The tale of two factories

Article Critique
24-Feb-13

Name-Prithvi Sunku Kiran Banner id-@02888177 Cohort-A23

1. Identify the differences in the processes of the 2 factories, addressing labor relations, safety, amount of automation, methods, costs etc.?

Process- In Shangai plant there are 275 people working in 2 shifts each of 8 hours. In Litchfield plant there are 324 people working in 3 shifts in a day. Automation- The shangai plant automation is less to take the advantage of the cheap labor available in china and to get a human touch. The Litchfield plant is semi-automated and regular production techniques are implementing for the progress because of the innovation and non availability of cheap labor.

Costs-In the shangai plant cost labor represents just 1%. In Litchfield plant cost labor represents about 12%. Methods- The shangai plant is labor intensive. The Litchfield, Mich is plant Semi automated as people there are more Experienced and benefit oriented.

2. Discuss the differences in life circumstances of the workers? Shanghai Pu Chaunming married couple workers are put up in a small one bedroom rental apartment, commute to work on bi-cycle. They cannot nourish their own children due to long and hectic working conditions. Earns about $1.56 an hour, but still think that their future is safe.

A bachelor 26yrs old Zhang Yiqi, who is self-possessed and ambitious, with a stylish hair cut, earns about $250 a month spends his free time seeing friends, working out and riding motorbike. He wishes to become a supervisor and happy with job.

Litchfield, MichDave Houghton married couple workers earns about $30 an hour followed by benefits, commute to work in cars, stay in self owned home and raise their own children. They have comfortable living and concerned on global competition.

3. How do the workers view the future differently? Shanghai -People here are Positive attitude towards future working has they are the worlds low cost assembler. They are sure that his is going to be better for them.

Litchfield, Mich-People here are insecure about jobs and have to face competition in day to day activity as a survival strategy.

4. What has been happening with how much people have paid over the last few years in each location?

Shanghai In this plant before couple use to earn $1.50an hour. Blue collar worker makes $210 for 160 hours a month. White collar worker earns $625 month. The wages was doubled in past six years, to $250 a month for a blue collar job.

Litchfield, MichIn this plant all the workers are usually highly paid a couple earns about $30 an hour. A repair technician earns about $14.10 per hour. Here worker get a regular quarterly bonus about $480 which is equal to seven month salary month pay of Shanghai workers.

5. If you had a crystal ball what do you think each site will look like in 10 years? That is, what changes will have occurred?

ShanghaiAfter 10 years the plant will have many changes has the worker lifestyle will increase, more investment will be done on machinery, and wages will increase and the workers confidence in management would grow Business would be quite similar to the other plant.

Litchfield, MichThere might be more automated machinery, many work will be outsourced due to cheap labor in global. Many factories might close have cut thought global competition and more innovation would be required to break through the market.