Manufacturing Technology Essays and Research Papers

Instructions for Manufacturing Technology College Essay Examples

Title: To correctly identify opportunities threats product Marketing Managers understand marketing environment products operate Using product service chose laundry Tide complete Industry Research Using AIU Librarys First Research web resource conduct secondary research industry product service operates

  • Total Pages: 3
  • Words: 1160
  • Sources:2
  • Citation Style: APA
  • Document Type: Essay
Essay Instructions: To correctly identify opportunities and threats to their product, Marketing Managers need to understand the marketing environment in which the products operate.
Using the product/service you chose (laundry/Tide, complete the following:
Industry Research
? Using the AIU Library?s First Research web resource conduct secondary research on the industry in which your product/service operates.
From your research and what you have learned, identify three (3) marketing environment forces that will impact this type of product/service. Describe each force and analyze why & how it will impact the product/service.
Explore strategies to overcome the threats and/or capitalize on opportunities.
Your paper must include a reference list. All research should be cited in the body of the paper. In-text citations and corresponding references should be included in your paper
AIU First Research Laundry Detergent information:
Soap & Other Detergent Manufacturing
8/15/2011
SIC CODES: 2841, 2844
NAICS CODES: 325611
Industry Overview

The US soap and detergent manufacturing industry includes about 650 companies with combined annual revenue of about $27 billion. Major companies in the consumer sector include divisions of Procter & Gamble (P&G); Colgate-Palmolive; and Dial, a subsidiary of German consumer products firm Henkel KGaA. Major companies in the commercial sector include U S Chemical and divisions of Ecolab. The industry is highly concentrated: the top 50 companies generate about 90 percent of revenue.
COMPETITIVE LANDSCAPE
Population growth, particularly among households with children, drives demand in the consumer sector, and economic growth drives demand in the commercial sector. The profitability of individual companies depends on efficient operations and effective sales and marketing. Large companies have scale advantages in purchasing, manufacturing, distribution, and marketing. Small companies can compete effectively by offering specialized products, providing superior customer service, or serving a local market. The industry is capital-intensive: average annual revenue per worker is more than $1 million.
The industry is about evenly split between the consumer and commercial segments. Both segments are highly competitive, and large companies spend millions to maintain market share.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include laundry detergent, soap, dishwashing detergent, and toothpaste. Laundry detergent accounts for 35 percent of industry revenue, soap for 25 percent, dishwashing detergent for 15 percent, and toothpaste for 10 percent. Laundry detergent comes in powder or liquid form, and may contain bleach additives or color brighteners. Dishwashing detergent comes in powder, liquid, or gel form. Soap comes in bars or liquids, and may have moisturizing, antibacterial, or deodorant benefits. Companies in the commercial sector may also sell dispensing equipment and provide related training.
Detergent production starts by combining liquid and dry ingredients. Spray drying produces powder detergents by spraying the liquid mixture through nozzles under high pressure to create small droplets. The droplets fall through hot air and dry into hollow granules. Heat-sensitive ingredients, such as bleach or fragrance, are added after spray drying. Agglomeration produces higher density detergent powders by using a liquid binder and a different mixing process known as "rolling" or "shear mixing." Dry blending mixes dry raw materials with small quantities of liquids. Detergents are packaged in cartons, bottles, pouches, or bags.
Soap production starts by heating fatty acids or fats and oils, and combining them with alkali, such as sodium or potassium. The process, known as saponification or neutralization, produces a combination of soap and water (known as neat soap) plus glycerin, which can be resold. Neat soap is converted into dry soap pellets through vacuum drying. An amalgamator mixes pellets with fragrances and colors. Rolling mills and refining plodders refine the mixture to achieve uniform texture. The final mixture is extruded, cut into bars, and stamped into shapes in a soap press. Soap bars are wrapped and packaged into single or multiple packs.
