Manufacturing and services Industry Industry (uncountable) is the production oi materials and goods. The related adjective is industrial. An industry (countable) is a particular type of business activity, not necessarily production. Manufacturing ... ... and services Here are some ol the manufacturing industries Here are some of the services or service rhar make up the manufacturing sector: industries that make up the service sector: aerospace planes and space vehicles cars (BrE) automobiles (AmE) cars computer hardware computers, printers, etc. construction buildings defence (BrE) defense (AmE) arms, weapons food processing canned, frozen foods, etc. household goods washing machines, refrigerators, etc. pharmaceuticals medicines steel a stronger, more useful metal than iron textiles cloth and clothes catering restaurants, bars, etc. computer software programs for computers financial services banking, insurance, ere. healthcare medical care leisure- sport, theme parks, ere. media books, newspapers, film, television property (BrE) real estate (AmE) buying, selling and managing buildings retail shops telecommunications phone, Internet services tourism travel and holidays Note: You use all these words in front of 'industry' to talk about particular industries, but you usually drop the 's' from 'cars', 'automobiles', 'pharmaceuticals' and 'textiles': 'the automobile industry! Countries and their industries Here is how industry has developed in South Korea: In 1950, South Korea was a poor country, with most people living and working on the land. The government decided to industrialize, and the new emerging industries were textiles, and heavy industries like steel and shipbuilding. Then South Korea turned more and more to light industries like electronics, making electrical goods such as televisions cheaply. It also started producing cars. South Korea moved into specialized electronics in the 80s. This was the one of the growth industries of the 1990s: making specialized parts for computers and telecommunications equipment. 34 Business Vocabulary in Use 13.1 Companies in particular industries need to avoid particular problems. Match each problem to one of the industries in R opposite. 1 Buying a new building and being unable to find people to rent it. 2 Causing public anger by building mobile phone masts in beautiful countryside. 3 Making vehicles whose tyres burst at high speed. 4 Holidaymakers arriving to find that then hotel is not finished. 5 Lending to someone who cannot repay the loan. 6 Selling weapons to governments that people do not approve of. 7 Buying players who do not score goals. 8 Making drugs that poor countries cannot afford. 9 Rejecting a book that is then brought out by another publisher and sells 3D million copies. 10 Removing the wrong leg in an operation. 1 3.2 Use words from A, B and C opposite to complete the crossword. 1 1 i 4 s r 7 - r 10 u u tí L i _ L L_ L L L_ L_ _ - Across 1 Plane and rocket industry. {9) 3 Metal industry. (5) 4 Any industry that doesn't sell goods. (7) 6 Making things. (13) 8 Television, music, the Internet. (5) 9 Related to industry or industries. (10) 11 Describing a new industry. (8) 12 Describing an industry that is getting bigger. (6) 13 Making drugs. (15) Down 1 Making cars in the US: the............ industry. (10) 2 Making arms (BrE). (7) 5 Serving food and drink, rather than making them. (8) 7 Keeping people well:............care. (6) 10 Making televisions rather than steel: ............industry. (5) Is your organization, or one you would like to work for, in manufacturing or services or a combination of both? Where are industries in your country based? Are companies in different industries grouped in different areas? Business Vocobulaiy in Use 3 S The development process Market research The original concept is the basic idea for something. In designing products and services, market research -finding out what people want - is of course very important. This may involve questionnaires or surveys, with questions about what people buy and why, perhaps with interviews in the street or by telephone. There may be consumer panels and focus groups, where ordinary people meet to discuss product ideas informally. Perhaps the researchers will make sales forecasts. estimates of how many products will he sold. See Unit 21 for more on markering. Development and launch In software, developers often produce a final test version, the beta version, where users are asked to point out bugs (problems) before the software is finalized. Car designers use CADCAM (computer-assisted design / computer-assisted manufacturing) to help develop and make products and test different prototypes. Researchers in laboratories may take years to develop new drugs, testing or trialling (hem in trials to