Manufacturing Insights from China

Since 2010 China has steadily increased it’s manufacturing capacity to now manufactuer more than the United States.

Why do you see “Made in China” on so many things you own? This is a question that Lauren Magarino asked TXM China Consulting Director and Senior Consultant, Justin Tao on The Why, a US News Program recently.

China is seen to be the global manufacturing leader, and some would say the “world’s factory” says Lauren in her opening interview with Justin. The US imported $111 billion in electrical machinery from China in 2020.

In 2010 the manufacturing output of the United States and China was roughly equal each around $2.3 trillion. Since then, however, China has been the undisputed global manufacturing leader.

“How did this happen, that China now dominates the US market”?

Justin is well placed to discuss the emergence of China becoming the global leader of manufacturing. TXM has been at the fore front of this huge development by bringing the world’s best standard of lean consulting services to China and assisting the transformation of Chinese manufacturing.

“This is a complex area, but fundamentally Made in China was born as a result of a large workforce of hard-working low-cost labour. This appealed to foreign investors. China’s rapid manufacturing transformation saw the quick advancement in technology and advanced manufacturing practices that included the adoption of Lean manufacturing in its fast growth” says Justin. Justin is a Global Lean expert and has assisted TXM to succeed in the Chinese market as well as in Australia where he now lives.

The adoption of Lean Manufacturing says Justin “really appealed to China’s growth mentality because it is a method to reduce cost, shorten lead time, improve quality and be more agile”.

“United States and Chinese manufacturing have a long history of exchanging intellectual knowledge” says Justin. The US car assembly line of the 1920’s made a strong impression on China and over the years both countries have learnt from one another. The US was a manufacturing leader but now China dominates the world as the global manufacturing giant, explains Justin.

How did the Chinese Government Help Manufacturing?

“The Government had a lot to do with Made in China sucess,” says Justin. “In fact it played an essential role because they developed a lot of industrial parks and provided free land and zero tax or very low tax for domestic investors as well for foreign investors. China was developed as the Manufacturing magnet. They also subsidised new technologies such as, new energies, electric vehicles, solar panels which provided a huge incentive for manufacturing development” says Justin.

China also has an excellent supply chain eco system. “This includes raw materials, supplies, components, manufacturers, distributors, couriers which are all cost effective and more efficient to manufacture products,” says Justin.  “Chinese factories are like huge towns with dormitories, millions of workers, that work along the supply chain to produce billions of products” says Justin.

Policy has played a major role in reimagining chinese manufacturing to the global powerhouse it is today.

“The Chinese Government has a central role in “planning with the co-country” there is only one party, and that party develops a 5-year plan with goals that are achieved. Once 5 years are up another 5-year plan is done that’s why China has become the manufacturing leader. It has no opposition and can achieve huge things like the roll out of the high-speed rail in 20 years” says Justin. High speed rail enabled workers to come in from the countryside and all over China to boost Chinese manufacturing at record speed, explains Justin.

What Sort of Problems Does China Face?

Manufacturing in China, while successful, has developed it owns problems says Justin, “Private operators focus so much on making a profit in the short term that longer term planning, brand building and the environment are sacrificed” he says. “There has been so much technological advancement as part of the manufacturing expansion in China, but this has not translated into management practices these have lagged behind,” says Justin. TXM work with Chinese manufacturers to address these gaps and to reduce cost, shorten lead time, improve quality and be more agile.

Justin is proud of the Made in China success. Everyone benefits and now “we cannot live without it” he explains. We can learn a lot from Chinese manufacturing.

Closer to home now, Justin thinks Australian manufacturing can also take away something from the Chinese experience. Australian manufacturing, like so many in the world has been transferred to China or elsewhere and during the recent COVID-19 time realised its dependence on imports such as face masks, hand sanitiser, rapid covid test which were in high demand but not produced in Australia.

