Introduction to Smart Manufacturing: Value Chain Perspective for Innovation and Transformation

Introduction to Smart Manufacturing: Value Chain Perspective for Innovation and Transformation

ZongWei Luo (The University of Hong Kong, China)
DOI: 10.4018/978-1-4666-5836-3.ch001

Abstract

Fast advances in information technology (RFID, sensor, Internet of things, and the Cloud) have led to a smarter world vision with ubiquitous interconnection and intelligence. Smart manufacturing refers to advanced manufacturing with wise adoption of information technologies throughout end to end product and service life-cycles, capturing manufacturing intelligence for wise production and services. It represents a field with intense competition in this century of national competitiveness. In this chapter, an introduction to smart manufacturing innovation and transformation is presented. An example is used to illustrate what is happening in China's manufacturing industry, with insights about China's strategy of advanced manufacturing research and development. The chapter emphasizes the value chain analysis for setting smart manufacturing strategies. A case study is conducted in detail to showcase a value chain analysis of RFID enabled SIM-smart card manufacturing for China's mobile payment industry.
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2. Manufacturing For China

2.1 Cornerstone of China’s National Economy

The manufacturing industry is one of the pillar industries of China's national economy, the carrier for science and technology development and a bridge to productivity conversion. In 2010, China's share of global manufacturing output rose to 19.8 percent. Comparing with 19.4 percent of the U.S., China has become the world's manufacturing superpower. With over 200 kinds of industrial products output as well as export ranking top one in the world, China has become a truly big manufacturing center of the world. However, there exists a considerable gap in China's manufacturing technology and equipment manufacturing capacity, compared with other manufacturing powers in the world. Many of research and development activities are visible in the area of advanced manufacturing theory and technology. Research institutes and universities are sought for providing the source of innovation for the production of China’s manufacturing equipment to break through the blockade of high end manufacturing technologies by developed countries. This is of great significance in helping ensure national security and sustain healthy and stable development for China. Furthermore efforts are needed to carry out cutting edging research and development in smart manufacturing with aims to further expand and deepen the manufacturing technology innovation, help China develop into a high end manufacturing power, accelerate the transform from “Made in China” towards “Created in China.”

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