Patterns of Advanced Manufacturing Technology Utilization and Manufacturing Capabilities

The objectives of this research are first to empirically replicate Advanced Manufacturing Technology (AMT) utilization taxonomies identified in foregoing research, second to investigate the relationship between patterns of AMT utilization and manufacturing capabilities attainment, and third to explore differences in context, and performance across AMT groups. Theories of performance frontiers and capability progression provide the basis for our hypotheses. Data were collected from 224 U.S. manufacturing plants in industries considered to have potential utilizations of AMTs. A cluster analysis of the data yields a solution that closely resembles a previous AMT utilization taxonomy, including four groups labeled, respectively, as Traditionalists, Generalists, High Investors, and Designers. Significant manufacturing capability differences across these four groups indicate that plants that utilize a broader scope of AMTs enjoy a greater breadth of manufacturing capabilities. The implied capability attainment pattern is consistent with cumulative capability theory. However, the results suggest that cost capability is not included in the capability mix when broad‐based AMT utilization is the enabler of capability gains. A post hoc exploration of the AMT groups indicates significant differences in performance across the groups. Collectively, the results extend prior research by providing added insights into the possible rationale and impact of AMT utilization patterns.     

HR perceptions and the provision of workforce training in an AMT environment: An empirical study

Research literature indicates the importance of workforce development in the successful implementation of advanced manufacturing technologies (AMTs). However, the relationship between advanced technologies and workforce training is assumed to be a direct one with limited consideration provided to factors that may influence it. This study examines the impacts of environment and human resource (HR) manager perceptions on the provision of workforce development activities. A human-centered technology philosophy is proposed as a conceptual framework for examining the role of HR manager perceptions to mediate the relationship between AMTs and workforce development. Results from hierarchical regressions indicate that the perceptions of HR managers regarding technology-driven workforce need to explain a large portion of the variance for both individual and process development activities. Findings support that the managerial role of assessing workforce developmental needs from basic AMTs places HR managerial perceptions at the focal point of social–technical systems. The role of environmental uncertainty is also examined as a moderator of managerial perceptions of technology-driven needs in an AMT environment. The results suggest that environmental uncertainty did not moderate the relationship between HR perceptions as a predictor of workforce development activities. This could imply that HR managers may not consider critical external environment issues when making decisions of workforce development activities. The implications of these findings for HR perceptions in an AMT environment are discussed, and suggestions for future research are provided.     

Strategic adoption of a flexible manufacturing system: Case study of an Indian electronics enterprise

In recent years, strategic considerations relating to manufacturing management in the electronics industry have undergone transformation at a very rapid rate. They are being driven by pluralistic customer demands and influenced by technological innovations and competitive interventions. This paper reports on the strategic adoption and implementation of advanced manufacturing technology (AMT) in an Indian electronics enterprise which has collaborative alliance with a multinational corporation (MNC) in the USA. A hybrid model has been formulated using the nominal group technique (NGT) and analytic hierarchy process (AHP) to evaluate various alternative AMTs.     

Intermediate Performance Impacts of Advanced Manufacturing Technology Systems: An Empirical Investigation*

A large-scale random sample is used to empirically examine the relationships between implementation of Advanced Manufacturing Technology (AMT) and three organization-level measures that have historically been attributed to AMT, but not fully tested along the AMT spectrum: market-oriented flexibility of the production process, organizational integration of production processes, and administrative intensity of the organization. Results indicate that as an organization moves along the technology scale from stand-alone AMT (e.g., CNC machines) through functionally oriented AMT (FMS and CAM) toward CIM, not only do its production processes become more integrated with each other, but those processes become more integrated with other functional systems of the organization, and the quality and timeliness of production information increase. Furthermore, this relationship becomes stronger as companies increase their level of implementation for the latter two technologies. Conversely, market-oriented flexibility decreases and administrative intensity is not observed to change as companies move along the technology spectrum. Future research should examine how organizational redesign and implementation strategies that accompany AMT implementation can concomitantly enhance organizational integration of the production process and market-oriented flexibility.     

