Implementing advanced manufacturing technology: An integrated planning model

Abstract

Investment in advanced manufacturing technologies (AMT) remains a promising but potentially risky venture. Many firms that have adopted these new technologies have not been able to reap all the expected benefits. Since the technical abilities of the AMTs are relatively well-proven, there is a growing belief that managerial issues, from planning to implementation, present the major barrier to employing these technologies effectively. This article concentrates on the planning requirements for successful implementation of AMT. We first distil current thoughts from diverse disciplines to provide a better understanding of the AMT adoption process. We then incorporate these thoughts with our empirical research findings to propose an integrated planning (IPL) model for the acquisition of advanced manufacturing technology. This three-phase model incorporates the requirements for strategic planning, the matching of products with process, technology monitoring, integrated operational and organizational planning and formal investment appraisal prior to AMT acquisition. The IPL model provides a framework for managers to (1) continuously assess the ability of their current systems to meet strategic and operational objectives and (2) determine when the adoption of an innovative technology is warranted.