in China use numerical controls &#8211; one measure of automation. That may be far lower than Japan&#8217;s 83 percent, but China is growing far faster than <a href=\"http:\/\/www.reuters.com\/places\/japan\">Japan<\/a> did at a comparable stage of development, says Ge Wenjie, a machinery analyst with Nomura.<\/p>\n<\/blockquote>\n<p>The supposed reason is quite stunning as well,<\/p>\n<blockquote>\n<p>&quot;You don&#8217;t have to be an expert see the (quality) gap between Chinese cars and those made by companies like Audi and Volkswagen,&quot; said Li Shaohui, who oversees automatic control engineering for the company. &quot;To beat those competitors we have no choice but to use a higher level of equipment and technology.&quot;<\/p>\n<\/blockquote>\n<p>But you do sir, you do have to be an expert to know that the quality gap is not just the lack of high tech robots.<\/p>\n<p>However, the whole game of international trade is coming full circle now \u2013 stunning in the sense that it took only about 15 odd years to rapidly industrialize (the benefit of the free lunch) to start feeling the need for advanced machinery and consultants from developed nations.<\/p>\n<p>However, the lingering question is going to be whether they will just buy the robot because of its supposed supra-human like qualities or pause to chew on the mistakes of their forebears when they went the route of the robotic revolution.<\/p>\n<p>Process, People, Process \u2013 Robots should go to management and join the other robots there\u2026<\/p>\n<div style=\"padding-bottom: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; float: none; padding-top: 0px\" id=\"scid:0767317B-992E-4b12-91E0-4F059A8CECA8:b27afde5-8f99-456b-abd5-03d93d1caf08\" class=\"wlWriterEditableSmartContent\">Technorati Tags: <a href=\"http:\/\/technorati.com\/tags\/China+Manufacturing\" rel=\"tag\">China Manufacturing<\/a>,<a href=\"http:\/\/technorati.com\/tags\/Automation\" rel=\"tag\">Automation<\/a>,<a href=\"http:\/\/technorati.com\/tags\/Robotics\" rel=\"tag\">Robotics<\/a>,<a href=\"http:\/\/technorati.com\/tags\/Process\" rel=\"tag\">Process<\/a>,<a href=\"http:\/\/technorati.com\/tags\/People\" rel=\"tag\">People<\/a>,<a href=\"http:\/\/technorati.com\/tags\/Labor+costs\" rel=\"tag\">Labor costs<\/a>,<a href=\"http:\/\/technorati.com\/tags\/International+Trade\" rel=\"tag\">International Trade<\/a>,<a href=\"http:\/\/technorati.com\/tags\/Free+lunch\" rel=\"tag\">Free lunch<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Ladies and Gentlemen, I give you evidence #1 that it is well nigh impossible to eat your free lunch. Now, I\u2019m of the opinion that there is only 1 free lunch in the world : \u201cLearning from the mistakes of others.\u201d But just because there is such a free lunch, please don\u2019t assume that you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,17,3,13],"tags":[342,331,340,102,229,337,345,339,336,103,335,344,338,346,343,334,333,332,341],"class_list":["post-422","post","type-post","status-publish","format-standard","hentry","category-lean","category-personal-observations","category-supply-chain-management","category-theory-of-constraints","tag-audi","tag-automation","tag-car-plants","tag-china","tag-china-manufacturing","tag-free-lunch","tag-ge-wenjie","tag-high-tech-robots","tag-international-trade","tag-japan","tag-labor-costs","tag-li-shaohui","tag-machinery","tag-machinery-analyst","tag-nomura","tag-people","tag-process","tag-robotics","tag-volkswagen"],"_links":{"self":[{"href":"http:\/\/at-scm.com\/index.php\/wp-json\/wp\/v2\/posts\/422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/at-scm.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/at-scm.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/at-scm.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/at-scm.com\/index.php\/wp-json\/wp\/v2\/comments?post=422"}],"version-history":[{"count":1,"href":"http:\/\/at-scm.com\/index.php\/wp-json\/wp\/v2\/posts\/422\/revisions"}],"predecessor-version":[{"id":423,"href":"http:\/\/at-scm.com\/index.php\/wp-json\/wp\/v2\/posts\/422\/revisions\/423"}],"wp:attachment":[{"href":"http:\/\/at-scm.com\/index.php\/wp-json\/wp\/v2\/media?parent=422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/at-scm.com\/index.php\/wp-json\/wp\/v2\/categories?post=422"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/at-scm.com\/index.php\/wp-json\/wp\/v2\/tags?post=422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<!-- WP Super Cache is installed but broken. 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