Amt 2

THE IMPACT OF ADVANCED MANUFACTURING TECHNOLOGY ON SMALL WELSH COMPANIES
within the discipline of Design
Andrew T. Walters BA (Hons) Industrial Design
Director of Studies
Dr Huw Millward Senior Research Officer National Centre for Product Design and Development Research University of Wales Institute, Cardiff Professor Robert Brown Pro-vice Chancellor, Research University of Wales Institute, Cardiff Dr Povl Larsen Senior Research Officer National Centre for Product Design and Development Research University of Wales Institute, Cardiff
Supervisor
Supervisor
This dissertation is being submitted in fulfilment for the requirements for the degree of Doctor of Philosophy for the University of Wales Institute, Cardiff.
MAY 2008
THE IMPACT OF AMT ON SMALL WELSH COMPANIES
DECLARATION
This dissertation is the result of my independent research. Where it is indebted to the work of others, acknowledgement has been made. I declare that it has not been accepted for any other degree, nor is it currently being submitted in candidature for any other degree. I hereby give consent for my dissertation, if accepted, to be available for photocopying and for inter-library loan, and for the title and abstract to be made available to outside organisations.
Candidate Mr. Andrew Walters Date
Supervisors Dr. Huw Millward Date
Prof. Robert Brown
Date
Dr. Povl Larsen
Date
ABSTRACT
This research is concerned with the impact of advanced manufacturing technologies on small Welsh companies. The use of technology has been demonstrated to be a mechanism for increasing competitiveness in manufacturing. With increasing global competition, such improvements in competitiveness are important for manufacturers. However, despite the use of such technology being advocated as an important tool in developing competitive advantage, little research has been undertaken into how small companies might utilise such tools. This research draws on the technology adoption experiences of twelve case-study companies to gain an understanding of the impact of such technology and the critical factors that influence successful development. The research is presented in two stages. The first stage is the development of case-studies from interviews with ten manufacturing managers. This is followed by a stage of longitudinal research that observed attempts to introduce advanced manufacturing technology in two further companies over a one- to two-year period. The conclusions of the research demonstrate that for these small companies, availability of support is at least as important as cost. In addition, the study reveals a distinction between inherent and integrated benefits from technology. Inherent benefits refer to a match between company requirements and technology capabilities. Integrated benefits refer to achievable benefits as a result of technology use in a wider system. The case-studies show that these small companies are not employing sophisticated methods of evaluation to assist in selecting technologies. The observations also demonstrate that the companies are failing to properly assess the impacts of their technology investments and are not adequately developing internal support. This research condenses the observed issues into a series of recommendations to assist managers in assessing the impact of AMT and develops recommendations configured into a flowchart for staged consideration of issues at an appropriate level of sophistication for small company use.
ACKNOWLEDGEMENTS
I would like to thank my supervisors Dr Huw Millward, Professor Robert Brown and Dr Povl Larsen for the excellent advice and guidance that they have provided throughout this study. I feel that I have been privileged to have had such a committed team of supervisors that have never failed to demonstrate enthusiasm for the progression of this research. Particular thanks are also due to Dr Richard Bibb and Professor Alan Lewis for their support in my pursuit of this research degree; for their critiques and editing of every piece of research output Ive presented to them; and for their advice and teaching about the world of research. Further thanks are due to every member of PDR, together, this group of people has made PDR a vibrant and exciting place to be; where all staff are happy to help each other in the pursuit of their goals. In one way or another, all have fed into this study, be it through the identification of potential case-studies, advice on methods or analysis, reviews of written outputs or critiques of presentations. A debt of gratitude is owed to the many company managers that gave up their time to be involved in this study. Without the kind assistance of these managers, this research would not have been possible. The content of this thesis has been materially improved due to the academic peer review of the panels from journals and international conferences to which sections of this study have been submitted. In addition, knowledgeable academics at conferences have been forthcoming in offering advice for further development on the back of my presentations. To all of these experts, I wish to express my gratitude. Finally, I would like to thank my wife Clare, who has always been there to support me in every academic endeavour that Ive decided to pursue, from the beginnings of my under-graduate degree to the production of this thesis. It must have seemed like a never-ending journey on times, thank you. Andrew Walters Cardiff 2008
CONTENTS
Chapter One: Introduction
1. Background 2. Research Aims and Objectives
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11 12
Chapter Two: Literature Review

1. Introduction 2. Survey of the published works on FMS 3. A survey of previously published literature on AMT 3.1 Planning for AMT 3.2 Operational impact of AMT 3.3 Critical success factors for the implementation of AMT 3.4 Relationship between size and AMT adoption 3.5 Comparing AMT impact in different countries 4. Barriers to change 4.1 Operator empowerment 4.2 Particular barriers for small companies 5. Summary
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14 14 18 18 20 22 26 27 28 28 29 32
Chapter Three: Methodology Development

1. Introduction 2. Selection of an appropriate strategy 3. Case-study research 4. Research design 5. Structured interview document development 5.1 Definitions 5.2 Survey content 5.3 Planning for AMT 5.4 Operational impact of AMT 5.5 Critical success factors 5.6 Management competency data gathering document 6. Method for case-study analysis 7. Company selection
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34 34 36 37 40 40 41 41 42 42 42 48 51
Chapter Four: Stage One Case-Studies

1. Introduction 2. Case-study Company A 3. Case-study Company B 4. Case-study Company C 5. Case-study Company D 6. Case-study Company E 7. Case-study Company F 8. Case-study Company G 9. Case-study Company H 10. Case-study Company I 11. Case-study Company J
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53 54 56 58 61 63 65 67 69 71 73
Chapter Five: Individual Case-Study Analysis

1. Introduction 2. Analysis of Company A 2.1 Why did the company choose to invest in AMT and what were the impacts of the AMT programme? 2.2 How did the outcomes meet the anticipated benefits? 2.3 How do the responses relate to the satisfaction rating given?
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75 76 76 76 77
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3. Analysis of Company B 3.1 Why did the company choose to invest in AMT and what were the impacts of the AMT programme? 3.2 How did the outcomes meet the anticipated benefits? 3.3 How do the responses relate to the satisfaction rating given? 4. Analysis of Company C 4.1 Why did the company choose to invest in AMT and what were the impacts of the AMT programme? 4.2 How did the outcomes meet the anticipated benefits? 4.3 How do the responses relate to the satisfaction rating given? 5. Analysis of Company D 5.1 Why did the company choose to invest in AMT and what were the impacts of the AMT programme? 5.2 How did the outcomes meet the anticipated benefits? 5.3 How do the responses relate to the satisfaction rating given? 6. Analysis of Company E 6.1 Why did the company choose to invest in AMT and what were the impacts of the AMT programme? 6.2 How did the outcomes meet the anticipated benefits? 6.3 How do the responses relate to the satisfaction rating given? 7. Analysis of Company F 7.1 Why did the company choose to invest in AMT and what were the impacts of the AMT programme? 7.2 How did the outcomes meet the anticipated benefits? 7.3 How do the responses relate to the satisfaction rating given? 8. Analysis of Company G 8.1 Why did the company choose to invest in AMT and what were the impacts of the AMT programme? 8.2 How did the outcomes meet the anticipated benefits? 8.3 How do the responses relate to the satisfaction rating given? 9. Analysis of Company H 9.1 Why did the company choose to invest in AMT and what were the impacts of the AMT programme? 9.2 How did the outcomes meet the anticipated benefits? 9.3 How do the responses relate to the satisfaction rating given? 10. Analysis of Company I 10.1 Why did the company choose to invest in AMT and what were the impacts of the AMT programme? 10.2 How did the outcomes meet the anticipated benefits? 10.3 How do the responses relate to the satisfaction rating given? 11. Analysis of Company J 11.1 Why did the company choose to invest in AMT and what were the impacts of the AMT programme? 11.2 How did the outcomes meet the anticipated benefits? 11.3 How do the responses relate to the satisfaction rating given?
78 78 78 78 80 80 80 81 82 82 82 82 84 84 84 84 85 85 85 86 87 87 87 87 89 89 89 89 91 91 91 92 93 93 93 93
Chapter Six: Cross Case-Study Analysis

1. Introduction 2. Consideration of inherent and integrated benefits 3. Consideration of company technological experience 4. Availability of vendor or other support mechanisms 5. Discussion of retrospective research findings 6. Conclusions for the retrospective research stage
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94 95 96 98 100 103
Chapter Seven: Stage Two Methodology Development

1. Introduction
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2. Stage two data gathering 2.1 Management competencies 2.2 Management competency data gathering document 2.3 Longitudinal observation 3. Company selection
105 105 113 121 121
Chapter Eight: Stage Two Case-Study K

1. Introduction 2. AMT implementation 3. Analysis of management assessment responses 3.1 Management knowledge 3.2 Company resources 3.3 Quality procedures 3.4 Innovation and change 4. Analysis from previous results 4.1 Support mechanisms 4.2 Consideration of previous experience 4.2 Consideration of integrated and inherent benefits 4.4 Managerial impact 5. Case conclusions
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123 123 128 130 131 133 133 133 134 135 135 136 137
Chapter Nine: Stage Two Case-Study L

1. Introduction 2. AMT implementation 3. Analysis of management assessment responses 3.1 Management knowledge 3.2 Company resources 3.3 Quality procedures 3.4 Innovation and change 4. Analysis from previous results 4.1 Support mechanisms 4.2 Consideration of previous experience 4.2 Consideration of integrated and inherent benefits 4.4 Managerial impact 5. Case conclusions
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139 140 143 145 147 148 149 150 150 151 151 153 154
Chapter Ten: Discussion

1. Introduction 2. Cross case analysis 2.1 Negative managerial and labour impacts on retrospective cases 3. Consideration of published literature 3.1 Planning for AMT 3.2 Operational impact of AMT 3.3 Critical success factors for AMT 4. The critical factors for AMT adoption in small companies 5. The development of recommendations 6. Aiding small company AMT adoption 7. Summary and limitations
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157 157 161 163 163 165 167 171 174 178 181
Chapter Eleven: Conclusions

1. Introduction 2. Research questions 2.1 What is the impact of AMT on small companies? 2.2 What are the critical factors that lead to such impacts in small companies? 3. Output from the research
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184 184 184 185 185
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4. New knowledge
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Chapter Twelve: Critical Reflection

1. Introduction 2. Limitations 2.1 Limitations due to research design 2.2 Limitations due to analytical strategy 3. Design for further data analysis 4. Framework for revised study 5. Further work
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187 187 188 188 189 191 193
References Appendix A
Retrospective data capture responses
196 202 260 289

291 334
Appendix B
Management assessment questionnaire responses
Appendix C
Appendix C1: Conference Papers Appendix C2: Journal Papers
LIST OF FIGURES
Figure 2.1 Figure 2.2 Figure 2.3 Figure 3.1 Figure 3.2 Figure 6.1. Figure 7.1 Figure 7.2 Figure 8.1 Figure 8.2 Figure 8.3 Figure 9.1 Figure 9.2 Figure9.3 Figure 9.4 Figure 9.5 Figure 9.6 Figure 9.7 Figure 9.8 Figure 9.9 Figure 10.1 Figure 10.2 Figure 10.3 Figure 10.4 Figure 12.1 Figure 12.2 Framework for evaluating advanced manufacturing systems (from Saleh et al. (2001)) AMT implementation predictive model (from Udo and Ehie (1996)) The six facets model (from Kearns et al. (2005)) Flowchart of ideal criteria and sequence for the developed research design Concurrent nested strategy in predominantly qualitative enquiry (from Creswell (2003)) Utilising Inherent and Integrated Benefits of AMT Example of a technology management map Comparing published technology maps to those generated through the Management Competency Document Development activities within Company K Management Map generated from associate response Management Map generated from supervisor perspective Operating procedure for packing prior to automation Packing procedure during technology trial Management Map generated from Engineering Manager response Management Map generated from R&D manager response Management Map generated from Associate 1 response Management Map generated from Associate 2 response Labour increase at Process 2 to remove bottleneck Removal of Labour Input A due to AMT installation Same labour operates new AMT Mean Management Map for Case-Study K Mean Management Map for Case-Study L Mean Management Map for Case-Studies K and L Tool to assist AMT implementation in small companies Iterative data analysis AMT driven change investigative framework 20 23 24 52 50 101 105 108 125 128 129 141 141 144 145 145 146 152 152 153 158 159 161 180 191 193
LIST OF TABLES
Table 2.1 Table 2.2 Table 2.3 Table 3.1 Table 3.2 Table. 4.1 Table 5.1 Table 5.2 Table 5.3 Table 5.4 Table 5.5 Table 5.6 Table 5.7 Table 5.8 Table 5.9 Table 5.10 Table 7.1 Table 7.2 Table 7.3 Table 7.4 Table 8.1 Table 10.1 Table 10.2 Table 10.3 Table 10.4 Table 10.5 Table 10.6 Table 10.7 Table 10.8 Table 10.9 Table 10.10 Table 10.11 Table 10.12 Table 10.13 Table 10.14 Table 10.15 Table 10.16 Table 12.1 Table 12.2 Table A.1 Table B.1 Table B.2 Measurements of different flexibility types (Browne et al., 1984) Additional flexibility types identified by Sethi and Sethi Abdel-Malek et al. FMSD method Case study analysis techniques described by Yin (2003) Use of Likert scales in data gathering Overview of the ten retrospective case-studies The impact of AMT on Company A The impact of AMT on Company B The impact of AMT on Company C The impact of AMT on Company D The impact of AMT on Company E The impact of AMT on Company F The impact of AMT on Company G The impact of AMT on Company H The impact of AMT on Company I The impact of AMT on Company J Topics and considerations for Management Maps Best and worst management performance in different impact categories Mean areas and impact boundaries Re-categorisation of Millward et al. (2006a) case-study companies to conform to new impact boundaries Investment in technology adoption and support Reasons Case Study Companies invested in AMT Drivers of AMT for Case Study Companies Case Study Companies assessment of competing technologies Operational impacts of AMT for the Case Study Companies Comparison of positive impacts from AMT in the Case Study Companies The perceived relative importance of particular factors for successful AMT adoption of the Case Study Companies Perceived relative importance of factors excluding Company B Mechanisms to drive successful AMT adoption used by the Case Study Companies Commitment to AMT in the Case Study Companies Aspects of support for AMT development employed at some of the Case Study Companies Mechanisms utilised in the longitudinal cases to drive AMT adoption Benefits achieved by case-study companies Negative impacts suffered by case-study companies Negative impacts and potentially ameliorating factors Considerations to assist in technology implementation Further breakdown of considerations within Impact Assessment Potential for extracting management competency data from retrospective study Nine step data analysis plan Details of retrospective stage interviews Key dates for data gathering in Case K Key dates for data gathering in Case L 14 15 17 48 51 53 76 78 80 82 84 85 87 89 91 93 106 110 110 111 134 164 164 164 166 166 168 168 168 169 169 170 171 172 173 175 176 189 191 201 259 260
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INTRODUCTION
CHAPTER ONE:
INTRODUCTION
Quality and flexibility in manufacturing has become as important a focus as cost reduction in Western companies over the past two decades (De Meyer, 1998; Small, 1998). To aid industries achievement of such a shift in focus, much research has been conducted into the application of advanced manufacturing technologies (AMT). The importance of these new manufacturing objectives are indicated in the UK Governments Manufacturing Strategy which advocates that, In the face of lowcost competition, firms must move up the value added chain and embrace knowledge-intensive, high skilled manufacturing (DTI, 2002). The purpose of the investigation presented in this study is to: Identify the impact of AMT on small Welsh companies Identify the critical factors that lead to such impacts Develop a mechanism to assist small companies in their AMT adoption programmes
1. BACKGROUND
Small business is especially important to Wales as 71% of all Welsh private sector employment is generated by small and medium sized enterprises (SME), this is in comparison to 57% for the UK as a whole. In addition, SMEs account for 63% of business turnover in Wales (as compared to 54% for the UK) (Federation of Small Businesses in Wales, 2003). Manufacturing is of particular importance to the Welsh economy as it accounts for around 20% of Welsh employment (just over 200000 people) and approximately 25% of the Welsh gross domestic product. The Welsh Assembly Governments Wales in Figures publication shows that in 2002 93% of manufacturing companies employed fewer than 100 people and that 87% of manufacturing companies employed fewer than 50 people (National Assembly for Wales, 2003). During the 1980s much research was conducted into the newly emerging manufacturing systems and strategies associated with Flexible Manufacturing Systems (FMS) and Computer Integrated Manufacturing (CIM). These systems arose as a result of developing microprocessor technologies (Sethi & Sethi, 1990). The literature focused on manufacturing systems that utilised new technologies at the process level to increase manufacturing flexibility. During the 1990s a new strand of the literature evolved to examine manufacturing technologies in a broader context. These newer AMTs
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INTRODUCTION
have the potential to influence competitive advantage through the use of design related and information and control technologies in addition to process technologies (Swamidass & Kotha, 1998). Browne et al. (1984) defines FMS as an integrated computer controlled complex of automated material handling devices and numerically controlled (NC) machine tools that can simultaneously process medium-sized volumes of a variety of part types. This describes a technology driven system that provides part flexibility and can therefore be utilised as a strategic tool for many manufacturers. Youssef (1992) defines AMT as a group of integrated hardware-based and software-based technologies, which if properly implemented, monitored and evaluated, will lead to improving the efficiency and effectiveness of the firm in manufacturing a product or providing a service. Common examples of AMT include Computer Aided Design and Manufacture (CAD/CAM), Computerised Numeric Control (CNC) machines, industrial robots and automation. Successful implementation of AMT has been associated with numerous tangible and intangible benefits (Kaplan, 1986). Tangible benefits include: Inventory savings; reduced floor space; improved return on equity; and, reduced unit costs. Intangible benefits include: enhanced competitive advantage; increased flexibility; improved speed of response to market fluctuations; and, improved product quality and reliability (Small, 1999; Sohal et al., 1999). The potential benefits of AMT are widely reported, however, much of the literature on AMT indicates that companies are often dissatisfied with the benefits that such technological investment has brought to their businesses (Saleh et al., 2001; Chan et al., 2001; Small, 1998; Sohal et al., 1999). Difficulties with the implementation and maintenance of AMT include: communication; commitment; education; investment in support mechanisms; and, lack of previous experience in AMT implementation (Jonsson, 2000; Sohal et al., 2001).
2. RESEARCH AIMS AND OBJECTIVES

