INTRODUCTION
Manufacturing is a process in which raw materials are converted into finished goods. The process is accomplished with the use of industrial machines. The industrial tools used are mechanical powered which makes accomplishing a task easily possible. The manufacturing operations are related with producing tangible goods. The manufacturing process can be further divided into two significant branches. These classifications are process and discrete manufacturing. Process manufacturing is defined as production of products using a specific protocol and particular formula E.g. production of pharmaceutical drugs. Discrete manufacturing is the process of building products assembling parts E.g. Electronics, automobiles, furniture etc (Schieltz).
In this report a discussion will be presented relating to the manufacturing operations which are currently being practiced in Saudi Arabia. Acquiring professional knowledge and implementing it on the practical environment is essential for understanding its relevant importance. In Saudi Arabia the manufacturing industry is flourishing as the time is passing. Relating the Saudi manufacturing industry to those which are established in the US will show the progress which the economy has successfully acquired. An analysis of typical pay rates which are offered to the professionals pursuing engineering jobs will be discussed. All these facets of the report will signify the relative analysis of the manufacturing business as a whole. The production of goods requires that manufacturers understand the relative importance of efficiently utilizing the raw materials for acquiring the relative effectiveness.
Organizations operating in the manufacturing industry require appropriate and efficient utilization of resources. For this purpose the management ensures the application of appropriate Manufacturing Operations Management Systems. These make it easier for the management in creation, development, production and distribution of the products and services. Various systems have been introduced which include Manufacturing Execution System (MES), Human Machine Interface (HMI) and International Society of Automation (ISA) etc. These systems are used for enhancing the overall manufacturing efficiency of the organizations (Camstar).
COORDINATED WORK EXPERIENCE IN THE INDUSTRY AND BENEFITS OF INTERNSHIPS
The job market has become very competitive and specific set of skill are required in the fresh graduates for successfully pursuing their careers in the industry. Manufacturing industry is also developing with enhancements in the practices which the individuals are adapting. Appropriate utilization of professional learning is essential to be applied in the practical setup. Students enrolled in the Cooperative Industrial Practice require that they learn applying the knowledge which they have learned in a practical setup. Working experience in the manufacturing segment enables the skills of the students to understand the process and discrete manufacturing practices. Students which are seeking the practical exposure must be aware of the facts and figures of the industry in which they are aiming to pursue their career. Analysis of the manufacturing industry of the Saudi Arabia and comparing it to the US industry will give a comparative analysis of growth and progress which is taking place in the industry. Identification of changes in the operations will also be discussed. Assessing the pay scale offered to the executives standing at different levels gives a clearer understanding that whether or not individuals wish to pursue their careers in the fields.
The summer internships are also beneficial for the employers. In the manufacturing industry the employers require undivided dedication and commitment from the employees. Employers understanding the importance of this fact hire professional and test them for their capabilities. This is an effective way for the individual’s o hire talented, low risk individuals. This process of hiring interns is a low cost process which promotes the company benefits and screens the best individuals which may prove to be an asset for the organization. Recruiters consider hiring inters as potential job candidates as they have already been tested for their commitment and expertise by the organization (Matta).
The benefits for getting enrolled in a particular work environment setup as an intern enhances the overall skills which the individuals have acquired while studying particular courses. Summer internships enable the students in building their overall skills and abilities. This gives then an understanding of appropriate skills which they have possessed. Discovery internships in varying segments enable the students in developing their overall personal and professional growth. This prepares them and makes them understand the way in which they seek to pursue their careers. Internship programs are ways with which certain students stand out y showing sheer hard work. This clears their minds and gives them access to invaluable resources. This hand on experience clarifies the career goals which the students wish to acquire. Interning is a priceless experience which gives direct exposure to the practical scenario and delivers the students skills which cannot be learned from any books.
MANUFACTURING OPERATIONS WHICH EXIST IN SAUDI ARABIA
The manufacturing industry of Saudi Arabia is subject to constant growth. This has deployed new and advanced technological methods in the manufacturing business. The overall operations management system has evolved and latest methods are being used by the business organizations for this purpose. Advancements in the manufacturing operations have excessively contributed in increasing the efficiency of the businesses.
The industries understand the fact that competing for acquiring excellence requires that the operations of the businesses are improved. Increasing business efficiency increases the overall profitability of the businesses. For this purpose the JIT, Six sigma and other operating systems are introduced to the manufacturing segment for improving the working efficiency. These function of the supply chain and operating function of the business are essential for the business to compete today.