show nor only that they are effective, but also that they are safe. Drugs need to be made on an industrial scale before they can be sold. Rollout is the process of making a product available, perhaps in particular places, to test reaction. Product launch is the moment when the product is officially made available for sale. This is the 'big moment'. If a design defect or design fault is found in a product after it has been launched, the company may have to recall it, asking those who have bought it to return it. perhaps so that the defect can be corrected. Business Vocabulary in Use 14.1 14.2 Three people are talking about tlieir work in product development. Correct the mistakes in italics, using expressions trom A and B opposite. 1 a) Market researches showed there was a real need for this service, but before offering it, we had to test it in a (b) beta copy with small groups oi users over several months to eliminate all the bugs. Even so, (c) after lunch, some users said they could get into other people's accounts! The more you eat, the thinner you get, and Id) the focal groups said they liked the taste, but first we had to prove to the authorities that it was (e) secure. Another problem was making it on an (f) industrial level: at first we could only-make it in small quantities in the laboratory, but 3 making it in bigger quantities was impossible. At our research centre in Toulouse in France, the (g) designators develop the prototypes. People think that my job is dangerous, but there is so much (h) tasting on computer first, that all the danger has been eliminated by rhe time we use the product, (i) CADCAR means that the process of design and manufacture is much quicker than before. y ^ Complete this ralk by a marketing specialist using words from A and R Opposite. A few years ago a famous car company launched a new car, based on a completely neu (1)....................They'd done years of technical research and i 21 ............... research with focus (3)....................and (4).......................panels and analysis of responses to questionnaires and (5)........................Then came the (6)...............................................Sales of the car were very good until a Swedish newspaper reported the results of its 'elk tesť. They found that the car had a tendency to tip over if you turned quickly to avoid an elk. This was due to a (7)....................... fault in the car. so rhey had to (Si......................all the cars they'd sold in order to correct it. ,.MAM ^>r UM f - Over +o tpu ^ What sort of market research does your company, or one you would like to work for, do? Have you ever taken part in market research as a consumer? Business Vocabulary in Use 3 7 Innovation and invention Innovation and invention Verb Noun: concept Noun: thing Noun: (uncountable) (countable) person design: to make plans or drawings for how something is to he made design a design a designer develop: to make a new idea successful, for example by making or improvinga product development a development a developer innovate: to think of new ideas, methods, products, etc. innovation an innovation an innovator invent: to design and make something for the first time invention an invention an inventor - technology: the practical or industrial use of scientific discoveries a technology a technologist countable - you can sav alün\ uncountable = von can't sa\ a/an Research and technology Hi, ľm Ray and I'm head of product development at Lightning Technologies. Lightning makes semiconductors, the components at rhe heart of every computer. I'm in charge of research and development (R&D) at our research centre just outside Boston. Our laboratories are some of the most innovative in the computer industry, and we have made many new discoveries and breakthroughs. 1 love technology, using scientific knowledge for practical purposes. The technology ot semiconductors is fascinating. We are at the cutting edge or leading edge of semiconductor technology: none of our competitors has better products than us. Everything we do is state-of-the-art, using the most advanced techniques available. Of course, the hi-tech products of today become the low-tech products of tomorrow. Products that are no longer up-to-date because they use old technology are obsolete. It's my job to make sure rhat I ightning's products never get into that simation. BrE: research centre AmE: research center Patents and intellectual property Information or knowledge that belongs to an individual or company is proprietary. A product developed using such information may be protected in law by patents so that others cannot copy its design. Other companies may pay to use the design under licence in their own products. These payments are royalties. In publishing, if a text, picture, etc. is copyright, it cannot be used by others without permission. Payments to the author from the publisher are royalties. The area of law relating to patents and copyright is intellectual property. Noun Verb BrE: a licence to license AmE: a license to license Business Vocabulary in Use 1 5.1 Choose the correct forms to complete these sentences containing words from A opposite. 