This thesis presents a review of the literature on AMT and demonstrates that much of the published research on AMT examined large US companies. The survey of published research established that little research has been conducted to exclusively evaluate the effects of AMT on smaller companies. The purpose of this research is to resolve the absence of an understanding of the particular issues facing small companies when implementing AMT. Therefore, the aims of the study can be expressed as: to understand the impact of AMT on small companies; to discover the critical factors that lead to such impacts; and, to develop a tool to assist company managers in their AMT development programmes. The objectives of the study, set in order to meet the above aims are: To undertake a critical review of the literature to inform data gathering
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INTRODUCTION
To develop mechanisms for the development of case-studies To undertake individual- and cross-analysis of the case-studies To develop an understanding of small company behaviour, and to recognise where this deviates from issues or priorities as reported in previous AMT literature To disseminate findings through academic peer reviewed conferences and publications and to utilise resultant feedback for the further development of the study
This thesis examines AMT development via twelve case-studies in order to develop a detailed understanding of the particular impact of AMT on small Welsh companies. The first ten of these casestudies were generated through structured interviews with company managers and directors for the development of retrospective data. Following analysis of the data gathered in this retrospective stage, a further two companies were observed. These further companies were studied in a longitudinal format in order that AMT adoption issues could be studied in greater depth. By combining and analysing the data obtained through the two modes of case-study research, an assessment is made of the impact and critical factors for AMT implementation. This assessment is translated into a useable tool to advise company mangers on the consideration of particular factors at different stages of AMT implementation.
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LITERATURE REVIEW
CHAPTER TWO:
LITERATURE REVIEW
1. INTRODUCTION
In this chapter, a review of the relevant previously published literature is undertaken. This review is presented in three sections: a survey of the published works on FMS; a survey of previously published literature on AMT; and, barriers to change. The survey of the published works on FMS is ordered in a chronological fashion and attempts to provide an overview of some of the more important publications that consider the implementation and development of FMS. The purpose of this survey is to provide an historical context to the development of AMT. The survey regarding AMT is presented in thematic format. It was important to order the AMT survey in this manner in order to assist the development of data gathering mechanisms that consider the established issues regarding AMT. The review of barriers to change is again thematic in nature to assist in the development of data capture mechanisms.
2. A SURVEY OF THE PUBLISHED WORKS ON FMS

In 1984, Browne et al. produced a seminal paper that provided a definition of FMS supported by the classification of eight types of flexibility: machine flexibility; process flexibility, product flexibility; routing flexibility; volume flexibility; expansion flexibility; operation flexibility; and, production flexibility. In addition, Browne et al. provided recommendations on how to measure various forms of FMS (see table 2.1). Flexibility Machine Process Product Routing Volume Expansion Production Measurement Set up time; Tool change time; Program change time Number of part types simultaneously processed Time to change from one part mix to another Stability of production during breakdown Minimum part production at which the system remains profitable Potential size of the FMS Level of existing technology within the firm
Table 2.1. Measurements of different flexibility types (Browne et al., 1984)
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LITERATURE REVIEW
Sethi and Sethi (1990) provide an historical context for flexibility in organisations in preparation for their survey of FMS literature over the previous decade. In this publication, Sethi and Sethi built on the types of flexibility identified by Browne, adding three additional types of flexibility: material handling flexibility; program flexibility; and, market flexibility (see table 2.2).
Flexibility Material Handling Program Market
Definition Ability to move different part types efficiently for proper positioning and processing through the manufacturing facility it serves Ability of the system to run virtually unattended for an extended period (i.e. into shifts subsequent to the shift in which the system was set up) Adaptability of the manufacturing system to changing market environments
Table 2.2. Additional flexibility types identified by Sethi and Sethi
The works of Browne and Sethi and Sethi attempt to create a taxonomy for flexibility terms in response to the many different and often conflicting definitions that were previously being used in the literature. Sethi and Sethi note that flexibility is a complex, multidimensional, and hard-to-capture concept. In addition, the authors noted that although there was much literature on how different manufacturing systems express flexibility, there had been few empirical studies on flexibility in manufacturing plants. It was one of the authors aims that their definitions and identified measurables for important aspects of flexibility would inform such empirical research. In their investigation into the emergence of a new flexible manufacturing paradigm, Spina et al. (1996) examined the performance of 443 companies from 20 different countries. These companies were a sub-sample of the 600 companies involved in the International Manufacturing Strategy Survey (IMSS), an established worldwide research project. Spina et al. hypothesised that post-Fordist strategies are converging into a multi-focused manufacturing paradigm that can provide greater competitive advantage for adopting companies. This multi-focused manufacturing paradigm is articulated in three principles: Multi-focusedness and strategic flexibility: Pursuing a number of objectives simultaneously while maintaining the strategic flexibility to rapidly shift from one set of goals to another. Integration: Integration of company processes, especially those involved in the valueadding chain. Process ownership: To develop local problem-solving capabilities for the resolution of process anomalies in order to avoid time-consuming hierarchical referrals.
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LITERATURE REVIEW
The paper concludes that the greater the adoption of the multi-focused manufacturing paradigm the greater the competitive advantage achieved. That is, the results indicated that those companies that simultaneously implemented the three principles achieved greater competitive advantage than those that simultaneously implemented only two of the principles. Further, those companies that implemented two of the principles achieved greater competitive advantage than those that implemented one or none of the principles. When considering the implementation of FMS, Sarkis (1997) noted a need to evaluate competing criteria. Sarkis defined these criteria as traditional (e.g. cost) and non-traditional (e.g. flexibility) investment measures. This is indicative of the hard to capture aspect of the definition of the benefits of FMS as described by Sethi and Sethi and the strategic flexibility principle identified by Spina et al. In order to address the difficulties of evaluating both traditional and non-traditional measures, Sarkis presented a Multicriteria Decision-Modelling (MCDM) approach to aid investment decisions. However, the execution of the MCDM is complex and requires specialist knowledge that might often not be available to a company decision maker. Abdel-Malek et al. (2000) argued that in a competitive environment a firm must be able to simultaneously produce multiple and diverse products, upgrade and redesign its products in short lifecycles, and execute efficient production changeovers. Abdel-Malek et al. discovered that there is little literature to aid companies on how to develop flexible manufacturing (FM) solutions. The authors paper addresses this issue through the development of a methodology for the design, development and implementation of an FM solution. Their work indicated that much previous FM research concentrated on FMS, usually involving automated metal working facilities. In their publication, AbdelMalek et al. presented an FM solution design method (FMSD) that extends beyond this class of facilities, e.g. into the areas of plastic production, pharmaceuticals and personal products. The proposed FMSD has nine steps in three phases (see table 2.3.)
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LITERATURE REVIEW
Phase 1
Step 1. Manufacturing flexibility audit 2. Estimate the type and degree of needed flexibility 3. Identify current flexibility bottlenecks 4. First cut estimate of potential flexibility benefits 5. Generate innovative flexibility concepts 6. Derive capital constraints 7. Detailed design of flexibility solution 8. Detailed economic analysis of solution 9. Formal flexibility proposal
Table 2.3. Abdel-Malek et al. FMSD method
Purpose To recognise and prioritise the required improvements in flexibility
To produce a design document that details: required skills; technologies and equipment; a process plan for implementation; and, the required management and administrative input
To relate the potential benefit of acquiring each flexibility type
In a paper that attempts to identify the accomplishments and failures of FMS, Mehrabi et al. (2002) argue that in the current market environment, higher quality products at lower prices and timely response to market demands are the primary factors for achieving competitive advantage. This position is in line with many previous publications on FMS (e.g. Beach et al., 1998; De Meyer, 1998). A further aim of the publication by Mehrabi et al. is to identify the potential benefits and key enabling technologies for emerging reconfigurable machining systems (RMS). The concept of RMS is an upgradeable modular system that promotes ease of reconfiguration as a strategy to adapt to market changes. Such a system has the potential to overcome the fixed hardware and software limitations of FMS. Mehrabi et al. surveyed 66 FMS experts, near evenly divided between FMS users and FMS builders. The paper concluded that many FMS have excess capacity and functionality that is not required by users at the point of installation. Although, the authors also found that in time, the extra functionality and capacity was often exploited. According to Mehrabi et al., such excess capacity and functionality, together with high initial investments costs make RMS an attractive alternative. It is argued that this is because RMS offers the initially required flexibility to meet current market demands at an initially lower investment cost together with the opportunities to expand and develop the system to meet future market demands. Identifying a similar issue to that presented by Sarkis (1997), Chowdary and Kanda (2003) noted that the requirement for manufacturing flexibility, together with the vast selection of available technologies that can support such flexibility, presents companies with a difficult problem. In order to address this
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LITERATURE REVIEW
difficulty, Chowdary and Kanda set out a specification for the development of a flexible manufacturing decision support system (FMDSS). The sample FMDSS model included the ability to: Take into account both quantitative and qualitative factors Embed knowledge obtained from FMS experts Rank various manufacturing configurations Assist the introduction of automation in a phased manner
However, Chowdary and Kanda note that the system that they have created is based on a limited set of the available FMS. The parameters of the system were also limited, for example, the quality parameter is based only on the accuracy of considered machining centres, and productivity is based only on the number of pallets available. The publication indicated the authors hope that their work will inspire further research that expands the capabilities of the FMDSS.
3. A SURVEY OF PREVIOUSLY PUBLISHED LITERATURE ON AMT

