Abstract

The case “China’s Midea Group’s Intelligent Manufacturing Strategy for Creating a New Human-Machine Ecosystem” talks about the intelligent manufacturing strategy adopted by one of the world’s leading home appliance-makers, China-based Midea Group Co. Ltd (Midea), in response to the changing technological trends in the home appliances industry. The case starts out by describing Midea’s early days in China and the business practices it followed to revolutionize the home appliances industry there. It then documents how Midea adapted its manufacturing processes as per the technological changes sweeping through the industry to register a meteoric rise in China. The case details how Midea adopted the ‘One Midea, One System, and One Standard’ strategy – under which it built its Artificial Intelligence (AI) driven industrial internet (IIoT) platform to standardize and systematize its key business areas. Later, the case describes in detail the digital transformation strategy undertaken by Midea through the adoption of AI, big data, and robotics in its manufacturing processes by collaborating with international automation companies. It explains how Midea achieved significant operational results and enhanced its market position by adopting the latest technologies. Will Midea become a pioneer in adopting robust technology in China and the world?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Appreciate the need for digital transformation in the manufacturing arena.
• Understand the implementation of the digital transformation process in manufacturing.
• Understand the manufacturing process selection and design and process analysis.
• Examine the key aspects of configuring the value chain for better results in a company.
• Analyze the importance of business process reengineering in manufacturing.

Keywords

Operations Management; Business Strategy; Manufacturing Process Selection and Design; Value Stream Mapping; Configuring the Value Chain; Artificial Intelligence; Industrial Internet of Things; Big Data; Automation; Business process reengineering; Lean manufacturing; Intelligent Manufacturing; Digital Transformation; Process Analysis