SUPPLEMENT

Computer-Integrated Manufacturing
Learning Goals
After reading this supplement, you will be able to . . .
1. describe several types of technologies that comprise computer-integrated manufacturing. 2. discuss the advantages of these different technologies.

often writes about the of future: a fully autoT he popular pressmanufactures a factories dofactoryandthewithout human intermated factory that wide variety of products vention. Although some peopleless exist others will be built, the major advances being made today occur in manufacturing operations where computers are being integrated into the process to help workers create high-quality products. Computer-integrated manufacturing (CIM) is an umbrella term for the total integration of product design and engineering, process planning, and manufacturing by means of complex computer systems. Less comprehensive computerized systems for production planning, inventory control, or scheduling are often considered part of CIM. By using these powerful computer systems to integrate all phases of manufacturing, from initial customer order to final shipment, firms hope to increase productivity, improve quality, meet customer needs faster, and offer more flexibility. For example, McDonnell Douglas spent $10 million to introduce CIM in its Florida factory. The computer systems automatically schedule manufacturing tasks, keep track of labor, and send instructions to computer screens at workstations along the assembly line. Eliminating paperwork led to an increase of 30 percent in worker productivity. Less than 1 percent of U.S. manufacturing companies have approached full-scale use of CIM, but more than 40 percent are using one or more elements of CIM technology. A recent study asked managers how much their companies invest in several of the technologies that comprise CIM (Boyer, Ward, and Leong, 1996). The study focused on firms in the metal-working industry (i.e., primary metal, fabricated metal, machinery, electronic equipment, and transportation equipment), in which the use of CIM is believed to be most widespread. The study measured investment on a 7-point scale (1 no investment and 7 heavy investment). Computer-aided design received the highest average score (5.2), followed by numerically controlled machines (4.8), computer-aided manufacturing (4.0), flexible manufacturing systems (2.5),

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automated materials handling (2.3), and robots (2.1). Another study across all industries found company expectations for future investments to have the same rank ordering of CIM components (Kim and Miller, 1990). Thus, CIM is an important aspect of technology in manufacturing, but it is just one set of tools that helps many manufacturing firms, even those with high wages, remain competitive in the global marketplace. In the following sections, we describe these tools and their potential benefits.

COMPUTER-AIDED DESIGN AND MANUFACTURING

computer-integrated manufacturing (CIM) The total integration of product design and engineering, process planning, and manufacturing by means of complex computer systems. computer-aided design (CAD) An electronic system for designing new parts or products or altering existing ones, replacing drafting traditionally done by hand. computer-aided manufacturing (CAM) The component of CIM that deals directly with manufacturing operations.

Computer-aided design (CAD) is an electronic system for designing new parts or products or altering existing ones, replacing drafting traditionally done by hand. The heart of CAD is a powerful desktop computer and graphics software that allow a designer to manipulate geometric shapes. The designer can create drawings and view them from any angle on a display monitor. The computer can also simulate the reaction of a part to strength and stress tests. Using the design data stored in the computers memory, manufacturing engineers and other users can quickly obtain printouts of plans and specifications for a part or product. CAD cuts the cost of product development and sharply reduces the time to market for new products. It is revolutionizing in-house design departments, from IBM to Rubbermaid and AT&T to Steelcase. CAD literacy is now a prerequisite for designers, and investments in it are growing rapidly. Many company budgets for CAD are three times what they were in 1990. The largest sums are going for software, with Pro-Engineer clearly approaching a national standard in the United States. Analysts can use CAD to store, retrieve, and classify data about various parts. This information is useful in creating families of parts to be manufactured by the same group of machines. Computer-aided design saves time by enabling designers to access and modify old designs quickly, rather than start from scratch. The component of CIM that deals directly with manufacturing operations is called computer-aided manufacturing (CAM). CAM systems are used to design production processes and to control machine tools and materials flow through programmable automation. For example, researchers at the Technology/Clothing Technology Corporation are developing a concept to enable clothing manufacturers to create custom

A computer artist demonstrates the functions of a Hong Kong developed computer-aided design and manufacturing system specifically designed for the textile and apparel industry. CAD/CAM systems are being used extensively in the industry to produce customized clothing.