The purpose of the previous FMS section is to provide an historical context for the review of the published literature concerning AMT. It may be noted that many of the publications on FMS indicate how manufacturing flexibility and technology use are important aspects of developing competitive advantage in contemporary global markets. A thematic order is used in this section on AMT in order to draw attention to the important aspects of AMT research. The author has classified the previously published research on AMT into five broad categories: Planning for AMT, Operational impact of AMT, Critical success factors for the implementation of AMT, Relationship between size and AMT adoption; and, Comparing AMT impact in different countries.
3.1
PLANNING FOR AMT
Burcher and Lee (2000) found from their survey of 161 UK manufacturing practitioners that in order of importance (as ranked by the surveyed companies), companies invest in AMT to: obtain competitive advantage; obtain financial benefits; counter competitive threat; enhance company image; and, counter skill deficiency. The study indicates that most of the AMT implementations were undertaken as a response to market conditions rather than being driven by technological factors. In addition, Burcher and Lee argue that companies assess AMT proposals carefully through evaluation of both quantitative and qualitative factors and that most companies employed more than one appraisal technique. The results of the survey indicated to the authors that there is no pattern of differentiation between larger or smaller companies in terms of the number or types of appraisal techniques employed by a company.
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LITERATURE REVIEW
Small (2006) identified that the published literature on AMT investment appraisal techniques can be grouped into three categories: The economic approach. Appraisal through the use of standard financial mechanisms (e.g. return on investment; internal rate of return; and, net present value) The strategic approach. Analysis of such issues as competitive advantage; business objectives; and, technical importance The analytic approach. Utilising such techniques as value analysis; portfolio analysis; and risk analysis In Smalls own survey of 82 US companies, he found that 75% of respondents were using a hybrid of economic and strategic approaches to justify AMT investment. In addition, Small discovered that the use of hybrid justification approaches increased significantly with higher complexity AMT portfolios. One of the reasons for AMT implementation as identified by Burcher and Lee is to obtain financial benefits; however, in a survey of 160 US manufacturing companies, Swamidass and Kotha (1998) did not detect any direct connection between AMT use and financial performance. However, the paper explains that this may be because AMT implementation has the potential to generate indirect financial benefits through the exploitation of new opportunities that arise from increased quality and reductions in lead-times. Small (1998) suggested that the motivations for companies considering AMT can be grouped into three categories: technical/operational objectives; total quality management (TQM) based objectives; and, business or market-related objectives. Technical/operational objectives relate to the operational concerns of costs, productivity and quality assurance. TQM-based objectives relate to issues such as improvements in management and engineering expertise and integration within the organisation. Business or market-related objectives refer to such issues as reductions in delivery lead time, flexibility and improved speed of reaction to customer needs. In determining these classifications of AMT motivations, Small surveyed 114 US companies, 57% of which employed less than 200 staff. The results of the survey indicated that the most important objective for the implementation of AMT was improving product quality. High levels of importance were also placed on the technologies ability to reduce unit production costs. The business cultures of both the UK and the US are often accused of being environments in which managers are under pressure to produce short-term results. Burcher and Lee (2000) argue that such an accusation is unfounded in regards to many of the companies that they surveyed in respect to AMT investment planning. Many companies were found to be employing discounted cash flow (DCF)
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LITERATURE REVIEW
analysis to justify their investments in the longer-term. However, an earlier publication by Kaplan (1986) indicates a problem with the DCF method when considering AMT implementations due to difficulties in attributing financial value to the intangible benefits associated with such investments. Difficulties in evaluating the qualitative factors of AMT investments led Saleh et al. (2001) to develop a framework for managers to incorporate intangible attributes into the decision process when considering alternative AMT investments (figure 2.1).The research conducted by Saleh et al. found that each of the sub-attributes for each of the four categories were of equal importance to managers. Therefore, managers can compare alternative AMTs by indicating on a common scale how well each technology meets the sub-attribute characteristic. However, categories of manufacturing flexibility and system cost were found to be of greater importance to managers than the categories of vendor support and technical and management support. Therefore, average scores for the sub-attributes of manufacturing flexibility and system cost need to be weighted accordingly.
Fig. 2.1 Framework for evaluating advanced manufacturing systems (from Saleh et al. (2001))
3.2
OPERATIONAL IMPACT OF AMT
The implementation of AMT allows companies to diverge from the traditional manufacturing strategies of striving for low-cost leadership and differentiation. Effective implementation of AMT enables companies to achieve economies of scale and scope simultaneously. That is, implementing AMT reduces the cost of future product innovation, allowing the company to increase its speed of response to market and competitive changes. Therefore, investment in AMT represents a strategic option, the value of which increases in an environment of competitive and market uncertainties. Further, such economies of scope has the potential to influence the risk propensities of a company, e.g., in
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LITERATURE REVIEW
exploiting opportunities provided by a new AMT, a previously risk-averse company may become riskprone and attempt to challenge another companys position in a related market (Lei et al., 1996). Sohal (1996) studied the effects of AMT implementation in seven Australian organisations of varying size (from 30 to nearly 3000 employees). The study concluded that in general the companies achieved the benefits that they expected from the AMT and that each of the companies achieved significant improvements in their overall competitiveness. The benefits obtained by the companies that were the focus of this study included: improvements in volume throughput; reductions in product recall time; savings on labour costs; reductions in lead times; and, a reduction in customer complaints. However, although the benefits achieved were significant, a number of problems were also reported, including: a lack of in-house programming skills; inter-departmental conflicts; poor communication between management and the information technology department; implementation of necessary shop-floor discipline; conflict between short-term production requirements and long-term goals; and, convincing a Board of Directors to approve the project. One of the benefits cited by Sohal was reduction in labour costs; however, Small (1999) warns that justification of AMT implementation based on such a benefit may be flawed. Following a survey of 116 US manufacturing firms, Small found that the implementation of AMT often resulted in marginal decreases in the number production operators and marginal increases in average labour costs. The paper concluded that although many companies achieved their objective of operator reductions this did not necessarily result in savings in labour costs. Boyer et al. (1997) attempted to assess the impact of AMT on business performance (as opposed to the more common practice of analysing the impact of AMT on operational performance). Such assessment was made through a survey of 202 US manufacturing companies where Boyer et al. studied the impact of AMT, the impact of investment in manufacturing infrastructure and the resultant impacts on business performance. The results of the study indicated that investment in infrastructure has a positive impact on business performance. Investment in AMT was found to have a less positive impact on business performance where there is no supporting investment in manufacturing infrastructure. However, the greatest gains in business performance were found where there was both an investment in AMT and supporting investment in manufacturing infrastructure. In measuring the impact of design-led AMT in small to medium sized companies, Dorrington et al. (2003) found that time, cost and quality factors were all positively influenced. Dorrington et al. argue that an important contributory factor to these benefits is enhanced communication throughout the organisation. An example cited by the author describes the ability of a CAD/CAM designer to discuss
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the manufacturability of a concept at an early stage, thus reducing the requirement for additional design work during the manufacturing phase.
3.3
CRITICAL SUCCESS FACTORS FOR THE IMPLEMENTATION OF AMT
Inman (1991) proposed a seven-step strategy for successful implementation for advanced FMS. The seven steps proposed are: Define the firms manufacturing strategy; Define the environment; Ensure management commitment; Technical evaluation; Economic evaluation; People involvement; and, Installation. Inman argues that the most important of these is the definition of the companys manufacturing strategy asserting that it is crucial that technology acquisition decisions are consistent with company manufacturing strategy. In addition, Inman states that it is important for businesses to determine if their industry is suitable for competing on grounds of flexibility. The report suggests an indication of suitability can be gained by the rate at which new products are introduced in a specific industry. In industries with a high rate of product introduction, the ability to launch new products may be more important than minimising cost. Following a review of the available literature together with a survey of 92 US manufacturing companies that had implemented some form of AMT, Udo and Ehie (1996, 1996a) produced a predictive model linking critical success factors to tangible and intangible benefits of AMT (figure 2.2). The authors identified four AMT determinants (triple C factors, self-interest factors, housekeeping factors, and literacy factors) that significantly affected AMT implementation measured through AMT benefits. The results of the study indicated that self-interest factors were the most critical determinant of AMT success. The implication of this result is such that where shop-floor operatives can be encouraged to perceive a technological investment as a system that can yield personal gains to them the likelihood of the company achieving successful implementation is increased. Within triple C factors, Udo and Ehie determined that commitment appeared to have a greater impact on achievable benefits than either communication or co-ordination. The explanation proposed in the report was that even with good communication and co-ordination there is unlikely to be an effect upon implementation success without commitment from management and workers. Cost justification was found to be the most important predictor of implementation success in the housekeeping category. Udo and Ehie argue that a believable cost justification has the capability to make shop-floor operatives conscious of profit and loss issues, and as a result has the potential to enhance the companys competitive position.
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Fig. 2.2. AMT implementation predictive model (from Udo and Ehie (1996))
The literacy factors relate to education of the workforce; the results of the study indicate that investment in education of shop-floor operatives is directly related to many of the AMT benefits. Udo and Ehie conclude the winning firms will be those that keep pace with the changes by updating their workers knowledge through in-service and external training. Kearns et al. (2005) developed a six facet model to assist successful technology implementation based on a survey of the available literature and tested through a case-study of a US manufacturing and retail company. The specific focus of the model is on the management of change within technology management, stating that such change is a vital aspect of business success. The six facets presented by Kearns et al. are: technology evaluation; product and process integration; planning; implementation; training; and, change (see figure 2.3). Within the model, Technology Evaluation is concerned with the development of metrics to quantify achievement; accessing company experience of technology; assessing the potential requirements for the technology; and, considering human factors in development. Product and Process Integration examines operational procedure changes and the potential for integrating systems. Planning sets constraints for potential systems in terms of intended use and identifies relevant staff with particular skills and experiences. Implementation is identified as the crucial stage when plans are realised. Within the implementation stage the recommendations are to test; evaluate the human impact from the system; develop contingency plans (e.g. running previous systems in parallel); and, ensure
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effective communication between team members. The Training facet focuses on budgeting and scheduling adequate training resources to improve the effective potential of technology. The final facet, Change, is concerned with the development of supporting mechanism to encourage support from various functions within the business.
Fig. 2.3. The six facets model (from Kearns et al. (2005))
Hull et al. (2007) noted the six facets model to be largely concerned with AMT planning following the AMT investment decision. Therefore, Hull et al. developed a further process to supplement the six facets model with a process for the evaluation of competing new technologies. This new process, a Modified Analytic Hierarchic Process (MAHP) supports the six facets model through the consideration of strategic factors in the decision-making process. The identified strategic issues are concerned with Business; Business Technical; and Technical factors. Within each of these factors, suggestions are made for appropriate sub-factors that managers can weight in order to assist in selecting the technology that best meets the requirements of the company. In a survey of 20 aeronautical plants in southern Spain, Machuca et al. (2004) found that the only factor to have a positive impact on AMT implementation success was staff training. Further, a lack a strategic planning was observed to have a negative impact on AMT implementation and development. The companies that took part in the study indicated that they perceived human resource management factors (e.g. versatility, training, motivation and leadership) as being most important for achieving AMT objectives.
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LITERATURE REVIEW
From an evaluation of one particular type of AMT implementation, i.e. Surface Mount Technology, Frohlich (1998) concluded that firms should use different implementation strategies depending on the maturity of the technology being implemented. Frohlich advised that early adopters of technology need to concentrate on learning that clarifies production process uncertainty, and that such knowledge should be attainable from vendors and external experts. Late adopters of technology suffer less process uncertainty, and therefore need to concentrate more on experimental learning, e.g. through the use of simulation. McDermott and Stock (1999) identified links between certain types of organisational culture and implementation success via a survey of 97 US manufacturing companies. The study demonstrated that companies with a flexible group orientation (that is, companies that have tendencies towards internal flexibility and spontaneity) gained higher levels of satisfaction from their AMT implementations. These levels of satisfaction were present even where companies witness no significant operational or organisational benefits. It was proposed in the report that in such cases companies might be deriving implementation satisfaction from the process of implementation, perhaps as a capability or team building exercise. Continuing the theme of organisational culture and implementation success, a study of 101 US companies conducted by Gupta et al. (1998) found that AMT implementation could have an adverse effect on the commitment of employees. Gupta et al. argue that the implementation of AMT often leads to increased uncertainty in the manufacturing environment, thus making it more threatening to work in. Such findings add weight to the importance of both the self-interest factors and literacy factors as identified by Udo and Ehie. Gardner et al. (1996) indicated that increasing operator responsibility has a positive influence on AMT performance. Gardner et al. conducted laboratory experiments to test if the positive influence on performance was in part due to the development of implicit knowledge in fault diagnosis. The authors found that fault management is an important aspect of effective technology use and that operators develop implicit knowledge with experience in technology operation. The finding of Gardner et al. support and enhance the earlier findings of Jackson and Wall (1991) that as operator knowledge increases the incidence of machine downtime decreases. Therefore, Jackson and Wall indicate that successful implementation and development of AMT can be positively influenced through providing operators with the opportunity to directly affect performance.
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LITERATURE REVIEW
3.4
RELATIONSHIP BETWEEN SIZE AND AMT ADOPTION
Swamidass and Kotha (1998), in an investigation into the relationship between company size and AMT use, split AMT into four dimensions: Information exchange and planning technologies (IEPT) Product design technologies (PDT) High volume automation technology (HVAT) Low volume flexible automation technology (LVFAT)
The paper reported a survey of 160 US manufacturing companies, discovering that AMT usage is lower in smaller firms than larger firms for each of the identified dimensions except PDT. Swamidass and Kotha argue that the PDT dimension does not grow with size due to the widespread use of CAD technology in plants of all sizes. In addition, the authors find that LVFAT grows faster with company size increase than the other identified dimensions. The paper attributes this to the generally capital intensive nature of FMS, a technology group included in the LVFAT dimension. Hewitt-Dundas (2004) studied the strategic developments of small companies utilising AMT. In a survey of 383 companies, Hewitt-Dundas determined that AMT could be sub-classified into lowerorder AMT (e.g. CAD, CAM and CNC) and higher-order AMT (e.g. Automated Material Handling, CIM and TQM). Lower-order AMT represents those technologies that can be implemented incrementally, and the companies implementing such technologies typically develop less-complex innovation strategies. In such cases the benefits of AMT are obtained through immediate improvements in production efficiency. Higher-order AMT requires integration of manufacturing units for the development of competitive advantages based on increased flexibility. Companies implementing this level of AMT were shown to be developing more complex innovation strategies. Sohal et al. (2001), in their study of AMT implementation in 84 South African countries, found a number of noteworthy differences between larger and smaller companies. Perhaps unsurprisingly, the study found that larger companies make larger AMT investments. Such a discovery is in line with previous research that has considered the characteristics of companies implementing AMT (Schroder and Sohal, 1999). However, a related but interesting discovery concerned the different risk attitudes of large and small companies. The results of this study indicated that failure to achieve financial targets and deficiencies in relevant managerial skills were less important risks for large companies. Another important difference between larger and smaller companies was the increased likelihood of larger companies to already employ personnel with the necessary skills to implement and maintain AMTs at the time of implementation. Sohal et al. argue that the major challenges to smaller
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companies are the management of both the financial resources and skills required for successful implementation. Earlier in this thesis, issues regarding the inclusion of qualitative factors in AMT investment decisions were discussed. Rangone (1998) argues that many of the frameworks developed for AMT investment decisions have not been developed with SMEs in mind. Rangone attempts to assess the applicability of major non-conventional AMT appraisal and selection techniques to smaller companies. The techniques assessed in the publication are: modified DCF; strategic approach; and, multi-attribute decision making (MADM). The report concludes that MADM methods can be particularly beneficial to smaller companies since they are intuitive, that is, based on a human-like logic. Additionally, MADM techniques do not require specific competence or sophisticated information systems.
3.5
COMPARING AMT IMPACT IN DIFFERENT COUNTRIES
Sohal et al. (1999) compared the practices related to AMT adoption in 93 large American and 67 large British companies (large referring to companies with over 500 employees). Sohal et al. discovered that, overall, companies from both countries invested in AMT for similar reasons: financial benefits; competitive benefits; countering competitive threats; and, countering skill deficiencies. However, American companies place much more emphasis on AMT investment to enhance company image than did their British counterparts. In a case-study examination of AMT implementation in three firms of differing sizes from different industries in Australia, Britain and Canada, Burcher et al. (1999) concluded that there were far more similarities than differences in the experiences of these geographically diverse companies. The study concluded that for successful implementation, companies need to ensure that a broad, market driven perspective is taken to these investments, that attention is given to integration across systems and that people issues require as much attention as those directly relating to the actual technology. In contrast to the examples given above, a comparison of AMT usage in the US and Japan by Kotha and Swamidass (1998) found significant differences. The study indicated that US companies use more scheduling and control technologies, while Japanese companies use more factory floor technologies. In studying AMT adoption in Thai automotive manufacturers, Laosirihongthong et al. (2003) found that survey respondents had a higher level of CAD/CAM usage than foreign firms. Laosirihongthong et al. speculated that this may be due to most Thai firms having access to fewer resources than foreign owned companies and therefore were only able to invest in standalone technologies.
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Given that Sohal et al. compared US and British firms, and Burcher et al. examined British, Australian and Canadian firms, the results of Kotha and Swammidass may be indicative of differences in Western and Japanese AMT use rather than just US and Japanese AMT usage.
4. BARRIERS TO CHANGE
A well-documented and significant barrier to successful implementation is resistance to change at various levels within the workforce. Tantoush and Clegg (2001) assert that it may not be politically possible to implement technological change within an organisation even if such changes have been rationally deemed necessary. In this section, previously published research with regards to barriers to change in manufacturing companies is discussed. The published literature on technological change within manufacturing companies has indicated that the drivers of such change include: to obtain competitive advantage; to obtain financial benefit; to counter competitive threat; and, to improve product quality (Burcher and Lee, 2000; Youssef, 1992).
4.1
OPERATOR EMPOWERMENT
Adler and Borys (1996) state that efficient manufacturing requires certain levels of formalisation of processes and procedures. However, they also note that bureaucracy often has a negative impact on innovation and change within companies. In their study of organisational bureaucracy, two types of formalisation, coercive and enabling, were identified. Adler and Borys advocate an enabling approach when implementing an AMT that requires increased skill levels on the part of the operator. Such an approach requires the company to allow more discretion in the ways in which people work, with procedures that empower users of technology. This provides an environment in which operators interact more creatively within the organisation. The study therefore suggests that with this type of formalisation there is reduced risk of inhibiting organisational change. The literature on AMT has often advocated the importance of operator empowerment to successful implementation (Tantoush & Clegg, 2001; Macri et al., 2002; Adler and Borys, 1996; Udo & Ehie, 1996). Macri et al., state that it is important that proposed changes within an organisation are understood to be both desirable and necessary by shop floor operators. Should this not be the case, the authors warn that production operators may engage in acts of sabotage towards new systems and procedures. In the previous section on AMT literature it was noted that Udo and Ehie (1996, 1996a) identified four factors capable of influencing AMT implementation success measured through AMT benefits (Triple C factors; Self-interest factors; Housekeeping factors; and, Literacy factors). However, the results of the
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study indicated that self-interest factors were the most critical determinant of AMT success. The implication of this result is such that where shop-floor operatives can be encouraged to perceive a technological investment as a system that can yield personal gains to them, the likelihood of the company achieving successful implementation is increased. Literacy factors relate to education of the workforce; the results of the study indicate that investment in education of shop-floor operatives is directly related to many of the AMT benefits. In developing a framework to assess change management success, Taskinen and Smeds (1999) undertook research to ascertain the state of the art in measuring change management projects. This research took the form of interviews with the managing directors of three global consulting companies. Each of the consulting companies highlighted the importance of measuring the willingness to change of personnel. Such findings add weight to the importance of both the selfinterest factors and literacy factors as identified by Udo and Ehie. The findings of Lee et al. (2000) are also in keeping with the theme of operator empowerment and enabling formalisation. Their paper demonstrates that it is important to encourage legitimate politics within the company and suggest the dispersal of power and authority throughout the organisation, providing autonomy of departments in addressing their own objectives.
4.2
PARTICULAR BARRIERS FOR SMALL COMPANIES
Sherer et al. (2003) examined the importance of investment in organisational change management in aiding the successful implementation of a new technology. The paper argued that many companies fail to place enough emphasis on the changes that employees must make to the way that they work in order to successfully utilise a new technology. The study focussed on a single multi-national companys perspective; however, the particular technological implementation examined was a corporate wide system upgrade. The authors concluded that the investment that the company had made in managing the change had a significant impact in improving client satisfaction and reducing resistance from the workforce. The large company technology investment examined by Sherer et al. was held as an exemplar of how investment in the management of change can assist successful implementation; however, for smaller companies the barriers to such investment may be different. Larsen and Lewis (2006) undertook a review of the literature on barriers to innovation in small companies and discovered seven distinct factors: Financial factors Trust Skills
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Marketing Overemphasis on technology Poor NPD processes Personal characteristics
Financial factors included limited resources compounded by a lack of management experience and high risks for external investors. Trust refers to low levels of trust exercised by owner-managers within their own organisations and towards third-parties. Skills refer to lower levels of expertise easily accessible by the smaller company. The barrier Marketing advises smaller companies to ensure face-to-face contact with customers, but acknowledges the particular difficulty such companies have with overseas markets due to limited resources. Overemphasis on technology notes that small company managers have a tendency to focus on technological aspects over commercialisation. In terms of poor NPD processes, small companies have been observed to be unsystematic in undertaking the necessary stages of design and development. Finally, personal characteristics refer to the stereotypical owner-manager as autocratic and over-optimistic with regard to their own performance. Following the review of the literature, Larsen and Lewis documented how a micro-company overcomes such barriers to create an award-winning product. It was hoped that this would offer bestpractice guidance to other small companies. However, the paper concluded that the companys route to success was haphazard and without a clear plan and therefore did not provide an exemplar for the implementation of innovation. In examining three UK automotive component suppliers, Lee et al. (2000) found that the drivers for change in these organisations was pressures imposed by their customers, i.e. major vehicle manufacturers. Lee et al. note that smaller companies face numerous barriers to technological change including: negative attitudes and perceptions of the effects of change; resource constraints; and, a lack of interaction with external expertise to facilitate technology implementation. However, Lee et al. also advocated the importance of innovation and high skilled manufacturing stating that: Most of the resources within a company are accessible by competitors (e.g. capital, raw materials, and standard technologies); therefore, competitive advantage derives from the knowledge and abilities of the workforce. In order to aid analysis of the efforts of their case-study companies attempts to become more competitive during a period of technological change, Lee et al. developed eight characteristics of
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organisational learning. These characteristics were based on those developed by Weaver (1994, cited in Lee et al. (2000)): Shared mental models: Encouraging a shared vision of the organisation Learning values: Encouraging individual and group interaction to create new organisational learning Experimentation and innovation: Mechanisms to tap creativity from employees Legitimate politics: Encouraging employees to pursue their own goals and interests where these can be aligned to the needs of the business Learning from the past: Monitoring and evaluating results to guide future decisionmaking Synthesising perspectives: Encouraging employees to be responsive to alternative perspectives Commitment to professional development: Encouraging employees to develop their knowledge and skills Participative information search: Analysis of the business environment to enhance company planning Following evaluation of the performance of the case-study companies against these characteristics, Lee et al. suggested that SMEs have a tendency to focus on those areas of organisational change that present least challenge in implementation. The authors suggest that these changes centre on improvements in face-to-face communication between managers and workers, an aspect of organisational change that is easier for the smaller firm to maintain than it is for the larger company. According to Taskinen and Smeds (1999) there is a shift from the requirement of the effective management of operations to the efficient and effective management of change. The study suggests that the identification of resistance to change within an organisation is an important aspect of successful change implementation. The literature regarding organisational learning and operator empowerment present these issues as tools designed to impact upon an organisations internal politics in such a way as to create an environment that is conducive to change. The existence of political barriers to change within organisations has been noted many times in the published literature. Tantoush and Clegg (2001) assert that although many firms adopt AMT for profit-motivated reasons they fail to achieve such benefits because they are unable to manage the politics of the technology adoption and its impact upon organisational design. According to Macri et al. (2002), even small organisations, often regarded as naturally inclined to change, suffer political barriers to technology implementation. Although, as noted above, it is the position of Lee et al. (2000) that when small
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companies are determined to implement change, communication is an area in which they out-perform larger companies. However, a contradictory example is provided by Jones (2003) in a case-study paper examining the management style within a small company. In this paper the author notes that, the MD expressed little interest in developing the workforce and was more concerned to investigate opportunities for outsourcing existing activities or investing in new machinery. However, it must be noted that Joness publication is concerned only with a single organisation.
5. SUMMARY
The literature has demonstrated that AMT implementation can yield many tangible and intangible rewards for manufacturing organisations. However, it is also noted that many companies are failing to receive their anticipated benefits following implementation. Due to many of the benefits associated with AMT adoption being intangible, much research has been conducted into evaluation of qualitative factors to aid justification of investment. Achieving implementation success is another area that has received much attention in the literature. However, a great deal of the literature concentrates on US manufacturing. Researchers have established that there is a link between technological investment and productivity growth in the US; however, it is yet to be shown if similar investment in technology will yield the same benefits for European countries (OMahony & de Boer, 2002). AMT research based in the US has a tendency either to examine large firms that have certain levels of previous experience with technology implementation, or to be indiscriminate in company selection to achieve generalisable results. Given the resources required to implement AMT, such indiscriminate study may provide results with a bias to large companies that have more opportunity to invest in AMT and therefore more experience in the factors affecting implementation. In measuring the effects on a company of introducing new AMT, researchers have measured a combination of quantitative and qualitative indicators. Examples of previously used indicators include lead times, project cost and product quality and return on equity, throughput times, competitiveness, work conditions and response times. The impact of AMT implementation upon small companies is an under researched area. Many of the studies that have been conducted in this area have focussed on highlighting the differences between large and small companies in regard to AMT implementation. While such studies provide valuable insights into the effects of technological implementation within smaller organisations, it also highlights a need for in-depth study that focuses exclusively on the relevant issues faced by small companies
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This review of the published literature is in preparation for in-depth study on the impact of AMT on small Welsh companies. It is important to the aims of this study that impacts on all areas of the business are considered. It is likely that barriers to realising expectations will not be confined to production operations but will exist throughout the organisation, for example, in the companies ability to sell any newly acquired skills or recognise and capitalise on new opportunities. Another welldocumented and significant barrier to successful implementation is resistance to change at various levels within the workforce. Tantoush and Clegg (2001) demonstrated that even where there has been identified necessity for change, political barriers may still exist. Macri et al. (2002) indicated that small companies may present similar political barriers to technology implementation. Previous research has indicated that companies from differing geographical locations invest in AMT for similar reasons and face similar adoption issues (Burcher et al., 1999; Sohal et al., 1999). Therefore, it is reasonable to propose that although this study is concerned only with small Welsh manufacturers, that much of the results are of potential interest to small manufacturers in other locations.
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METHODOLOGY DEVELOPMENT
CHAPTER THREE:
1. INTRODUCTION
An initial survey of the published literature has confirmed the need for investigation of the AMT related issues facing small companies. In measuring the effects on a company of introducing new AMT, researchers have measured a combination of quantitative and qualitative indicators. Examples of previously used indicators include lead times, project cost and product quality and return on equity, throughput times, competitiveness, work conditions and response times. It would be reasonable to argue that in order to gain a comprehensive understanding of the effects of a particular technology or system within a company, that it is necessary to capture data on that technology in use. The purpose of this chapter is to examine different methodologies for capturing relevant data in order to inform an appropriate research design to this study.
2. SELECTION OF AN APPROPRIATE STRATEGY

