Adoption Of Advanced Manufacturing Technology Research Articles

THE ADOPTION OF ADVANCED MANUFACTURING TECHNOLOGY AND INNOVATION STRATEGY IN SMALL FIRMS

The properties inherent in Advanced Manufacturing Technology (AMT) create new opportunities for firms, and in particular small firms. The capability of this technology to modify production specifications quickly and accurately means that firms can customize their products and attain economies of scope based on low volume and low cost production. While traditionally technology has been perceived merely as a tool in implementing business strategy, this paper suggests that AMT has the potential to directly affect a firm's innovation strategy. To date, however, empirical analysis to examine the technology-strategy relationship has not been forthcoming. Through empirical analysis this paper focuses on the relationship between the adoption of AMT and one element of firm's strategy choice, that is, their innovation strategy. This relationship is examined in the context of firm's market and industry structure and internal non-technological resource capabilities.

Advanced manufacturing technology adoption—the German experience

The decision process that organisations utilise when evaluating technology investment opportunities is a complex and even political process; however, the correct decision can provide the organisation with considerable operational and competitive benefits. The research presented in this paper presents the findings of a postal survey of the benefits provided by technology investments to large German manufacturers. It was found that only where middle management generated the idea for the advanced manufacturing technology (AMT) investment was success in that investment significantly more likely. Respondents who established a project team to plan the technology proposal, regardless of the department which generated the ideas for technology investment, were not significantly associated with a greater likelihood for success. The respondents typically took between 3 and 12 months before making the final decision to invest, irrespective of the department generating the idea for the AMT, and a further 6 months to implement the AMT. Respondents who utilised a discounted cashflow analysis took significantly longer to make the final decision to invest. The greatest number of manufacturing outcomes of significantly higher importance was identified for respondents where Engineering, IT or R&D generated the AMT ideas. It was also determined that the respondents most frequently considered AMT investments in computer hardware or software and technical training for process workers to be necessary at the time of considering the investment. Middle management were found to be significantly more concerned than managers on other levels about opposition of workers to the AMT, while the process workers were significantly more concerned about interruptions to the process during installation.

Advanced manufacturing technology adoption and performance: the role of management information systems departments

This study uses information obtained from the advanced manufacturing technology (AMT) literature to develop a conceptual framework that seeks to illustrate the impact of the management information systems (MIS) department on the different facets of AMT adoption. A detailed survey instrument was administered to a cross‐section of manufacturing firms in the USA to collect the data required to test five hypotheses relating to the efficacy of this framework. The results of this study indicate that the proposed framework is particularly useful in explaining the role of MIS departments in firms that are attempting to integrate advanced process and information technologies. This finding and other results of this study and their implications are discussed.

The Determinants of Organizational Change and Structural Inertia: Technological and Organizational Factors

There are a growing body of theoretical work, wide anecdotal evidence, and a few large‐scale empirical studies supporting the view that business firms quite rarely change their organizational structure, a phenomenon usually referred to in the literature as structural inertia. The present paper aims to analyze empirically the determinants of structural inertia and organizational change. As far as we know, this work constitutes the first attempt to directly address such issues through econometric estimates based on a large, longitudinal dataset at plant level. For this purpose, we consider changes of the organizational structure within a sample composed of 438 Italian manufacturing plants observed from 1975 to 1996. More precisely, we specify and test a duration model of the likelihood of an individual plant changing the number of hierarchical tiers after a spell r, provided that no change has occurred up to T. We also analyze the direction of change, distinguishing increases from decreases of the number of managerial layers. We consider a set of plant‐ and industry‐specific explanatory variables that are expected to induce or oppose organizational change. The findings show that the adoption of advanced manufacturing technologies and new human‐resources management practices favors organizational change. On the contrary, the presence of sunk costs and the extent of influence activities figure prominently in explaining structural inertia of business organizations.

