Peter Drucker talks manufacturing in 1999.

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Peter Drucker talks manufacturing in 1999.

We can't build it yet, but the essence of the 'postmodern" factory is emerging. It's conceptual-the product of four principles and practices that together constitute a new approach to manufacturing.

Each of these concepts is being developed separately, by different people with different starting points and different agendas. Each concept has its own objectives and its own kinds of impact:

1. Statistical quality control SQC) is changing the social organization of the factory.

2. New manufacturing accounting lets us make production decisions as business decisions.

3. The flotilla," or module organization of the manufacturing process promises to combine the advantages of standardization and flexibility.

4. Finally, the systems approach embeds the physical process of making things-manufacturingin the economic process of business-creating value.

As these four concepts develop, they are transforming how we think about manufacturing and how w...

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