According to Creswell (2003), researchers have the option of developing research based around three alternatives: qualitative, quantitative, and mixed-methods approaches. In order to aid the researcher in choosing the most appropriate research method, Creswell offers the following descriptions of each method: Quantitative approach: Primarily a postpositivist approach (i.e. examination of causes that influence outcomes, reduction of ideas to small discrete ideas for testing, development of numeric measures of observations). Employs strategies of enquiry such as experiments and surveys, and collects data on predetermined instruments that yield statistical data. Qualitative approach: Often a constructivist approach (i.e. the development of meanings from the participants view of the situation being studied) or an advocacy/participatory approach (i.e. political, issue-oriented, collaborative, or change oriented). The researcher collects openended, emerging data with the primary intent of developing themes from the data.
Mixed-Methods approach: Usually takes a pragmatic approach (i.e. problem oriented rather than method oriented). The researcher collects both quantitative and qualitative data, either simultaneously or sequentially.
The results of a project to implement and develop AMT can be said to have two possible outcomes: successful implementation or unsuccessful implementation. Taking this approach, it would be feasible
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to examine the possible causes of either result using a quantitative research design. However, as stated in the introduction to this chapter, the aim of this research study is to identify the impact of AMT and develop a means to assist implementation within small companies. The objective of such an aim is to discover not only those issues that result in success or failure, but also to gain an understanding of the particular issues facing small companies when implementing AMT. Such an aim lends itself well to a qualitative approach as it is important to understand the relevant issues from the point of view of the company being studied. The applicability of both quantitative and qualitative methods implies the applicability of a mixed-method approach. The pragmatic approach of a mixed-method, where understanding of the problem is of greater significance than the method used to gain such understanding, appears very suitable to the proposed research. Yin (2003) presents five research strategies: experiment; survey; archival analysis; history; and, case study. In addition, the author provides three conditions for assessment in the selection of an appropriate research strategy: The type of research question being posed The extent of control an investigator has over actual behavioural events The degree of focus on contemporary as opposed to historical events
In order to assess the type of research question being posed, Yin advocates categorisation of the question from the series: who, what, where, how, and why. Research that focuses mainly on what are either exploratory, e.g. what can be learned from a particular situation? or are a form of how many? or how much? This indicates, according to Yin, suitability for survey research. In addition, who and where questions are also likely to favour survey research. How and why questions are more explanatory, being suitable for case study, history or experiment based research design. Assessment of the impact of AMT in small companies can be translated into two questions: How does AMT introduction and use affect small companies? Why are small manufacturing companies investing in AMT?
The how and why categorisation of the research question indicates suitability to a case study, history or experiment strategy. To select an appropriate strategy from these three options the second and third of Yins conditions can be consulted. A study on AMT in use in companies creates an environment in which the researcher observes events but has no control over those events. In addition, the focus is on contemporary or recent historical events rather than distant historical events. Yin states, Case-studies are the preferred strategy when how or why questions are being posed,
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when the investigator has little control over events, and when the focus is on a contemporary phenomenon within some real life context.
3. CASE-STUDY RESEARCH
Patton (1990) states that case-studies are particularly valuable when the evaluation aims to capture individual differences or unique variations from one programme setting to another, or from one programme experience to another. Further, the author notes that the purpose of a case study is to describe the situation under analysis in depth and detail, in context, and holistically. In analysis of case-study research, Patton indicates that the researcher must choose between individual case analysis and cross-case analysis. Although researchers will often use both methods during a single study, Patton warns that if both individual case analysis and cross-case analysis are attempted simultaneously, the result will likely be confusion. Individual case analysis is concerned with examination of each response or critical event given in each case study. Cross-case analysis requires grouping responses from different cases to common questions or central issues. According to Patton, it is appropriate to begin with individual case-studies where variations in individuals are the primary focus of the study. However, the author states that before analysis can begin, each case study must be represented and understood as an idiosyncratic manifestation of the phenomenon of interest. Voss et al. (2002) present a strategy for case research designed for the field of operations management. In their paper, the authors state that case research has consistently been one of the most powerful research methods in operations management. However, the authors also note that case research faces certain challenges, namely: It is time consuming It requires skilled interviewers Care is needed in drawing generalisable conclusions
In keeping with Yin, Voss et al. note that it is important to publish case research as it is good at investigating how and why questions. Further, Voss et al. also assert that case research is particularly suitable for developing new theory. The authors indicate that choosing an ideal number of casestudies is a difficult task. Whilst studying fewer case-studies provides greater opportunity for in-depth observation, the study of fewer companies also limits the generalisability of the results. Other risks associated with a limited number of case-studies include the misjudging of a single event and the exaggeration of easily accessible data. The use of multiple case-studies may reduce the depth of the study, but there are advantages in that it is easier to augment external validity and to guard against observer bias.
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Another issue highlighted by Voss et al. is whether to undertake longitudinal or retrospective case research. Retrospective data is more suitable for controlled case selection. This is because it is only possible to select cases with particular outcomes in retrospect. However, longitudinal data is better for identification of the relationship between cause and effect. That is, the longer the period of study the easier it becomes to note the relationships between events. In developing a road map for case research in operations management Voss et al. describe a two stage approach. Initially data is gathered from a number of companies experience in the relevant area. This retrospective data is used to aid the development of theories and further questions. However, the authors warn that such retrospective data may be subject to post-rationalisation by the case-study respondent. That is, the respondent may interpret previous events using knowledge that was not available at the time. It is to counter this risk, a second stage of longitudinal research is undertaken to test theories and gain more in-depth knowledge from fewer companies.
4. RESEARCH DESIGN
This chapter is concerned with the selection of an appropriate research design for a study on the impact of AMT on small Welsh companies. From Creswell (2003) it can be deduced that such a study has both quantitative and qualitative aspects. Following the definitions of Creswell, the pragmatic approach of a mixed-methods design appears to be the most suitable; however, the study leans more towards the aspects of qualitative study than quantitative study. Within the realm of qualitative study, from Yin (2003) it can be seen that the proposed study is particularly suitable to a case-study approach. And, from Patton (1990) it can be seen that analysis of case studies should be undertaken on an individual basis prior to cross-case analysis. Voss et al. (2002) present a two-stage road map for case research in operations management that will provide a basis for the research design of this study. Presented in figure 3.1 is the authors perception of the ideal sequence, criteria and outputs for a research design based on the factors discussed above. The ideal research process described in figure 3.1 seeks to gain a comprehensive understanding of AMT use through interaction with a wide range of companies. Whilst such a range of companies might be accessible via survey research, it would not be practical to gather data from such a wide array of conditions in case-study research under time constraints. In addition, the case-study data gathering relies on interviews, and therefore it would be extremely difficult to predict conditions that would allow the full range of identified scenarios. One identified condition is the use of companies that are unknown to the university department. Survey research may address this condition by the use of
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mail questionnaires using business directories; however, for the case-study interviews it is necessary to have prior knowledge of the level of technology use within a particular company. In stage two of the research it becomes even more difficult to meet the ideal case conditions, as the longitudinal nature of the studies necessitates that the outcome of technology introduction is unknown. In addition, for both stages, the number of ideal conditions requires a larger number of companies than the study timescales allow. The study presented in this thesis follows the design set out in figure 3.1; however, a more pragmatic approach has been required in case selection for the reasons indicated above. Interviews with ten manufacturing companies formed the basis for the stage-one exploratory AMT implementation and development study. At the outset of the study no upper-limit was set on the number of case-studies, rather the number of studies was set by the time taken to discover willing participants; to gather and analyse the data; and, regular reviews of the time remaining on the research programme. Following analysis of the tenth case study, a review of the data indicated a significant depth of captured information. In addition, the remaining timescales on the research programme were in line with plans for longitudinal observation (i.e. approximately two years). The limitations in terms of scope of the study begin to make apparent the need for wider survey research following the outcomes of this research. However, such further need does not detract from the importance of initially developing case research to gain an in-depth understanding of the AMT development experiences in particular small Welsh companies. Indeed, such in-depth study is likely to form a strong starting point for focused quantitative survey research. In order to gather data from identified case-study candidates a structured interview document was developed. The areas of questioning in this document were developed as a result of issues discovered via a review of the published literature. This interview document was consistent with a mixed-methods approach using both qualitative open-ended questions and quantitative close-ended questions. However, quantification is based on the opinions of respondents, and is therefore a quantification of a qualitative response. Close- ended questions took the form of Likert scales for comparison of answers across case-studies and semantic differential scales for before/after comparisons. Likert scales allow a respondent to rate their agreement with a given statement (usually on a scale of 1-5 where 1=strongly disagree and 5=strongly agree). Semantic differential scales (sometimes referred to as Visual Analogue Scales (VAS)) allow the respondent to select any point between two ends of a scale to express his/her views (Oakshott, 2001). For example, How important is system cost when selecting an AMT?:
Not Important _______________________________________________________ Very Important
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Fig. 3.1. Flowchart of ideal criteria and sequence for the developed research design
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The second stage of the research will examine two candidate case-study companies in more depth. This second study will be longitudinal in nature in order that events relevant to AMT can be more closely monitored and findings of the first stage study can be refined or discounted.
5. STRUCTURED INTERVIEW DOCUMENT DEVELOPMENT

This section documents the design of an interview document for interviewing small Welsh companies to collect data on their AMT implementation experiences. It is the intention of the author that such a document should: provide an understanding of the processes that the interviewed companies undertook to plan for AMT implementation; assess the operational impact of AMT; and, determine what the interviewee believes to be critical factors for successful implementation of AMT. Careful analysis of the results of such a study has the potential to identify generic issues regarding the planning, operational impact and successful implementation factors of AMT in small companies.
5.1
DEFINITIONS
In order to produce results of interest to the wider research community it is important to accurately define the boundaries of the research. Common examples of AMT include Computer Aided Design and Manufacture (CAD/CAM), Computerised Numeric Control (CNC) machines, Industrial Robots, Automated Storage and Retrieval Systems (AS/RS) and Manufacturing Resource Planning (MRP II). The literature review cited Youssefs AMT definition which can be argued to define any technological advancement within a manufacturing unit as an introduction of AMT. However, it is the opinion of the author that this would not accurately reflect those technologies that are generally considered AMT in the current manufacturing environment. For the purposes of this research AMT shall refer to: Manufacturing technologies that utilise 3D CAD/CAM Laser-based manufacturing technologies Vision systems Industrial Robots CNC machine tools Non-contact and co-ordinate measuring systems
This selection of considered technologies was developed in consultation with a team of six experienced manufacturing engineers employed in a government sponsored organisation to advise Welsh companies on manufacturing issues.
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The term traditional manufacturing shall be used to describe manufacturing technologies established prior to those termed AMT. Therefore, in addition to those manufacturing technologies commonly understood to be traditional (e.g. manual metal fabrication, sand casting, etc.) and long established mass-production (e.g. injection moulding), 2D CAD driven manufacturing technologies would also be considered a traditional technology. The focus of this research is small Welsh manufacturing companies. In European research, it is common to term companies with less than 250 employees as small to medium sized enterprises (SMEs) and businesses with less than 50 employees as small companies. In US definitions, categorisation of a business as small varies with sectors. Within the manufacturing sector companies are usually classified as small if they have fewer than 500 employees; however, in some manufacturing sub-sectors small can describe up to 1000 employees (U.S. Small Business Administration, 2007). For the purposes of this research, small is a relative term for the differentiation of this work to the more common practice of studying AMT in large companies. The author does not intend to focus on the impact of AMT on larger SMEs and therefore argues that to use the term SME in the title of this research would be inappropriate. However, it is not the intention of the author to exclusively study the impact of AMT on companies with less than 50 employees. Therefore, for the purpose of this study the term small shall relate to companies with less than 200 employees.
5.2
SURVEY CONTENT
The discussion of the outcomes of a survey of the published literature indicated that little research had been conducted into the impact of AMT in small companies. An appropriate first step in resolving such an absence of knowledge regarding the particular AMT related issues facing small companies may be to establish where differences exist between the issues as identified by the published literature and the issues as identified by research focussed exclusively on small companies. In order to evaluate such differences a survey document has been created for the purpose of interviewing appropriate representatives from each of these companies to collect data on: AMT planning procedures; operational impact of AMT; and, critical factors for successful implementation of AMT.
5.3
PLANNING FOR AMT
A review of the publications that considered issues during planning for AMT implementation indicated that research typically addressed: The reasons for considering AMT Drivers for AMT implementation
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Assessment techniques to select the most appropriate AMT Consideration of quantitative and qualitative factors Use of appraisal techniques Important attributes of the AMT selected
5.4
Publications that considered the operational impact of AMT typically measured: Any significant improvements in competitiveness Benefits to the company of using AMT The overall satisfaction of the company with the new technology The perceived importance of communication within the organisation Levels of conflict between short-term production requirements and long-term objectives The ability of existing staff to operate the new technology The impact on labour costs
5.5
CRITICAL SUCCESS FACTORS
When considering critical success factors for the implementation and development of AMT, typical measures found in the published literature included: The relative importance of different success factors Levels of consultation with production operators Level of operator support for AMT Level of communication of organised benefits Levels of operator training undertaken Levels of continued commitment for the technology within the organisation
5.6
MANAGEMENT COMPETENCY DATA GATHERING DOCUMENT
The following pages demonstrate the questions and scoring used to gather data in the retrospective study.
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Planning for AMT

The purpose of this section of questions is to determine: What do small companies wish to gain from AMT implementation; what processes do they go through to justify AMT implementation; and, how do they select appropriate technologies?
Was there a set planning stage prior to AMT investment? How long was the planning stage? What were the perceived benefits of AMT implementation?
Y/N
Following the decision to implement an AMT, were formal assessment techniques used to select the most appropriate AMT in which to invest? (E.g. the development of a specification that the technology must meet) In any assessment of different AMTs were both the quantitative and qualitative factors of the technologies considered? Comments:
Y/N
Y/N
Were multiple appraisal techniques implemented? Y/N How many appraisal techniques were used? Can any of the assessment techniques used be named? e.g. Discounted Cash Flow (DCF), Multi Attribute Decision Making (MADM), Other 1. 2. 3. 4.
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Use the Likert Scale to indicate the relative importance of the following issues when considering AMT implementation
Counter skill deficiency

Not important
1 Counter competitive threat Not important 1 Obtain financial benefits Not important 1 Enhance company image Not important 1 Obtain competitive advantage Not important 1 Other reason (state): Not important 1 Other reason (state): Not important 1
2 2 2 2 2 2 2
3 3 3 3 3 3 3
4 4 4 4 4 4 4
5 5 5 5 5 5 5 Driver Driver Driver Driver
Very important Very important Very important Very important Very important Very important Very important
Which of the following were drivers for AMT implementation? Availability of new technology Response to market conditions Entrepreneurial decision Other factor (state): Which of the above was most important to your company? Vendor Support
Not important
Not a Driver Not a Driver Not a Driver Not a Driver
Please indicate the relative importance of the following attributes when considering AMT implementation
3 3 3 3 3 3
4 4 4 4 4 4
5 5 5 5 5 5
Very important Very important Very important Very important Very important Very important
System Cost
Not important
1 2 Manufacturing Flexibility Not important 1 2 Technical and Management Support Not important 1 2 Other reason (state): Not important 1 2 Other reason (state): Not important 1 2
Were external parties used to aid the implementation of AMT? Please identify (tick all appropriate) Technology Vendor (or agent) Independent Consultant University Other (please state)
Y/N
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Operational Impact of AMT Have the AMT implementations in which you have been involved generally led to significant improvements in overall competitiveness?
Comments:
Please rate your overall satisfaction with the results of the AMT projects in which you have been involved
Y/N
Very dissatisfied Comments:
Very satisfied
Was there any conflict between short-term production requirements and long-term objectives of AMT implementation?
Y/N
Comments:
Were existing staff able to operate the new technology Was there a requirement for new expertise from the labour force following implementation?
Y/N Y/N Y/N Y/N Y/N Y/N
Comments:
Did a requirement for additional expertise impact on labour cost following implementation?
Comments:
Were new business opportunities identified following AMT implementation?
Comments:
Were new opportunities successfully realised?
Comments:
Were additional or unexpected costs incurred as a result of AMT implementation?
Comments:
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Did the implementation of AMT help the company to achieve improvements in any of the following areas? For each area please use the VAS to rate performance before and after AMT implementation Volume throughput
Before After Before After

