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Manufacturing's New Economies of Scale
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Manufacturing companies now face the challenge of globally integrating their operations. Multinationals can no longer rely on sheer size and geographic reach to dominate the volatile global arena. By integrating far-flung plants into tightly connected, distributed production systems, companies can seize the opportunity for a new manufacturing scale advantage. In becoming globally integrated, companies must balance the tension between a central authority and independent units. They must also focus specific changes in functions by articulating a vision shared by the entire organization.