1 White came up with (a design/design) that combined lightness and warmth. 2 There's an exhibition on architecture and (the design/design) at the Museum of Modern Art. 3 McGrcw is vice president of (a development/development) and product planning. 4 The EDA has approved fa development/development) for Treating tooth disease, a new laser machine. 5 Electric light was (an invention/invention) which enabled people to stay up later. 6 Sometimes (an invention/invention) is so obvious that it is hard to believe nobody thought of it before. 7 Channel Four has always encouraged experimentation and (an innovation/innovation) in its films. 8 He discovered (an innovation/innovation) that has enabled him to build guitars more efficiently. 1 5.2 Complete this presentation using words from R opposite. Put The words in brackets into their correct form. Hi, I'm Raj (1).......................I'm head (2).......................product (3 develop).......................at (4).......................Indian Rice Research Centre. I'm in charge of research (5)............ development (61.......................our (7 researching).......................centre in Delhi. Our (8 laboratory).......................are (9).......................of the most (10 innovation).................. (11).......................agriculture. We have recently (12).......................some big (13 breakthrough).......................in increasing rice production. 1 love (14 technological) ......................, using scientific knowledge (15).......................improve people's lives. (16) ...................technology(17) rice development (18) . a good example (19).......................this. , We are at the (20).......................edge of rice-growing techniques. Everything we do (21).......................state-of-the-art, using the most advanced biological (22 know) available. 1 5.3 Match the expressions (1-61 from C opposite with their meanings (a-f). 1 copyright infringement a a payment to the owner ol a design, or to an author b an arrangement between the owner of a design and someone else, allowing them to use the design for money c when someone uses another's text, pictures, etc. without permission d when an inventor asks the authorities to officially recognize an invention as his/her property e designs, ideas, etc. that belong to someone f the law relating to designs, ideas, etc. that belong to someone 2 intellectual property 3 patent application 4 proprietary information 5 royalty payment 6 licensing agreement Over +o qou For you, which is the most important invention of the last 100 years? Which one do you wish had not been invented? Business Vocabuiory in Use 39 Making things BrE: labour-intensive AmE: labor-intensive Products A product can be: ■ something natural. ■I something made to be sold. ■ a service. Produce refers to agricultural products such as crops or fruit. For example, you can buy fresh produce ar a farmers" marker Something that is made is produced or manufactured. A country or company that produces something is a producer of it. A company that manufactures something K a maker or manufacturer of manufactured goods Mass production Tm Steve and I'm head o) car production at a manufacturing plant. 'Plant" sounds more modern than factory or works. On the assembly line we mass-produce cars. The plant is highly automated: we use a lot of machinery. These machines arc expensive to hm but very cost-effective - we don't have to pay them wages! We use industrial robots. These robots are part of the CADCAM system BÍ computer-assisted design and manufacturing.' 'My name's Luke. I have a little workshop where I produce furniture ordered by individual customers. We don't use machinery: the furniture is handmade. Producing furniture like this is a craft industry. It's very labour-intensive: it rakes a lot of work to produce each piece. Many people dislike the furniture that big companies cliurn out in large numbers on their production lines, so we have a lot of customers." CADCAM system Craft industry Capacity and output Output is the number or type of things that a plant, company, industry or country produces Productivity is a measure of how much is produced in relation to rhe number of .employees, High output per employee = high productivity. The maximum amount rhar a particular plant, company or industry can produce is its capacity. If it is producing this amount, it is working at full capacity If it is producing more than what is needed, there is overproduction or: ■ excess capacity ■ overcapacity ■ spare capacity ■ surplus capacity These expressions can also be used in service industries. -if far too many things are produced, there is a glut of rhese things. If not enough goods are being produced, there is n shortage. Business Vocobtilary in Use 1 6.1 Complete this mhle with words from A opposite. 