Advanced Manufacturing Technology Investment Research Articles

Implementation of Industry 4.0 elements and their impact on the enterprise productivity

Purpose: The main incentive for choosing the topic of the study is related to the need to look for solutions to fundamental problems related to the activities of manufacturing enterprises that must meet the requirements of market competition by achieving competitive advantages and increasing productivity. The subject of the study are advanced manufacturing technologies, characterized by a high level of innovation and automation, and their impact on the productivity of a manufacturing company. The aim of the study is to assess the impact advanced manufacturing technologies on the productivity and production quality on the example of a company producing parts and components for rail vehicles. Design/methodology/approach: the study analyzed the literature on productivity and calculated productivity indicators based on the company's financial data. Moreover, the participant observation method was used to assess the reorganization of the production process, and a survey was conducted for company employees to determine the validity of the implemented technological investments. The case study concerns a company producing parts and components for rail vehicles. Findings: The level of approval of investments in advanced manufacturing technologies and their impact on the quality and efficiency of the manufacturing process of was determined. The implementation of advanced manufacturing technologies allowed the company to: shortened the manufacturing process by approximately 40%, the number of procedures was reduced from nine to five, and the number of employees participating in it was reduced from ten to five. Originality/value: assessment of the effects of the use of advanced technologies, the study is addressed to the management of manufacturing enterprises. Keywords: productivity, manufacturing technologies, production, improvement. Category of the paper: Research paper.

A Decision-Making Model for Predicting Technology Adoption Success

Advanced manufacturing technology (AMT) has the potential to significantly improve manufacturing performance and boost competitiveness in the global market. Investment in AMT remains a promising but potentially risky venture due to the numerous factors that must be considered before the full benefits of implementing a new technology can be realized. To respond to the reported risks and uncertainties, such as those revealed in the recent industrial revolution, it is very important to identify and classify the critical factors that can influence the success of AMT adoption early in the planning stage. Based on an extensive review of relevant literature, 32 critical factors are identified and classified into ten categories in this paper. A new multiple-input single-output (MISO) model is developed by combining the fuzzy Delphi method (FDM) and the fuzzy inference system (FIS) based on the objectives defined. The FDM is used to determine the critical factors, and the FIS addresses the general fuzzy multi-attribute decision-making (MADM) problem in order to evaluate and predict the percentage of AMT adoption success with an existing system. The model is validated using a numerical test bed, and the results show that the model is a proper tool for risk management in AMT implementation.

An integrated model of fuzzy multi-criteria decision making and stochastic programming for the evaluating and ranking of advanced manufacturing technologies

Investment appraisal in advanced manufacturing technologies (AMTs) has been receiving considerable attention over the past three decades. As stated in numerous studies, traditional engineering economic methods cannot adequately justify investments in AMTs. Thus, beside these methods, some other solutions have been proposed in this field. The methods applied in the evaluation of AMTs can be classified into four groups including economic, strategic, analytical and integrated methods. In this paper, an integrated model is presented for the evaluation of AMTs. The model is developed according to a fuzzy multi-criteria decision making procedure. It is assumed that a group of decision makers evaluate different AMT alternatives according to certain strategic and economic criteria. The importance of the criteria and the weights of the alternatives versus the criteria are expressed using linguistic variables set by the decision makers. To compute the economic criterion of each alternative, a linear program with chance constraints is proposed. Finally, using different fuzzy operators, the AMT alternatives are scored and ranked. In this regard, an example is presented to show the performance of the model.

