Developing computer integrated manufacturing: Major issues and problem areas

Abstract

Computer integrated manufacturing (CIM) is a concept that combines various technologies to produce an entire integrated factory. Usually CIM consists of such technologies as computer aided design and computer aided manufacturing (CAD/CAM), robotics, automated material handling and identification, machine vision, and a communications network that links them. In addition, the appropriate functional areas such as marketing, purchasing, accounting, and finance should be integrated with CIM components. While there are several real and major benefits to be derived from integration of the processes, many firms have been unsuccessful in their attempts. Because factory automation and integration is a continuous process that will require support from all functional areas, an organization must define its specific short- and long-term needs and goals before attempting implementation. There are several major issues and problem areas that must be addressed if the implementation is to be successful. The first task is to establish whether CIM is going to provide a sustainable competitive advantage for the firm. This is a function of strategic planning. A critical question that management should ask is what the impact of not implementing CIM is likely to be on the company's competitive edge. There are several additional tasks once the major reason is established. One of the first tasks is to define the objectives and benefits of CIM and to sell management on the concept. An immediate issue is the proper cost/benefit analysis. Since CIM represents an innovation, traditional economic analysis is not appropriate. Another problem are is to convince departments used to operating independently that computer integration is going to benefit them. This concept is contrary to the historical evolution of manufacturing. There must be a communications system to integrate the components and this has been one of the most troublesome problems in factory automation. Recent data suggests that there is very little empirical evidence to provide guidance. What we have today on CIM experiences is based on case studies of individual firms. The reader must be cautioned that generalizations should not be made based upon individual case descriptions. There are several alternatives in developing CIM. This paper provides guidance for managers wishing to implement CIM.