Businesses operating in Saudi Arabia are working for acquiring the operational efficiency. Continuous business development which the businesses are acquiring in different domain and economical growth are leading the businesses towards enhancing and improving their overall profitability. Constant development and finding new methods for improving the businesses lead towards proposing new methods for accomplishing operational excellence. The implementation of the manufacturing operations systems and other practices like the Manufacturing Efficiency Systems (MES) are essential for the businesses to implement. The JIT, Six Sigma and other practices which contribute towards enhancing the efficiency and effectiveness of the manufacturing businesses are very essential. Application of these systems ultimately improves the manufacturing operations of the businesses.
THEORIES FOR ENHANCING THE MANUFACTURING OPERATIONS EFFICIENCY
The organization located across the globe adapt to different strategies which contribute to enhancing the manufacturing operations. There are different aspects which require to be amended from improving the efficiency of the organizations. These domains are improving the process, organization, knowledge, technology and performance of the business. All these segments some way or the other contributes in enhancing the overall manufacturing operations efficiency of the business (Aberdeen Group).
Manufacturing operations management as suggested by Siemens model can be enhanced through broad functional advantages. This model suggests improvement across different plants. For maximizing the efficiency and enhancing the overall quality can be improved by enhancing the overall production operation function. The MOM function standardizes ad optimizes the entire operations of the organization. Organizations strive for minimizing the lead time and propose methods for optimizing asset utilization. Reducing the response time enhances the production visibility (Siemens).
The average steps which the organizations use for minimizing the manufacturing steps include linking the technology for accomplishing efficiency. This automates the data collection for standardizing the process. This guarantees higher quality and enhances the overall manufacturing intelligence. The benefits of applying all these processes on the manufacturing processes are linked to overcome the huge market pressure, overcome economic crisis if any, acquire efficiency targets, innovate and produce quality. Proper application of the management operations also reduces wastage, improves the material yield, improves the overall efficiency of the equipment, reduce the work in progress and increase the overall quality.
CONTINUOUS ECONOMIC DEVELOPMENT IN SAUDI ARABIA
The Kingdom of Saudi Arabia has huge reserves of Hydrocarbons which lead to huge revenues and financial holdings of about US$ 500 Billion (Allurentis, 6-7). Saudi Arabia has the potential of continuously growing and developing its economy sustaining the impact of rising oil prices. In the coming year’s new phosphates, iron smelting and aluminum industries will be established which will boost the economic growth and add billions to the revenues of the economy. All these are thought to be accomplished with the collaboration of the foreign and domestic investors. Saudi Arabia has been ranked eighth amongst the top ten economies on the list of IMF. The state plans to invest US$ 218.7 billion for the year 2012 (Allurentis, 6-7). The revenues of the economy are projected to reach US$ 330.5 billion (Allurentis, 6-7). Investing in development of the manufacturing sector is on high priority of the economy. The Saudi economy is aiming at introducing development in the oil and gas sector. The development in the petro chemical and mining sector will enhance the chances of potential growth for the industry. The use of petrochemicals in the manufacturing industry is very high and the sales of petrochemicals amount to US$ 12 billion annually (Allurentis, 6-7). The biggest manufacturing company SABIC is the biggest and the most diversified manufacturing company of Saudi Arabia. Its functions include production of chemicals, industrial polymers, fertilizers and metals which are sold across the globe. Excessive investment by the Saudi government in the manufacturing industry and acquiring potential growth will make Saudi Arabia as one of the most competitive economies in a few years (Allurentis, 6-7).
Saudi Arabia is one of the largest producers of desalinated sea water. New technological advancements and reforming the management practices will enhance the future prospects of the economy. Development in electricity generation segment is also important. This will create opportunities for enhancing related features. US$ 90 billion are expected to be invested in improving the water, sewage and the related power projects. Development of the economy will create new opportunities for improving the transportation infrastructure, defense and security segment etc. The investment blend in different segments of the industry will provide jobs for those who are currently unemployed. This will bring a new rotation in the job trends. Expansion and development of the economies will ultimately contribute in creating new opportunities in the manufacturing sector of the economy (Allurentis, 6-7).
MAJOR INDUSTRIES OPERATING IN SAUDI ARABIA
Saudi Arabia has analyzed the potential in economic development. Major industries of Saudi Arabia which significantly contribute in economic development and are considered as the backbone of the economy are (Allurentis, 109):
- Crude oil production
- Petroleum refining
- Basic petrochemicals production
- Ammonia
- Industrial gases
- Sodium hydroxide
- Plastics
- Cement
- Fertilizers
- Aircraft and ship repairing
- Construction etc.