“Manufacturing has been the dinner table discussion as product shortages and supply chain disruptions have impacted us all no matter which country we live in” says Justin

Watch the Interview By Newsy with Chinese Consulting Director Justin Tao

Tom Burdett Joins TXM as Business Development Manager Western Australia

TXM Australia are happy to announce the appointment of Tom Burdett as Business Development Manager Western Australia. Tom joins a growing sales team around the world to service our growing number of clients.

Tom joins TXM with a wealth of experience having worked at Toyota, Du-pont, , and Sun Chemical as a technician, Consultant and Sales Manager. He has extenesive experience in complex international management, managing distribution channels, supply chains, technical sales consulting, business development, and business process improvement.

As an all-round manufacturing professional Tom has the ability to understand complex manufacturing issues and identify solutions tailored to the individual needs of his customers. He will be based in Perth and will be able to visit customer across the state.

Tom is available via email [email protected] or 0438 956 533. He is keen to actively engage with customers showcasing the range of TXM services and solutions.

Pre-register for IMHX 2022 & receive a free book worth 25 pounds when you attend

TXM Lean Solutions UK will be exhibiting at IMHX 2022 between September 6th to 8th of September at NEC, Birmingham at the UK’s largest logistics and materials handling event. Come down and see us to get a free copy of ‘On Time and In Full’

Fork lift IMHX

 

Register for IMHX

IMHX is the largest event of its kind welcoming 18,000 professionals to see and experience the latest logistics and supply chain technology from the industry’s leading names. TXM want to meet as many of you as possible, come down and see us at Stand 5C91.

The show will be a great way to come and meet the TXM team and talk us through your supply chain problems. Below are some of the things you’ll be able to do and see across the 2 days of the show for free.

  • Explore the latest solutions from 400+ industry giants Toyota, ABB, JCB, Dematic, Doosan, Crown, Hyster, Siemens, Swisslog, Yale and many more
  • Stay ahead of supply chain trends with 100+ hours of critical insight from 80+ expert speakers including major operators Amazon, Ocado, Coca-Cola, and Jack Wills
  • Evaluate the newest products, services, and technology to enter the market by attending hundreds of live product demonstrations taking place every day on the show floor
  • Get an exclusive first look at major product launches from Doosan, Dematic, JCB, Swisslog and more
  • Assess the newest industrial trucks
  • Forklift Truck Demo Zone!
  • Receive practical advice on retaining your rising stars, attracting staff and creating a talent pipeline in the Future Skills Theatre
  • Network with over 18,000 logistics and supply chain professionals across manufacturing, engineering, retail and more

You will receive your free book (‘On Time and In Full’) when you visit our stand (5c91) at IHMX and mention this article.

Welcome Chris Renton Vice President Business Development North America

TXM North America is excited to announce the appointment of Chris Renton as Vice President, Business Development North America, Chris will engage TXM Customers across Canada and United States focussing on TXM’s suite of service and solutions.

Before joining TXM Chris worked extensively in the food and argibusiness space for over 40 years. Chris has worked with a wide variety of food and beverage manufacturers across the United States and Canada. In these businesses Chris has been an active contributor to revenue growth and manufacturing efficiency.

Experienced Sales Professional Joins TXM

Chris eventually assumed C-Suite roles as President and Chief Operating Officer of several key food manufacturers, each with an annual turnover range of $40 million to $100+ million and as many as 50 to 400+ employees. Chris has led the turnaround and ultimate sale of those companies to strategic partners after successfully implementing strategic initiatives to increase revenue, improve process flow, reduce waste, and increase contribution margin.

For the past 15 years, Chris has advised, coached, and mentored multiple organizations in their strategic planning through his own consulting business. Chris’ clients spanned various sectors of the FMCG industry across Canada and United States and Chris actively engaged with all stakeholders to manage cultural transformation, Lean Principles, and form lasting and sustainable results.

Chris will be working across all industries throughout North America and is keen to actively engage with Customers in showcasing the range of services and solutions that TXM offers.

