Research On The Cost Advantage And Formation Mechanism Of Service-based Manufacturing

Since reform and opening, China has made remarkable economic achievements,particularly in the manufacturing sector continued to grow rapidly, making China’s economicaggregate ranked in the world. But it is undeniable that China’s manufacturing industry is locatedin the lower end of the global industrial chain, resource consumption, low added value, lack ofcore technology, a whole less competitive, while also facing the cost advantages continue toweaken, and increasing international competition the grim situation. If such a model ofdevelopment can not be timely reasonable correction, would be likely to fall into the Chineseeconomy "growing poverty" position.Service-oriented manufacturing is a a new concept and model formed in the context of ahigh degree of integration between manufacturing and services with globalization and rapiddevelopment of information technology, will become the leading global manufacturing in the21stcentury. Whether for the economic growth pattern, or the adjustment of industrial structure, theextension of enterprise value chain, it plays an invaluable role. The implementation ofservice-oriented manufacturing will be benefit to upgrade China’s manufacturing structure,offering huge opportunity to China from "China foundry" to "China made".This study take Jiangsu Province for example, use individual objects of service-orientedenterprise manufacturing network to study of the cost advantage of service-orientedmanufacturing from the two perspective of products and processes. And reveals the formationmechanism of this competitive advantage, using the questionnaire surveys and structural equationmodeling approach to start empirical study. We will give a more systematic study about if thecustomer involved throughout, personalized products, the manufacturing process ofdecentralization and differentiation in this new mode of manufacture, will lead to lowerproductivity and increased operating costs, to further enrich the research in this area. Finally, I usesurvey data obtained from the surveys, to analyze the status and the problems of the developmentof service-based manufacturing in Jiangsu Province, and given the relevant countermeasures. Toserve and promote the depth research of service-based manufacturing model in China, providinguseful guidance to Chinese manufacturing.