Managing technology in Macedonian SMEs context: perceptions, practices and challenges

Academicians and policy makers alike state that technology is the catalyst of growth for small medium businesses (SMEs). The review of past research reveals that the strategic upside of technology is the accomplishment of competitive advantage through their business strategies. The effective implementation of advanced technologies enables companies to achieve economies of scale and scope simultaneously. That is, investigating advanced technologies reduces the cost of future product innovation, allowing the company to increase its speed of response to market and competitive changes. Therefore, investment in advanced manufacturing technologies represents a strategic option. Despite the great importance of technology in small sized businesses, not many studies attempted to explore technology embraced by them, especially within the Macedonian context. The purpose of this paper is to gain an understanding of advanced technology knowledge and usage within the specific SME sector in the Republic of North Macedonia and to discover, if technology is used, whether it is seen as crucial to their competitive strategy. Moreover, the main research question is how advanced technology affects different aspects such as costs, sales and profitability, employee productivity, customer care, share of the e-market and competitiveness. Primary data were obtained through a questionnaire survey, carried out in small and medium sized businesses in the Republic of North Macedonia and evaluated using the tools of descriptive statistics and the methods of comparison, induction, deduction and synthesis. The research results indicate that advanced technology influences favorably the overall costs and also increases profitability. Likewise, the findings show that advanced technology leads to increase of productivity and sales. One of the conclusions of the paper is that small businesses find it important to invest in advanced technology in order to promote competitiveness.

The adoption of Industry 4.0 technologies in SMEs: results of an international study

PurposeThe purpose of this paper is to investigate whether the financial resources invested in advanced manufacturing technologies (AMTs) and social capital (SC), in terms of the set of internal and external relationships a firm holds, have a positive effect on the adoption of Industry 4.0 (I4.0) technologies. Furthermore, it tests whether the organizational context strengthens these relationships.Design/methodology/approachThe authors used regression models to analyze data collected through an international survey carried out within the scope of a European project involving six Central European regions.FindingsResults show that small- and medium-sized enterprises (SMEs) having stronger internal and external SC have a higher propensity to adopt I4.0 technologies, and both management support and absorptive capacity (AC) strengthen these relationships, whereas investments in AMTs within the manufacturing area and internal SC have a positive association with the intensity of I4.0 adoption. However, in presence of a high level of management support and AC, the relationship between external SC and I4.0 adoption becomes positive and significant. Management support also moderates the impact that investments in AMTs in the manufacturing area and internal SC have on the intensity of adoption of I4.0 technologies.Originality/valueThis paper is one of the first to investigate the context of SMEs that, having fewer resources, face some difficulties in exploiting the potential of I4.0 revolution. Moreover, it adopts a broad perspective on the factors that facilitate the adoption of I4.0.

The evolution of investment patterns on advanced manufacturing technology (AMT) in manufacturing operations: A longitudinal analysis

Taking a longitudinal perspective, this paper aims to investigate the evolution of advanced manufacturing technology (AMT) investment patterns in manufacturing companies. The data employed in this paper was collected in 2012 from production/technology/plant managers of Danish manufacturing companies. As a result, taxonomy of the evolution of AMT investment patterns is presented in this paper; contextual factors including size and industry type are also considered to investigate their association with AMT investment patterns over time; and the relationship between performance improvement and evolution of AMT investment patterns is finally elaborated. The major theoretical contributions of this paper are addressing the dynamic nature of AMT investment, examining how companies change their patterns of AMT investment over time, and developing further understandings on the evolution of AMT investment patterns per se, as well as its relationships with industry, company size, and performance improvement. Meanwhile, this paper suggests industrial managers to be aware of ever evolving technological developments and understand their own business goals before investing in AMTs, as different ways to evolve AMT investment patterns correlate with diverse performance gains. Moreover, the paper also recommends industrial managers to be patient in order to reap benefits of their AMT investments, as there is an inevitable time interval between AMT investment and its desired performance effects.