The Determinants of Organizational Change and Structural Inertia: Technological and Organizational Factors

There are a growing body of theoretical work, wide anecdotal evidence, and a few large-scale empirical studies supporting the view that business firms quite rarely change their organizational structure, a phenomenon usually referred to in the literature as structural inertia. The present paper aims to analyze empirically the determinants of structural inertia and organizational change. As far as we know, this work constitutes the first attempt to directly address such issues through econometric estimates based on a large, longitudinal dataset at plant level. For this purpose, we consider changes of the organizational structure within a sample composed of 438 Italian manufacturing plants observed from 1975 to 1996. More precisely, we specify and test a duration model of the likelihood of an individual plant changing the number of hierarchical tiers after a spell r, provided that no change has occurred up to T. We also analyze the direction of change, distinguishing increases from decreases of the number of managerial layers. We consider a set of plant- and industry-specific explanatory variables that are expected to induce or oppose organizational change. The findings show that the adoption of advanced manufacturing technologies and new human-resources management practices favors organizational change. On the contrary, the presence of sunk costs and the extent of influence activities figure prominently in explaining structural inertia of business organizations.

Strategic planning, transfer and implementation of Advanced Manufacturing Technologies (AMT). Development of an integrated process plan

This paper concentrates on the planning requirements for the adoption of Advanced Manufacturing Technologies (AMT) in order to safeguard their successful implementation. Using the Cypriot manufacturing industry as a case study information is extracted regarding the implementation of Advanced Manufacturing Technologies. The research results are analyzed and are used in the development of a planning model for the acquisition of AMT. This model provides the framework for the correct justification and implementation of AMT to ensure Technical, Manufacturing and Business Success. It incorporates all the planning procedures and implementation parameters to be followed in order to ensure successful AMT adoption and implementation. It establishes the main reasons behind the successes or failures of the technologies and provides the methodology that can be adopted by the manufacturers to assist them in the justification and implementation of Advanced Manufacturing Technologies in their manufacturing environment.

The Effectiveness of Government Promotion of Advanced Manufacturing Technologies (AMT): An Economic Analysis Based on Swiss Micro Data

This paper describes the approach applied and the results of an evaluation of the effects of the Swiss government programme to promote the diffusion of Advanced Manufacturing Technologies (AMT) from 1990 to 1996. The method used is based on specifying and econometrically estimating with firm data simultaneously an adoption equation which, besides the main explanatory variables as proposed by the theory of technology diffusion, includes a policy variable, and a policy equation with a set of firm characteristics and an adoption variable as regressors. The results are consistent with a positive impact of promotion on adoption of AMT, particularly a more intensive adoption of AMT for firms which did not use AMT when the programme started.

Adoption of AMT by South African manufacturers

This paper presents the results of a survey of South African manufacturers that examined their planning and implementation activities relating to advanced manufacturing technology (AMT) investments. Data were collected by means of a postal questionnaire survey to which 84 companies responded to questions regarding their largest AMT investment in the last three years. The analysis is structured on a process model of adoption of AMT comprising three stages: motivation and idea generation for AMT; AMT proposal evaluation; and AMT implementation. The paper presents results relating to formulation of strategies; nature and size of AMT investments; sources of AMT investment ideas and forces motivating AMT investments; AMT proposal development; training in AMT and production management; AMT proposal evaluation; planning and implementation time periods and benefits and risks/difficulties. These dimensions are evaluated across dimensions of company size, types of AMT, and type of production system.

Human factors in the adoption and performance of advanced manufacturing technology in unionized firms

Some researchers have found that unionized firms are less likely to pursue automation because high wage demands deprive them of the necessary capital required to invest in advanced manufacturing technology (AMT). It has also been suggested that stringent work rules and technology agreements can make the substitution of new technology for union labor too expensive. Others have found, however, that the pursuit of high wage policies and the resultant requirement for improved worker and machine productivity can create a positive environment for technological change. This exploratory study examines the relationships between firm‐level union status and the adoption and performance of AMT in the discrete parts durable‐goods manufacturing industry. Analyses of our sample, which included Chi‐square tests, t‐tests, correlation analyses and multiple linear regression analyses, revealed a union effect on the adoption of just‐in‐time technology and a moderately positive union effect on performance. Results of analyses of the impact of union status, firm size and several human factor variables on firm performance are also presented and discussed.

AMT implementations in Australia: mini cases and implications for management

The implementation of advanced manufacturing technologies (AMTs) has the potential to impact, both positively and negatively, on all manner of activities and areas of an organisation. This paper presents six case examples, drawn from larger case studies, of the implementation of AMTs and the subsequent impacts. It describes a range of AMTs in a range of different settings. Analysis is focused on the benefits achieved by the companies and the difficulties experienced, in an effort to draw out some common themes regarding AMT implementation. The major implications for management are outlined as a set of critical success factors to the adoption of AMTs.

