An analysis of the diffusion of flexible manufacturing systems

Abstract

Flexibility is often lauded in management journals as a key to success in batch manufacturing industries. One means of achieving this form of competitive capability is through investment in a “Flexible Manufacturing System”, defined as “…an automated batch manufacturing system consisting of NC machines, linked by automated material handling devices, that perform the operations required to manufacture parts” [41, p. 274]. Despite the many advantages and the potentially large market for such systems, widespread adoption of FMSs by American manufacturers has not occurred, while other forms of automation such as programmable robots have been adopted at a much faster rate. This study explains patterns of FMS adoption using a technological diffusion model developed by Rogers and Shoemaker (1971). The framework suggests that the manufacturers of FMS have ignored several dimensions of new product management critical to the diffusion of innovations. These dimensions include relative advantage, compatibility, product complexity, trialability, and observability. Given the economic justification procedures commonly applied to FMSs, successful diffusion will require major infrastructural changes in adopting organizations. Several managerial guidelines are suggested which may help FMS suppliers to improve the rate of adoption.