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Importance of Various Factors For Implementing The Advanced Manufacturing Technologies in Manufacturing Enterprises
Hussain Bux Marri, Department of Industrial Engineering and Management, Mehran University of Engineering and Technology, Jamshoro, Sindh, Pakistan Hussain.email@example.com Murlidhar Nebhwani, Department of Industrial Engineering and Management, Mehran University of Engineering and Technology, Jamshoro, Sindh, Pakistan firstname.lastname@example.org Muhammad Nouman Shaikh, Flat No. 202-A West Point Tower, DHA Phase-II Extension, Karachi, Pakistan email@example.com Ghulam Yasin Shaikh, Department of Industrial Engineering and Management, Mehran University of Engineering and Technology, Jamshoro, Sindh, Pakistan firstname.lastname@example.org Abstract
Manufacturing Technologies (MTs) have been attempted to be made easier, faster, more accurate and sophisticated, in these efforts the advancement in manufacturing technologies is the ultimate choice. Manufacturing enterprises tend to switch from ‘traditional’ to the ‘automated’ systems for production with the involvement of computers through the use of Advanced Manufacturing Technologies (AMTs). This research has highlighted the implementation issues regarding the scope of technology utilization, organizational change management while implementation new technologies and systems, human resource practices changes & current practices in various production issues while implementing AMTs in MEs of Pakistan. An empirical study has been carried out which is based on a conceptual model developed using the empirical data. Keywords: AMTs, MEs, Implementation.
In today’s dynamic world, the concept of being faster, easier, and human friendly, comfortable, & sophisticated is spread beyond imaginations. This concept has found a wide space in the world of manufacturing and production. The companies all over the world are seeking to adopt the faster, easier, accurate, flexible and sophisticated ways of manufacturing the products and/or providing the services. By adopting these ever-demanded characteristics the production organization attains an edge over the competitors who now are not only within the same region in which the company exists, but are present all over the world to compete. In order to make manufacturing an easier, more accurate, flexible, sophisticated, faster and cheaper, the use of computer in manufacturing is the optimum option available.
Marri et al., Importance of Various Factors For Implementing The Advanced Manufacturing Technologies in Manufacturing Enterprises
operational. bar coding (BC). and office automation (OA) (Beaumont et al. such as improved quality. computer numerical control (CNC) machines. rapid prototyping (RP). it is highly intended and essential to focus both Small and Medium Scale Enterprises (SMEs) and large Scale Industries (LSIs). AMT refers to manufacturing process technologies that use computers to store and manipulate data (Dean et al. 2 FOCUSED AREAS OF RESEARCH Due to the immense depth of the topic.activity-based costing (ABC). how can they use. including computer-aided design (CAD). greater flexibility and cost reduction (Dangayach and Deshmukh. Keeping in view various MEs situated in different regions of Pakistan were taken under consideration for the research. Izmir AMTs appeared to represent a perfect interaction between technological potential and the manufacturing challenges. statistical process control(SPC). Hence human resource practice. 1992). Looking into the circumstances of Pakistani MEs. organizational and financial performances.. manufacturing resource planning (MRP II). material requirement planning (MRP). enterprise resource planning(ERP). If they are not using AMTs at all. automated guided vehicles (AGV). government support as well as performance measurement factors were selected as the research area. expensive and complex task a firm can undertake (Sambasivarao and Deshmukh. AMTs are a source of strategic competitive benefits. Importance of Various Factors For Implementing The Advanced Manufacturing Technologies in Manufacturing Enterprises 2 . but also how they can improve this practice. AMT requires multi-skilled workers and teamwork (Maffei and Meredith. 2001). 1995). In order to research in the area of implementation of AMTs in MEs of Pakistan. robotics (RO). implementation of AMT has been found to be one of the most lengthy. flexible manufacturing systems (FMS). AMT can be described as a group of computer-based technologies. technological know-how and uplift. 3 ADVANCED MANUFACTURING TECHNOLOGIES OVERVIEW Advanced Manufacturing Technologies (AMTs) provide benefits and advantage in areas that would enable MEs to maintain quality. 2002). MEs were all different in their nature & scale. it was highly justified to select certain areas of AMT implementation in manufacturing enterprises of Pakistan.. an empirical study on various MEs of Pakistan has been conducted using a questionnaire. automated storage and retrieval system (AS/RS). and how the use can be justified in such environment where the automation was not at all a concept in reality.European and Mediterranean Conference on Information Systems 2009 (EMCIS2009) July 13-14 2009. it was felt reasonable to focus on not only how MEs are currently practicing AMTs. An implementation model has been developed in order to highlight the current AMT implementation. However. This research is focused on the implementation issues of AMTs in manufacturing enterprises of Pakistan. 1994). direct numerical control (DNC) machines. automated material handling systems (AMHS). Marri et al. Crowne Plaza Hotel.