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clothing. The concept involves using a computer scan of a customers body and a computer-driven machine to cut the fabric to fit the customer perfectly. Automated custom clothing goes against established apparel industry procedures, whereby companies cut dozens of layers of cloth at the same time to hold down labor costs. However, labor costs account for only 11 percent of the cost of the garment delivered to the customer. Nonvalue-added handling (including inventory costs) after manufacture accounts for 27 percent, which is the cost category that this technology can reduce. It also has the advantage of fostering customization and speedy delivery as competitive priorities. For example, Levi Strauss is already using similar, although more cumbersome, technology for womens jeans, and its customers are willing to pay a premium. A CAD/CAM system integrates the design and manufacturing function by translating final design specifications into detailed machine instructions for manufacturing an item. CAD/CAM is quicker, less error prone than humans, and eliminates duplication between engineering and manufacturing. CAD/CAM systems allow engineers to see how the various parts of a design interact with each other without having to build a prototype. One of the more recent and stunning examples is the ability of Boeing to design and build its 777 widebody airframe without any prototype work at all. The first physical version was the actual plane that test pilots flew in 1994. Boeings engineers used Dassault Systemes software called CATIA, short for Computer Assisted Three-Dimensional Interactive Analysis. This French company is one of the most prominent of dozens of software suppliers. Another example is the K2 Corporation, the largest U.S. manufacturer of Alpine skis, which must continually redesign its products to meet changing customer needs. It produces about 20 different models in 12 different lengths. Its CAD and CAM workstations allow designers to convert the numerical descriptions for a new ski shape into drawings and tooling designs and to create machining instructions that can be used directly by the milling machines.

NUMERICALLY CONTROLLED MACHINES

numerically controlled (NC) machines Large machine tools programmed to produce small- to medium-sized batches of intricate parts.

computerized numerically controlled (CNC) machines Stand-alone pieces of equipment, each controlled by its own microcomputer.

Numerically controlled (NC) machines are large machine tools programmed to produce small- to medium-sized batches of intricate parts. Following a preprogrammed sequence of instructions, NC machines drill, turn, bore, or mill many different parts in various sizes and shapes. The technology was developed in the early 1950s at the Massachusetts Institute of Technology to find more efficient methods of manufacturing jet aircraft for the U.S. Air Force. Currently, NC machines are the most commonly used form of flexible (programmable) automation. Early models received their instructions from a punched tape or card. Computerized numerically controlled (CNC) machines are usually stand-alone pieces of equipment, each controlled by its own microcomputer. Since the early 1980s, Japanese industry has spent twice as much money as North American or European industry on factory equipment, more than half of which went for CNC machines. NC and CNC machines rank just after CAD in terms of the most popular CIM technologies.

INDUSTRIAL ROBOTS
industrial robots Versatile, computer-controlled machines programmed to perform various tasks.

Robots are more glamorous than NC workhorses. The first industrial robot joined the GM production line in 1961. Industrial robots are versatile, computer-controlled machines programmed to perform various tasks. These steel-collar workers operate independently of human control. Most are stationary and mounted on the floor, with

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FIGURE K.1
Robot and Its Standard Movements
Source: Voss, Chris. Managing New Manufacturing Technologies. OMA Monograph 1 (September 1986). Reprinted by permission.

Elbow extension

Yaw Shoulder swivel

Roll Pitch Arm sweep

an arm that can reach into difficult locations. Figure K.1 shows the six standard movements of a robots arm. Not all robots have every movement. The robots hand, sometimes called an end effector or tool, actually does the work. The hand (not shown) can be changed to perform different tasks, including materials handling, spot welding, spray painting, assembly, and inspection and testing. Second-generation robots equipped with sensors that simulate touch and sight have spawned new applications. For example, robots can wash windows, pick fruit from trees, mix chemicals in laboratories, and handle radioactive materials.

A robotic arm is processing silicon wafers to be used for computer memory. The robot has been programmed to coat, dunk, and process the silicon wafers several times as part of the total process. Such repetitive, precision work is ideally suited to robots. They can perform a great variety of tasks tirelessly around the clock for maximum utilization.