The diffusion of advanced manufacturing technology in multiplant,multidivisional corporations

This study examines several factors which act as significant predictors of successful intra-firm advanced manufacturing technology (AMT) diffusion. Our findings suggest that the following factors positively impact the diffusion process: previously successful AMT implementations, advanced manufacturing centers, AMT workshops, informal networks, simultaneous R&D of products and processes, and the significance of the impact of AMT on operating performance. One factor—cost and time overruns with previous implementation projects—emerged as a deterrent to successful AMT diffusion. Our results also indicate that the use of an outside consultant as a major source of transfer expertise significantly contributes to AMT diffusion success.     

过程系统管理与技术的综合集成

在激烈的市场竞争中,过程企业不仅要重视技术、更要加强管理,实现全局优化运行。提高过程企业的市场竞争能力必须全面综合集成人、组织、战略管理、经营管理、过程管理及信息自动化技术等因素。本文以石化企业为背景,对过程企业面临的问题及发展趋势进行了分析,并且对过程企业管理模式、过程企业的体系结构以及过程集成与优化技术进行了探讨。     

Innovation and Organizational Learning: the Case of Computer-Aided Production Management

Recent experience of unsuccessful implementation of integrated advanced manufacturing technology suggests that much of the problem is due to a lack of innovation in organizational in parallel with the technological dimension. Discussion of this issue argues the need for some kind of ‘organizational learning’ to obtain the full benefits of AMT. This paper reviews the topic of organizational learning in technology and explores its relevance to the problem of AMT implementation through the case example of computer-aided production management systems.     

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

Abstract

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.     

Organizational Computing as a Facilitator of Operational and Managerial Decision Making: An Exploratory Study of Managers' Perceptions*

Much of the current knowledge pertaining to information technology (IT) and decision making is based on decades old technologies that revolved around a central computing function and application-specific systems. The purpose of this research is to examine the IT decision-making relationship within the emerging organizational computing (OC) environment permeated by spontaneous utilization of both application-and nonapplication-specific computing and communication technologies. Specifically, this study seeks to explore managers' perceptions of the emerging OC environment as a facilitator of their decision-making activities. To achieve a higher level of clarity than previous works, a two-dimensional research framework is developed with the IT dimension consisting of computing and communication, and the decision-making dimension differentiated between operational and managerial decisions. A survey instrument was constructed that measured the computing and communication dimensions of information technology use and their perceived effects upon operational and managerial decisions. The major findings of the study confirmed that managers recognize the value of general, nonapplication-specific information technologies in decision making, and that this recognition is highly associated with how intensively these information technologies are used. Additionally, it was found that the two dimensions of IT differ in their relationships to decision making, and that IT usage relates to managerial decisions differently than operational decisions. These study findings have significant implication for practice and research, especially in the context of information resource management in which the primary purpose of the IS function is the delivery of general information service to users rather than the development of specific IS applications.     

EFFECTS OF OPERATIONAL EMPLOYEE SKILLS ON ADVANCED MANUFACTURING TECHNOLOGY PERFORMANCE

This study employs structured interviews in a field setting to develop an in‐depth understanding of how a specific human resource decision affected manufacturing performance at 30 plants using advanced manufacturing technologies. Initial results suggested that there is no relationship between the skill level of operational employees and the level of performance of the installations. When a measure of “fit” between environmental characteristics and skills was employed, however, there was a significant relationship between the fit measure and performance.     

Taxonomy of ERP integrations and performance outcomes: an exploratory study of manufacturing firms

Building and deploying network capabilities of firms are crucial for sustaining competitive advantage. Enterprise resource planning (ERP) systems are useful to enhance such network capabilities thorough effective information flows. Their intended goals are measured in terms of production costs, operational flexibility and supply chain performance outcomes. However, the impact of ERP system implementation on firm performance has been reported as somewhat inconclusive. This study contends that a missing link in the story is the scope and extent of ERP system implementation after investigating how the extent of ERP integration is associated with the performance outcomes of manufacturing firms. The study also posits that restructuring in the organisation and supply chains are positively associated with manufacturing performance. Since ERP often entails restructuring in an organisation and supply chains, it is anticipated that restructuring plays an important role in inducing positive impact of ERP implementation to the firm. Using a global sample of 641 manufacturers, this research identifies four distinct ERP systems integration patterns, epitomised by different extents and directions of integration, and finds a significant association among the broadest degree of ERP systems integration, restructuring and plant performance improvement. The empirical results also show that restructuring takes place most actively in a firm that implement ERP with widest scope and scale.     

