Homework: Refer to business of your choice, explain the division of labour within that business with visuals if possible. Explain the relevant advantages and disadvantages of specialization in the business to choose.
INTRODUCTION TO FOXCONN
All the Apple products, including Apple iPods, iPhones, and MacBook series are manufactured globally, but the biggest factory with which Apple contract to make products is Foxconn Technology Group in Shen Zhen, China. Foxconn Technology Group, also known as Hon Hai Precision Industry Co., Ltd is the world's biggest manufacturing conglomerate by market revenue. It has its walled factory city of 270,000 Foxconn employees in Shen Zhen, and in that factory city, there is virtually everything: a hospital, fire station, swimming pool, athletic field, a separate area for the basketball courts, and even a bookstore. The main clients of the Foxconn Company are Apple, Samsung, Dell, Hewlett Packard, Motorola, Nokia, Sony, and Nintendo.
DIVISION OF LABOUR
iPhone Primary Contractors - partial list
Parts of iPhone
Country of origin
Software and design
Sanyo Epson, Sharp, TMD
Video processor chip
Touch screen overlay
Cambridge Silicon Radio
Touch screen control chip
NOR Flash ICs
Display Driver chip
National Semi, Novatek
Case, Mechanical parts
Catcher, Foxconn Tech
Connector and cables
Cheng Uei, Entery
Altus-Tech, Primax, Lite on
As you may see from above, parts of Apple iPhone is made from companies all over the world, and so it is extremely hard to just localize the whole production in one country. However, we can see a distinct division of labour in the Foxconn assembly process.
ASSEMBLING PROCESS TAKING PLACE IN FOXCONN TECHNOLOGY GROUP (HON HAI PRECISION INDUSTRY)_ALL_PICTURES_FROM_GOOGLE
People who are managing that all the materials are prepared and assuring everyone else in the factory is well prepared for the manufacturing
People who do processes that are done by hands
Machineries who do processes that can be done by machines
People who manages the LCD Monitor of iPhone (Very important)
People who checks if each button of iPhone actually works
People who checks the quality of their products
One who gets the final product from the quality manager and put them in the package.
WHAT IS SPECIALISATION?
Economists and historians credit Adam Smith with first observing the usefulness of specialisation, also known as the division of labour. Smith considered the industrial task of making metal pins. He saw that a single worker struggled to go through the 18 steps necessary to produce a finished pin by the end of a shift. However, when Smith applied specialisation, training each worker to perform only one of the 18 tasks, he estimated that the team could produce thousands more pins in the same amount of time. That's when the specialisation started.
THE ADVANTAGES OF SPECIALIZATION IN THE BUSINESS, IN THIS CASE, APPLE
-Flexibility for employees
THE DISADVANTAGES OF SPECIALISATION IN THE BUSINESS, IN THIS CASE, APPLE
-workers never gain the full scale of the process
-workers put effort into making something but still have no idea...
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