Michael H. Small

Advanced manufacturing technology: Implementation policy and performance

Abstract This article investigates the relationships between adoption of various advanced manufacturing technologies (AMT), the way that firms plan for and implement them, and their eventual performance. Data obtained from 125 manufacturing firms in the U.S. is used to test several hypotheses which were derived from an extensive review of the AMT implementation literature. The four research questions that drive this study are: (1) What types of planning and installation activities have firms utilized to support their AMT adoptions?, (2) do differences in the level of effort applied to these activities have any impact on the eventual performance of the systems?, (3) are firms that are using integrated technologies, such as FMC/FMS and CIM, applying higher levels of effort on these planning and installation activities than other firms?, and (4) Are these firms achieving higher levels of success than firms that are not using the integrated technologies. The results indicate that firms adopting integrated technologies had exerted significantly higher levels of effort on strategic planning and team-based project management and had also achieved higher levels of performance across a wider range of performance factors than other firms. In addition, firms that had exerted higher levels of effort on developing human factors appeared to be achieving more of the benefits of AMT than their counterparts. The overall results and the research and practical implications of this study are discussed.

Investment justification of advanced manufacturing technology: An empirical analysis

Abstract This study surveys the usage of various justification activities in plants that have adopted advanced manufacturing technology (AMT). Relationships between the usage of these activities and the level of performance of AMT projects are also determined. Our findings suggest that justification approaches and justification criteria preference help to explain the adoption of the more integrated technologies. However, the number of functional departments involved in AMT justification activities is more effective in explaining project performance than the other justification activities. Our results also indicate that the majority of plants are not utilizing discounted cash-flow and probabilistic justification techniques. This study provides some insights into the formation of decision making teams for the justification process. Future research directions in this area are also suggested.

Planning for advanced manufacturing technology

While some reports on successes of advanced manufacturing technologies (AMT) have been glowing, many companies have tossed millions of dollars worth of fancy equipment into their factories and wound up with little to show for it. It is becoming clear that many of the AMT failures today can be attributed to an inadequate planning process. Proposes a four‐stage research framework that addresses issues in: planning the manufacturing system; planning for an appropriate infrastructure; planning for new relationships with the external environment; and justifying investment in AMT. Assesses the strengths and weaknesses of selected contributions in each stage, and identifies gaps in knowledge where research is needed. The framework devised should help tomorrow’s research build on the past and increase the research’s acceptance by industry, since it draws on both research‐ and practitioner‐based literature along with findings of the field study.

Economic and strategic justification of AMT inferences from industrial practices

Abstract Organizations vary greatly in their approaches and success in justifying investment in advanced manufacturing technology (AMT). This study investigates usage of various justification approaches by US manufacturers and examines the impact of such practices on the ultimate performance of AMT projects. Responses from a survey mailed to 584 plants in the US were used to test four propositions concerning AMT justification practices. We first discover that the majority of plants are not utilizing the more sophisticated justification techniques that are being touted by many researchers. Significantly, firms using hybrid justification strategies which include both economic and strategic justification approaches were found to attain higher levels of success from their AMT projects than plants that used only one method. However, once a plant used a hybrid justification method, preference for either strategic or economic criteria had no impact on the level of success of the project. Not surprisingly, plants using the more complex manufacturing technologies were more likely to have multiple functional departments involved in the justification process. Finally, the composition of inter-departmental teams for planning, justification and installation activities have an impact on the success of the AMT project.

Developing a framework for the effective planning and implementation of advanced manufacturing technology

Uses information gathered from the advanced manufacturing technology (AMT) literature to develop an integrated conceptual framework for effectively planning and implementing these systems. Then examines the efficacy of this framework by investigating the relationship between adoption of various advanced manufacturing technology (AMT), the way that firms plan for and implement them and their eventual performance. A detailed survey instrument was administered to a cross‐section of manufacturing firms in the USA to collect the required data. The results of this investigation indicate that the rate of adoption for integrated technologies was higher among firms that adopted more extensive formal planning approaches. In addition, these firms were found to be outperforming other firms. Also provides managerial and research implications of these and the other findings of this study.

In search of an optimal cost of quality: an integrated framework of operational efficiency and strategic effectiveness

Abstract The literature related to the cost of quality (COQ) and optimal quality level was reviewed and critiqued. The authors have proposed a framework for addressing the optimal COQ within the context of operational efficiency and strategic effectiveness. This proposed framework presents a first step toward providing scholars and practicing managers with a conceptual view of the behavior of the COQ and the interaction between cost categories from both operational and strategic perspectives. The proposed approach is realistic, as it utilizes an open system view of todays modern business organization and the competitive environment in which it operates.

Enhancing competitiveness through effective adoption and utilisation of advanced manufacturing technology: implications and lessons learned

In an increasingly technology-based competitive global business environment, the operational and competitive strategic potentials of advanced manufacturing technologies (AMT) and related systems cannot be overlooked. This article presents the results of an investigation of AMT implementation practices at 82 discrete-parts durable goods manufacturing plants in the USA. Several propositions that were derived from the AMT literature are tested. The results of this investigation indicate that plants that are desirous of adopting integrated technologies should be prepared to exert considerable effort on the activities in the pre-planning and justification stages of the implementation process. These and other findings that will be particularly useful to firms in the pre-planning stages of technology adoption are outlined and discussed. Research implications of this study are also presented and discussed.

Discerning Interrelationships among the Knowledge, Competencies, and Roles of Project Managers in the Planning and Implementation of Public Sector Projects

This study uses information gleaned from a sample of 102 public sector project managers to assess the interrelationships among project manager roles, responsibilities, and competencies in the planning and implementation stages of the project life cycle. The results of confirmatory factor analysis and structural equation modeling revealed that project managers use different subsets of their skills to influence outcomes at these two stages of the project. For example, while the project managers organizational and technical skills tend to have some influence during the project planning stage, managerial, leadership and people skills appear to have more influence during the project implementation stage. Implications of these and our other findings for the practice of project management in public sector organizations are discussed.

An examination of the implementation and effectiveness of process improvement initiatives in manufacturing operational systems

This research examines the rate of implementation and the level of effectiveness of six process management initiatives in four manufacturing industries. The results of this survey-based research indicate that there has not been a mad rush to adopt all available initiatives. Rather, individual industries appear to favour different mixes of these initiatives. Moreover, most of the respondents indicated that the initiatives that they had chosen were effective in meeting their operational and strategic needs. This study concludes by presenting specific conclusions relevant to manufacturing systems in the studied industries.

Discerning competitive strategy through an assessment of competitive methods

This cross-sectional study of Portuguese service organizations seeks to determine the level of alignment of competitive methods with strategy typologies covered in the business literature. Surveyed firms were asked to indicate their level of utilization of several competitive methods. The results of factor analysis of the survey data indicate that 30 of the 33 competitive methods covered in this study represent seven underlying strategy dimensions. Further analysis revealed that there is some congruence between the derived strategy dimensions and established strategy typologies in the literature. Cluster analysis revealed that each of the responding firms could be classified into one of four hybrid or mixed strategy orientations. However, differences in strategy orientation were not statistically significant in explaining differences in the financial performance of these organizations. These findings are discussed in the light of their implications for strategy development, strategy choices and performance evaluation in the Portuguese service sector.