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.     

Capability,Quality, and Performance of Offshore IS Vendors: A Theoretical Framework and Empirical Investigation

Information systems (IS) offshoring has become a widespread practice and a strategic sourcing choice for many firms. While much has been written by researchers about the factors that lead to successful offshoring arrangements from the client's viewpoint, the vendor's perspective has been largely scarce. The vendor perspective is equally important as offshore IS vendors need to make important decisions in terms of delivering operational and strategic performance and aligning their resources and processes in order to meet or exceed targeted outcomes. In this article, we propose and test a three‐level capability–quality–performance (CQP) theoretical framework to understand vendor outcomes and their antecedents. The first level of the framework represents three vendor capabilities: relationship management, contract management, and information technology management. The second level has three mediating variables representing process quality: partnership, service, and deliverable quality. The third level has three dependent variables representing vendor outcomes: operational performance, strategic performance, and satisfaction. The model was tested with 188 vendor firms from India and China, the two most popular destinations for IS offshoring. Results support the CQP framework; vendor capabilities are significant predictors of intermediate quality measures, which in turn affect vendor outcomes. Implications of the study findings to both theory development and IS offshore vendor strategic decision making are discussed.     

Flexible manufacturing systems performance in U.S. automotive manufacturing plants: a case study

Flexible manufacturing systems (FMS) philosophy is a key weapon in achieving global manufacturing competitiveness. It encompasses a wide range of dimensions to improve all aspects of operational performance metrics. The aim of the study is to examine the current state of flexibility adoption in U.S. automotive manufacturing facilities and its impact on operational performance metrics. It utilizes survey questionnaire developed based on previous work in U.S. manufacturing industry. The survey was originally distributed to 420 facility managers in the U.S. domestic automotive industry. It was revealed that 70% of the respondents had implemented all 15 flexibility dimensions listed in the questionnaire. The data analysis conducted shows that implementation of certain flexibility dimensions will lead to significant improvement in specific operational performance metrics. This considerable finding can be used as a guide for manufacturing managers to achieve certain objectives in operational performance improvement in a rapidly changing environment.     

Research on the Elements of Firm's IS Absorptive Capacity

In this paper, we explore the capacity during the process of a firm's information system adoption and implementation from knowledge management perspective, based on a firm's level construct. According to the di- mensions of absorptive capacity proposed by Zahra and George, we point out that the concept of IS absorptive ca- pacity, analyze and summarize the elements of potential absorptive capacity and realized absorptive capacity. We use data from two manufacturing organizations, analyze two firm's realities of IS absorptive capacity. The study indicates differing antecedents may have differing effects on potential absorptive capacity and realized ab- sorptive capacity.     

Managing AMI in a Just-In-Time Environment in the UK and Japan

In recent years many commentators have addressed the ‘crisis’ in manufacturing industry (Gerwin, 1982; Drucker, 1988, 1990; Hayes and Jaikumar, 1988). Some have offered cross-national comparisons on Japanese and Western management methods and techniques (Kharbanda and Stallworthy, 1991; Oliver and Wilkinson, 1987; Pascale and Athos, 1981) whilst others have concentrated on improving performance in specific fields such as management accounting (Kaplan, 1984; Cooper, 1991) or manufacturing management (Schonberger, 1982; Halt, 1983). Empirical research into managing AMT in Japan and the UK (Currie 1991a) considers some of the broader managerial issues in manufacturing. Cultural differences are common in the areas of investment appraisal, post-auditing of AMT and preventive maintenance policy. For example, in Japan JIT is perceived ‘holistically’ incorporating production management, total quality assurance (TQA) and total preventive maintenance (TPM). This is contrary to the UK in that many large manufacturing companies fail to include TPM in their manufacturing strategies (Currie and Seddon, 1991). There are few management information systems (MIS) which provide an understanding of machine performance using both non-financial and financial information. Focusing on maintenance as a central theme, the paper discusses the development of the Failure And Scheduled Maintenance Analysis (FASMA) system, which offers a practical solution to the problem of collecting and manipulating manufacturing data on the shopfloor (Seddon, 1991a). Essentially, FASMA attempts to interface both the manufacturing and management accounting functions by translating machine performance data into valuable information from which preventive maintenance policy may be improved. Using FASMA to measure machine performance at a major UK automotive manufacturer, machine down-time has averaged 61% each month over a 3-year period. By manipulating this data, performance measurement information may be utilized by management accountants. FASMA thus develops a link between manufacturing and management accounting by providing data on machine performance which can be used for cost analysis within a manufacturing environment. The paper concludes by arguing that manufacturing strategies can only be developed using appropriate management information systems (MIS) designed to enhance functional integration. This will enable a better understanding of how the ‘manufacturing jigsaw’ fits together.     