Lean-green manufacturing: the enabling role of information technology resource

PurposeThe purpose of this paper is to contribute to the existing knowledge about the relationships between information technology (IT), lean manufacturing (LM), organizational environmental issues and business performance.Design/methodology/approachA questionnaire-based survey was conducted to collect data from 122 elite manufacturers, and the hypothesized relationships were tested using partial least squares structural equation modeling.FindingsIT competence in LM acts as a lower-order organizational capability, and its business value should be recognized through the intermediate roles of LM effectiveness and environmental management capability. Findings recommend that the net benefits of LM are mainly materialized through waste and pollution reduction and simplified implementation of proactive environmental practices.Research limitations/implicationsAmong other limitations, relying on a rather small sample size and cross-sectional data of this research, and lack of generalizability of findings, tends to have certain limitations. An interesting direction for future research would be to extend this research by assessing interaction of other types of IT resources with LM and organizational environmental issues.Practical implicationsBoth LM and proactive environmental management are information-intensive. Investment in both technological and human aspects of IT resource aimed at increasing the effectiveness of LM activities and proactive environmental practices is imperative for contemporary manufacturers.Originality/valueThis study introduces the IT capability of IT competence in LM and two organizational capabilities of LM effectiveness and environmental management capability. By doing so, the study highlights the significant role of organizational environmental issues in devising firms’ IT and advanced manufacturing technology investment strategies in LM context.

The Environmental Impact of Advanced Manufacturing Technologies: Examples from Hungary

The purpose of the paper is to demonstrate the beneficial impact of advanced manufacturing technologies (AMT) on firms' environmental performance. Drawing on interviews conducted with 16 Hungarian manufacturing subsidiaries on their experience with AMT, we find three functional areas, where industry 4.0 solutions can not only enhance operational excellence and cost-efficiency, but they can also improve eco-efficiency, but they can also improve eco-efficiency, namely in the field of quality management (through smart production control, data analytics and predictive modelling solutions); process optimization (through capacity planning and production scheduling solutions); and product and process engineering (through advanced virtual technologies). We also find that AMT adoption facilitated subsidiary upgrading along various dimensions. The main managerial implication is that subsidiaries need to be proactive, and emphasize also the benefits stemming from energy and resource efficiency improvement when lobbying for investment in AMT.

Improving green flexibility through advanced manufacturing technology investment: Modeling the decision process

Globalization and greening are two major trends manufacturing. Each trend has increased organizational and supply chain risk and uncertainty. Advanced manufacturing technology (AMT) are resources that can competitively aid modern industry in this volatile and complex environment. Thus, the evaluation, selection and implementation of more environmentally conscious AMT is important for meeting global requirements, especially with respect to environmental sustainability. Although a wide variety of methods to support AMT selection and evaluation processes exist, important aspects including green flexibility performance and psychological characteristics of decision makers under risk and uncertainty are missing. This paper presents a novel method for general investment appraisal of AMT, but especially introducing the context of green flexibility within manufacturing organizations. This paper aims to (1) develop effective green flexibility measures for manufacturing firms, incorporating various economic and environmental flexibility types, (2) introduce a hybrid possibility multiple criteria decision model for AMT evaluation and ranking integrating neighborhood rough set theory and cumulative prospect theory based on the three-parameter interval grey number, and (3) investigate the application of the proposed method in an illustrative case example to help manufacturing practitioner and researchers understand how to investigate various AMTs in this decision environment. Various advantages and disadvantages of the methodology are introduced. The results are evaluated with theoretical, methodological and managerial implications identified. This paper sets the foundation for significant future research in green manufacturing flexibility in an AMT environment.

Advance manufacturing strategy and firm performance

PurposeThe purpose of this paper is to assess the implications of organizational knowledge, source of information and functional orientation, resource-based view of the manufacturing and global orientation, on manufacturing practices which include advanced manufacturing strategies.Design/methodology/approachAn empirical study approach has been used to assess the implications of advanced manufacturing strategies on firm performance.FindingsThis paper provides a framework for managers to: assess competitive priorities of the industry; identify order winners for the industry; identify key decision areas or practices for improvements; and to assess the role of implications of organizational knowledge on the manufacturing practices.Research limitations/implicationsThe limitations are as follows: the issue of organizational knowledge and learning is assessed from manufacturing view point only; plants located all over India are considered for study; and considers plants employing different manufacturing systems and products.Practical implicationsSaturated with the conventional manufacturing technologies, a growing number of small- and medium-scale industries began to explore advanced manufacturing technologies (AMTs). Investment in AMTs remains a promising but potentially risky venture. This paper helps the small- and medium-scale industries to adopt viable AMTs and business performance strategies and then provides guidelines for enhancing their competitiveness.Social implicationsThis paper may help all the stakeholders of small- and medium-scale industry.Originality/valueThis paper is based on one of the few studies conducted to assess the implications of advanced manufacturing strategies on firm performance in Indian scenario.