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The initial cost of a robot depends on its size and function. Other potential costs include modifying both product and process to accommodate the robot, preparing the worksite, installing and debugging the robot, and retraining and relocating workers. Benefits from robot installation include less waste materials, more consistent quality, and labor savings. Robots are the drudges of the workforce, performing highly repetitive tasks without tiring, taking a lunch break, or complaining. By the late 1980s, there were more than 20,000 robots in North America, 28,000 in Europe, and 80,000 in Japan. The conversion of U.S. industry to robots has fallen short of expectations: Less than 30 percent of manufacturers have even moderate experience with robots. One possible reason is that U.S. employers have not faced a labor shortage, whereas in Japan a limited supply of workers led the government to subsidize robots. Cincinnati Milacron, the last big U.S. robot maker, recently left the robot business and returned to making basic machine tools. Robotics is but one of many possible technologies that can be used to gain a competitive advantage.

AUTOMATED MATERIALS HANDLING

materials handling The processes of moving, packaging, and storing a product.

In both manufacturing and service industries, the choice of how, when, and by whom materials are handled is an important technological decision. Materials handling covers the processes of moving, packaging, and storing a product. Moving, handling, and storing materials cost time and money but add no value to the product. Therefore, operations managers are always looking for ways to reduce costs by automating the flow of materials to and from an operation. Whether materials handling automation is justifiable depends on the process. When the process experiences low volumes and must provide a high degree of customization, job paths vary and there is little repeatability in materials handling. Such variability means that workers must move materials and equipment in open-top containers, carts, or lift trucks. However, when the process experiences high volumes, line flows, and high repeatability, handling can be automated. In addition, other types of flexible automation are now available for processes that fall between these two extremes. Lets look at two such technologies: automated guided vehicles and automated storage and retrieval systems.

AGVs
automated guided vehicle (AGV) A small, driverless, battery-driven truck that moves materials between operations, following instructions from either an onboard or a central computer.

An automated guided vehicle (AGV) is a small, driverless, battery-driven truck that moves materials between operations, following instructions from either an onboard or a central computer. Most older models follow a cable installed below the floor, but the newest generation follows optical paths and can go anywhere with aisle space and a relatively smooth floor. The AGVs ability to route around problems such as production bottlenecks and transportation blockages helps production avoid expensive, unpredictable shutdowns. Furthermore, AGVs enable operations managers to deliver parts as they are needed, thus reducing stockpiles of expensive inventories throughout the plant. The automotive industry now uses AGVs in some plants as mobile assembly stands, primarily for heavy loads. Workers prefer them to inflexible conveyors because the AGVs do not leave until the workers have done the job correctly at their own pace. NCR Corporation installed a $100,000 AGV system in one of its electronics fabrication facilities. Machines run along a 3,000-foot guidepath at 1.5 miles per hour, ferrying parts between the stockroom, assembly stations, and the automated storage and retrieval system.

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AS/RS
automated storage and retrieval system (AS/RS) A computer-controlled method of storing and retrieving materials and tools using racks, bins, and stackers.

An automated storage and retrieval system (AS/RS) is a computer-controlled method of storing and retrieving materials and tools using racks, bins, and stackers. With support from AGVs, an AS/RS can receive and deliver materials without the aid of human hands. For example, IBMs new distribution center in Mechanicsburg, Pennsylvania, ships 105,000 spare computer parts and related publications each day a staggering volume using an AS/RS and 13 AGVs. Computer control assigns newly arrived materials to one of 37,240 storage locations. If optical sensors confirm that the materials will fit, the automated system moves them along to the proper location. Production at this highly automated facility has increased 20 percent, and accuracy of filled orders has reached 99.8 percent.

FLEXIBLE MANUFACTURING SYSTEM

flexible manufacturing system (FMS) A configuration of computer-controlled, semi-independent workstations where materials are automatically handled and machine loaded.

A flexible manufacturing system (FMS) is a configuration of computer-controlled, semiindependent workstations where materials are automatically handled and machine loaded. An FMS is a type of flexible automation system that builds on the programmable automation of NC and CNC machines. Programs and tooling setups can be changed with almost no loss of production time for moving from production of one product to the next. Such systems require a large initial investment ($5 to $20 million) but little direct labor to operate. An FMS system has three key components: 1. several computer-controlled workstations, such as CNC machines or robots, that perform a series of operations 2. a computer-controlled transport system for moving materials and parts from one machine to another and in and out of the system 3. loading and unloading stations Workers bring raw materials for a part family to the loading points, where the FMS takes over. Computer-controlled transporters deliver the materials to various workstations where they pass through a specific sequence of operations unique to each part.