16.2 Verb Noun: Noun: process Noun: thing person/organization make maker X X manufacturing produce: non-food production produce: food production Rearrange these lines to make a text containing words from R and C opposite. 1 work. Of course, we still have a lot of assembly 2 plant producing TVs in Singapore. We have two production 3 \1\ name's George Chen, and I'm director of a manufacturing 4 lines working 24 hours a day. We use CAD 5 line workers, so it's still quite labour- 6 intensive. But with the help of computer- 7 CAM, and robots do some assembly 8 assisted design and automation, productivity is increasing. 1 6.3 Match the headlines (1-7} to the extracts they relate ro (a-g). 1 FOOD SHORTAGES HIT EASTERN AFRICA AIRLINE REPORTS BIG PRODUCTIVITY RISE TOO MUCH BUILDING LEADS TO GLUT OF OFFICE SPACE LOCAL PLANT AT FULL CAPACITY FALL IN STUDENT NUMBERS LEADS TO EDUCATION OVERCAPACITY OIL OVERPRODUCTION LEADS TO PRICE FALL NATIONAL OUTPUT AT ALL-TIME HIGH ... Overall production in the country rose by five per cent last year ... ... Rainfall has been below average in this part pi Africa tor the past five years. Not enough food has been grown ... ... loo much oil has been produced recently in relation to world demand ... ... There have never been so few people aged between 17 and 21 since 1950. The result: too many places at private colleges and universities ... ... Tlie plant's capacity is 3,000 computers a week, and it's producing 3,000 ... ... Northern is running more flights with fewer pilots and staff. That was the message from Northern's CEO Frank Delaney to shareholders yesterday ... ... There has been too much building in the city centre, and now there is a lot of office space standing empty ... Over Jro ipu Are hand-made goods necessarily better than factory-made ones? What about cars, clothes, computers and shoes? Business Vocabulary in Use 4 I Materials and suppliers Wnrk-in-prngress BrE: work-in-progress; Ami: work-in-process BrE: stocks; AmE: inventories Inputs Dryden makes vacuum cleaners. It takes raw materials like steel and plastic and makes some of the components or parts used in its products. Other components are made by other companies. Materials and parrs are just some of the inputs. The others are labour (workers and managers) and capital (money). Knowledge is also important because Dryden is a leader in vacuum technology. Vacuum cleaners that are being made are work-in-progress. At any one time, Dryden has goods worth millions of dollars in its factories and warehouses: the products that have been made -its finished goods - and materials and component«;. Quantities of raw materials, components, work-in-progress and finished goods in a particular place are stocks. Note: Goods is rarely used in the singular. Suppliers and outsourcing Dryden receives materials and components from about 20 companies, irs suppliers or partners. The company is doing more subcontracting: using outside suppliers to provide components and services. In other words, it is outsourcing more, using outside suppliers for goods or servietó rhar were previously supplied in-house: within the company. Just-in-time Of course, it costs money ro keep components and goods jpstock: stocks have to be financed (paid for), stored (perhaps in special buildings: warehouses) and handled (moved from one place to another). So Dryden is asking its suppliers to provide components just-in-timc, as and when they are needed. This is part of lean production or lean manufacturing, making things efficiently: doing things as quickly and cheaply as possible, without waste. A warehouse Business Vocabulary in Use 17.1 Use words from A opposite to label rhe diagram. Inputs (5 o —q— Q) j—-n—n-ľť ftftft&ÁÁ 17.2 Match the sentence beginnings (1-4) with the correct endings (a-d). The sentences all contain words from R opposite. Computer manufacturer XL is cutting back on in- contractors' maintenance work is worn ins; train operating companies. The poor standard of some sufc Retail giant Sharks I id have decided to out Late deliveries from outside suppliers are causing delays in prod i k Hon. llic A/to group claims. hou.se production work in a bid to reduce costs and increase efficiency. source canteen and cleaning services, to focus better on its buying and selling activities. 