Education for the Manufacturing World of the Future (1985) / Chapter Skim
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Corporate Attitudes Toward Introducing the New Manufacturing Technology
Corporate Attitudes Toward Introducing the New Manufacturing Technology
Pages 75-90
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From page 75... ...
In the spirit of the symposium, it was hoped to pass beyond the complaints to some constructive debate and, in particular, to examine how, if at all, education could improve the present situation. Participants were asked to address: · Corporate planning and changing manufacturing systems; · Investment criteria and the introduction of new technologies; ~ Management decisions and realization of the full potential of new manufacturing technologies; and 0 How to develop the appropriate team of manufacturing professionals.
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From page 76... ...
When introducing new technologies, commonly accepted investment criteria are increasingly recognized as major obstacles. We currently operate in an environment in which discounted cash flows and internal rates of return are considered fundamental to evaluating investment decisions.
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From page 77... ...
controlling indirect labor costs both blue and white collar. Although it may not be readily apparent, much of the activity of these workers involves structured decision making requiring little intellectual input and of a highly repetitive nature.
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From page 78... ...
Jack N Behrman is Luther Hodges Distinguished Professor of Business Administration at the University of North Carolina.
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From page 79... ...
corporate managers to transfers of manufacturing technology abroad depend on four major factors: (1) their own corporate orientation to such transfers, that is, what they are willing to transfer overseas; (2)
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From page 80... ...
If the host country is to be used as a base for sales in a regional market, say Southeast Asia or Latin America, then total market demands in the region and the level of the market in terms of sophistication or growth are of concern. If a particular location is to serve the international market, as out of Singapore or Taiwan, that market, which is generally at the highest level of technological demand, then determines the kind of technology going into the host country.
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From page 81... ...
how to get it, and (3) how to retain manufacturing engineers able to operate it and to instruct labor.
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From page 82... ...
companies around the world. EDUCATION OF MANUFACTURING ENGINEERS Engineers need to be aware not only of how economics and politics affect the transfer of technology abroad but also how technology selection and transfer affect corporate structure, organization, ownership, location of production, integration, flexibility, and other factors.
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From page 83... ...
Engineers will then understand management's problems in looking not only at the market for the product, but also at the organization and control of the company itself. Harvard Business Review recently published an article on business schools and what their jobs are.
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From page 84... ...
What I was suggesting earlier is not that manufacturing engineers go through the business school courses, but that they understand that business must face political and governmental issues. Similarly, economic impacts, the impacts of technology on company integration, and the resulting constraints on the transfer of technology must be heeded as well.
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From page 85... ...
We must significantly shorten cycle times in manufacturing processes, handle small lots of material efficiently, and develop "just-in-time" delivery systems for ourselves and, most important, for our customers. A short-cycle time for any manufacturing process significantly increases the learning rate of the engineering community working on the manufacturing process and thus drives programs in production cost reduction.
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From page 86... ...
A good indication of the esteem in which they hold manufacturing engineering, even though they do it 90 percent of their lives, is that they are called process engineers, not manufacturing engineers. If they were called manufacturing engineers, we would have a hard time recruiting half of them into that profession.
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From page 87... ...
Fourth, in observing how manufacturing management decisions are made, there is a clear need for champions to introduce changes, bring them to the attention of top management, and come back with the money. Many smart manufacturing managers will hesitate to champion an appropriation at high levels, for it will inevitably mean a big Wickham Skinner is James E
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From page 88... ...
At top corporate levels, senior executives urgently demand changes, improvements, and ideas, as well as lower production costs and better quality from the manufacturing function. But at the factory level, manufacturing managers complain that they must meet short-term monthly and quarterly goals and that they are held accountable to "archaic" accounting systems, the same systems that have focused for 100 years on minimizing direct labor.
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From page 89... ...
Ultimately, we should see manufacturing people at the top again in reasonable proportions, but this requires further breadth and conceptual skills from manufacturing managers, attributes which are now the exception and not the rule. Meanwhile, the initiative for new manufacturing technology must come from manufacturing management because corporate attitudes at top levels often reflect technological illiteracy.
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