MIT Sloan Management Review

Management of Technology and Innovation

Integrated Manufacturing: Redesign the Organization before Implementing Flexible Technology

By P. Robert Duimering, Frank Safayeni and Lyn Purdy

July 15, 1993

IMAGINE THE FACTORY OF THE FUTURE. WILL COMPUTER-INTEGRATED MANUFACTURING (CIM) SYSTEMS BE ESSENTIAL PARTS OF THAT FACTORY? Perhaps not, argue the authors, because the assumptions underlying computer-integrated manufacturing are seriously flawed. Flexible technology will not address the causes of manufacturing problems; it may simply institutionalize bad practice. Better to address organizational issues first, then apply flexible technologies as a last resort.

I response to international competitive pressures, Western manufacturing organizations have focused a great deal of attention on new techniques and technologies for improving manufacturing activities.1 Two dominant manufacturing strategies have emerged. One is the just-in-time (JIT) manufacturing system, originally developed by Toyota, which includes a range of techniques aimed at simplification and waste reduction within the manufacturing system. The other is the computer-integrated manufacturing (CIM) approach, which uses computer-based information systems to link islands of automation, islands of information, and advanced flexible production technologies throughout the manufacturing organizational system.

Although these two strategies have been developed and adopted more or less independently and their compatibility is not well understood, managers generally assume that both approaches are advantageous for improving the productivity and competitiveness of manufacturing operations. For example, both systems are supposed to increase productivity by improving organizational integration, product quality, and manufacturing flexibility and responsiveness. As such, future factories can be expected to combine some of the characteristics of both the JIT and CIM approaches.

Empirically, however, what is known about the success of the two manufacturing approaches within industry is rather limited. JIT has been shown by Toyota and other Japanese firms to be an effective strategy for improving productivity when implemented appropriately.2 CIM is largely unproven; few well-documented case studies of the system are available. Most of... To read the complete article, login or sign-up using the form below.

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