1995). The companies selected for the study were textile. On the other hand qualitative approach aims to reflect the meaning people apply to their actions. Failure of AMT implementation is often the result of inadequate detailed planning (Ramamurthy. it is argued that to exploit the benefits of AMT. so that an effort does not go in waste and a total organizational goal could be attained. while rest of the companies did not responded. Hence it has been stressed that a complete change has to be brought about in the organization. Questionnaire was developed into 4 different sections. a flexible organization capable of quickly react to changes is needed (Nemetz and Fry. how it will serve the organization. Response of 3 companies was partial. smaller differences between workers and managers. either the questionnaire returned incomplete or the data of the resourced person him/her was unreliable. then.European and Mediterranean Conference on Information Systems 2009 (EMCIS2009) July 13-14 2009. The use of AMTs increases the demand in terms of decision making and requires higher knowledge intensity at all levels. hence the data gathered from those 3 companies was discarded. 1988). Technological uplift. greater participation by workers. viz. the effect on the organization and workers. measurement & experiment (Bryman. Crowne Plaza Hotel. Izmir Management aspects play a critical role. we developed a conceptual model. and higher levels of horizontal interaction (Saraph and Sebastian.. automotive. higher levels of communication. 4 RESEARCH METHODOLOGY This section is concerned with the nature of research methodology within which the research process is to be carried out. and home appliances. It was made sure to get the questionnaire filled by the personnel directly concern with Marri et al. quantitative and qualitative have been used. “Quantitative research is. government support and performance measurement as shown in Figure 1. the respondents were given task to rate on the scale 1 to 7. The conceptual model consists of 4 parameters viz: Human resource practices. In order to implement AMTs in manufacturing enterprises of Pakistan. varying from “strongly agree” to “strongly disagree respectively. Total 15 companies were contacted amongst 10 companies agreed to respond the questionnaire. A deep understanding of AMT involves a careful assessment of the innovation’s potential. This implies that organizational structures should become more organic characterized by a more responsive decisionmaking processes. how people make sense of their world from the perspective of those people. 1992). The two modes of data. while implementing or modifying modern technologies. a genre which uses special language which appears to exhibit some similarity to the ways in which scientists talk about how they investigate the nature of order-variable control. justification of the investment and other factors that will enable successful implementation. tools manufacturing. Importance of Various Factors For Implementing The Advanced Manufacturing Technologies in Manufacturing Enterprises 3 . 1988).
