As of 2018 the average minimum wage in China was $180 per month in small tier 4 cities. It was $330 per month in large tier 1 cities.1 Although these amounts are three to six times lower than the U.S. minimum wage, Chinese minimum wages have increased 64 percent from 2011 to 2018.2 A key challenge in managing operations in China is doing more with fewer people.
[Pete is an expatriate project manager working in China. He’s having a lot of problems with the purchasing department. To him buyers seem to lack even the most basic skills. He’s decided to share his frustrations with the plant manager.]
“Almost 70 percent of our manufacturing costs are in purchased parts. Buying is critical if we’re going to be successful.”
“I agree. ...
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