Soaps and detergents are made of surfactants or surface-active agents, chemicals that help water soak and clean surfaces. Many surfactants are petroleum-based. Oleochemicals are surfactants derived from natural fats and oils. Soap reacts with minerals in hard water, diminishing cleaning properties. Builders boost the efficiency of surfactants by counteracting hard water, emulsifying oil and grease, and preventing soil from redepositing. Phosphates, an environmentally controversial chemical, are a commonly used builder.
Raw materials include surfactants, solvents, phosphates, silicates, alkalis, salts, and perfumes. Suppliers include major chemical manufacturers like Shell Chemical (a division of Royal Dutch Shell) and Dow. P&G has a separate business unit that manufactures key chemicals as part of a global supply network.
Companies may rely on or provide third-party contract manufacturing services. Large companies may own multiple plants, including many facilities outside the US.
Soap and detergent manufacturing is highly automated, and involves significant capital investment in plants and equipment. Computers control production equipment and inventory management. Many companies use electronic data interchange (EDI) to optimize the purchasing process. Due to the high level of automation, the average plant has about 30 employees.
R&D involves creating, testing, and improving product formulation, and evaluating environmental compatibility. Technological advances have reduced the amount of product needed, thereby reducing the amount of packaging. Micro encapsulation technology allows manufacturers to deliver unstable ingredients, like vitamin C, through soap to the skin. Manufacturers also test new enzymes and bleaches that improve the efficacy of products.
SALES & MARKETING
Major customers for the consumer segment include supermarket chains, mass merchandisers, drugstores, and warehouse clubs. Major customers for the commercial segment include industrial and commercial laundries, hotels, restaurants, and healthcare providers. Most companies also sell to third-party distributors.
Marketing and promotional vehicles for the consumer segment include TV and magazine advertising, coupons, direct mail, and websites. Brand names, such as Tide and Dial, are extremely important in the consumer segment.
Large companies use an in-house sales force. Large and small companies use independent distributors to service smaller accounts. In the commercial segment, trade shows are an important sales vehicle. Superior service is also critical in maintaining long-term relationships with large customers. Large companies may provide cleaning products to subsidiaries around the world for multinational customers.
Retail pricing for laundry detergent averages $5, dishwashing detergent $2, and soap $2.50. Cheaper private-label products can erode the sales of branded versions.
FINANCE & REGULATION
Cash flow is generally even throughout the year. Inventory consists of 65 percent finished product and 25 percent raw materials. Accounts receivable ranges between 30 and 90 days sales. Capital may be required to expand or upgrade equipment, and can reach 5 percent of sales. Ingredient costs are between 35 to 40 percent of the wholesale price. Companies may have annual or long-term contracts with chemical manufacturers to protect pricing for raw materials.
Because of the chemicals involved in the manufacturing process, numerous federal, state, local, and foreign environmental and safety laws govern the handling, storage, discharge, and disposal of hazardous materials. Companies may be involved in the clean up of contaminated manufacturing or waste disposal sites, often in multiple states or countries. Both the EPA and FDA require registration of cleaning products and submission of information supporting efficacy claims. Special FDA requirements govern the sale and advertising of antibacterial products.
INTERNATIONAL ISSUES
The US is a net exporter of soaps and detergents; the value of exports is about twice that of imports. Exports go primarily to Canada, Mexico, China, Japan, and Belgium. Most large companies have plants throughout the world.
Change in Dollar Value of US Trade - US International Trade Commission
Imports of soap and detergent to the US come primarily from Canada, Mexico, China, Germany, and Japan. Major export markets for US soap and detergent include Canada, Mexico, China, Japan, and Belgium.



REGIONAL ISSUES
Major states for soap and detergent manufacturing include Texas, California, Illinois, Ohio, and New Jersey.

