How to outmanufacture the Chinese

story about Dell and how their engineers are on the assembly line daily trying to find ways to save time and money and produce machines more efficiently. A savings of one screw translates to 4 seconds of production (x 40,000 machines a day, etc). We don’t get this when we outsource. We don’t see the efficiencies–we just get a cheap product. Eventually other countries will be more efficient than the US, simply because they see what is being done on the front lines of production. The labor costs of a PC are “roughly 10 bucks,” Mr. Rollins said, meaning that payroll costs account for maybe 2 percent of the overall cost of the typical Dell PC. Five years ago, it took two workers 14 minutes to build a PC; it now takes a single worker roughly five minutes to do the same. Interesting.]]>

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