Improving supply chain responsiveness through Advanced Manufacturing Technology: the mediating role of internal and external integration

Responsiveness is one of the key performance factors that firms need to face up to the challenges posed by today’s markets. Many manufacturing firms are investing in advanced manufacturing technology (AMT) with a view to improving competitiveness. However, empirical evidence shows that investments in AMT alone do not lead to improvements in performance. In this study, a model that links AMT implementation and responsiveness through internal integration and external integration is proposed. A sample of 441 Spanish industrial companies was used to test the model through structural equation modelling. The findings highlight that internal integration needs to be supplemented with external integration in order to ensure that the implementation of AMT will result in improved responsiveness. Supply chain managers should focus on integration within the supply chain – firstly internal and later external – to obtain returns on investments in AMT in the form of improved flexibility and more reliable and faster deliveries.

Applying modern accounting techniques in complex manufacturing

Purpose – The purpose of this paper is to analyze the applicability of lean accounting and throughput accounting in a company with considerable investments in advanced manufacturing technology (AMT). Design/methodology/approach – The paper compares lean accounting and throughput accounting with the traditional accounting system the company is using today. The authors investigate the differences between the three alternative approaches and use a case study approach to illustrate the effects of applying different modern accounting approaches in a complex manufacturing setting. Findings – Pair-wise comparisons of the three approaches provide some interesting cost information as to the role of bottlenecks and value streams. Research limitations/implications – The specific results of this study are limited to the case company, but can hopefully contribute to further research on how to combine lean and throughput accounting for mixed manufacturing environments, involving both value streams and bottlenecks. Practical implications – Lean and throughput accounting provide other perspectives on cost information to traditional accounting, and can therefore be used in combination. The authors identify some issues and challenges involved in using lean accounting and throughput accounting in an AMT company. Originality/value – This paper contributes with a comparison of traditional, lean, and throughput accounting in a specific industrial setting characterized by AMT and complex manufacturing.

Advanced manufacturing technologies – their implications for marketing strategy

The links between manufacturing and marketing strategies in industrial organizations have received relatively little attention. The need to re–assess the nature of this link is considered in this paper in the context of advanced manufacturing technologies (AMT). The necessity of re–examining marketing strategies when investments in AMT are made is indicated, and the problems of ensuring that the benefits of AMT are not dissipated within an organization's own structure are also discussed.

A Hybrid Approach using AHP-TOPSIS for Analyzing e-SCM Performance

To sustain in this competitive environment, it is required for organizations to implement information technology (IT) based functions with their supply chain management (SCM) system. The objective of this research is to select a best alternative with an aim to improve electronic supply chain management (e-SCM) performance of Indian automobile industry located at Delhi region. To accomplish the aim, a hierarchy based model has been developed through considering eight criteria and five alternatives. The considered alternatives namely are: investment in web based technologies, investment in advanced manufacturing technologies, role of top management, role of supplier and supply chain integration. The developed model has been analyzed to select a best alternative using analytic hierarchy process (AHP) and technique for order preference by similarity to ideal solution (TOPSIS) as a hybrid approach. Analysis reveals that the alternative, ‘investment in web based technologies’ holds first rank among all considered alternatives and can play a vital role in improving the e-SCM performance of an organization. The outcomes of this research enable mangers to make better decisions during framing strategies in improving e-SCM performance of an organization effectively.

