Trends in Production and Operations Management

Key Trends Affecting U.S. Production and Operations Management

Manufacturing Employment and Exports
- 1 million manufacturing jobs added since the Great Recession.
- U.S. exports quadrupled over the past 25 years.
- Integration of technology enhances U.S. competitiveness.
Technology and Global Competition
- Rapid changes in technology and competition from Asia cause anxiety.
- Concerns about technology replacing jobs and the need for skilled workers.
- Importance of technology for global competitiveness.
Need for Innovation and Education
- Investment in science and research is crucial.
- Education of future innovators and scientists is vital to maintaining the U.S. edge.

Looming Workforce Crisis
- Manufacturing executives prioritize a high-performing workforce.
- 85% of future jobs require advanced training or degrees.
- Predicted skills gap: 3.5 million new jobs, 2 million unfilled due to lack of qualified workers.
- Finding qualified employees is a more significant concern than energy costs, taxes, and regulations.
Educational Trends
- U.S. secondary education's inability to provide globally competitive education.

Decline in Federal Investment
- Federal research funding decreased by 40% over 40 years.
- Decline in high-tech exports and graduate enrollment in science and engineering.
Solution to Reverse Trend
- Increase in federal investment in science and research.
- Importance of high-paying, long-term careers in modern manufacturing.

The Role of BPM
- BPM integrates and optimizes company functions through automation.
- Significant cost savings (e.g., $117 billion annually in inventory costs).
- Examples: Lockheed Martin, Walmart, and Dell use BPM for efficiency.
Impact of BPM
- Improved collaborative processes lead to inventory reduction and higher revenues.
- Key to success in leveraging the value chain and maintaining competitive advantage.