harmony between managers and subordinates existed to an excellent extent. lead time reduction. MRPII Implementation of AMTs in MEs of Pakistan Government Support: Incentive schemes. organizational structure was mostly centralized.European and Mediterranean Conference on Information Systems 2009 (EMCIS2009) July 13-14 2009. However. Government support and performance measurement. while goal congruence was high. Importance of Various Factors For Implementing The Advanced Manufacturing Technologies in Manufacturing Enterprises 4 . Izmir technology management and enhancement in the companies. Performance Measurement: Marketing objectives. the questionnaires were mostly handed over to HR. DNC MRP. Marri et al. Technological uplift. The details can be found hereunder: 5. performance Human Resource Practice: Job Design Plant Culture Employee Training Employee Motivation Technological Uplift: CADCAM FMS GT ROBOTICS CNC. loans. has already been discussed in section 4. The background of the companies. factory.. technical backing. production. Crowne Plaza Hotel. and plant managers. tax credits. while plant culture was favorable to implement AMT in MEs.1 Human Resources Practices Organizational population varied with the variation in scale of MEs. benefits and incentives were not given on the required level. The Empirical study consists of four parameters viz: Human resource practices. who have responded. competitive advantages. while most of the workers were found semi skilled. public services and organizational relations were of intermediate. On the other hand. liberalization of market economy & logistics Figure 1: Conceptual Model for implementation of AMTs in MEs of Pakistan 5 EMPIRICAL ANALYSIS An empirical study of MEs located in Pakistan was conducted using questionnaires.
For this reason.. FMS. For tax credits most of the companies had an average answers. technical backing. Technologies in Use No: of Companies 10 8 6 4 2 0 CAM CAD FMS GT Robotics Others Technologies Fig 2: Technologies in use 5. Large Scale Industries (LSIs) & government must be joined hands for the success of the project. it’s so complicated and costly that a company within its resource boundary cannot attain the desired level of success. Empirical study shows that. Robotics and others adopted by them. The response of the surveyed companies is shown in Figure 02. liberalization of market economy & logistics was studied in the empirical study of certain companies of Pakistan. many companies had an adequate ranking for this. Importance of Various Factors For Implementing The Advanced Manufacturing Technologies in Manufacturing Enterprises 5 . Therefore. Loans were not also highly received by the companies on the greater extent from government. GT. Crowne Plaza Hotel.2 Technological Uplift During the empirical study the companies were asked about the technologies such as CAM. Only 20 % of the companies were benefited from the factor. Logistical support has been given relatively better importance by the government to the companies. tax credits. CAD. Only 20 % of them had given it a considerable importance. Hardly 30 % of the companies were ranked fine in this area.3 Government support for the implementation of AMTs Implementing advanced manufacturing technologies is not an easy process.European and Mediterranean Conference on Information Systems 2009 (EMCIS2009) July 13-14 2009. Government support in terms of incentive schemes. external supporters such as counterparts. Izmir 5. Technical backing is not impressively received by the companies from the government. only 40 % of the companies have given due importance to collective incentive scheme. In scale 1-7 ranging from least to most important above defined parameters were ranked by each company. loans. Marri et al. Liberalization of market economy was also a factor which was not appreciably received by the companies.
The Figure 4 shows the complete trend. Izmir 5..2 Lead Time Reduction During the study in the area of implementation of AMTs in MEs of Pakistan.4 Performance Measurement The survey companies were asked about their performance measurements in the areas like: marketing objectives. Marri et al. 5 used cheaper products and quick delivery to customers too. Hence it is found that MEs of Pakistan are highly conscious about their existing market share. it was found that 50% of the companies have well reduced. while quick changeovers. lead time reduction.European and Mediterranean Conference on Information Systems 2009 (EMCIS2009) July 13-14 2009. only 20 % MEs shown high interest in this factor. Importance of Various Factors For Implementing The Advanced Manufacturing Technologies in Manufacturing Enterprises 6 .1 Marketing Objectives During empirical study. Lead Time Reduction 20% 10% 20% Greatly Reduced Well Reduced Little Reduced Very little Reduced 50% Fig 3: Lead time improvements using AMTs 5. an other 20% have very little reduced and remaining 10% have little reduced their lead time after the implementation of AMT as shown in Figure 3.4. all the rest were giving it lesser.4. Crowne Plaza Hotel. 20% greatly reduced. the rest 80 % had very little idea of building new markets. rest of the companies were not as much interested in this. Building new market share was relatively more important to only 30 % of the companies. out of 7. 60 % of the companies were found giving “6” or more to defending market share. Creation of new markets for new or existing products is the absent concept in focused MEs.3 Competitive advantages During the empirical studies it was found that out of 10. 5.4. 7 companies use better quality to obtain the competitive advantage. competitive advantages and performance improvements while implementing AMT. was the least heavily used factor. in scale 1-7 ranging from least to most important. The details of performance measurements can be found hereunder: 5.