Labour costs
Worst possible
Best possible
Product recall times
Worst possible
Best possible
Before After
Lead times
Worst possible
Best possible
Before After Before After Before After

Unit costs
Worst possible
Best possible
Customer complaints
Worst possible
Best possible
Production flexibility
Worst possible
Best possible
Before After Before After Before After Before After Worst possible Best possible Worst possible Best possible Worst possible Best possible Worst possible Best possible
Product quality
Other reason (state):
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Critical Success Factors of AMT

Was there an individual or group that was the driving force for AMT implementation?
Y/N Y/N Y/N Y/N
Identification of driving force:

Were production operators consulted when considering AMT implementation? Were measures taken to encourage operator support of new technological installations?
Comments:
Were operators educated as to the potential benefits to the organisation of use of AMT?
Comments:
Prior to implementation, were both management and operators committed to AMT development? (Tick all that apply)
Committed Management Operators

Was investment in AMT complemented by investment in operator training?
Neutral
Opposed
Y/N
Please indicate the importance of the following factors to successful implementation of AMT
Consideration of company manufacturing strategy Not important 1 2 3 4 Evaluation of the competitive environment Not important 1 2 3 4 Economic evaluation Not important 1 2 3 4 Involvement of production operators Not important 1 2 3 4 Communication (inter-departmental / management-shop floor) Not important 1 2 3 4 Other reason (state): Not important 1 2 3 4
5 5 5 5 5 5
Following AMT implementation did both management and workers remain committed to use and further development of the technologies?
Y/N
Comments:
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6. METHOD FOR CASE-STUDY ANALYSIS

Yin (2003) asserts that formal analytic techniques for case-study data are under-developed by comparison to analytical processes available for other forms of research data gathering. However, of those that do exist, Yin provides an overview of the techniques and advice regarding the applicability of each process to different situations. The processes described by Yin are sorted into the themes: General Strategies; Tools; and, Specific Analytic Techniques. An overview of these processes is presented in table 3.1 below. Category Process Theoretical propositions General Strategies Rival explanations Case descriptions Tools Computer-assisted routines Analytic manipulations Pattern matching Specific Analytic Explanation building Techniques Time-series Analysis Applicability Most preferred strategy, based on the propositions that led to original objectives Identification of potential rival explanations that could lead to the results presented. Useful in testing hypothesis A descriptive common framework for describing gathered case studies For verbatim analysis of narratives or texts Experimental ordering of data to assist in highlighting particular themes Comparison of predicted patterns against those empirically observed Useful for generating hypothesis, i.e. not for conclusions but for the identification of ideas for further study The linking of particular events to particular conditions. With enough data this can facilitate statistical analysis of case studies
Table 3.1. Case study analysis techniques described by Yin (2003)
Yin states that of these processes, the most important is to select an appropriate general strategy, as it is only in the context of strategy that the Tools and Specific Analytic Techniques can be determined to be either useful or irrelevant. The general strategy for case-study analysis employed in this work was Yins preferred process of Theoretical Propositions. That is, following the presented description of each of the cases, there is consideration of the how and why questions developed to select case research from other competing methodologies. Within chapter five, there is consideration of why each of the case-study companies invested in AMT, and how such AMT affected the companies in terms of positive and negative impacts. Further how questions were developed considering: how did the outcomes meet the anticipated benefits?; and, how do the responses relate to the satisfaction rating given?
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Within the chosen general strategy, consideration was given to each of the available analytic tools to assist in evaluating the cases. Computer assisted routines were rejected as the narratives were developed by the author from the interview document responses. Therefore, any analysis derived from such routines would be an evaluation of the authors verbal behaviour rather than the AMT related issues conveyed by interviewed managers. Analytic manipulations could be viewed as being an inherent evaluating procedure resulting from the chosen data gathering method, that is, due to the structured nature of the interview data was captured covering particular subjects in a particular order. As a result, the case descriptions each follow a similar narrative pattern. Pattern matching and explanation building both rely on the development of either hypotheses or presumed causal links. These techniques were unsuitable for the retrospective stage research because the small number of cases would present a difficulty in convincing a reader of the validity of such hypotheses. However, following the longitudinal evaluation, some elements of explanation building were used, in that there is iterative evaluation of the longitudinal cases against the results of the retrospective stage, against the outcomes of individual retrospective cases, and against the outcomes of the literature review. The process of developing the case descriptions from the interview documents, in preparation for the use of the proposition analysis, followed the time-series technique. In time-series terms, the event sequence can be viewed as: AMT investment decision process; AMT implementation; and development of AMT benefits. This time-series follows the identified themes for the structured interview document of: Planning for AMT; Operational Impact of AMT; and, Critical Success Factors for AMT. Although this technique has been shown to be suitable for generating data suitable for statistical analysis in certain circumstances, within this study the quantity of data was not appropriate for such analytic procedures. It was noted earlier in this chapter that the research appeared suitable to the pragmatic nature of mixed-methods but that qualitative enquiry would be the predominant form. Because of this qualitative focus, the main strategy for analysis pursued was drawn from advice from Yin. However, in acknowledging that there is a use of some quantitative enquiry embedded in the structured interview, consideration is given to strategies of mixed-methods research design. Creswell (2003) writes of the utilisation of either concurrent or sequential strategies of mixed-methods research. Sequential strategies are composed of separate stages of qualitative and quantitative data gathering and analysis (undertaken in either order), where the results of the second stage are used to further enhance either the knowledge gained from the preceding stage, or to further validate research findings. Within concurrent strategies, qualitative and quantitative data is gathered at the same time.
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The research design used in this study is similar to a concurrent nested strategy (see figure 3.2) in both the retrospective and longitudinal research stages.
Fig. 3.2. Concurrent nested strategy in predominantly qualitative enquiry (from Creswell (2003))
The concurrent nested strategy refers to a predominant strategy, with some alternative strategy embedded in the data gathering. Within the retrospective stage of this research, there are elements of quantitative data gathering in the form of closed-questions during the structured interview. A later chapter (chapter seven) will discuss the design for the longitudinal stage in more depth; however, the primary research design will focus on qualitative observation, with some quantification in data gathering for developing an understanding of participant viewpoints and the contexts of the AMT implementation. The use of a structured interview document, similar to a questionnaire for the development of casestudy descriptions is one of the gathering options described by Yin. Within the interview document presented above, there is the use of both Likert scales and VAS. The Likert scales have been used as a mechanism to compare respondent views to issues presented in the literature. Such scales lend themselves well to this type of comparison as they are a convenient way to note the degree of agreement or disagreement to a presented statement (Oakshott, 2001). Within this study, levels of agreement are recorded with statements from the Planning, Impact and Critical Success Factors of the interview document. An overview of the use of Likert scales is presented in table 3.2.
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Section of the Interview Document Planning for AMT Operational Impact of AMT Critical Success Factors of AMT
Reason for using Likert scales With each of these question Issues when considering AMT areas the aim was to take Attributes when considering issues and factors that the AMT literature had indicated as Satisfaction with AMT Importance of particular factors being important and explore the degree to which the for successful implementation case-study company managers agreed with such factors considering their own experiences
Likert exploration
Table 3.2. Use of Likert scales in data gathering
The VAS used within the data gathering served a different purpose. The issues explored in the VAS section of the data gathering on Operational Impact are drawn from the literature; however, the aim is to gain an understanding of how the issues impacted on the companies, rather than gauge agreement with previous authors. This might have been achieved through re-wording the questions to rate agreement with whether the companies had experienced such impacts. Such a strategy would have retained consistency in the scales of the interview. However, this would have made it difficult to understand the extent of such impacts; and, as the document was completed in a face-to-face interview, under the guidance of the author, consistency in data gathering style was of limited importance.
7. COMPANY SELECTION
In developing this research it was identified that willing and suitable participants had to be sourced. This represented a significant challenge as the data-gathering was to be undertaken through face-toface interviews in order to encourage free-expression from respondents. Therefore, mailing a large number of potential respondents would be inappropriate due to the depth of understanding required. In addition, identification methods for potentially suitable companies would not indicate whether these companies had implemented any of the technologies under consideration. The strategy of company identification employed drew on a database of Welsh manufacturers held by the Manufacturing Advisory Service (MAS) Cymru. MAS Cymru is a government funded advisory service that aims to assist manufacturers in operational matters. The MAS Cymru service was run by the National Centre for Product Design & Development Research (PDR) on behalf of the Welsh Assembly Government and the DTI from 2002 until 2005. During this period, MAS Cymru worked with 250 companies on varied in-depth projects to improve their manufacturing operations and provided short-term advice and research to a further 1800 companies. PDR is a department of the University of Wales Institute, Cardiff (UWIC) with a focus on the development of applied research that generates
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industrial benefits. Since its foundation in 1994, PDR has worked with over 500 businesses both in Wales and throughout the rest of the UK. The MAS Cymru database indicated a number of Welsh companies known to have implemented an AMT. The first ten case-study companies represent those companies that had both implemented an AMT and agreed to take part in the study. In addition, the resource commitment required to study ten case-study companies in sufficient depth tied in well with the time constraints of the wider research program. All of the respondents were senior managers that had been involved in technology implementation within their companies.
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STAGE ONE CASE-STUDIES
CHAPTER FOUR:

