Emerging markets, especially BRIC countries, offer UK manufacturers opportunities to relocate manufacturing operations to areas where labour and material costs are reduced. Successful low-cost sourcing requires strategic planning and must be in line with business needs. Coupling low-cost sourcing with effective purchase cost reduction is a key enabler towards better margins. It is increasingly difficult for manufacturers in developed economies to earn reasonable profits if they do not add value in the manufacturing process. Moving up the value chain requires a clear strategy, an understanding of your customers and their aspirations and a workforce and facilities which are sufficiently skilled and flexible. Effective innovation in the UK manufacturing industry is key to succeeding in a competitive market. Manufacturers need to keep one step ahead of the competition through offering value added or niche products to customers. Innovation, whether it be through investing in R&D to develop new products or process technologies, improving back office or sales and marketing operations, must be in line with company strategy and ensure business needs are met Six Sigma One key innovation of Six Sigma involves the "professionalizing" of quality management functions. Prior to Six Sigma, quality management in practice was largely relegated to the production floor and to statisticians in a separate quality department. Formal Six Sigma programs borrow martial arts ranking terminology to define a hierarchy (and career path) that cuts across all business functions.Emerging markets and low-cost manufacturing
High value manufacturing
Innovation
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