Strategic Implementation And Cost Justification Of Advanced Manufacturing Technology

Low, Kevin Lock Teng (2003) Strategic Implementation And Cost Justification Of Advanced Manufacturing Technology. PhD thesis, Multimedia University.

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Abstract

The manufacturing environment has changed significantly since the turn of the century, especially with respect to the machinery and equipment used to manufacture products. As competition becomes stronger, companies turn to new and more efficient machines and technologies to help them produce a lower cost and good quality product. At no time in the last twenty years has competition been stronger, because manufacturers must not only compete with domestic companies, but also with foreign, often with load of funds or goverment-supported companies. The implementation of advanced manufacturing technology (AMT)has been viewed as a powerful competitive weapon among the manufacturers. Manufacturing plants that have adopted these technologies have the potential , inter alias, to increase plant revenue, to reduce engineering lead-time, reduce labour cost, offer better quality products and organise the firm in a much more systematic approach. The manufacturers also realise that an improved cost justification approach is required that will allow them not only to evaluate AMT as it impacts the readily qualifiable aspects of their total business, but view it as a strategic weapon that can be used to attain leadership in the new global economy. The objective of this study are i) to identify the implementation elements utilised in AMT adoption ii) to investigate the factors underlying the successful implementation process; iii) to determine the types of justification for AMT that lead to accurate investment decision and iv) to formulate a cost model to reduce the investment cost. In this study, a representative sample of AMT users in Malaysia was approached by a mail survey. Responses from 103 AMT users were obtained and analysed using the moderated regression technique and multivariate analysis of variance procedures among other multivariate data analysis techniques. Data obtained indicate that there was a relationship between i) the type of technology portfolio utilised; ii) the type of a specific technology and the plant's characteristics. When the number of employees and the amount of capital expenditure increase in a firm, the higher level of importance would be focused on by the top management. There was a significant relationship on the centralisation of a firm and the justification techniques for traditional methods. Furthermore, organisational characteristic or corporate culture was linked to the tendency to adopt a specific type of technology. With the increase of plant turnover, the level of functional integration for planning, implementation and justification department tend to uprise. The mean level of important of objective was not equivalent across portfolios. Plants taht used more sophisticated technologies had placed higher level of effort on the various objectives across industries. As the firm grew bigger, they were more likely to encounter problems in the areas of information systems, management development and technical integration. After the financial crisis, there was difference between the amount of technology planned for the short and long planning time horizons. Lastly, net present value had been ranked the most favoured method for cost justification techniques for technology investment. The cost models using mixed integer linear mathematical programming formulations are presented. These models alone cannot function to solve the justification and adoption problem, but can serve as analytical tools that can be used within a strategic justification methodology. Outputs from these models can effectively be used within a multiple criteria decision-making framework.

Item Type: Thesis (PhD)
Subjects: L Education > LB Theory and practice of education > LB2361 Curriculum
Divisions: Faculty of Management (FOM)
Depositing User: Ms Rosnani Abd Wahab
Date Deposited: 21 Jun 2010 02:39
Last Modified: 21 Jun 2010 02:39
URI: http://shdl.mmu.edu.my/id/eprint/493

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