FIGURE K.2
A Flexible Manufacturing System
AGV 1
Source: Courtesy of Vincent Mabert. Reprinted by permission.

Tool changer

Tool changer

Tool changer CNC 3 Indexing tables Out In

AS/RS

CNC 1 Out In

CNC 2 Out In

Raw material storage (floor space)

AGV 2 Raw material storage (roller conveyor) L/U L/U Temporary storage areas (33 pallet spaces)

Load/unload stations

Computer control

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The route is determined by the central computer. The goal of using FMS systems is to synchronize activities and maximize the systems utilization. Because automation makes it possible to switch tools quickly, setup times for machines are short. This flexibility often allows one machine to perform an operation when another is down for maintenance and avoids bottlenecks by routing parts to another machine when one is busy. Figure K.2 shows the layout of a typical FMS, which produces turning and machining centers.1 Specific characteristics of this FMS include the following: The computer control room (right) houses the main computer, which controls the transporter and sequence of operations. Three CNC machines, each with its own microprocessor, control the details of the machining process. Two AGVs, which travel around a 200-foot-long oval track, move materials on pallets to and from the CNCs. When the AGVs batteries run low, the central computer directs them to certain spots on the track for recharging. Indexing tables lie between each CNC and the track. Inbound pallets from an AGV are automatically transferred to the right side of the table, and out-bound pallets holding finished parts are transferred to the left side for pickup. A tool changer located behind each CNC loads and unloads tool magazines. Each magazine holds an assortment of tools. A machine automatically selects tools for the next specific operation. Changing from one tool to another takes only 2 minutes. Two load and unload stations are manually loaded by workers; loading takes 10 to 20 minutes. An automatic AS/RS (upper right) stores finished parts. The AGV transfers parts on its pallet to an indexing table, which then transfers them to the AS/RS. The process is reversed when parts are needed for assembly into finished products elsewhere in the plant. This particular system fits processes involving medium-level variety (5 to 100 parts) and volume (annual production rates of 40 to 2,000 units per part). The system can simultaneously handle small batches of many products. In addition, an FMS can be used a second way: At any given time, an FMS can produce low-variety, high-volume products in much the same way that fixed manufacturing systems do. However, when these products reach the end of their life cycles, the FMS can be reprogrammed to accommodate a different product. This flexibility makes FMS very appealing, especially to operations where life cycles are short. Since the first FMS was introduced in the mid-1960s, the number installed worldwide has grown to almost 500, with about half of them either in Japan or the United States and the other half in Europe. A much more popular version of flexible automation is the flexible manufacturing cell (FMC), which is a scaled-down version of FMS that consists of one or a very small group of NC machines that may or may not be linked to a materials handling mechanism. The FMC doesnt have a materials handling system controlled by a computer, which moves parts to the appropriate machines, as does the more sophisticated FMS.

flexible manufacturing cell (FMC) A scaleddown version of FMS that consists of one or a very small group of NC machines that may or may not be linked to a materials handling mechanism.

1 We

are indebted to Vincent Mabert for much of the information about this FMS, including Figure K.2.

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SUPPLEMENT HIGHLIGHTS
The concept of automation goes beyond the labor savings of
displacing humans with machines. By totally integrating product design, engineering, process planning, and manufacturing through complex computer systems, computerintegrated manufacturing (CIM) allows companies to compete on the basis of time and flexibility while creating higher-paying jobs. Computer-aided manufacturing (CAM) is the part of CIM that deals directly with manufacturing. and sensory (sight, proximity) capability. These machines are used for flexibility but not for high volume. Fixed automation is used for high-volume, standardized production.

Two relatively new methods used to automate materials

handling systems are the automated guided vehicle (AGV) and the automated storage and retrieval system (AS/RS).

Flexible automation includes flexible manufacturing systems

(FMSs), which consist of several computer-controlled workstations, an interconnecting transport system, and areas for loading and unloading. An FMS is very expensive to acquire but is flexible enough to accommodate new product families.

A CAD/CAM system links computerized product design and

production. Its the first step toward a paperless factory.