HUMAN RESOURCES
Due to the high level of automation at many manufacturing facilities, most production jobs require few skills. Average hourly wages are slightly lower than the national average. The average injury rate is in line with the US average for all workers.
Some US manufacturing facilities are covered by labor agreements. Companies with operations outside the US may be subject to local work councils or labor unions
Recent Developments
INDUSTRY INDICATORS
The spot price of crude oil, which affects energy and raw material prices for soap and detergent making, rose 18.1 percent in the week ending September 9, 2011, compared to the same week in 2010.
US retail sales for health and personal care stores, a potential measure of soap and detergent demand, increased 5.1 percent in the first eight months of 2011 compared to the same period in 2010.
Recent Developments
INDUSTRY INDICATORS
The spot price of crude oil, which affects energy and raw material prices for soap and detergent making, rose 18.1 percent in the week ending September 9, 2011, compared to the same week in 2010.
US retail sales for health and personal care stores, a potential measure of soap and detergent demand, increased 5.1 percent in the first eight months of 2011 compared to the same period in 2010.
P&G Focusing on Emerging Markets - Industry leader Procter & Gamble's launch of an improved Ariel detergent in the Middle East, Africa, and Asia highlighted the growing importance of sales in emerging markets to the company. The new version of the laundry detergent, which has nearly $4 billion in annual sales globally, had P&G marketing the brand as accessible, affordable and more localized, instead of going after the premium market that serves as its cash cow in other regions, reported the Economic Times. In addition to using this tactic to compete with well-established brands like Unilever in India, the move was also necessitated by P&G's loss of market share in the US and Europe as the recession drove consumers to less-expensive competitors and private-label goods. The launch will include new packaging, a multimedia presence, and the use of a 3-D theme in its marketing based on the 3-D technology used to develop the new formula specifically for developing markets. Emerging markets represent a huge opportunity for soap and detergent manufacturers: P&G's overall sales more than tripled in emerging markets in the past decade; total US exports of soap and detergents increased 40 percent between 2006 and 2009.QUARTERLY INDUSTRY UPDATE
Business Challenges
CRITICAL ISSUES
Volatile Production Demand - Overall demand for soaps and detergents depends on multiple factors and results in wide swings in production volume, making capacity planning difficult. Annual production changes can be more than 10 percent. Consumer demand is influenced by population growth, particularly of households with children; commercial demand is driven by the health of the hotel, restaurant, and hospital industries.
Slow Growth in Wholesale Prices - Market maturity and heavy competition have depressed growth in wholesale prices for soaps and detergents. Wholesale prices for household detergents have risen slowly in recent years. Consumers and businesses are generally price-sensitive about cleaning products, and likely to switch to lower-priced brands to save money.
OTHER BUSINESS CHALLENGES
Environmental Compliance - Manufacturers must comply with differing state and country environmental regulations. Phosphates used in powder laundry detergent are banned in many states and European countries. Companies must also comply with regulations governing waste disposal. Some large companies are actively involved in cleaning contaminated sites due to past operations.
Industry Concentration - Large multinational companies dominate the industry. In the consumer segment, companies spend millions on marketing to protect brand name products like Tide, Cascade, and Ivory. The top four companies represent almost 60 percent of total industry revenue. Scale advantages in almost every aspect of operations present major challenges for smaller manufacturers.
Reliance on Key Customers for Consumer Sales - Companies rely heavily on large retailers like Wal-Mart, Costco, and Target for a sizable share of business. Wal-Mart can comprise 15 percent of total revenue for large companies. These large retailers have the power to demand price concessions and supply chain management services from manufacturers.
Global Exposure - Most large companies manufacture and sell products globally. Fluctuations in exchange rates and foreign market conditions affect earnings of companies with a large percentage of sales coming from other countries. Ecolab?s international sales are over 40 percent of company revenue.