In the graph below investments which have been made in different sectors of the economy have been shown. These include all the aspects of the business which includes the manufacturing and service related industries.
(Allurentis, 20)
Saudi Arabia is also known for excessively importing machinery and equipment, food stuff, chemical, textile and automobiles etc. Major exports of the economy include petroleum and its derivative products. All these industries which have been discussed above relate to the manufacturing business in the industry.
Saudi Arabia is collaborating with UK for enhancing business expansion and trade. This is a step ahead for enhancing trade. The global participation of Saudi Arabia enhances the economic and financial situation of the overall economy. This is influenced by social and political consideration which dominates the overall growth of the economy as a whole. Investing in the economy and its different segments is a major benefit for the investors (Allurentis, 17). The spending plan of the government in different sectors for encouraging progressive growth has been shown in the graph below.
(Allurentis, 17)
BROADENING OVERALL INDUSTRIAL STRATEGY OF SAUDI ARABIA
Economic advancements have led to development in new business area. This has increased the chances for international and domestic businesses to establish new business units. Large scale industrial projects have paved a path for new firms to enter in the industry. The establishment of new units will lead the development of new units in different sectors of the business. E.g. 40% development is expected in pharmaceutical industry which will develop local production. This will contribute in completing the local needs and enhance manufacturing. High level of investment in the industrial units suggests that the petrochemical industry will increase the production by 250%. This amount estimates up to 100 million tonnes by the year 2016 (Allurentis, 44-46).
The industry is growing at a rate of 7.2% in the manufacturing industry (Allurentis, 45). The ninth development plan for the year (2010-2014) estimates a 14% growth in the GDP (Allurentis, 45). This growth in the economy will improve the unemployment rate of the economy. Economic suggestions for improvement suggest building of new economic cities. This will create new employment opportunities and promote businesses in different industries. Port expansion programs, water infrastructure, environmental management and development in mineral wealth will enhance the stability of the businesses. Initiation of new rail lines and transport revolution, air transport revolution, retail expansion and enhancing the health care provisions will build new opportunities in different sectors of the industry (Allurentis, 44-46).
All these aspects which have been discussed above contribute in the development and expansion of the overall manufacturing business. Development of the economy contributes in development of industries which include manufacturing businesses. Kingdom of Saudi Arabia is developing very effectively in the segment of manufacturing. With improvement in the economy greater opportunities for business expansion will be initiated. The continuous development of the economy has successfully contributed in elevating the culture and history of the country. These developments have led the country to a completely different level. The business expansion has developed new opportunities for manufacturing businesses which have improved overall business abilities.
MANUFACTURING INDUSTRY OF THE US
The manufacturing industry is very vital for the overall economic growth and benefits of the US. The rise in the stability of the economy shows that the businesses directly emphasize on the benefits which they are realizing. In 2012 the manufacturers in the US economy contributed $1.87 trillion to the economy. This figure amounts to 11.9% of the GDP. This shows the largest multiplier effect in the entire economic sector. The manufacturing sector of the entire US economy is supported by 17.2 million jobs in the US. In figures it can be seen that 12 million of the Americans are directly employed in the manufacturing sector. The contribution of the people in this sector is high. This shows that the contribution of the US economy and the benefits which the economy is availing in the manufacturing sector is also very high. Manufacturers situated in the US are the most productive. The productivity which the managers acquire contributes directly to the wages which the individuals are earning and to the living standards. The manufacturers which are operating in the US perform most of the R& D. This benefits the entire nation and contributes directly towards innovation. The manufacturing invested in the US economy can be considered as being amongst the 10th largest of the economies of the world (NAM).
The chart which has been shown below shows the multiplier effect on the manufacturing industry of the US. The highest return and the significance are acquired by the US manufacturing industry.
(Manufacturing Institute, 12)
The manufacturing businesses of the US adapt to some of the most efficient business practices which have formed essential components of the economy. It has been noticed that the US produces more goods and services than any other economy of the world. The competitors of the US firms are constantly initiating cost effective strategies for promoting businesses on their shores. An estimate shows that the goods produced in the US markets are 20% more expensive and this amount excludes the cost of labor. The tax regulations imposed on the manufacturers in the US is also very high. The cost operating burden faced by US manufacturers is 20% higher comparatively (Manufacturing Institute).