Regional Queensland Lean Manufacturing Workshops

 

TXM have partnered with the Queensland Government & Regional Manufacturing Hubs around Queensland. The workshop will teach you how LEAN manufacturing will help you build a culture of operational excellence.

The two-day workshop will incorporate a practical simulation that will demonstrate the indisputable value of LEAN applied to SME manufacturers and distributors. All participants will be leave with tangible actions that they can implement immediately, and be provided with a library of resources to guide them through their journey.

Learn from Experienced Manufacturing Professional Ron Spiteri

These workshops will be run by one of Australia’s most experienced manufacturing consultants, TXM Director Ron Spiteri. Ron has 30 years’ experience working with multinational corporations all the way down to family owned and operated businesses. He has knowledge and skills that will help you understand the core concepts of Lean manufacutring to become operationally excellent.

The workshops are being run across Regional Queensland from Bundeburg to Mackay, so there will be a workshop in your region. Be sure to purchase a place at the workshops by following the individual links below.

Regional Workshop Dates

Mackay 30-31 August – Resources Centre of Excellence, 65 Crichtons Road, Paget, QLD 4740

Rockhampton 1-2 September – Rockhampton Manufacturing Hub, Building 37, CQUniversity, North Rockhampton Campus, 400-700 Yamba Road, Norman Gardens, QLD 4701

Cairns 5-6 September – Barlow Park, Corporate Room, 251-269 Severin Street, Parramatta, QLD 4870

Townsville 8-9 September – Mercure Townsville, 166-194 Woolcock Street Service Rd, Currajong, QLD 4812

Toowoomba 13-14 September – Toowoomba Sport Ground, John ‘Cracker’ McDonald Function Room, 47 Arthur Street, Toowoomba, QLD 4350

Bundaberg 26-27 September – Department of State Development, Infrastructure, Local Government & Planning, Level 1, 7 Takalvan Street, Bundaberg, QLD 4670

Maryborough 28-29 September – Carriers Arms Hotel Motel Function Centre, 405 Alice Street, Maryborough, QLD 4650

Places are filling fast so be sure to book well in advance for these workshops in your local region. We look forward to seeing you at the workshops.

TXM Signs MOU with Bosch Rexroth Australia

Melbourne based global operational excellence consultants, TXM Lean Solutions and world leading automation and assembly technology providers Bosch Rexroth have signed a memorandum of understanding covering co-operation between the two companies in Australia and New Zealand.

TXM are leaders in Lean manufacturing across Australia and New Zealand. Over the past 18 years they have built a reputation for practical, outcomes focused Lean implementation with sustained results. This has been built on the deep practical manufacturing experience within the TXM team. As a result, according to TXM Managing Director, “Our customers are increasingly looking to us to provide a broader perspective on operational excellence beyond Lean manufacturing.”

TXM are world leaders in factory layout design, having designed hundreds of factories across 25 countries around the world.  Increasingly these projects are requiring consideration of how automation and advanced systems can be integrated into the process. The push towards Industry 4.0 means that we are often being ask by clients to advise them on the right automation and assembly technology solutions for their businesses. TXM’s McLean says, “We have decided to seek out partnerships with “best of breed” providers across automation and systems that we can recommend to our clients. We were seeking a provider that could help our clients with robust and well-designed Lean workstations, conveyors, and material handling systems. Bosch Rexroth was therefore a perfect fit for us. We are very excited about this new agreement.”

As part of the arrangement, TXM customers will receive a discount on Bosch Rexroth products. TXM also hopes to leverage Bosch Rexroth expertise to increase customer awareness of the technology available to them and how it can be leveraged. “Our expertise is in helping customers work out the right applications for automation and assembly technology. Bosch Rexroth and its automation integration partners such as Bosch Australia Manufacturing Systems (BAMS) can then do the detailed design of customised solutions for the customer application, providing a total solution.” says McLean.