Organisational characteristics associated with AMT adoption

Using data collected from 132 manufacturing companies in Australia and New Zealand, this paper assesses the differences between firms in terms of advanced manufacturing technology (AMT) investment planning and implementation based on firm size and ownership. The analysis presented shows a number of differences. This is an exploratory study with the purpose of providing background data to guide future research in building up a contingency framework for AMT management. It is argued that variables such as firm size and principal ownership are useful additions to the contingency framework in addition to the infrastructure variables such as worker empowerment, quality leadership, soft integration, etc. It is concluded that organisational variables influence adoption of AMT and, hence, future research should focus on examining the relationships between the organisational context and the planning and infrastructure variables, and then relate these to the adoption process and the overall performance of AMT.

Assessing manufacturing performance: an advanced manufacturing technology portfolio perspective

Addresses the relationship between firm performance on 15 manufacturing attributes and the extensiveness of advanced manufacturing technology (AMT) portfolios that firms adopt. Mail survey data obtained from 116 manufacturing firms in the USA that had adopted a variety of AMT are used in this research. On average, responding firms reported some improvements in manufacturing performance for all variables except changes in average labour cost (total labour cost/number of direct and indirect labour employees). Adoption of AMT tended to result in marginal reductions in the number of operators and marginal increases in average labour costs across all technology portfolio classifications. For all technology groups, firms recorded their highest level of improvement for product quality, and operator output rates/operator productivity. The majority of firms that had adopted both integrated process technologies and integrated information/logistic technologies reported improvements for 14 of the 15 performance attributes covered in this study.

Employment and Training Opportunities in Manufacturing Industries

Manufacturing industries continue to be promoted by governments and commentators as vital to the provision of quality employment and the furthering of export performance. It has been extensively argued that the adoption of advanced manufacturing technology which require highly trained staff will provide quality employment and facilitate the building of the national skills base. However, women employed in manufacturing have generally been concentrated in low skilled employment and non-trade occupations. Therefore, it cannot be assumed that that the upgrading of skills in manufacturing industries will benefit women. This paper examines women's employment in two manufacturing industries in the Brisbane area — Food Processing and Light Metal Products. It shows that, although there is increasing evidence that these industries have increased their training effort, there is little evidence to suggest that women employed in manufacturing in Queensland have been able to capitalise on these opportunities.

Necking and Spheroidization of α 2 Plates in Lamellar Microstructure of a Hot-Deformed Two-Phase TiAl Alloy during Annealing

In recent years, the Ti2AlNb-based alloys are selected as potential alloys for elevated temperature applications to replace conventional Ni-based superalloys owing to their good creep resistance and oxidation resistance which are related to the O precipitates. In this paper, the precipitation mechanisms of O phase, phase transformation and microstructure control of Ti2AlNb-based alloys are reviewed. Ti2AlNb-based alloys generally consist of B2/β, α2, and O phase with different morphologies which are derived from the various heat treatment processes, including equiaxed α2/O particles, bimodal microstructure, and Widmannstätten B2/β + O structures etc. As a newly developed strengthening phase, O precipitates can be precipitated from the B2/β matrix or α2 phase directly as well as generated by means of peritectoid reaction of α2 phase and bcc matrix. Microstructural control of the Ti2AlNb-based alloys can be implemented by refining the original B2/β grain size and regulating the O precipitates. Multidirectional isothermal forging (MIF) and powder metallurgy technique are two effective methods to refine the original B2/β grains and the morphology and size of O precipitates can be regulated by adding alloying components and pre-deformation process. Moreover, the phase diagram as well as coarsening behavior of Ti2AlNb-based alloys in ageing process is also reviewed. For the further application of these alloys, more emphasis should be paid on the deep interpolation of microstructure-property relationship and the adoption of advanced manufacturing technology.