1 7.3 Replace rhe words in speech bubbles with rhe correct form', of words from C opposite. 1 Leťs get the materials in (jmly when we need tbein\xo keep costs down. 2 It's difficult to find the right ( special buildings'^, ro P"r our finished goods in. 3 You'll have to decide well in advance how / to pay ) for all this. 4 Its ver>' important that we ŕkeep "Tthese components at the right temperature. 5 There must be a (^ quicker and cbeupeT^\ method than this! 6 They want to introduce a svstem of Quaking things efficiently. "^ Oitr +o ipu ^pi What are the advantages and disadvantages of: outsourcing? using outside suppliers? asking for components 'just in time'? lean production? Business Vocabulary in Use Business philosophies Total quality management Tom Dryden, of Dn'den Vacuum Cleaners, believes in quality: 'The specifications or specs of a product are exact instructions about its design, including its dimensions (size), how it is to be made, the materials to be used, etc. The objective of quality control is conformity to specifications, the idea that the product should be made exactly as it was intended, with zero defects: no faults at all. Things should be done right first time so we don't have to correct mistakes later in a process of reworking. We do spot checks even few minutes during production to ensure everything is going well. We have a system of total quality management (TQM), including quality circles: groups of employees who meet regularly to suggest improvements." Continuous improvement Ray, at Lightning Technologies: 'We are always making small improvements or enhancements; this is continuous improvement. We refer to it by its Japanese name: kaizen.' Silvia Chavez, Acroh'neas Latinas: 'We use continuous improvement in our service industry. We look carefully at the overall customer experience. In retailing, they use mystery shoppers, who pretend to be shoppers ro check service in shops. We use "mystery travellers" to report on the srandnrd of service before, during and after the flight." Benchmarking Jim, production manager at an electricity power station in the UK: 'We use a system called benchmarking to compare our performance to other power stations. We've recently been to the US to see how the best power stations operate - best practice- and try to copy it. We've managed ro halve rhcVmmber of workers, and increase productivity.' Business process re-engineering Susanna, head of personal banking at an internarional bank: 'Business process re-engineering, or BPR. applies in senice industries as well as in manufacturing. We didn't want to change existing things in small ways. We completely redesigned all our processes in management, administration and customer service. We eliminated three levels of management and installed a completely new computer system. Tlie gains in productivity have been very good.' Business Vocabulary in Use 1 8.1 Complete the crossword, using words from A opposite. 1 j i 4 s S p— S 1 10 n 12 Across 3 See 6 down. 4,5 down Right.........................(5,4) 8 Could be length, height or width. (91 11 Total quality.............(10) 12,10 Making sure things are alright. (4,6) Down 1 What the designer decides. (13) 2 Doing it again when you shouldn't have to. (9) 5 See 4 across. 6,3 across No mistakes at all. (4,7) 7 A quality............meets to suggest improvements. (6) 9 Short form of 1 down in plural. ($"} 1 8.2 Which expression from B, C or D opposite describes each of these situations? One of the expressions is used twice. 1 A police service reduces the number of forms to fill in when a crime is reported, first from fifteen to twelve, then to ten, then to seven, then to three. 2 A travel company closes all its high street shops, lays off middle managers and half of its sales assistants and retrains the others to sell on the phone. It also starts an Internet service. 3 A telephone company looks at other telephone companies to see which one issues bills with fewest mistakes to customers. It then copies this company's methods to reduce the mistakes in its own bills. 4 Most parcel delivery companies deliver 70 per cent of parcels by 10 am the next day, but one company has an advanced computer system that enables if*to achieve an SO per cent delivery rate. 5 An Internet banking service starts by allowing customers to see how much money they have in their accounts, and the latest transactions in the order they took place. Six months later customers can view the transactions in different orders. Three months later, they can make payments using the Internet service, which they couldn't do before. Cnvt +o l$OU Do you try to continuously improve your own work? If so, in what ways? In what ways docs your company or the place where you study improve its efficiency? What should it be doing? Business Vocabulary in Use 45