The Bosch Rexroth range includes manual production systems such as flow racks and custom assembly workstations as well conveyors, transfer systems, automatic guided vehicles, collaborative robots, and RFID systems. Several key TXM customers are already using Bosch Rexroth products and integration support from BAMS.

Experienced International Lean Manufacturing Expert Joins TXM New Zealand

Darran Allen joins TXM NZ with over 30 years’ experience

TXM New Zealand are happy to announce the appointment of a highly experienced & knowledgeable manufacturing expert to the New Zealand Consulting Team.

Darran Allen joins TXM Lean Solutions New Zealand with over 30 years’ experience as a Lean practitioner, spending the last 20 years as a Lean Consultant across the United Kingdom and New Zealand.

Originally from United Kingdom. Darran has worked with Toyota UK optimising their operations for over 10 years. Since moving to New Zealand Darran has primarily worked as a senior manufacturing expert and consultant.

He has extensive knowledge of Lean Manufacturing and continuous improvement, applying his knowledge as a business improvement professional across the FMCG and Food & Beverage Industries.

Darran can consult with businesses of any industry and has extensive experience implementing continuous improvement in varied & complex manufacturing environments. Contact TXM Lean Solutions New Zealand for more information.

Get a Free TXM Book at AMW 2022

 

We’re back exhibiting in Sydney, Australia at Australian Manufacturing Week 2022.

This will be out first Sydney exhibition since July 2019 in Australia, it’s great to be back! Meeting with Australia’s Premier Manufacturers.

TXM Lean Solutions will be advising customers on how to make the most of their current and potential investments in packaging machinery as well as advising on layout development, Supply Chain Management, continuous improvement and the latest in Lean thinking.

Come down to the International Convention Centre, Darling Harbour, Sydney between 7 – 10 June and visit TXM Lean Solutions at Stand MS86, mention this article and claim your choice of book.

Attend Australian Manufacturing Week for FREE! Make sure you come see us at booth MS86 to collect a copy of Tim McLean’s book ‘Grow Your Factory, Grow Your Profits: Lean for Small and Medium Sized Manufacturing Enterprises’ or ‘On Time, In Full’

 

 

FABTECH Canada is returning to the Toronto Congress Centre June 14-16, 2022. It is the platform to connect Canadian manufacturing engineers, decision makers, buyers and specifiers with suppliers of new technology, equipment, services and processes.

With live demonstrations and a host of experts to meet, it is the ideal opportunity to get a full update on the latest developments in all aspects of production machinery and technologies.

TXM Lean Solutions will be advising customers on how to make the most of their current and potential investments in machinery as well as advising on lean layouts and the latest in lean thinking.

Attend FABTECH2022 Exhibition for FREE! Make sure you come see us at booth 3056 for your CHANCE to collect a copy of Tim McLean’s book ‘Grow Your Factory, Grow Your Profits: Lean for Small and Medium Sized Manufacturing Enterprises’.

Come see us at booth 3056 between 14-16 June and mention this article to claim your FREE Lean book.

Get a Free TXM Book at AUSPACK 2022

We’re back exhibiting in Melbourne, Australia at AUSPACK 2022.

This will be out first exhibition since July 2019 in Australia, it’s great to be back! Meeting with Australia’s Premier Food, Beverage and Packaging Manufacturers. TXM will be at the show listening to the key note speakers and meeting with likeminded professionals.

TXM Lean Solutions will be advising customers on how to make the most of their current and potential investments in packaging machinery as well as advising on layout development, Supply Chain Management, continuous improvement and the latest in Lean thinking.

Come down to the Melbourne Convention and Exhibition Centre between 17 – 20 May and visit TXM Lean Solutions at Stand C254, mention this article and claim your choice of book.

Attend AUSPACK2022 Exhibition for FREE! Make sure you come see us at booth C254 to collect a copy of Tim McLean’s book ‘Grow Your Factory, Grow Your Profits: Lean for Small and Medium Sized Manufacturing Enterprises’ or ‘On Time, In Full’