MANUFACTURING IN THE US FACES A STRUCTURAL COST DISADVANTAGE
(Manufacturing Institute, 3)
The chart which has been shown above shows the cost which the organizations bare whole managing their operations. The cost of taxes incurred is very high and the rate is constantly increasing.
The businesses require that the structural cost of manufacturing is reduced for enhancing competitiveness. US aim at enhancing its competitiveness in manufacturing. This will enhance the foreign direct investment, access the global markets, maintain an efficient workforce and become innovators. These goals will require the manufacturers to improve their entire operations. The students of US are not competent with the math’s and science skills which they possess. The chart below shows a comparative rating for the skills which are possessed.
(Manufacturing Institute, 10)
The compensation offered to the employees working in the manufacturing sector is awarded 19% higher compensation than those which are working in the non-manufacturing industries. The wage rate benefits offered to the employees working for small firms are also higher.
The manufacturing sector of the US means initiation of new jobs. This sector of the economy employs about 12 million employees and it further leads towards generating 5 million more jobs (Manufacturing Institute). This leads the industry towards progressive growth and it further promotes innovation. The manufacturing industry of the US has a significant impact on its economy.
(PWC, 3)
Considering the operational efficiency the above chart is a sample which shows that these are the operations functions where US manufacturing industries have a more prominent advantage (PWC, 3). The disadvantages of the economy are also shown in this chart.
COMPARISON OF BOTH THE ECONOMIES
The manufacturing operations adopted by Saudi Arabia and US both are based on state of art designs. Both the economies focus on developing operations systems which are the most cost effective and save time for the organization by enhancing their operational efficiency. The US industry is currently effective in terms of technology and workforce but the over burdening tax systems reduce its competitive advantage. The manufacturing practices applied in both the economies are based on using state of the art practices. The Manufacturing Execution Systems (MES) is another strategy which is used by the companies for maintaining their manufacturing operations. All these strategies which are implemented step by step contribute to the development of the operations management domain of the system.
TYPICAL PAY RATES FOR ENGINEERING JOBS IN SAUDI ARABIA
The pay rates which are offered to the candidates in search for engineering jobs in Saudi Arabia are shown below. The rates shown below represent the range of salaries which the individuals can acquire while working in the industry. This chart represents the maximum and minimum salaries which an engineer can expect to earn in Saudi Arabia.
(Salary Explorer)
The average monthly salaries of the engineers are shown in the table below. Different engineers in different domain of engineering may expect salaries ranging same where around the figures which have been shown in the table below. The pay rates may vary but an estimation of the salaries is shown below.
(Salary Explorer)
The wage rates which are been awarded to the engineers in Saudi Arabia are significantly high. This is the reason why the strong brains from different parts of the world consider moving to Saudi Arabia and pursue job careers there. The salaries which are being offered to fresh and experienced workers are much better than what they can accomplish in other countries. Most of the workers these days consider pursuing a career in Saudi Arabia.
CONCLUSION
The manufacturing operations which the manufacturing companies adopt with the businesses aim towards maximizing their overall efficiency and effectiveness. The company’s try maximizing their innovating capabilities and try to successfully acquire cost effectiveness. This practice can make it easy for them to sustain in the industry. The more significant the cost effectiveness the more beneficial does the business become. All the functions of the management try maximizing the returns by improving operational efficiency. This is considered highly for improving the cost advantage of the firms.
Saudi Arabia is dynamically growing in the manufacturing industry. Its operational effectiveness and initiation of new functions for economic development is contributing towards potential growth of the economy. Establishing new industries and starting new businesses will improve the functionality which will significantly contribute to the improvement of GDP of the economy. The fact that Saudi Arabia is an oil producing economy the growth of the country is significantly higher. Development of modern practices and applying them on the industry will contribute in the growth of the economy.
US economy is considered as one of the biggest manufacturers but due to the high tax rates the manufacturing industries are not being able to sustain competition. The companies are losing their cost advantage and hence their reputation in the industry. The businesses are functioning using the state of the art methods. Applying such practices provide innovation in the production practices of the firms.
This report presents a comparison of the two diversified economies and elaborates the manufacturing operations which are adopted by the firms. A comparative analysis of the two economies shows the factors which are benefiting the economies to excel towards success. An analysis of the wage rate which is being offered to the engineers currently in Saudi Arabia is also shown. The wage rates awarded to the workers in the US has also been shown. These factors show the benefits which the workers get when they are working in the manufacturing industry. All these portion of this report show the measures which the firms can implement for improving their manufacturing operations.
WORKS CITED
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