Improving the performance of manufacturers
A Confederation of British Industry case study

Page 1: Introduction

The economy is made up of a number of component parts or sectors. One commonly used classification of sectors is that of: primary - gifts of nature such as extracting or developing natural resources including farming, forestry, mining or fishing secondary – manufacturing and the construction industries or the making of goods on a large scale tertiary - service industries which are made up...
Read full page

Page 2: The role of the CBI

The CBI, is a national organisation founded to voice the views of its members so that the government of whatever political connection and society as a whole, understands the needs of business. Founded in 1965, the CBI is an independent, non-party political organisation funded entirely by its members in industry and commerce. The CBI’s objective is: ‘to help create and sustain the...
Read full page

Page 3: The importance of manufacturing to the economy

The UK has a long history of manufacturing dating back to the industrial revolution of the late nineteenth century when Britain was considered to be the workshop of the world. Historically, Britain’s manufacturing base was centred on heavy manufacturing industries such as shipbuilding. However, there has been a seismic shift in manufacturing over the last fifty years in terms of...
Read full page

Page 4: The production process

Market research will determine what customers want from the product. This will indicate if a demand exists and what the consumer wants in terms of features, specification, quality and price. There will then be a research and development phase which brings together the above demands, together with the technical possibilities for manufacturing the product. Before an innovative design can be put into...
Read full page

Page 5: Adding value

An increasingly important method of adding value to manufactured products comes in the form of after-sales service. Such a facility enables the manufacturer to differentiate its product and offer products that are tailored to customer needs. Overall, the company has taken a number of inputs including labour, raw material and components and has added value to those inputs through design...
Read full page

Page 6: Conclusion

The distinction between manufacturing and services is therefore becoming blurred through service additions such as after-sales maintenance contracts, delivery, leases and finance options. Many non-core activities, such as delivery of finished goods and logistics have been transferred from the manufacturers to specialised service providers. This also creates a strong and interdependent relationship...
Read full page