Evaluation of advanced manufacturing technologies for world-class using analytical network process method

In this paper, we develop a decision tool to help managers make more accurate decisions about their investments in advanced manufacturing technologies. Since selection of a new technology is an innately multidimensional problem and there exist interdependent relationships among different dimensions of the system, the analytic network process (ANP) method is used to consider interdependencies among the quantitative and qualitative factors. We identified several technology alternatives and selection criteria and compared them through pair wise evaluation to determine local priorities. These priorities were then used to determine the overall priorities for the alternatives. Our model provides decision makers with a tool for evaluating several competitive technology alternatives and selecting the most appropriate technology for adoption.

An empirical investigation of advanced manufacturing technology investment patterns

Advanced manufacturing technology (AMT) investment patterns in developing countries is in need of further investigation, particularly in the light of the conflicting evidence from the literature. T...

Measurement of the Advanced Manufacturing Technology Investment Impact on the Overall Supply Chain

Measurement of the Advanced Manufacturing Technology Investment Impact on the Overall Supply Chain

An empirical investigation of advanced manufacturing technology investment patterns: Evidence from a developing country

Advanced manufacturing technology (AMT) investment patterns in developing countries is in need of further investigation, particularly in the light of the conflicting evidence from the literature. This paper provides new evidence on AMT investment patterns from the Turkish automotive industry and develops a taxonomy by exploring the relationships between AMT investment patterns, ownership structure, firm size and performance. Analysis of industry survey data suggests the existence of three groups with different AMT investment strategies. Results suggest that AMT investment patterns are not only significantly correlated with firm performance or ownership, but also reveals significant differences in manufacturing performance across investment patterns.

Adopting And Implementing Advanced Manufacturing Technology (AMT): Poblems, Benefts, And Performance Appraisal Techniques

This article attempts to discuss about the issues on factor inducing technology adoption, some empirical fnding on AMT and the role of AMT in manufacturing sectors. There is also growing consensus that many of the failures in adopting AMT are, in fact, due to inadequate planning for, and/or faulty implementation of the systems. The key to successful AMT planning and implementation appears to be choice of an appropriate manufacturing systems and the attainment of an organizational infrastructure that will ofer maximum support to the chosen system. Further, this article presents an overview and guidance for manufacturing companies which are preparing to invest in advanced manufacturing technology (AMT). The purpose of this article is to explain the reasons why the company may encounter problems while adopting AMT, and to look at the many suggestions ofered by the relevant literature for improving the performance of evaluation in AMT investment. According to the our major steps in adopting AMT (i.e. strategic planning, justifcation, training and installation, and implementation) , the research work here aims to assist managers or investors to recognize problems at each step, thus ofering appropriate ways to avoid and/or solve those problems. It is believed that improved justifcation methods will encourage more frms to invest in AMT and to realize the benefts these investments can ofer. Keywords: Investment analysis, Advanced manufacturing technologies, Problems, Benefts, Performance Appraisal Techniques.

Adopting And Implementing Advanced Manufacturing Technology (AMT): Poblems, Benefts, And Performance Appraisal Techniques

This article attempts to discuss about the issues on factor inducing technology adoption, some empirical fnding on AMT and the role of AMT in manufacturing sectors. There is also growing consensus that many of the failures in adopting AMT are, in fact, due to inadequate planning for, and/or faulty implementation of the systems. The key to successful AMT planning and implementation appears to be choice of an appropriate manufacturing systems and the attainment of an organizational infrastructure that will ofer maximum support to the chosen system. Further, this article presents an overview and guidance for manufacturing companies which are preparing to invest in advanced manufacturing technology (AMT). The purpose of this article is to explain the reasons why the company may encounter problems while adopting AMT, and to look at the many suggestions ofered by the relevant literature for improving the performance of evaluation in AMT investment. According to the our major steps in adopting AMT (i.e. strategic planning, justifcation, training and installation, and implementation) , the research work here aims to assist managers or investors to recognize problems at each step, thus ofering appropriate ways to avoid and/or solve those problems. It is believed that improved justifcation methods will encourage more frms to invest in AMT and to realize the benefts these investments can ofer. Keywords: Investment analysis, Advanced manufacturing technologies, Problems, Benefts, Performance Appraisal Techniques.