delivery. Importance of Various Factors For Implementing The Advanced Manufacturing Technologies in Manufacturing Enterprises Distribution Sales 7 . manufacturing enterprises were asked about their performance improvements in the areas like: productivity. The details can be found in Figure 5. The survey companies have achieved a good degree of improvements in above mentioned areas.4..4 Performance improvements During the study. Crowne Plaza Hotel. product efficiency. sales and distribution while implementation of AMT. Izmir Competitive Advantage using AMT 8 Number of companies Better quality Quick Delivery Cheaper products Reduced processing time Quick changeovers 7 6 5 4 3 2 1 0 1 Factors Improved planning & control Fig 4: Competitive advantages attained using AMTs 5.European and Mediterranean Conference on Information Systems 2009 (EMCIS2009) July 13-14 2009. Performance Improvement 7 6 5 4 3 2 1 0 No: of Companies Greatly Improved Well Improved Little Improved Very Little Improved Unchanged Productivity Productive Efficiency Good Delivery Performance Fig 5: Performance improvements using AMTs Marri et al.
International Journal of Operations & Production Management. International Journal of Operations & Production Management. 13 (4): 62738. “Do foreign-owned firms manage advanced manufacturing technology better”. References Beaumont.. Quantity and quality in social research. and Susman. Government support in terms of technical backing was found very low. while in contrary to them 70 % of the top management was willing for the AMT implementation. Organization Science. There’s already more mechanical work done in the industries than manual. Implementation of AMTs is confined to small number of companies. Izmir 6 VARIOUS FINDINGS OF RESEARCH It was found that only 30 % of the manpower was ready to accept new technologies in their working environment. London and New York.European and Mediterranean Conference on Information Systems 2009 (EMCIS2009) July 13-14 2009. Academy of Management Review. and Sohal. Dean. 1988. (1994). whereas in remaining 30 % companies there was no automation tendency found. Scientifically. (2001). International Journal of Production Research.G.L. 3 (2): 203-29. long-term vision.S. 22 (7): 759-71. “The organizational side of flexible manufacturing technology”. For failure & maintenance work. G. J.. “Advanced manufacturing technology and organization structure: empowerment or subordination?”. L. Schroder. In 70 % of the companies the automation tendency was found existent. Published by Routledge. R. N. Yoon. Bryman. and Fry. In manufacturing enterprises. S. S. Crowne Plaza Hotel. A. “Flexible manufacturing organizations: implication for strategy formulation and organization design”. M. and Deshmukh. Nemetz. Marri et al. Product variety was high for 60 % of the companies. Concept of product innovation was moderate in 50 % of the MEs while it was high for 30%. technologies and systems design”.W. P. (1988). 39(11): 2353-93. On the whole the government support to the MEs for updating the technological environment is not so encouraging in Pakistan. ratio can be generalized as 7:3. & employees’ willingness for the implementation and/or uplift of the technologies. J. moreover. (1992). they lack capital as well as guidance and support for the technology implementation. the MEs don’t have sufficient in house technological expertise and are still dependent over the foreign experts..J. more than 50% companies rely on external aid. Maffei. “Practice of manufacturing strategy: evidences from select Indian automobile companies”. G. Importance of Various Factors For Implementing The Advanced Manufacturing Technologies in Manufacturing Enterprises 8 . (2002). 14 (8): 17-34.. while in terms of logistics it was not so condemnable. there’s a rising tendency of AMTs utilization but they lack commitment. Dangayach. A. and Meredith. as well as foreign logistic support in terms of machines. 7 CONCLUSION An attempt has been made in this paper to study the importance of various factors for Implementation of AMTs in manufacturing enterprises located in Pakistan.
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