Lean practices and their effect on performance: a literature review

This paper introduces a literature review of 83 studies dealing with the degree of adoption of lean manufacturing practices around the world, and the links between those practices and organisation performance. The results of this study revealed that lean practices application still occurs in a fragmented way, disregarding the systemic linkage that is essential to lean manufacturing. Forty-one articles have suggested a positive effect of lean practices in at least one operational, financial and/or environmental performance metric. Nevertheless, five studies indicated that some lean practices had a negative effect on operational or financial performance. High demand variability, a perceived result of long-term lean manufacturing implementation, a country/company’s organisational culture and the difficulty of traditional costing production systems to measure and compare investments and economic gains from adopting lean manufacturing over time are some of the reasons to explain that negative effect of lean practice on performance.     

The effects of human resource systems on operational performance in mass customisation manufacturing environments

This study empirically examines the impact of two human resource management (HRM) systems on operational performance in two distinct mass customisation manufacturing (MCM) environments. Using the survey data collected electronically from 148 mass customisation manufacturers in the USA, moderated hierarchical multiple regression was employed to test the research hypotheses. Results suggest that operational performance significantly increases when a bundle of complementary basic HRM practices are integrated in MCM contexts that emphasise module and process standardisation. This finding indicates that these types of mass customisation manufacturers are capitalising on the opportunity to improve operational performance by strategically combining several different, but supportive, traditional HRM practices with a finite MCM system.     

A process-oriented perspective of IS success: Examining the impact of IS on operational cost

Effective measurement of information system (IS) success continues to be a top concern for both practitioners and researchers. Labeled the “productivity paradox”, previous attempts to quantify the benefits of IS have often resulted in inconclusive or inconsistent results. The present study contributes to IS success research through the development and empirical testing of a process-oriented model of IS success. Using an operational perspective and combining primary and secondary measures, this study examines the influence of lower-level intangible IS and information technology (IT) benefits on higher-level financial measures. Additionally, we introduce IS plan quality as an antecedent to the model's input variables. Primary survey data from CIOs of primarily Fortune 2000 size firms are combined with secondary data, total operational cost, from Compustat to facilitate the examination of the IS benefits. This study also addresses shortcomings cited in other studies that might have contributed to the productivity paradox by including control variables in the model, defining a research perspective—the operational success perspective—and clearly articulating the level of analysis as the organizational level. The results supported a process-oriented view of the benefits from IS and showed how the effects of IS along a path can lead to better organizational performance, in this case, lower overall costs. These results are discussed and future research implications are presented.     

Investigating the Level of End‐User Development and Involvement Among Time‐Based Competitors

As global markets and technology change, time‐based competitors create product development and manufacturing practices that reduce response time and enhance customization capabilities. These practices require an information‐rich internal environment that is capable of flexible resource deployment and direct and continuous feedback. To build this environment, time‐based competitors are developing end‐user capabilities and involving them in information systems (IS) activities. Data collected from 265 manufacturers were used to determine if firms with high levels of time‐based product development and time‐based manufacturing practices also have high levels of end‐user involvement in IS‐related activities, end‐user training effectiveness, and end‐user computing skills. The results of this study support that contention.