________________________________________
Trends & Opportunities
BUSINESS TRENDS
Increasing Productivity - Low growth in market volume and wholesale pricing drives manufacturers to increase productivity to cut costs. High levels of automation and improved manufacturing technology have allowed soap and detergent manufacturers to increase output with fewer workers.
Growth in Private-Label Products - Although private-label products are a small segment of the consumer market, improved product quality and increasing consumer acceptance has helped drive growth. During tough economic times many consumers switch to store brands to save money. After discovering private-label products often have comparable quality at a lower price, many consumers never return to the name brand product.
Export Growth - US soap and detergent exports increased about 40 percent between 2006 and 2009. More than 50 percent of exports went to Canada, and exports to Western European countries (primarily Belgium, the UK, and the Netherlands) also experienced high growth. Because many large US companies have manufacturing facilities abroad, exports account for a relatively small share of US production.
INDUSTRY OPPORTUNITIES
Multi-Purpose Products - As consumers demand higher performance from cleaning products, manufacturers of large brands deliver line extensions that serve multiple needs. Detergents with bleach and soaps with moisturizers and deodorant offer multiple benefits. Such cross-selling strategies leverage customer loyalty for a brand, taking advantage of its existing brand equity, to build loyalty within a family of brands.
Specialized Products - Market maturity has driven manufacturers to offer specialized products to generate growth. For example, anti-allergy products target consumers with sensitive skin, and products containing natural ingredients or special biodegradability properties target environmentally conscious consumers. High-efficiency (HE) detergents with low-sudsing properties are required for the growing number of HE washing machines.
Superior Customer Service - Companies in the commercial segment strive to become preferred vendors by offering superior customer service. Some companies go beyond selling soaps and detergents and offer help in safety and environmental regulation compliance. Companies may also provide maintenance services for dispensing systems and cleaning equipment. Large companies can service multinational customers globally.
Developing Countries - As income rises in developing countries, consumers need hygiene education to increase soap and detergent use. In some countries, the absence of visible dirt equates to cleanliness. Companies may use less expensive ingredients to offer lower-priced products in developing countries.
Convenience - Offering products with improved convenience has generated growth for manufacturers. Shower gels, liquid soap, and stain removal pens are all examples of alternative delivery methods that offer convenience. Extensions through new delivery methods allow manufacturers to leverage their investment in brands.


________________________________________
Business Challenges
CRITICAL ISSUES
Volatile Production Demand - Overall demand for soaps and detergents depends on multiple factors and results in wide swings in production volume, making capacity planning difficult. Annual production changes can be more than 10 percent. Consumer demand is influenced by population growth, particularly of households with children; commercial demand is driven by the health of the hotel, restaurant, and hospital industries.
Slow Growth in Wholesale Prices - Market maturity and heavy competition have depressed growth in wholesale prices for soaps and detergents. Wholesale prices for household detergents have risen slowly in recent years. Consumers and businesses are generally price-sensitive about cleaning products, and likely to switch to lower-priced brands to save money.
OTHER BUSINESS CHALLENGES
Environmental Compliance - Manufacturers must comply with differing state and country environmental regulations. Phosphates used in powder laundry detergent are banned in many states and European countries. Companies must also comply with regulations governing waste disposal. Some large companies are actively involved in cleaning contaminated sites due to past operations.
Industry Concentration - Large multinational companies dominate the industry. In the consumer segment, companies spend millions on marketing to protect brand name products like Tide, Cascade, and Ivory. The top four companies represent almost 60 percent of total industry revenue. Scale advantages in almost every aspect of operations present major challenges for smaller manufacturers.
Reliance on Key Customers for Consumer Sales - Companies rely heavily on large retailers like Wal-Mart, Costco, and Target for a sizable share of business. Wal-Mart can comprise 15 percent of total revenue for large companies. These large retailers have the power to demand price concessions and supply chain management services from manufacturers.
Global Exposure - Most large companies manufacture and sell products globally. Fluctuations in exchange rates and foreign market conditions affect earnings of companies with a large percentage of sales coming from other countries. Ecolab?s international sales are over 40 percent of company revenue.


