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Advanced Manufacturing Technology, Adoption and Benefits

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This document discusses the adoption of new manufacturing technologies. It defines advanced manufacturing technologies and explains that adopting new technologies is crucial for business competitiveness in the face of rapid technological change. The document outlines factors to consider in the decision to adopt new technologies, including product/market reasons, financial reasons, and management/organizational reasons. It also discusses project management for new technologies and accounting for technology investments.

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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 © 2016. All Rights Reserved.
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. © 2016. All Rights Reserved.
Advanced Manufacturing Technologies (AMT) AMTs covers all new technologies which are used directly by the firm in the production of a product. © 2015. All Rights Reserved.
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. © 2016. All Rights Reserved.
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 © 2015. All Rights Reserved.
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 © 2016. All Rights Reserved.
AMT Classification • Product Design Technologies (PDT) • Process Technologies (PT) • Logistics Planning Technologies (LPT) • Information Exchange Technologies (IET) © 2015. All Rights Reserved.
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 © 2016. All Rights Reserved.
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. © 2015. All Rights Reserved.
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. © 2016. All Rights Reserved.
AMT and Organizational Performance AMT adoption shows evidence that corporate goals like increasing market share and gaining earlier entrance to market can be realized. © 2015. All Rights Reserved.
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 © 2016. All Rights Reserved.
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" © 2015. All Rights Reserved.
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 © 2016. All Rights Reserved.
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 © 2015. All Rights Reserved.
• 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 © 2016. All Rights Reserved.
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. © 2015. All Rights Reserved.
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 © 2016. All Rights Reserved.
References © 2016. All Rights Reserved. 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.

More Related Content

Advanced Manufacturing Technology, Adoption and Benefits

  • 1. Dr. Pradeep Desai Adoption of new Manufacturing Technologies Project Management for new technology, Accounting for technology 12 Dec 2016 Technology and Innovation
  • 2. 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 © 2016. All Rights Reserved.
  • 3. 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. © 2016. All Rights Reserved.
  • 4. Advanced Manufacturing Technologies (AMT) AMTs covers all new technologies which are used directly by the firm in the production of a product. © 2015. All Rights Reserved.
  • 5. 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. © 2016. All Rights Reserved.
  • 6. 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 © 2015. All Rights Reserved.
  • 7. 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 © 2016. All Rights Reserved.
  • 8. AMT Classification • Product Design Technologies (PDT) • Process Technologies (PT) • Logistics Planning Technologies (LPT) • Information Exchange Technologies (IET) © 2015. All Rights Reserved.
  • 9. 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 © 2016. All Rights Reserved.
  • 10. 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. © 2015. All Rights Reserved.
  • 11. 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. © 2016. All Rights Reserved.
  • 12. AMT and Organizational Performance AMT adoption shows evidence that corporate goals like increasing market share and gaining earlier entrance to market can be realized. © 2015. All Rights Reserved.
  • 13. 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 © 2016. All Rights Reserved.
  • 14. 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" © 2015. All Rights Reserved.
  • 15. 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 © 2016. All Rights Reserved.
  • 16. 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 © 2015. All Rights Reserved.
  • 17. • 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 © 2016. All Rights Reserved.
  • 18. 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. © 2015. All Rights Reserved.
  • 19. 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 © 2016. All Rights Reserved.
  • 20. References © 2016. All Rights Reserved. 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.