1. INTRODUCTION
In the previous chapter a two stage research methodology using an exploratory case-study approach for stage one was proposed. This chapter presents descriptions of each of the case-studies in preparation for analysis of the results of stage one. Ten candidate case-study companies were identified and are summarised in table 4.1 below: Case-study A B C D E F G H I J Sector Transformer manufacture Automotive Mass transport Tool maker Electronic instruments Sub-contract engineering Precision engineering Automotive/Aerospace engineering Mould-making (polystyrene and polypropylene) Sub-contract production engineering and hydraulic component manufacture No. of employees Laser cutter 200 CNC, CAD/CAM, Vision Systems, 130 MRP II, Robotics CNC, CAD/CAM, Phenolics 47 CAD/CAM, CNC, Wire erosion, 74 Spark erosion CAD/CAM, Pick & Place 83 Laser cutter 22 CAD/CAM, Wire erosion 22 CAD/CAM, Vertical turning centre 5 CAD/CAM, High speed machining centre (HSM) CAD, Live tool CNC lathe, Multiaxis vertical turning centre 13 14 AMT discussed
Table. 4.1. Overview of the ten retrospective case-studies
Details regarding the positions of individual respondents, the dates of the interviews and the duration of each interview can be found tabulated in Appendix A, preceding copies of the responses to each of the structured interviews.
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2. CASE-STUDY COMPANY A
This case-study examines a manufacturer of transformers employing 200 people and with an annual turnover of approximately 19 million. The focus of the interview was the implementation of a laser cutter to replace a CNC punch that had come to the end of its serviceable life. The laser cutter was used to create sheet steel profiles. The perceived benefits of switching to laser cutting technologies included: Increased speed of cutting Increased accuracy Greater variation of shape Increased flexibility Improved product quality
The Companys previous experience in successful technological implementation led to a perception that such investment could be used as a strategy for staying ahead of the competition. In making an assessment of the most suitable AMT to select the company developed a specification that considered the relevant quantitative factors. These factors included: speed, thickness of cut and compatibility to the Companys existing systems. In addition, qualitative factors deemed important by the Company included reputation and experience of the supplier and an evaluation of the benefits achieved by other users of the considered equipment. The primary drivers for the implementation of this equipment were a response to market conditions and the need to stay ahead of competitors. The most important issues for the Company regarding implementation were the level of support available from the technology vendor and the levels of support capabilities from the Companys own managers and technical staff. The implementation of the technology led to a number of positive impacts in line with the Companys expectations, that is, they achieved increases in the speed and accuracy of the cuts, were able to create greater variation in shape and achieved much improved part flexibility. However, the Company also suffered a number of unexpected negative impacts associated with the introduction of the new technology. The technology discussed was laser cutting of sheet metal for downstream welding. The increased flexibility afforded to the drawing office resulted in more complex shapes. This increase in complexity of the parts designed meant that it was significantly more difficult to plan the nest to make most efficient use of the material. To solve this problem a further investment in a more sophisticated CAD package to automatically nest the parts was undertaken. In order to run the new system an extra
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fractional position was required to aid the operator in completing the nesting operation, creating an impact on labour costs. Part of the ability to produce parts of greater complexity was due to the fact that the laser cutter produced parts to much tighter tolerances than the CNC punch. However, it had not been considered how these tighter tolerances would affect downstream processing, i.e. the welding assembly process. It was only when the technology had been put in place that the company found that the welders were having difficulty working with the new parts. Previously, the welding operations did not have to be so accurate themselves due to the wide tolerances in the parts that they were supplied with. As a result welding operations were taking much longer to complete as the production workers struggled to assemble these more complex parts. Therefore, the Company experienced a significant impact on unit costs. A further oversight recognised by the Company following implementation regarded the requirement for consumables (i.e. cutting gases). The company understood that they would require cutting gases during operation; however, the full extent of this implication had not been factored into the decision to invest in the AMT. The Company had not realised the extent of the capital investment that the use of these new consumables would require in respect of additional pipework and storage facilities. Following post-analysis, the interviewee came to the opinion that investment in an updated CNC punch would have resulted in the Company achieving many of the perceived benefits of an update in technology while remaining closer to the Companys core skills. However, the problems noted with the implementation did not prevent the Company from indicating that they were quite satisfied with the overall results of the AMT project. The full anticipated benefits were not achieved due to the unexpected additional costs and the difficulties in assembling the more complex parts. In time the assembly problems were overcome as additional constraints were implemented at the design stage and the welders became more experienced in processing the new shapes. Therefore, once the teething problems were overcome the Company found that the benefits outweighed the costs.
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3. CASE-STUDY COMPANY B
This case-study describes a precision plastic moulding company in the automotive sector. The company employs around 130 people, has an annual turnover of around 9 million and has been operating for 10 years. The company is very experienced in the implementation of AMT having had CNC machines installed for 10 years, vision systems for around 8 years, robotics for 5 years, MRP II for 4 years and CAD/CAM for 3 years. The reason for AMT implementation in this Company included: economic improvement; control improvement; knowledge improvement; and, increases in quality and consistency. When planning for AMT implementation the Company normally implements financial modelling techniques based on the quantitative aspects of the technology. However, this was found to be more difficult with the implementation of the MRP II system as most of the anticipated benefits were qualitative in nature. It was anticipated that an MRP II system would have positive impacts on product quality, service quality and customer satisfaction leading to improved competitiveness. The primary driver for AMT investment within the Company is a commitment to Continuous Improvement (CI). When making an AMT investment decision the most important attributes for the Company are the level of vendor support available and cost to benefit balance. In general the Company has had high levels of satisfaction from the AMT investments that it has undertaken. The exception to this is the MRP II implementation. It is interesting that the system that was most difficult to evaluate prior to implementation (due to qualitative factors) is the system that the Company perceives to have provided the least benefit. One of the critical success factors for AMT implementation as identified by the Company is the appointment of a dedicated champion. This individual is selected based on his/her perceived commitment to the project. The role of this individual is to oversee the practical elements of implementation and to manage any barriers that may arise. In addition, the Company routinely allocates a 25% contingency budget to deal with unforeseen implementation difficulties. The Company did not think it appropriate to consult with production operators when considering AMT implementation. The Companys reasoning for this was that such strategic decision making is undertaken in response to market conditions and customer need; therefore, such discussions should be undertaken with customers not suppliers (whereas the workforce is seen to be a supplier). However, this does not imply that the Company is dismissive of the importance of operator support to successful implementation. The Company operated an Open Visual Management system that was designed to inform operators of the Companys financial and strategic business plans and
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performance. It was argued by the interviewee that such systems educated operators to the potential benefits to the organisation (and therefore the security of production jobs) of the use of AMT. In addition, those workers that would become directly involved in AMT operation were informed of the additional skills they would obtain through training and their resultant value increase in the employment market.
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4. CASE-STUDY COMPANY C
Case-study Company C is an automotive component manufacturing company, with 50 employees, based in South Wales. Annual turnover is around 1.7 million. A number of AMT implementations were undertaken by this company, including the installation of 3D CAD/CAM facilities, the development of a phenolics moulding plant and the installation of 5-axis CNC machining capabilities. The CAD/CAM implementation was undertaken in order to improve communication with clients during the early stages of their design work. Being a supplier to larger automotive companies, the majority of their clients wished to discuss and review design requirements and modifications with the aid of 3D CAD data. Therefore, the Company perceived that the installation of sophisticated 3D CAD would allow them to safeguard their position as a supplier to their current clients and improve their prospects for winning new contracts. In addition, the Company believed that such technological implementation would allow the Company to pursue new markets through the exploitation of their new in-house design facilities. Having no previous experience of product design, the company identified an opportunity to partake in a Teaching Company Scheme (TCS) to aid both the technological implementation and new strategic direction of the organisation. In addition, following quite extensive market research into phenolics in the rail industry an opportunity was identified to develop a plant that could produce phenolic mouldings with uniform wall sections from closed moulds, with repeatable accuracy through use of a 5-axis CNC machine. TCS, recently renamed Knowledge Transfer Programme (KTP), is a UK government-backed scheme aimed at strengthening the competitiveness and wealth creation of the UK by stimulating innovation in industry through structured collaborations with universities. The case-study Companys involvement with the TCS was typical in that a graduate (TCS associate) was placed within the Company for two years to provide expertise relevant to the development being undertaken. The managing director (MD) of the company had created a vision that the Company would become a one-stop shop for the mass transport industry, providing aluminium castings, polyurethane mouldings and phenolic mouldings. However, the communication of this vision to staff below the management level was not demonstrated to be a high priority. Communication of the Company vision and direction to shop-floor workers was occasionally discussed; however, no time was ever allocated to develop mechanisms to achieve this. Due to this lack of communication, production operators and in some cases higher managers, remained unaware of the Companys technological aspirations and new strategic direction until the TCS associate was in place. Even at that juncture, explanation of the proposed changes was left to be provided by the TCS associate in ad hoc conversations with operators.
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Further to the vision of being able to provide the one-stop shop, it was also the MDs vision to unite the three sections of the Company (casting, P.U., and phenolic) and integrate the use of technology. However, this created political barriers within the organisation. The Company had recently purchased an advanced 5-axis CNC machine, principally for trimming phenolic mouldings. However, as part of the MDs wider Company vision, use of the new CNC machine was to be instrumental in the development of in-house casting pattern making. This presented a problem as the Phenolics manager had assumed ownership of the CNC following its installation in his department. The Phenolics manager was uninterested in further development of the casting side of the Company and attempted to prevent access to the CNC for such development work. In addition, further development was also hindered by the autocratic management style of the Business Development Manager. The MD actively encouraged the TCS Associate to explore the use of the CNC machine for in-house pattern and toolmaking. However, the Business Development Manager remained unconvinced that the use of CNC and CAM could lead to effective in-house development opportunities. It was perceived by the TCS associate that the Business Development Manager actively resisted such change by generating tasks that prevented further AMT development. Resistance to change was not contained to management, there was also deep suspicion of the impact that such technological implementation would have on the organisation from the shop floor. One of the perceived advantages of using CAD to drive casting production was the use of rapid prototyping (RP) techniques to create complex resin patterns that would be extremely difficult to replicate by traditional techniques. In addition, patterns created from RP resins have the potential for a superior surface finish than traditional wooden hand patterns. At the time of implementation, it was not explained to the pattern-makers that the production of CAD driven patterns was intended to secure additional contracts that would otherwise be unattainable. The strategy was such that this should strengthen the casting division of the Company, thereby improving the security of the pattern makers employment. The structured nature of the TCS requires the participating company to commit to the personal development of the TCS Associate. Usually, this commitment takes the form of the provision of time away from the company for appropriate training. The benefit to the company is increased knowledge on the part of the associate that can be utilised to improve some aspect of the business. Although Company C never tried to prevent such off-site training, it was made clear that the Company viewed such time away as non-productive. As such, it was perceived by the Associate that such training was viewed as an interruption to productivity that the Company was required to endure in order to participate in the TCS. The Company was not contractually obliged to provide personal development opportunities to any other employee. Therefore, requested training was routinely declined on the
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grounds of cost, without analysis of the potential benefits employees with increased skills might bring to the Company. Communication between the shop-floor operatives and the TCS associate indicated that operators suffered low morale levels that might have been improved had some form of personal development been accessible. However, as is often the case when implementing a new manufacturing technology, additional expertise was required from certain members of the workforce. The CNC operator was required to update his skills from 3-axis knowledge to 5-axis. The TCS associate required further training on both CAM and CNC operations. The new phenolic mouldings operation resulted in a number of staff being trained in this area. The TCS associate and the CNC operator were both afforded increased levels of autonomy in order to develop their skills; however, the phenolics staff were trained in a more structured manner under the direction of the Phenolics Manager.
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5. CASE-STUDY COMPANY D
This case-study examines the AMT implementations of a tool making company. The company has been trading for 44 years, employs 74 people and has an annual turnover of approximately 4 million. The Company has a history of AMT implementation, investing 1.2 million on technology in the last 4 years. Recent technological investments include high speed CNC machining, wire erosion, spark erosion and 3D CAD/CAM. A major reason for these investments was to develop lights out running, a key strategy in the Companys drive to reduce their high percentage labour costs. In addition to the reduction in labour costs, other perceived benefits from AMT implementation included: increased capacity; increased competitive advantage; improved quality; and, better customer service. Assessment of the most appropriate AMT to implement was limited to vendor recommendations and a system for grading suppliers. This is indicative of the importance that the Company placed on vendor support in developing a new technology. Although formal assessment techniques were not utilised to assess the qualitative aspects of any considered equipment, the perceived increase in the quality of the output was stated to be the most important factor of the AMT. Overall, the Company claimed to be satisfied with their AMT implementations. However, the MD stated that in his experience, technology implementation never absolutely fulfils [the Companys] anticipation; there are always some downsides, that is, you reap the benefits 95% of the time, but you pay heavily when things go wrong. The MD also indicated the importance of correctly pacing the implementation, stating that during the learning curve associated with AMT development, one sometimes has to stop and re-evaluate how the technology is being utilised. Another impact of AMT on the Company is the continual development of staff. The Company currently spends around 150K per annum on training. However, the MD noted that previous experience of AMT implementation helps to reduce training requirements as staff already trained on one AMT tended to more quickly adapt to newer technologies. The implementation of AMT within the Company has resulted in the Company successfully realising new business opportunities. The MD attributes the successful landing of a contract with a large German aerospace company to the Firms increases in quality, capacity and speed. However, after around a year the Company lost the contract with the German company. This loss of contract was due to the customer losing their contract to supply an assembly, and had, according to the MD, nothing to do with the quality of goods or service from Company D. The MD is currently in communication with another company regarding a contract that will utilise any spare capacity created
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as a result of the loss of the contract with the German company. The MD indicated that he is confident of landing the new contract based on the same attributes that won the German contract. Although the Company stated that increased quality was the most important reason for AMT implementation, the MD indicated that the biggest gains in performance were in the reduction of lead times and an increase in production flexibility. The Company undertakes a number of initiatives in order to secure operator support during AMT implementation programmes. During AMT selection, key operators are selected to become involved in the decision process in order to help ensure that the most appropriate AMT is chosen. In addition, a change agent is selected from operators in order to oversee implementation at production level. The MD asserts that a history of successful AMT implementation in itself encourages operator support as workers have identified the personal benefits achieved from previous AMT programmes.
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6. CASE-STUDY COMPANY E
Case-study Company E is a manufacturer of electronic devices with around 80 employees. The Company has been operating for 30 years and has an annual turnover of approximately 6.5 million. AMT implementation within the Company includes 3D CAD and Pick and Place automation. The respondent is a senior manager within the Company and was involved in the implementation of the Pick and Place technology. Therefore, the responses in this case-study relate primarily to this technology. Where a more historical view of the Companys AMT implementation was required, the respondent conferred with another manager that had been involved in the Companys earlier CAD implementation. The Pick and Place automation was installed in 2001; the 3D CAD was installed in 1997. The Companys anticipated benefits from AMT implementation included: Increased efficiency Labour reduction Improved reliability (elimination of human error) Improved quality Reduced throughput times Increased flexibility
In assessing available AMT to select the most appropriate technology the Company developed a specification document. Although there was a qualitative aspect to the technology implementation (increased quality of product), most of the specification indicators were quantitative in nature. Such indicators included setting targets for reliability, speed and accuracy that had been measured against human performance. The most important issues for the Company, when considering AMT, were an increase in production output and an improvement in quality/reliability. The next most important issue was to obtain financial benefit. The enhancement of Company image was not considered to be an important issue during the planning stage; however, since implementation, the Company has found this to be a useful feature of the technology and actively exploits this aspect in Company marketing. Vendor support, system cost, manufacturing flexibility and internal technical and management support were all of equal importance to the Company when considering the AMT. The respondent indicated that the Company is very satisfied with their AMT implementation, noting that the technology has made their manufacturing much more efficient with the result of reducing
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Company costs. Cost was reduced to a degree that the AMT had paid for itself within three years. Conflicts between short-term production requirements and long-term objectives of the AMT were avoided as the Company had the capacity to undertake concurrent implementation. The skills of production operators were improved through training, and therefore there was a requirement to pay these workers more. However, less labour was required per part which more than offset any increase in labour costs. In fact, according to the respondent, the greatest Company gain from the implementation of AMT was a reduction in labour costs. The respondent claimed that both managers and operators were committed to AMT development. Operators had been assured that the installation of automation equipment would not result in job losses. In addition, the Company took a teamwork approach to implementation, involving production operators in the selection and testing of suitable equipment. According to the respondent, the most important factors in their successful implementation of technology were careful consideration of the Companys manufacturing strategy and thorough economic evaluation.
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7. CASE-STUDY COMPANY F
Case-study Company F is a sub-contract engineering firm that has been in operation for 23 years. The Company is owner managed with 22 employees and an annual turnover of 800K. The Company has set a target turnover of 1 million. Until recently, the Company had utilised only traditional manufacturing technologies; however, in 2002 the Company installed CAD/CAM and a laser cutting machine. The MD perceived that investment in new technology was necessary if the Company was to remain competitive. It was believed that the addition of new capabilities through the AMT would reinvent the business, allowing the Company to gain more prestigious work in new fields. Further aims of the AMT implementation were to improve quality and increase profit. Assessment of the most appropriate AMT was based on the available budget and matching the technology to the existing experience of the Company. Both quantitative and qualitative factors of the AMT were considered; however, this was not done through any established appraisal technique. The main driver for AMT implementation was indicated to be a response to market conditions. Vendor support, system cost, manufacturing flexibility and internal technical and management support were all deemed to be of equal, high importance. However, the MD stated that he was disappointed with the level of vendor support the Company actually received. The MD indicated medium satisfaction with the AMT implementation programme, due in part to the Companys lack of experience with technology. Operating costs turned out to be much higher than expected, resulting in the MD considering using a more traditional punching machine where possible to reduce operating and maintenance costs. The original operator chosen to operate the laser cutter failed to develop in the way expected by the MD, delaying the Companys effective operation of the AMT. In addition, the technology vendor did not meet the Companys expectations in regards to technical support. This resulted in the expenditure of unexpected costs as the Company had to contract out work during substantial periods of machine downtime. In order to resolve this situation, the Company brought in a new member of staff with extensive experience of the relevant technologies. Although this impacted on labour costs, it allowed the Company to develop the AMT more effectively and reduced the requirement for external training, as the new member of staff was able to train other members of the workforce. Initially, no new business opportunities were exploited as a result of the AMT. However, cost savings that increased profit were made due to previously contracted out work being brought in-house. As the Company became more experienced with the AMT a new business opportunity was identified in
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developing original products and selling them directly to the end-user. This new business strategy relied on the utilisation of the Companys new technologies and soon became the most profitable operation within the Company.
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8. CASE-STUDY COMPANY G
Case-study Company G is a tool making and precision engineering company with 22 employees, based in South Wales. Annual turnover is around 1 million. The Company has been trading since 1990 and has a history of AMT implementations, introducing CAD in 1994 and CAM in 1995. The latest AMT to be successfully introduced by the Company was wire erosion for the precision cutting of steel. This technology was introduced in 2003. This case-study examines the Company in the process of planning the implementation of a new AMT. The latest planned addition to the Companys technological portfolio is an 8-axis CNC lathe for the production of thread-rolled components. The introduction of this technology is reliant on the Company realising a business opportunity to undertake volume batch production of complex engineered components (20000 parts per annum). This presents several challenges for the company: The Company has no experience of volume batch production (currently the Company undertakes contracts to produce unique production batches in quantities measured in hundreds of units). The Company had no experience of volume costing and quotations The contract required a commitment to price reductions over time The thread-rolling process is completely new to the Company
Case-study Company G was presented with the opportunity to tender for the contract to supply the thread-rolled parts due to its historical links with the purchaser. Initially, the purchaser intended to source the thread-rolled components from overseas companies. However, it was part of the purchasers contingency strategy to source a local lower-volume supplier of the parts. During negotiations between the purchaser and Company G, the MD of Company G requested the opportunity to investigate the possibility of tendering for the supply of the entire contract. The MD recognised that external expertise was required to aid the Company in addressing the challenges that the potential contract presented. This led the MD to enlist the help of MAS Cymru. Initially, MAS Cymru were commissioned to undertake a research project into the principles of the thread-rolling process, suppliers of thread-rolling equipment, general operating parameters and associated costs. Consideration of the research report presented by MAS Cymru led the Company to conclude that they would be comfortable developing volume batch production using the identified technologies. The MD requested that MAS Cymru help the company develop a suitable costing mechanism for volume production. Discussions between MAS Cymru and the Company resulted in a brief for a costing procedure that: Identifies the dominant cost components
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Identifies cost/price down opportunities Identifies commercial and technical risks and builds in suitable contingencies Supports an open-book relationship with the end customer
Following this brief, the MAS Cymru team developed an activity based cost calculation that could be applied at each stage of manufacture. This system allowed the Company to easily review costs as job specifications emerged and changed. The results of this exercise demonstrated that the Company could compete effectively with overseas suppliers. The competitive price, commitment to price reductions over time and logistical considerations led the purchaser to commit to supply from Company G. When supply of this component commences, the MD estimates that the effect will be a doubling of the Companys annual turnover. Although the purchaser has made a commitment to receive supply from Company G, at the time of writing the project was paused while the purchaser developed other aspects of the final assembly. In the meantime, Company G is developing their operations in preparation for volume supply. In selecting the most appropriate technology to implement, the Company placed primary consideration on the quality of the output components. In order to evaluate this aspect all potential suppliers were requested to produce a common part designed by Company G. This provided the Company with a tangible assessment of the technologies capabilities that could be factored together with other considerations such as vendor support and system cost. The MD advocates the importance of the management team reaching a consensus judgement regarding investment decisions in order to avoid political disputes during implementation and development. According to the MD, this view is borne from the Companys early experiences with technology, where uncooperative managers sometimes hampered implementation. Operating staff for the new technology were selected from the currently employed workforce. The management team entered discussions with those members of staff deemed to have the correct aptitude for operating the new technology in order to discover which were interested in developing their skills and undertaking further training. The Company believes that the successes that they have had with technology implementation are in part due to the commitment made to workforce development. External after-hours training is a mechanism that the Company has employed to support most of their AMT implementations. This supports the Companys strategy of developing the existing workforce above employing new expertise wherever possible.
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9. CASE-STUDY COMPANY H
Case-study Company H is a new engineering company, specialising in sub-contract work for the automotive and aerospace industries, and being operational for one year. The Company is owner managed and employs five people. Turnover for the first year was 140K. The Company has implemented a CAD/CAM system and a CNC vertical turning centre (VTC). The VTC was purchased in response to a specific business opportunity; however, it is believed by the MD that the technology will also provide the Company with competitive advantages in gaining other contracts. The CAD/CAM system was chosen based on previous experience of the MD. The VTC was subject to a more organised selection process. This process examined both quantitative and qualitative factors. Quantitative factors included specification of required cycle-times, dimensions and tolerances. Qualitative assessment was constrained to assessing sample parts machined using different technologies. The driver for implementing AMT was stated to be a 50/50 split between a response to market conditions and an entrepreneurial decision. The most important issues for the Company when considering the AMT were said to be the availability of vendor support and the level of technical and management support available within the Company. At the time of writing, the Company was facing a potential conflict of interest between short-term production requirements and the long-term objectives of use of the VTC. The VTC was purchased in response to a specific business opportunity; however, the details of the contract had not been finalised and production had yet to commence. In the meantime, new opportunities and contracts were developing that could utilise the new technology. This created a concern for the MD in that when the sought after contract is finalised the Company may suffer capacity problems. According to the MD, these capacity problems are a result of the growth strategies of the Company; however, the MD notes that this growth must be managed carefully. Each of the staff within the Company was trained to use the new equipment. This did not have an impact on labour cost due to increased wages, although there has been an impact due to training absorbing production time. It is part of the Companys strategy that existing staff will become better paid as the Company grows. The plan is that as the Company grows it will take on more unskilled labour with existing skilled operators becoming supervisors. Another aspect of the Company strategy is to use the Companys AMT as a marketing tool to generate interest in the business. A number of unexpected costs arose from the VTC implementation including much higher than anticipated tooling costs and very expensive installation costs (due to supply add-ons, e.g. delivery costs, set-up costs and inspection rigs). Associated costs that were not factored into the AMT
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investment plan included: potentially expensive swarf removal; and, the purchase (and associated training) of a forklift truck. The MD asserts that following the AMT implementation programme, both management and staff remain committed to AMT development. For the MD, AMT is still an important part of the Companys development and growth strategy. In addition, according to the MD, the workers remain committed to AMT as they are aware of the personal benefits the use of technology can bring.
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10. CASE-STUDY COMPANY I