________________________________________
Trends & Opportunities
BUSINESS TRENDS
Increasing Productivity - Low growth in market volume and wholesale pricing drives manufacturers to increase productivity to cut costs. High levels of automation and improved manufacturing technology have allowed soap and detergent manufacturers to increase output with fewer workers.
Growth in Private-Label Products - Although private-label products are a small segment of the consumer market, improved product quality and increasing consumer acceptance has helped drive growth. During tough economic times many consumers switch to store brands to save money. After discovering private-label products often have comparable quality at a lower price, many consumers never return to the name brand product.
Export Growth - US soap and detergent exports increased about 40 percent between 2006 and 2009. More than 50 percent of exports went to Canada, and exports to Western European countries (primarily Belgium, the UK, and the Netherlands) also experienced high growth. Because many large US companies have manufacturing facilities abroad, exports account for a relatively small share of US production.
INDUSTRY OPPORTUNITIES
Multi-Purpose Products - As consumers demand higher performance from cleaning products, manufacturers of large brands deliver line extensions that serve multiple needs. Detergents with bleach and soaps with moisturizers and deodorant offer multiple benefits. Such cross-selling strategies leverage customer loyalty for a brand, taking advantage of its existing brand equity, to build loyalty within a family of brands.
Specialized Products - Market maturity has driven manufacturers to offer specialized products to generate growth. For example, anti-allergy products target consumers with sensitive skin, and products containing natural ingredients or special biodegradability properties target environmentally conscious consumers. High-efficiency (HE) detergents with low-sudsing properties are required for the growing number of HE washing machines.
Superior Customer Service - Companies in the commercial segment strive to become preferred vendors by offering superior customer service. Some companies go beyond selling soaps and detergents and offer help in safety and environmental regulation compliance. Companies may also provide maintenance services for dispensing systems and cleaning equipment. Large companies can service multinational customers globally.
Developing Countries - As income rises in developing countries, consumers need hygiene education to increase soap and detergent use. In some countries, the absence of visible dirt equates to cleanliness. Companies may use less expensive ingredients to offer lower-priced products in developing countries.
Convenience - Offering products with improved convenience has generated growth for manufacturers. Shower gels, liquid soap, and stain removal pens are all examples of alternative delivery methods that offer convenience. Extensions through new delivery methods allow manufacturers to leverage their investment in brands.


________________________________________
Executive Insight what is this?

CHIEF EXECUTIVE OFFICER - CEO

Developing a Global Strategy
Soap and detergent manufacturing is a global business, and most companies must serve large multinational customers and foreign markets. Cultural issues, language barriers, and government regulations can vary significantly from country to country. Many large companies operate separate business offices and plants abroad to build local market knowledge and presence.

Complying with Environmental and Regulatory Requirements
Numerous federal, state, local, and foreign environmental and safety laws govern hazardous materials management and waste disposal. Phosphates, frequently used to boost cleaning power, have been banned and reinstated in numerous states and foreign countries. Some companies are simplifying product lines to standardize formulations and reduce regulatory reporting burdens.


CHIEF FINANCIAL OFFICER - CFO

Managing Raw Material Costs
The price of surfactants and related chemicals can fluctuate and affect profitability. Volatile oil prices greatly affect suppliers of petroleum-based surfactants. To protect raw material costs, companies often have annual or longer term contracts with chemical manufacturers throughout the world. Large companies may also own plants that produce key chemicals to help balance supply.

Acquiring Capital to Expand
Companies require capital to buy other companies or brands, build facilities in new markets, or add manufacturing capacity. Large acquisitions can require billions of dollars. Companies may use a combination of external financing and cash. Large companies may issue debt for considerable acquisitions.


CHIEF INFORMATION OFFICER - CIO

Acquiring Technology
Market maturity has driven companies to look for new ways to grow sales and lower costs. Technology that provides product innovation or improves production processes can give companies a competitive advantage. Companies may license technology from third parties or develop technology in-house.

Developing Efficient Inventory Management System
Soap and detergent manufacturers must manage multiple stock-keeping units (SKUs) for many products, including various formulations, product forms, and packaging options. Large companies typically offer hundreds of products in addition to soap and detergent. Computerized information management systems are critical to track the multitude of products to ensure adequate levels of inventory and fulfill customer orders accurately.