Adoption Of Advanced Manufacturing Technology And Firm Performance In The Netherlands

This paper presents characteristics of firms that employ advanced manufacturing technology (AMT), explores the pattern of adoption of such technology, and traces the effects of adoption on the evolution of employment and productivity. The study uses linked firm-level data on production, factor inputs and on advanced manufacturing technology. It is found that the percentage of firms that employ advanced technology increases with higher labor productivity, higher export-sales ratios, and especially larger firm sire. Corrected for interactions, however, only initial size and the initial capital-labor ratio aid in predicting adoption of AMT. Conditional on adoption of AMT it is seen that intensity of advanced technology inputs decrease with firm sire and with labar productivity. Finally, firms which employed AMT in 1992 show higher average growth rates of (toral factor) productivity and employment between 1985 and 1991.

The human factor in advanced manufacturing technology adoption

Examines the success factors critical to the adoption and implementation of advanced manufacturing technology. Empirically tests the hypothesis that the management variables most associated with the human factor in automation projects alone can differentiate firms who are successful in adopting the technologies from those who are not so successful. Analyzes the differences between the two groups of firms across 27 management variables and six demographic variables.

Unlocking the potential of advanced manufacturing technologies

AbstractThis research examines whether investments in advanced manufacturing technologies (AMTs) such as flexible manufacturing systems (FMS), computer aided design (CAD), computer aided manufacturing (CAM), robotics, etc., are more likely to lead to improved performance if they are supported by improvements in the manufacturing infrastructure of the company. This question is evaluated using data gathered from 202 manufacturing plants chosen from industries generally considered to have relatively high investments in technology.Multiple item scales are developed and adapted from sources in the literature to measure investments in technology, infrastructure, and the performance of the plant. Evidence supporting the reliability and validity of these scales is provided. Hierarchical regression is used to analyze the relationship between technology, infrastructure, and performance. The results suggest that there is an important interaction between the adoption of advanced manufacturing technologies and investments in infrastructure. Firms that invest in both AMTs and infrastructure perform better than firms which only invest in one or the other. Separate analyses on sub‐samples of firms with the highest and lowest investments in AMTs show that infrastructural investments have a stronger relationship with performance in the high investment group. Thus, the data indicate that infrastructural investments provide a key to unlocking the potential of advanced manufacturing technologies.

The adoption of advanced manufacturing technologies: human resource management implications

Studies hypothesize that the adoption of advanced manufacturing technology (AMT) leads to changes in the composition of the labor force in favor of workers with higher skill levels. Furthermore, employee development and empowerment strategies are enacted to promote these changes. Some of this literature also suggests that when examining these effects, it is important to distinguish between linked AMT and integrated AMT. The purpose of this study is to examine these issues using a comprehensive, firm-level survey of technology adoption and human resource management strategies. The nature of these data enables us to examine compositional and empowerment changes that occur in the aftermath of technological change. Our findings indicate that AMT adoption is associated with an overall downsizing of the firm and a shift in labor composition in favor of workers with higher skill levels. It appears that "skill upgrading" of the workforce occurs after new technologies are implemented on the factory floor. We also find that human resource strategies that accompany these changes vary by category of technology adoption. Linked AMT appears to be associated with a greater emphasis on employee empowerment. Conversely, compositional shifts toward managerial, technical, and R&D personnel are greater for integrated AMT. The implications of these findings for workforce and human resource strategies are discussed.

Adoption and implementation of advanced manufacturing technology in Singapore

This paper reports a survey of 1000 firms in Singapore about their adoption and implementation of advanced manufacturing technology (AMT). Statistical analysis such as factor analysis and discriminant analysis were used to identify those “Successful factors” that contribute positively to adoption and implementation of advanced manufacturing technology. From the 27 “successful factors” studied, we showed that project team integrity, strategic planning and project championship, and technical knowledge are significant, and training at all levels is instrumental in reducing uncertainties in AMT implementation. The results also indicated that firm size and financial availability differentiate successful from unsuccessful firms in AMT adoption and implementation. Although firms with large financial resources are likely to be more successful, large firms, in terms of the number of employees, are not necessarily beneficial to AMT and implementation.

Manufacturing technology and the supply chain: Linking buyer-supplier relationships and advanced manufacturing technology

The literature on advanced manufacturing technology (AMT) implementation and buyer-supplier relationships is reviewed, and the links between the two factors are examined. These links are summarized and highlighted through a causal influence diagram. A major influence is focused on, namely that the adoption of AMT causes adopters to change their relationships with their parts suppliers to more collaborative forms. Empirical data drawn from a recent survey of the Turkish automotive industry demonstrate support for this major influence.