Case-study Company I is an owner managed mould-making firm that has been in operation for 25 years. The Company employs 13 people and has an annual turnover of around million. Traditionally, the Company has produced tools for the production of polystyrene and polypropylene packaging for white goods and fast moving consumer goods. However, over the last four years the Company has moved into the production of tools for high impact automotive components. The introduction of AMT, namely CAD/CAM and HSM, was key to the Companys strategy of developing supply to the automotive industry. The Company was aware that in order to competitively tender for work from the automotive industry, they would have to reduce their costs. One identified strategy for achieving this reduction in cost was to bring in-house previously contracted out work. However, in order to achieve this aim, the Company recognised that they needed to increase their production capabilities. The Company identified that this could be achieved through investment in CAD/CAM and HSM. In addition to reducing cost, the Company believed that this strategy would allow them to more accurately quote for work, enhance communication with customers and potential customers and give the Company better control over the delivery of orders. Following the decision to invest in AMT, there was no formal assessment of the quantitative and qualitative factors of the considered technologies. The Company recognised their lack of experience in the use of AMT, and therefore relied on the advice of experienced users (representatives of a local university department with extensive industrial product development and advanced manufacturing experience) to aid the selection of appropriate technologies. The relationship developed between the Company and the local university led to the development of a TCS programme with the university to aid the implementation of the AMT. In considering which technologies to choose, the Company indicated that the most important issues were the level of vendor support available and manufacturing flexibility that could be achieved. The Company attempted to force themselves to develop their new technology by committing to contracts that could only be completed through the use of the new systems; however, the Company experienced problems in the performance of the HSM. The MD stated that it [the HSM] didnt do what it said on the tin. It was discovered by the Company that these performance and reliability issues were related to the machines control processor overloading when presented with complex compound curves. The Company has indicated the importance of vendor support in deciding which technology to invest in; however, following implementation the Company was disappointed in the levels of vendor support provided. The solution to the control processor problem presented by the vendor was the
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addition of a post processor, requiring an additional investment of 7k. At the time of writing, such a solution was unacceptable to the Company. There was a further requirement for additional and unexpected capital expenditure following AMT implementation due to the inadequacy of the compressor specified by the vendor. Despite the barriers that the Company has had to overcome in respect of successful AMT implementation, the management remains committed to the development of AMT. This is due to the opportunities that the use of technology has presented to the Company in regard to increased competitive advantage and new business development. The Company had planned to purchase a second HSM; however, a decline in the industry has led to the disappearance of many of the Companies customers. This has resulted in the Company requiring a focus on business stability and has prevented any further AMT investment.
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11. CASE-STUDY COMPANY J

Case-study Company J is a sub-contract engineering company with 14 employees. The Company has been operational since September 2001 and has an annual turnover of around million. In the sub-contracting sector the Company makes a competitive advantage of its development skills; however, the Company recognises that there is high competition in the sub-contracting industry and is therefore currently undergoing a transition into NPD. Technologies utilised by the Company include: live tool CNC lathe; two axis vertical turning centres; and 3D CAD. In addition, at the time of interview the Company was planning an investment in a four axis VTC for the production of items with multiple compound curves. The interview focussed on the Companys latest AMT implementation, the live tool CNC lathe, which was installed in December 2004. It was the opinion of the Company that a machine that could remove a significant proportion of the labour from the manufacture of their NPD was required if their new product was to provide profit. It is a business aim of the Company to obtain 20% of their income from sales of their in-house designed and manufactured products. The benefits that the Company hoped to obtain from the AMT were reduction of labour component, increased volume throughput and an increase in the scope of production skills. The decision to invest in this AMT was driven by an entrepreneurial decision by the MD based on his vision to develop the Company. The planning for AMT implementation took around six months and involved an evaluation of four possible machines. Although the Company did not utilise any formal assessment techniques, the chosen machine was selected based on its quantitative and qualitative performance and the level of vendor support offered. This selection criterion is in line with the Companys assertion that in selecting an AMT, vendor support is a more important attribute than system cost. Two new operators were required to run the new machine; therefore, the AMT implementation had an impact on labour costs. However, this did not produce a negative impact on the Company as these increased labour costs are part of the overheads of running a new machine that reduces the labour component in production. The Company avoids political disputes associated with performance-based awards paid to individuals by paying monthly bonuses to the shop-floor based on the overall performance of the Company. These bonuses are distributed to all operators quarterly if monthly performance targets are maintained throughout the quarter. In addition, support for the Companys AMT investment is maintained with operators via weekly discussions regarding the needs and direction of the Company. The MD asserts that both the workers and the management remain committed to the development of AMT within the Company. The commitment of the operators is maintained due to the personal benefits that operators receive (e.g. improved skills, improved income, and bonuses based on
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improved Company performance). Management commitment is evidenced by the Companys current plans for investment in a VTC and longer-term plans regarding the development of lights-out operation.
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STAGE ONE CASE-STUDY ANALYSIS
CHAPTER FIVE:
INDIVIDUAL CASE-STUDY ANALYSIS

1. INTRODUCTION
The last chapter provided summary descriptions of the candidate case-study companies developed from the companies responses to a structured interview document. The purpose of this chapter is to analyse these cases to address the research question of What is the impact of AMT? on the casestudy companies. The purpose of the individual case analysis is to glean information from each of the cases based on four common questions, namely: why did the company choose to invest in AMT; what were the impacts of the AMT programme; how did the outcomes meet the perceived benefits; and, how do the responses relate to the satisfaction rating given? By relating each of the cases to these common areas of investigation a level playing field is created for cross-case analysis. Such cross-case analysis will be the focus of the next chapter and will be used to identify any similar experiences between the companies.
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2. ANALYSIS OF COMPANY A
2.1 WHY DID THE COMPANY CHOOSE TO INVEST IN AMT AND WHAT WERE THE IMPACTS OF THE AMT PROGRAMME?
Table 5.1 demonstrates Company As perceived benefits of AMT prior to implementation and the impact of AMT implementation as identified by the interviewee. Anticipated benefits of AMT prior to implementation Increased flexibility Increase throughput Improve accuracy and quality Increase variety of parts Create competitive advantage Impacts Positive Increased flexibility Improved accuracy and quality Increased variety of parts Negative Decreased throughput (solved through further investment in technology and labour) Increased labour cost Worsened process integration Unexpected capital expenditure
Table 5.1. The impact of AMT on Company A
2.2
HOW DID THE OUTCOMES MEET THE ANTICIPATED BENEFITS?
In this particular case the outcomes of many of the perceived benefits can be seen from the positive and negative impacts, e.g. increased flexibility was achieved; however, an increase in throughput was only achieved through further investment. The positive and negative impacts as shown in Table 5.1 do not indicate whether a competitive advantage was achieved through the installation of an AMT. Examination of the responses of the interviewee indicates that the Company did believe that they had achieved a competitive advantage as they were able to produce more complicated components. However, this was not to the degree hoped for as increased capabilities at the cutting stage were tempered by the constraints of what could be processed in the more traditional downstream operations. The benefits that the Company initially perceived they would gain from AMT implementation can be split into two groups: benefits that are inherent outputs from the technology; and, benefits as a result of using AMT as part of the production process. Inherent outputs from the technology include: increased flexibility (the technology has the capability to efficiently change from producing one part to another); improved accuracy and quality (the laser cutter operates at tighter tolerances with greater consistency than the machine it replaced); increased cutting speed; and, increased variety of parts (the technology can produce more complex parts than the machine it replaced). It may be noted that where the perceived benefits of the AMT implementation relate to the inherent capabilities of the chosen machine the result was a positive impact for the Company.
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As the installed technology does not create a finished product, but rather a component for a downstream production process, the perceived benefit of increased throughput is dependant on the technology playing a part in making the overall production more efficient. However, in this case the overall effect was a reduction in efficiency. In order to address the efficiency problems, further capital expenditure was required in the form of a CAD module for nesting parts and an extra fractional position to operate this new module. Therefore, the negative impacts of unexpected capital expenditure and increased labour cost were required to help address the negative impact of decreased throughput. However, this was not the only unexpected capital expenditure that the Company was required to make. As noted in the chapter covering case-study descriptions, the Company had not realised the extent of the capital investment that the use of cutting gases would require in respect to additional pipework and storage facilities. Analysis of the positive and negative impacts of AMT on Company A indicates that: Positive impacts were due to the inherent capabilities of the technology. Negative impacts were due to difficulties in balancing the new technology with the Companys other manufacturing processes, and insufficient investigation into the associated costs of maintaining the AMT.
2.3
HOW DO THE RESPONSES RELATE TO THE SATISFACTION RATING GIVEN?
Each of the interviewed companies was asked to provide a rating (of between one and five) of their satisfaction with the AMT projects being discussed. The satisfaction rating (SR) given by Company A was four. The SR given by the Company relates to satisfaction once all of the initial problems were solved. The negative impact of decreased throughput became the positive impact of increased throughput following additional capital expenditure. The negative impact of worsened process integration was neutralised through the development of formal design constraints. The eventual positive impacts of the AMT implementation led to the above-medium satisfaction rating; however, it should be noted that these positive impacts were still not to the initially anticipated degree.
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3. ANALYSIS OF COMPANY B
Anticipated benefits of AMT prior to implementation Economic improvement Control improvement Knowledge improvement Quality improvement Consistency improvement Impacts Positive Negative Resistance to change New business development Increased labour costs Improved volume throughput Improved quality Reduced unit costs
Table 5.2. The impact of AMT on Company B
3.2
For Company B, AMT implementation is an important factor in the Companys CI programme. The interviewee summed up the Companys CI strategy as striving to provide better quality at lower prices. In this respect, the perceived benefits of economic and quality improvement have been realised. Factors associated with economic improvement include reduced unit costs, increased volume throughput, and increased capabilities leading to new business development. The use of AMT was indicated to have improved both product quality and consistency and resulted in a reduction in customer complaints. The perceived benefits of knowledge and control improvement were related to the implementation of MRP II technologies. MRP II is a software based manufacturing management technology designed to aid the effective planning of materials, labour and machines. The interviewee indicated problems with the implementation of this technology during the planning, installation and development stages. When planning for AMT, the Company normally employs quantitative evaluation techniques; however, the intangible nature of the benefits of MRP II required qualitative analysis, with which the Company was less familiar. In addition, installation and development of the MRP II system was subject to resistance from operators. As a result of these problems, the desired improvements in process knowledge and control were not achieved.
3.3
For the majority of AMT installations, the company indicated high levels of satisfaction, giving an SR of four. However, the Company indicated that they were very dissatisfied with the MRP II system (indicating an SR of one). It is interesting to note that the system least in line with the Companys AMT
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experience (i.e. one potentially providing qualitative benefits) should be the system that provides least satisfaction.
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4. ANALYSIS OF COMPANY C
Anticipated benefits of AMT prior to implementation Improve client communications Improve development times Improve product quality Obtain competitive advantage Enhance company image Access new markets Impacts Positive Negative Resistance to change from Improved speed of operators development with clients Resistance to change from Better design for middle managers manufacturing capabilities of Political difficulties with client designs technology integration Lead-time reduction Improved product quality Obtained competitive advantage Enhanced company image New business development
Table 5.3. The impact of AMT on Company C
4.2
The perceived benefits relate well to the positive impacts of AMT on the Company. Improvement of client communications was realised in the form of better and faster assessment of client designs through CAD use. In addition, the Companys alteration of customer designs for efficient manufacture was more easily approved by clients as a result of CAD interrogation. Improved development times and lead-time reduction was influenced by both improved client communication and the inherent capabilities of the multi-axis CNC. Product quality improvements were obtained in both the casting and phenolics departments through the use of CAD and RP models to create patterns. The CAM link provided further quality enhancement for the phenolic mouldings due to the high accuracy and repeatability of CAD driven trimming operations. The use of CAD and the resultant improvements in product quality created a competitive advantage for the Company as such technology driven operations are uncommon in the casting industry. Such AMT installations enhanced the image of the Company to prospective customers, aiding the successful negotiation of several new business opportunities. Although each of the perceived benefits of AMT was achieved, this does not necessarily indicate that there were no negative impacts upon the Company. The negative impacts that this Company suffered were associated with people management and communication between personnel. There were no mechanisms for effective communication between management and staff, which did nothing to ameliorate the resistance to change from the shop floor. In addition, there was resistance to change
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from middle managers. This management resistance to change took two forms: resistance to the integration of departments; and, resistance to the use of certain technologies. As a result of such resistance to change, the Companys tooling capacity was not increased to its full potential. In addition, barriers to technology access created within the Company impaired experimentation and further exploitation of AMT.
4.3
The Company indicated an SR of four. This above medium satisfaction is indicative of the benefits that the Company achieved through AMT implementation. That is, that despite barriers to AMT development due to resistance to change, the Company still achieved their primary aims of increased competitive advantage and the development of new business.
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5. ANALYSIS OF COMPANY D
Anticipated benefits of AMT prior to implementation Reduction in labour costs Increase capacity Improve product quality Improve service quality Gain competitive advantage Impacts Positive Negative High training costs Reduction of labour costs Higher than expected running Increased capacity costs Improved product quality Difficulties in benchmarking Improved flexibility performance New business development
Table 5.4. The impact of AMT on Company D
5.2
The perceived benefits of AMT investment relates well to the positive impacts of AMT implementation. It can be argued that the less tangible perceived benefits of improvement in service quality and generation of competitive advantage are discernible through the positive impacts of improved flexibility and successful new business development. New business development is, in this case, an indicator of increased competitive advantage, as evidenced by the contract negotiated with a German aerospace firm. The negative impacts are in line with Company expectations based on their experience of AMT implementation. Training costs are high, but viewed as necessary by the Company if exploitation of the technology is to reach its full potential. The running costs of the technologies (e.g. power consumption and consumable use) were higher than expected; however, the Company view was that the advantages that the technology brought in other areas outweighed these additional costs. A further negative impact related to the implementation of AMT is the management time and effort expended on benchmarking Company performance. Such tasks were found to be difficult due to the qualitative nature of many of the benefits of AMT and assessing the advantages that such technology provides over competitors.
5.3
The Company gave a SR of four, indicating that the AMT programmes undertaken had generally served the Companys aims. The interviewee took a pragmatic view of technology implementation, noting that technology use never absolutely meets with anticipation. A major reason for the AMT programme was the development of lights-out operation. Whilst this effectively addresses the Companys high-percentage labour costs, the strategy also presents difficulties. The use of
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unmonitored production requires increased levels of production planning. In addition, any problems in unmonitored production are likely to be significantly more costly than in monitored production where the mistake may be addressed immediately.
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6. ANALYSIS OF COMPANY E
Anticipated benefits of AMT prior to implementation Increased efficiency Labour reduction Improved reliability Increased volume throughput Improved quality Impacts Positive Increased efficiency Labour reduction Improved reliability Increased volume throughput Improved quality
Negative __
Table 5.5. The impact of AMT on Company E
6.2
Each of the benefits perceived by this Company was translated into positive impacts. The interviewee argued that this was because the Company carefully matched the chosen technology to their needs. Each of the perceived benefits closely relates to the function of the installed automation, that is, to efficiently and reliably place a component. This action completely removes the need for an operator in part of the assembly process. In choosing a suitable AMT for this task, the Company measured the performance of the technology against human operators to ensure increased volume throughput. Improved quality was achieved as the automated system removed much of the potential for human error in component placing.
6.3
The Company gave a SR of five, indicating that they are very satisfied with their AMT programme. As seen in the above section, each of the anticipated benefits from AMT implementation was achieved. The AMT installed was an automated pick and place machine. In order to meet the perceived benefits, the technology was required to emulate and supersede the motor and visual skills of a human operator in performing a specific task. Selection of an appropriate technology was based on an evaluation of available technologies against human performance. There were no further requirements, such as interaction with another technology, and the completed task had no implications towards downstream processing.
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7. ANALYSIS OF COMPANY F
Anticipated benefits of AMT prior to implementation Increase profit Improve quality Remain competitive New business New business in new fields Impacts Positive Negative Increased running costs Reduced lead times Increased labour costs Improved product costs Improved volume throughput Reliance on sub-contracting during transition Reduction in customer complaints Improved production flexibility Reduction in unit costs New business area
Table 5.6. The impact of AMT on Company F
7.2
The Company achieved all of the benefits that they had anticipated from AMT implementation: an increase in profit due to reduced costs; an increase in quality due to the accuracy of cuts and CAD based product development; and, they remained competitive through reduced costs and greater capabilities. However, some of the anticipated benefits were not achieved in the initially anticipated manner. The Company originally perceived that new business in new fields would result from subcontracting work that would exploit their new capabilities. Although the sub-contracting operations eventually achieved some expansion in new fields, this was not to the anticipated degree, resulting in much spare capacity for the AMT. In order to fill such spare capacity, the MD exploited a business opportunity to develop an original product. The development of this product was dependant on the installed AMT. The Company noted a number of negative impacts as a result of the AMT implementation. The running costs of the laser cutter were far greater than anticipated due to energy consumption and the requirement for consumable cutting gases. In addition, the use of AMT caused a significant increase in labour costs, as a wage increase was required to retain newly skilled staff. A further significant increase in labour costs was incurred through the recruitment of an engineer with the required levels of experience in the relevant AMT. Although some increase in labour costs had been anticipated the recruitment of an experienced engineer was an unexpected further expense, partly required as a consequence of inadequate support provided by the AMT vendor. Another impact resulting, at least in part, from the low levels of vendor support was the reliance on expensive sub-contracting during the transitional period. This was due to extended periods of laser cutter downtime due to breakdown.
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7.3
The Company gave an SR of three, indicating medium satisfaction with their AMT implementation programme. Although the Company eventually achieved many benefits, the implementation was beset with problems due to a lack of AMT experience and unsatisfactory vendor support. Buying in additional expertise and developing a new arm to the business provided the mechanisms by which the Company could overcome the implementation problems and better exploit the new capabilities.
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8. ANALYSIS OF COMPANY G
Anticipated benefits of AMT prior to implementation New business Remain competitive Reduction of labour intensive work Impacts Positive Negative Short-term production Increased volume throughput conflicts Decreased lead times Loss of traditional skills Decreased labour costs Reduced unit costs Increased production flexibility Improved product quality
Table 5.7. The impact of AMT on Company G
8.2
The Companys latest implementation of AMT has resulted in all of the expected benefits. New business has been achieved as a result of the Companys improved capabilities. In addition, the Company also has an AMT implementation programme underway as a direct result of a promise of new business. The perceived benefit of remaining competitive has been met through reduced costs and increased capabilities in line with customer requirements. Automated processes have allowed the Company to make more efficient use of their operators, reducing the labour overhead on the Companys products. The negative impacts indicated by the Company were either short-term problems associated with the implementation of AMT or an observation of a general trend in the industry. The Company noted that operators that had traditional toolmaking skills were able to use the new technology in more innovative ways, based on the requirements of the product. However, the interviewee felt that such traditional skills were in sharp decline.
8.3
The Company gave an SR of four to five, indicating that they are close to very satisfied with their AMT programmes. The interviewee indicated a number of factors that he believed contributed to the successful implementation of AMT within the Company. Plans for AMT implementation are not progressed unless there is unified consensus from the management in order to avoid any political disputes. In addition, according to the interviewee, operators within the Company are committed to technological development, as they understand the potential for personal benefits. When selecting
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potential operators for a new AMT, the Company attempts to select individuals with a balance of technological and relevant process skills.
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9. ANALYSIS OF COMPANY H
Anticipated benefits of AMT prior to implementation Competitive advantage New business Enhance company image Business growth Impacts Positive Negative Improved volume throughput Conflict between training and production needs Decreased labour cost Increased tooling costs Improved lead times Higher than anticipated Greater production flexibility installation costs Reduced unit costs Additional capital investment required
Table 5.8. The impact of AMT on Company H
9.2
The Companys decision to invest in AMT was prompted by a business opportunity that required a higher level of production performance than the Company could provide. That the Company successfully tendered for the contract on implementation of the chosen AMT is indicative that they achieved the perceived benefits of gaining competitive advantage and winning new business. Enhancing the company image through the use of AMT is an aspect of the Companys marketing strategy. The interviewee indicated that the installation of the chosen AMT has increased interest in the Company; however, this had not facilitated any further new business at the time of interview. It remains to be seen if the use of AMT will lead to further business growth for this company. The introduction of AMT led to a number of negative impacts for the Company. The Companys operators required substantial levels of training to operate the new machinery, creating a conflict between training to effectively utilise the new technology and short-term production requirements. Further negative impacts were associated with higher than anticipated costs for tooling and initial installation. In addition, in planning for the AMT, associated costs, such as purchasing a forklift and disposal of swarf were not accounted for.
9.3
The Company gave an SR of three, indicating medium satisfaction with their AMT implementation. The Companys AMT programme was driven by a specific business opportunity; however, in order to successfully tender for the contract, the Company was required to plan for and implement a new technology in just three weeks. It is reasonable to argue that this seriously inhibited the Companys
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ability to properly consider all of the potential impacts. Perhaps if more time had been available, the Company may have been able to gain greater satisfaction from their technology investment.
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10. ANALYSIS OF COMPANY I

