Making the Most of the Global Economic Paradox

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Making the Most of the Global Economic Paradox
AFLA September 14, 2006
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The Competition for Natural Resources
Limited Industrialization
Global Industrialization
Global Development
Limited Development
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Equal Learning
Associated Press
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A pipeline sonogram. Walls with less than 20
percent of their original thickness are flagged.
Scott Horsley/NPR
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Trade Deficits
 
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Continental Integration
NAFTA, CAFTA, etc. Europe has remained largely
steady on the path toward greater continental
integration. The European Union (EU) admitted ten
new members on May 1, 2004, bringing its total
membership to twenty-five countries. These new
members are Cyprus, the Czech Republic, Estonia,
Hungary, Latvia, Lithuania, Malta, Poland,
Slovakia, and Slovenia. Romania and Bulgaria are
tentatively scheduled to join in 2007, while
preliminary membership talks are set to begin
with Turkey and Croatia. httpwww.southerncenter.
org
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The Future of Knowledge Workers
 
Graphical Order Configurators Help the customer
describe what they want and then translate
accurately to manufacturing or distribution
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Technology

• Real Time Scheduling
• Once you have a batch of orders, you need a way
  to schedule manufacturing to optimize production
• Object oriented, memory resident programs that
  model manufacturing processes and their
  constraints that quickly produce an optimized
  manufacturing schedules

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Technology

• Shop Floor Flexibility
• Combine real time production with modular product
  designs and small, flexible assembly teams
• A networked client-server product that controls
  the sequences of operations and queues of
  materials on the shop floor and links with ERP
  systems

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Technology

• Customized Engineering
• A custom design change can force a quick product
  engineering change
• Sits between MRP and CAD systems to manage
  changes real time

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Technology

• Demand- Driven Logistics
• Logistics - getting the right quantity of product
  to the right customer in the right form at the
  right time
• Create customer specific profiles and track the
  flow of product

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Technology

• Linking to Suppliers
• EDI
• Bar Coding
• E-Mail / The Internet
• EFT
• Seamless integration of customers, distributors,
  manufacturers. The opportunities for service
  improvement will be tremendous.

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Composition of GDP
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Composition of Consumer Spending (PCE)
Personal Consumption Expenditures
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The Reports on Business

• Surveying manufacturing since 1931
• Over 350 respondents
• 20 SIC Codes
• Weighted by contribution to GDP
• 70 response rate
• Nonmanufacturing started in June 1997

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The Reports on Business

• A series of diffusion indexes measuring change
  from month to month
• Above 50 indicates growth
• Below 50 indicates contraction
• 50 is the breakeven or no change

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Economics and Calculus
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2004 AVG 60.3 2005 AVG 55.5 2006 AVG 55.6
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ECONOMICS 101

1. The Law of Abundance vs the Law of Scarcity
2. Currency rates are more important than interest
   rates
3. Technology and Services drive the economy
4. Over time the economy solves its own problems
5. There are winners and losers in every economic
   scenario how losers are compensated is as
   important as how winners are rewarded
6. All things in nature, the faster they grow the
   faster they die
7. Most of what we regard as objective is really
   subjective
8. Human beings are not wholly, or in some cases,
   even substantially rational
9. Uncertainty is the norm certainty is the
   exception
10. Large parts of what we know are wrong we just
    dont know which parts

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