This document discusses the adoption of new manufacturing technologies. It defines advanced manufacturing technologies and explains that adopting new technologies is crucial for business competitiveness in the face of rapid technological change. The document outlines factors to consider in the decision to adopt new technologies, including product/market reasons, financial reasons, and management/organizational reasons. It also discusses project management for new technologies and accounting for technology investments.

1. Dr. Pradeep Desai
Adoption of new Manufacturing Technologies
Project Management for new technology, Accounting for technology
12 Dec 2016
Technology and Innovation

2. Contents
1 Manufacturing Technologies
2 Advanced Manufacturing Technologies (AMT)
3 Adoption of New Manufacturing Technologies
4 Decision to Adopt AMT
5 AMT Classification
6 Benefits of AMT
7 AMT - Operational and Organizational Performance
8 Impact of Shorter Product Lifecycle and Low Wages
9 Adoption of new Manufacturing Technologies
10 Project Management for New Technology
11 Accounting for Technology
12 References
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3. Manufacturing Technology
Magnify the efforts of individual workers and enable
production of all manufactured goods, with
production tools including machine tools and other
related equipment, their accessories, and tooling.
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4. Advanced Manufacturing
Technologies (AMT)
AMTs covers all new technologies which are used
directly by the firm in the production of a product.
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5. Adoption of new Manufacturing
Technologies
New technologies introduction is crucial for the survival of
businesses competitiveness.
Rapid technological change and fast shifting customer needs
force firms to constantly discover and develop opportunities
like the effective and efficient transfer of manufacturing
technologies into the value chain of the company.
The competitive advantage itself is generated by more efficient
and effective production processes caused by the
implementation of a new manufacturing technology in
combination with complementary assets like manufacturing
practices of TQM, JIT, etc.
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6. Decision to Adopt AMT
Product/Market reasons
Improvement of product quality
Improvement in the design of the product
Financial reasons
Cash flow strength
Availability of financing
Government programs
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7. Decision to Adopt AMT
Management and organizational reasons
Management philosophy about modernization
Trainable and capable employees
Management exposure to modern technology
Good labor/management relations
Increase productivity
Industry reasons
Be competitive with low labor cost companies
Meet EPA requirements for the industry
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8. AMT Classification
• Product Design Technologies (PDT)
• Process Technologies (PT)
• Logistics Planning Technologies (LPT)
• Information Exchange Technologies (IET)
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9. Benefits of AMT
• reduction of lead time to satisfy consumers
• getting new products to market more quickly
• flexibility to adapt to changes in the market
• improvement of product quality
• cost reduction
• increased consumer services as the most
important issues to address
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10. AMT and Operational Performance
New manufacturing technologies to strategic
priorities like increased flexibility allowing firms to
produce a variety of products at low volumes with
no additional costs or penalty.
AMT leads to increased productivity by reducing:
firms direct labor costs, rework costs and work-in-
process-inventories by embedding routine repetitive
tasks into AMT hardware and software.
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11. AMT and Operational Performance
Firms using AMT achieve higher product quality,
because process-related technologies allow for
stable manufacturing processes according to
product conformance.
Automation technologies provide greater
consistency with specifications and therefore reduce
scrap rates leading to a higher level of quality.
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12. AMT and Organizational
Performance
AMT adoption shows evidence that corporate goals
like increasing market share and gaining earlier
entrance to market can be realized.
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13. Shorter Product Lifecycle and Low
wage Manufacturing
Putting pressure on operating business:
• Industries with shorter product life cycles are
confronted with accelerated change of the
production processes due to differing
requirements for the manufacturing capabilities
for new products.
• New market entries from low wage countries.
Realize a strategy to handle the above scenarios
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14. Manufacturing Process Innovation
Manufacturing firms need to adapt to
environmental dynamics including short product life
cycles, growing product complexity, and rapid
advances in technologies by continuously engaging
in Manufacturing Process innovation (MPI).
MPI projects can address a range of activities, from
relatively minor "practice-based" procedural
changes to major technological changes, such as
the installation of new equipment. Initiatives such
as "Lean" manufacturing, Six Sigma programs, new
product introductions, and technology upgrades
also often motivate such projects"
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15. Project Management
Project management is the discipline of initiating,
planning, executing, monitoring, controlling, and
closing the work of a team to achieve specific goals
and meet specific success criteria.
New technology can be a small procedural
change, a change of equipment or the total
automation of manufacturing processes.
Project management of New Technology
• Assessing the impact of new technology
• Realization of a first-mover advantage due to
early investment in new technologies
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16. Accounting for Technology
Design technology Computer-aided design (CAD), Computer-aided
engineering (CAE), Computer-aided Process
planning (CAPP)
Manufacturing
technology
Computer-aided manufacturing (CAM),
Robotics, Real-time process control systems,
Group technology, Flexible manufacturing
systems (FMS), Computerized numerical
control machines (CNC), Automated material
handling systems, Environmental control
systems, Bar coding/automatic identification
Administrative
technology
Electronic mail, Electronic data interchange ,
Office automation, Knowledge-based systems,
Decision support systems, Material requirement
planning (MRP), Manufacturing resource
planning, Activity based accounting systems
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17. • Growing interest in sustainability can be found and "the
need for environmental protection and increasing demands
for natural resources are forcing firms to reconsider their
business models and restructure their supply chain
operations.
• Increasing regulation forces managers to invest in green
technologies as increasing internalizing of externalities
represents an additional matter of expense. For example,
carbon trading serves as an incentive to invest in initiatives
to reduce CO2 emissions and increasing price levels of raw
materials has improved the cost-benefit ratio of resource
efficiency programs.
• Green Supply Chain Management (GSCM) are related to
performance. There is a direct relationship between GSCM
practices and economic and environmental performance
suggesting that economic and environmental success are
complementary.
Sustainability
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18. Accounting for Technology
It is important for small manufacturing firms to
consider automation processes because
technological change has undermined traditional
economies of scale and is favoring small firms that
adopt innovations and invest in advanced
manufacturing technologies.
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19. Decline in Manufacturing in
Industrial Countries
The evolution of global manufacturing roles has started in the
early 1980s and is continuing. Macroeconomic data for this
period of time shows that the portion of worldwide
manufactured goods and products of the industrial countries
has constantly been declining.
While the share of labor-intensive products like textiles and
clothing started to decline earlier in the industrialized
countries, the ongoing trend throughout the last 40 years
remains the same for all industries.
List the reasons for this
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20. References
© 2016. All Rights Reserved.
Fine, Charles H.; Freund, Robert M. 1990. Optimal investment in product-
flexible manufacturing capacity. Management Science.
Swamidass, P.M.; Kotha, S. 1998. Explaining manufacturing technology use,
firm size and performance using a multidimensional view of technology.
Journal of Operations Management.
Swink, M.; Nair, A. 2007. Capturing the competitive advantage of AMT:
Design-manufacturing integration as a complementary asset. Journal of
Operations Management.
Zammuto, R.; O’Connor, E. 1992. Gaining advanced manufacturing
technologies’ benefits: the roles of organization design and culture. Academy
of Management Review.
Teece, D.J. 2007. Explicating dynamic capabilities: The nature and
microfoundations of sustainable enterprise performance. Strategic
Management Journal.
Cua, K.O.; McKone, K.E.; Schroeder, R.G. 2001. Relationships between
implementation of TQM, JIT, and TPM and manufacturing performance.
Journal of Operations Management.