Numerically controlled (NC) machines follow preprogrammed

instructions to perform a variety of machining operations on parts having different sizes and shapes. Computerized numerically controlled (CNC) machines are distinguished by the use of a dedicated microcomputer for control. Industrial robots also are capable of a variety of tasks. However, their costs increase with size, the number of axes of rotation, and travel

A flexible manufacturing cell (FMC) is a stripped-down version of an FMS but is a much more widely used technology. It consists of one or a few numerically controlled machines that may or may not be linked to a materials handling mechanism.

DISCUSSION QUESTIONS
1. Through widespread use of robots, an automobile manufacturer improved its global competitiveness and economic success. Much of the savings resulted from reducing its workforce from 138,000 to 72,000. There was a human cost of displaced workers, however, and displaced employees had a difficult time finding new jobs. Was the automation decision defensible on ethical grounds? What steps can a firm take to be a responsible and ethical employer when cutbacks are necessary? 2. The central problem of Americas economic future is that the nation is not moving quickly enough out of high-volume, standardized production. The extraordinary success of the half-century of the management era has left the United States a legacy of economic inflexibility. Thus, our institutional heritage now imperils our future. This quote from Robert Reich, an economist appointed Secretary of Labor by President Clinton, suggests that U.S. managers were not moving rapidly enough away from high-volume mass production. If so, into what type of production or other type of business should they have been moving? Keep in mind that the U.S. economy was already dominated by services and that people could not all sell one another insurance. What is the relationship between high-volume standardized production and economic inflexibility? What characterized the corporate investment decisions of the 1980s? Were those investments generally guided by a desire to increase economic flexibility?

SELECTED REFERENCES
Adler, P. S. Managing Flexible Automation. California Management Review, vol. 30, no. 3 (1988), pp. 34 56. Ayers, Robert U., and Duane C. Butcher. The Flexible Factory Revisited. American Scientist, vol. 81 (September October 1993), pp. 448 459. Boyer, Kenneth K., Peter T. Ward, and G. Keong Leong. Approaches to the Factory of the Future: An Empirical Taxonomy. Journal of Operations Management, vol. 14 (1996), pp. 297 313. Cohen, Morris A., and Uday M. Apte. Manufacturing Automation. Chicago: Irwin, 1997. Foston, A., C. Smith, and T. Au. Fundamentals of Computer Integrated Manufacturing. Englewood Cliffs, NJ: Prentice-Hall, 1991. Gerwin, Donald. Dos and Donts of Computerized Manufacturing. Harvard Business Review (March April 1982), pp. 107 116. Gold, Bela. CAM Sets New Rules for Production. Harvard Business Review (November December 1982), pp. 88 94. Groover, Mikell P., and E. W. Zimmers, Jr. CAD/CAM: Computer-Aided Design and Manufacturing. Englewood Cliffs, NJ: Prentice-Hall, 1984. Holusha, John. Can Computers Guarantee Perfectly Fitted Clothes? Cyber Times (February 19, 1996).

Selected References

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Jaikumar, Jay. The Boundaries of Business: The Impact of Technology. Harvard Business Review (September October 1991), pp. 100 101. Kim, Jay S., and Jeffrey G. Miller. The Manufacturing Futures Factbook: 1990 U.S. Manufacturing Futures Survey. Boston University, 1990. Melnyk, S. A., and R. Narasimhan. Computer Integrated Manufacturing: Guidelines and Applications from Industrial Leaders. Homewood, Ill.: Business One Irwin, 1992. Nemetz, P. L., and L. W. Fry. Flexible Manufacturing Organizations: Implications for Strategy Formulation and Organization Design. Academy of Management Review, vol. 13, no. 4 (1988), pp. 627 638.

Noori, Hamid. Managing the Dynamics of New Technology: Issues in Manufacturing Management. Englewood Cliffs, NJ: Prentice-Hall, 1990. Rosenthal, Stephen. Progress Toward the Factory of the Future. Journal of Operations Management, vol. 4, no. 3 (1984), pp. 203229. Stecke, Kathryn E., and James J. Solberg. Loading and Control Policies for a Flexible Manufacturing System. International Journal of Production Research, vol. 19, no. 5 (1981), pp. 481490. Venkatesan, Ravi. Cummins Engine Flexes Its Factory. Harvard Business Review, vol. 68 (MarchApril 1990), pp. 120127.