advanced manufacturing technology, adoption and benefits

Dr. Pradeep Desai

Adoption of new Manufacturing Technologies Project Management for new technology, Accounting for technology 12 Dec 2016

Technology and Innovation

Contents 1 Manufacturing Technologies

2 Advanced Manufacturing Technologies (AMT)

3 Adoption of New Manufacturing Technologies

4 Decision to Adopt AMT

5 AMT Classification

6 Benefits of AMT

7 AMT - Operational and Organizational Performance

8 Impact of Shorter Product Lifecycle and Low Wages

9 Adoption of new Manufacturing Technologies

10 Project Management for New Technology

11 Accounting for Technology

12 References

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Manufacturing Technology

Magnify the efforts of individual workers and enable production of all manufactured goods, with production tools including machine tools and other related equipment, their accessories, and tooling.


Advanced Manufacturing Technologies (AMT)

AMTs covers all new technologies which are used directly by the firm in the production of a product.


Adoption of new Manufacturing Technologies

New technologies introduction is crucial for the survival of businesses competitiveness. Rapid technological change and fast shifting customer needs force firms to constantly discover and develop opportunities like the effective and efficient transfer of manufacturing technologies into the value chain of the company. The competitive advantage itself is generated by more efficient and effective production processes caused by the implementation of a new manufacturing technology in combination with complementary assets like manufacturing practices of TQM, JIT, etc.


Decision to Adopt AMT

Product/Market reasons

Improvement of product quality Improvement in the design of the product

Financial reasons

Cash flow strength

Availability of financing

Government programs


Decision to Adopt AMT Management and organizational reasons

Management philosophy about modernization

Trainable and capable employees

Management exposure to modern technology

Good labor/management relations

Increase productivity

Industry reasons

Be competitive with low labor cost companies

Meet EPA requirements for the industry


AMT Classification

• Product Design Technologies (PDT)

• Process Technologies (PT)

• Logistics Planning Technologies (LPT)

• Information Exchange Technologies (IET)


Benefits of AMT

• reduction of lead time to satisfy consumers • getting new products to market more quickly • flexibility to adapt to changes in the market • improvement of product quality • cost reduction • increased consumer services as the most

important issues to address


AMT and Operational Performance New manufacturing technologies to strategic priorities like increased flexibility allowing firms to produce a variety of products at low volumes with no additional costs or penalty.

AMT leads to increased productivity by reducing: firms direct labor costs, rework costs and work-in-process-inventories by embedding routine repetitive tasks into AMT hardware and software.


AMT and Operational Performance

Firms using AMT achieve higher product quality, because process-related technologies allow for stable manufacturing processes according to product conformance.

Automation technologies provide greater consistency with specifications and therefore reduce scrap rates leading to a higher level of quality.


AMT and Organizational Performance

AMT adoption shows evidence that corporate goals like increasing market share and gaining earlier entrance to market can be realized.


Shorter Product Lifecycle and Low wage Manufacturing

Putting pressure on operating business:

• Industries with shorter product life cycles are confronted with accelerated change of the production processes due to differing requirements for the manufacturing capabilities for new products.

• New market entries from low wage countries.

Realize a strategy to handle the above scenarios


Manufacturing Process Innovation

Manufacturing firms need to adapt to environmental dynamics including short product life cycles, growing product complexity, and rapid advances in technologies by continuously engaging in Manufacturing Process innovation (MPI).

MPI projects can address a range of activities, from relatively minor "practice-based" procedural changes to major technological changes, such as the installation of new equipment. Initiatives such as "Lean" manufacturing, Six Sigma programs, new product introductions, and technology upgrades also often motivate such projects"


Project Management

Project management is the discipline of initiating, planning, executing, monitoring, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria.

New technology can be a small procedural change, a change of equipment or the total automation of manufacturing processes.

Project management of New Technology

• Assessing the impact of new technology

• Realization of a first-mover advantage due to early investment in new technologies


Accounting for Technology

Design technology Computer-aided design (CAD), Computer-aided engineering (CAE), Computer-aided Process planning (CAPP)

Manufacturing technology

Computer-aided manufacturing (CAM), Robotics, Real-time process control systems, Group technology, Flexible manufacturing systems (FMS), Computerized numerical control machines (CNC), Automated material handling systems, Environmental control systems, Bar coding/automatic identification

Administrative technology

Electronic mail, Electronic data interchange , Office automation, Knowledge-based systems, Decision support systems, Material requirement planning (MRP), Manufacturing resource planning, Activity based accounting systems


• Growing interest in sustainability can be found and "the need for environmental protection and increasing demands for natural resources are forcing firms to reconsider their business models and restructure their supply chain operations.

• Increasing regulation forces managers to invest in green technologies as increasing internalizing of externalities represents an additional matter of expense. For example, carbon trading serves as an incentive to invest in initiatives to reduce CO2 emissions and increasing price levels of raw materials has improved the cost-benefit ratio of resource efficiency programs.

• Green Supply Chain Management (GSCM) are related to performance. There is a direct relationship between GSCM practices and economic and environmental performance suggesting that economic and environmental success are complementary.

Sustainability


Accounting for Technology

It is important for small manufacturing firms to consider automation processes because technological change has undermined traditional economies of scale and is favoring small firms that adopt innovations and invest in advanced manufacturing technologies.


Decline in Manufacturing in Industrial Countries The evolution of global manufacturing roles has started in the early 1980s and is continuing. Macroeconomic data for this period of time shows that the portion of worldwide manufactured goods and products of the industrial countries has constantly been declining. While the share of labor-intensive products like textiles and clothing started to decline earlier in the industrialized countries, the ongoing trend throughout the last 40 years remains the same for all industries. List the reasons for this


References


Fine, Charles H.; Freund, Robert M. 1990. Optimal investment in product-flexible manufacturing capacity. Management Science. Swamidass, P.M.; Kotha, S. 1998. Explaining manufacturing technology use, firm size and performance using a multidimensional view of technology. Journal of Operations Management. Swink, M.; Nair, A. 2007. Capturing the competitive advantage of AMT: Design-manufacturing integration as a complementary asset. Journal of Operations Management. Zammuto, R.; O’Connor, E. 1992. Gaining advanced manufacturing technologies’ benefits: the roles of organization design and culture. Academy of Management Review. Teece, D.J. 2007. Explicating dynamic capabilities: The nature and microfoundations of sustainable enterprise performance. Strategic Management Journal. Cua, K.O.; McKone, K.E.; Schroeder, R.G. 2001. Relationships between implementation of TQM, JIT, and TPM and manufacturing performance. Journal of Operations Management.

advanced manufacturing technology, adoption and benefits

Leadership & Management