HUMAN RESOURCES - HR

Recruiting Personnel for R&D
Because of the chemical nature of soaps and detergents, R&D personnel require specialized expertise. Many positions require education and experience in chemistry, microbiology, process engineering, and product dispensing technology. Positions may require advanced degrees and command high salaries.

Managing Relationships with Foreign Labor Unions
Due to the global scope of the industry, companies must deal with labor unions common in foreign countries. Unions or work councils are often required for certain size companies that operate in multiple European countries. Companies meet with unions periodically to discuss any issues regarding employment, particularly facility closures. Labor contracts are generally renewed annually.


VP SALES/MARKETING - SALES

Building Brand Equity
Low market growth, heavy competition, and increasing private label presence forces companies to differentiate products. Consumer brand building communicates unique product benefits through advertising and promotion. Brands like Tide, Cascade, and Ivory have existed for decades, have a loyal customer base, and remain market leaders due to consistently strong marketing programs. Due to the dominance of large companies, small manufacturers have difficulty breaking into the market unless products offer truly unique benefits.

Developing Long-Term Customer Relationships
Companies try to add value beyond simply selling products to nurture key customer relationships. Companies in the commercial segment depend on delivering superior customer service since advertising and promotion aren't as important, while companies in the consumer segment rely heavily on large retailers for a significant share of business. Companies in the commercial segment may offer help in safety and environmental compliance. Companies in the consumer segment may offer volume discounts or account-specific promotions.

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Title: Please Bolavens Scenario The Sparklin Automotive Company SAC business 1930 It began business United States supplying spark plugs automotive manufacturers OEM original equipment market automotive aftermarket

  • Total Pages: 5
  • Words: 1462
  • References:3
  • Citation Style: MLA
  • Document Type: Research Paper
Essay Instructions: Please use Bolavens

Scenario

The Sparklin Automotive Company (SAC) has been in business since 1930. It began business in the United States supplying spark plugs to automotive manufacturers (OEM, the original equipment market) and the automotive aftermarket.


SAC has introduced a new spark plug manufacturing process in the United States that produces a higher quality spark plug guaranteed to last 100,000 miles. The introduction of this spark plug has been very successful in the United States.


In addition to these types of projects, your responsibilities include creating and analyzing the monthly performance of each plant and consolidating the results into a set of financial statements footnoted with explanations.


Task

SAC has developed revolutionary manufacturing techniques utilizing its new spark plug manufacturing technology to offer special-order spark plugs for the auto racing industry. The company is currently using process costing for its spark plugs but is considering using job order costing for the new specialty spark plugs. How does job order costing differ from process costing? Should SAC use process or job order costing for the specialty spark plugs? Make a recommendation for SAC. Be sure to fully back up your recommendation.

Please cite sources in text and references in APA style. Please let me know if you need additional information

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Title: COURSE BA BUSINESS MANAGEMENT SUBJECT Financial Management Accounting ASSIGNMENT The Assignment Vroom plc assembles types motorcycle factory 50cc Sunshine 250cc Roadster 1000cc Fireball It sells motorcycles world

  • Total Pages: 5
  • Words: 1350
  • Works Cited:4
  • Citation Style: APA
  • Document Type: Essay
Essay Instructions: COURSE : BA BUSINESS MANAGEMENT
SUBJECT: Financial and Management Accounting


ASSIGNMENT

The Assignment
Vroom plc assembles three types of motorcycle at the same factory: the 50cc Sunshine; the 250cc Roadster and the 1000cc Fireball. It sells the motorcycles throughout the world. In response to market pressures Vroom plc has invested heavily in new manufacturing technology in recent years and, as a result, has significantly reduced the size of its workforce.

Historically, the company has allocated all overhead costs using total direct labour hours, but is now considering introducing Activity Based Costing (ABC). Vroom plc?s accountant has produced the following analysis.....( MORE ON THE UPLOADED FILE)

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