Anticipated benefits of AMT prior to implementation Reduced costs (bring inhouse contracted out work) More competitive quoting Reduced lead times Improved client communication Impacts Positive Negative AMT development problems Greater production Machine reliability issues capabilities Unexpected capital Competitive advantage (on expenditure price and speed) Operator politics Production flexibility Reduced lead times New business
Table 5.9. The impact of AMT on Company I
10.2 HOW DID THE OUTCOMES MEET THE ANTICIPATED BENEFITS?

The new design-led technologies in this company were effective in reducing the costs through CAD/CAM based efficiencies. However, the Companys inexperience in running sophisticated CAD systems led to difficulties in managing the numerous protocols for CAD transfer between systems. In order to resolve these CAD communication problems, the Company remained reliant on the product development technology expertise of the university department that had previously undertaken the Companys CAD work. In addition to the reduction in costs due to the removal of the sub-contracting component, the use of AMT increased the Companys production efficiency. The reduction in costs and improved production efficiency generated competitive advantages based on improved pricing and reduced lead times. In addition, the Company found that following AMT implementation, they were able to utilise greater production flexibility. That is, in planning production the Company was able to produce the same items using a number of different routes, and a combination of old and new technologies depending on order-book priorities. In addition to the increased efficiency in the Companys manufacturing process, the use of technology provided new capabilities allowing the Company to tender for and win new business in new areas. Technological development was hampered by limitations in the capabilities of the machining centre compounded by the Companys inexperience in such technology driven production. According to the Company, the limitations of the HSM were within its expected capabilities; therefore, due to the Companys inexperience, when the HSM failed to produce required parts, the Company assumed that the problem was due to the inputted data. After a significant passage of time, the Company gained
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enough experience in their implemented technology to recognise that the production failures were associated with a limitation in the HSM (later identified by the technology vendor as processor overload). Another technology driven negative impact was the requirement for an additional unexpected capital expenditure. The compressor for the HSM, purchased by the Company on the recommendation of the technology vendor, proved to be inadequate; therefore, the Company was required to purchase a more powerful unit. Some level of political difficulty was experienced by the Company following AMT implementation. Resistance to change was not such an issue, as the management had successfully communicated to staff that some levels of technological development were required if the Company was to survive and that the AMT investment would not result in job losses. However, following implementation, some minor difficulties had to be addressed due to the differing pay levels of those that had been trained to use the new technology, and those that had not.
10.3 HOW DO THE RESPONSES RELATE TO THE SATISFACTION RATING GIVEN?

The Company indicated a SR of four despite the technology related problems that they encountered. It is the opinion of the MD that although there were difficulties to be overcome, the AMT implementation was a very important aspect of the Companys survival. While the difficulties encountered reduced the Companys overall satisfaction with AMT, all of the Companys anticipated benefits were achieved.
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11. ANALYSIS OF COMPANY J

Anticipated benefits of AMT prior to implementation Increase capabilities Reduce labour component Increase volume throughput Impacts Positive Increased volume production capabilities Reduced labour component Increased competitive advantage (due to increased development and production capabilities) New business
Negative __
Table 5.10. The impact of AMT on Company J
11.2 HOW DID THE OUTCOMES MEET THE ANTICIPATED BENEFITS?

The positive impact of the implementation of AMT in this Company matches closely to the benefits that the MD anticipated. The lower levels of labour input together with the improved cycle times of the live tool CNC lathe resulted in the Company becoming more competitive in quoting for higher volume contracts. A further, and unanticipated, improvement in cycle times was achieved when software updates significantly reduced setting times. The usage of AMT has, according to the MD, led directly to increased competitive advantages in the sub-contracting market. New business has been developed due to the Company having production capabilities outside the scope of their competitors. In addition to further developing their relationships with existing customers, the Company has enjoyed success in developing new business with new customers (primarily, competitors of existing customers). The MD believes that such successes are due to the Companys reputation for technology driven development and production capabilities.
11.3 HOW DO THE RESPONSES RELATE TO THE SATISFACTION RATING GIVEN?

The Company indicated an SR of five. This maximum mark is unsurprising as the Company reported more positive impacts than had been expected and reported no negative impacts as a result of AMT implementation. The MD indicated that Company management and workers remain committed to the use of AMT to develop competitive advantage. Previous experience in AMT implementation, together with carefully matching technology requirements to business requirements and company development strategy may explain the high levels of satisfaction that this Company was able to obtain from their technological investment.
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STAGE ONE CROSS-CASE ANALYSIS
CHAPTER SIX:
CROSS CASE-STUDY ANALYSIS

1. INTRODUCTION
From examining the case-study companies, particular factors influencing the impact of AMT have been observed. Within Company A, significant negative impacts were described due to the effect of AMT on downstream production. This particular influence of AMT was contrasted by Cases E and J, where these companies reported no negative impacts and the technology could be seen to have no influence on further production. The AMT strategy of Case A compared to Cases E and J can be seen to be different in the manner in which each seeks to exploit either the inherent or integrated benefits of AMT. Inherent benefits refer to a match between company requirements and the capabilities of an installed technology. Integrated benefits refer to achievable benefits as a result of an overall production process that utilises AMT at some point in that process. From case-studies B, D, F and H, it is apparent that there are particular issues affecting the impact of AMT due to levels of previous technological experience. Company B suffered negative AMT impacts when implementing a new type of technology. Company D was able to communicate changes to their approach to AMT in the light of their experiences over the last few years. Companies F and H relate the experiences of new adopters of technology. All of the companies that took part in this study placed very high importance on the levels of vendor support available when choosing an AMT. However, other support mechanisms have also been used by the case-study companies. Two of the companies utilised KTP programmes and one enlisted the help of MAS Cymru. This demonstrates the important part that support mechanisms has to play in regard to positive or negative impacts from AMT. This cross-case analysis chapter examines the following identified issues in more depth: Consideration of the inherent and integrated benefits of the proposed AMT Consideration of company technological experience Availability of vendor or other support mechanisms
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2. CONSIDERATION OF INHERENT AND INTEGRATED BENEFITS

The focus of the interview with Company A was the implementation of a laser cutter. Inherent outputs from the technology included: increased flexibility (the technology has the capability to efficiently change from producing one part to another); improved accuracy and quality; increased cutting speed; and, increased variety of parts. It is noted in Chapter Four that where the perceived benefits of the AMT implementation relate to the inherent capabilities of the chosen machine the result was a positive impact for the Company. As the installed technology creates a component for downstream production, the benefit of increased throughput is dependent on the technology improving the efficiency of the overall production process. In this case, the use of technology presented a number of problems that affected the efficiency of production. Firstly, the development of more complex parts generated a difficultly in planning the most efficient use of the material. This created a bottleneck in the production process, having an adverse effect on throughput times. Secondly, the higher tolerances of the parts created difficulties for downstream operations. These issues were resolved through additional capital expenditure in a CAD nesting module, an extra fractional position to operate the CAD and production controls to limit product complexity. Case-study companies E and J provide further evidence of the positive relationship between expected AMT benefits and the inherent capabilities of a selected AMT. Company E discussed the implementation of an automated Pick and Place system. Each of the benefits the Company believes they achieved closely relates to the function of the installed automation, that is, to efficiently and reliably place a component. This action completely removes the need for an operator in part of the assembly process. In order to meet the anticipated benefits, the technology was required to emulate and supersede the motor and visual skills of a human operator in performing a specific task. There were no further requirements, such as interaction with another technology, and the completed task had no implications towards downstream processing. Company J explained a similar experience with AMT implementation as Company E, in that the processed output had no impact on downstream activities. The interview with Company E focused on the implementation of a live-tool CNC lathe. Two new operators were required to run the new machine, and therefore, the AMT implementation had an impact on labour costs; however, this did not produce a negative impact on the Company as these increased labour costs are part of the overheads of running a new machine that reduces the overall labour component in production. The output from the CNC lathe was identical to components produced prior to its installation.
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The companies discussed in this section have demonstrated the impact that the output of a technology can have on achieving the benefits anticipated prior to installation. In Company A, it was observed that where requirements from the technology were in line with its inherent capabilities, such benefits were easily realised. However, benefits involving the AMT as a component in a larger system (the overall manufacturing process) were much more difficult to achieve. Companies E and J were only interested in achieving benefits that were inherent capabilities of their selected technologies, as the outputs of these technologies had no further impact on their manufacturing processes. These results suggest that in the case of the inexperienced implementer, the chances of achieving positive impacts to the business are increased where the output of the new technology has limited impact on further processing.
3. CONSIDERATION OF COMPANY TECHNOLOGICAL EXPERIENCE

Discussions with the case-study companies clearly indicate the importance of considering AMT experience levels during implementation programs. Case-study Company B provides an exemplar of how it is important for a company to consider their AMT experience level even when the company is familiar with technology implementation. Company B is very experienced in the implementation of AMT having installed various technologies over the last 10 years. When planning for AMT implementation the Company normally implements financial modelling techniques based on the quantitative aspects of the technology. However, this was found to be more difficult with the implementation of an MRP II system as most of the anticipated benefits were qualitative in nature. It was anticipated that an MRP II system would have positive impacts on product quality, service quality and customer satisfaction leading to improved competitiveness. The interviewee indicated problems with the implementation of this technology during the planning, installation and development stages. The installation and development of the MRP II system was subject to resistance from production operators. As a result of these problems, the desired improvements in process knowledge and control were not achieved. For the majority of AMT installations, the Company indicated high levels of satisfaction; however, the Company indicated that they were very dissatisfied with the MRP II system. It is interesting to note that the system least in line with the Companys AMT experience (i.e. one potentially providing qualitative benefits) should be the system that provides least satisfaction. In contrast case-study Company F provides an exemplar of a company adopting AMT for the first time. The AMT implementation consisted of the installation of CAD/CAM and a laser cutter. Operating costs turned out to be much higher than expected, resulting in the MD considering using a more traditional punching machine where possible to reduce operating and maintenance costs. In addition, the technology vendor did not meet the Companys expectations in regards to technical support. This
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resulted in the expenditure of unexpected costs as the Company had to contract out work during substantial periods of machine downtime. In order to resolve this situation, the Company brought in a new member of staff with extensive experience of the relevant technologies. Although this impacted on labour costs, it allowed the Company to develop the AMT more effectively and reduced the requirement for external training. Following the recruitment of an experienced AMT operator, cost savings that increased profit were made due to previously contracted out work being brought inhouse. As the Company became more experienced with their AMT a new business opportunity was identified in developing original products and selling them directly to the end-user. This new business strategy relied on the utilisation of the Companys new technologies and soon became the most profitable operation within the Company. Over the last 4 years, Company D has invested heavily in technology; however, prior to this the Company had very little experience in AMT implementation. Discussions with Company D centred on the implementation of a wire erosion system. This Company shares some of the experiences of Company A and Company F in suffering negative impacts based on unexpected costs. In addition, their experiences with AMT over the last few years has led the Company to support the ideas of selecting an implementation champion from the shop floor and communicating to operators the potential personal benefits of AMT use. Company H is the youngest of the case-study companies, being operational for only one year at the time of interview. After five months of trading, the Company invested in a VTC. The negative impacts that this Company suffered support the finding that a lack of previous technological implementation experience is an important consideration for AMT investment. In this particular case, the AMT was purchased in response to a new business opportunity. However, although the MD was confident that such new business would be developed, at the time of interview contract negotiations were not complete. Therefore, it is unknown to what extent the perceived positive impacts will be transformed into financial benefits for the Company. For each of the companies covered in this section, inexperience in AMT implementation manifested itself in the negative impacts of resistance to change, unexpected costs or both. Some levels of resistance to change may be an unavoidable condition in a company with no prior experience in AMT implementation, as employees may be prone to be suspicious of new technologies with unproven benefits. That half of the companies were required to spend additional monies in order to benefit from their investments is indicative of the difficulties that these companies had in analysing the full impact of AMT introduction prior to investment.
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4. AVAILABILITY OF VENDOR OR OTHER SUPPORT MECHANISMS

The importance that case-study companies placed on vendor support is not indicative of those companies satisfaction with the vendor support that they received. Two of the companies that placed vendor support as the most important consideration when selecting an AMT were very dissatisfied with the levels of vendor support that they actually received. Described above is the experience of case-study Company F whose MD considered the lack of adequate vendor support to be a contributing factor in the extended downtime of their installed AMT. The second company to indicate dissatisfaction in vendor support was Company I. This Company implemented a HSM Centre; however, following implementation the Company experienced machining performance problems. It was discovered by the Company that these performance and reliability issues were related to the machines control processor overloading when presented with complex compound curves. This issue was described by the MD as the machine not doing what it said on the tin. The solution to the control processor problem presented by the vendor was the installation of a post processor, requiring an additional investment; a solution that was unacceptable to the Company at the time of interview. Company I acknowledged their inexperience in AMT implementation and addressed this lack of experience through a KTP program. Despite the barriers that Company I had to overcome in AMT implementation, the management remained committed to the development of AMT. This is due to the opportunities that the use of technology has presented to the Company in regard to increased competitive advantage and new business development. Through the implementation of AMT the Company introduced the capability to interrogate and manipulate client CAD data. Prior to the technological introduction, CAD and related work had to be contracted out. Therefore, the new design-led technologies were effective in reducing the Companys costs. However, the Companys inexperience in running sophisticated CAD systems led to difficulties in managing the numerous protocols for CAD transfer between systems. These CAD communication difficulties presented themselves after the completion of the KTP, that is, when the Company no longer had access to the substantial CAD expertise of the collaborating university. Company C was another company undertaking its first AMT implementation program and utilising a KTP. The ambitious development plan of this Company included the installation of 3D CAD/CAM facilities, the development of a phenolics moulding plant and the installation of 5-axis CNC machining capabilities. The CAD/CAM implementation was undertaken in order to improve communication with clients during the early stages of their design work. The Company perceived that the installation of sophisticated 3D CAD would allow them to safeguard their position as a supplier to their current clients and improve their prospects for winning new contracts. In addition, the Company believed that such technological implementation would allow the Company to pursue new markets through the
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exploitation of their new in-house design facilities. The Company suffered political difficulties amongst managers over access to the new technology. In addition, there was resistance to change from the shop floor due to suspicion of the impact that such technological implementation would have on the organisation. At the time of implementation, it was not explained to pattern-makers that the production of CAD driven patterns was intended to secure additional contracts that would otherwise be unattainable and thereby improve the security of the pattern makers employment. Despite these political disputes, the Company was satisfied with the results of their AMT program, as the technology provided a competitive advantage that led to the development of new business. It is important to note that the casting industry within which Company C operates is generally a traditional manufacturing sector; therefore, the advantages in communication and development abilities of Company C following AMT implementation may have outweighed any negative impacts from their internal political disputes. It is interesting to note that Company G (a company with extensive experience in AMT implementation and signifying very high levels of satisfaction with their recent AMT programs) described similar political problems to Company C in their early attempts to install new technologies. This has led Company G to always ensure that management consensus is reached prior to beginning AMT implementation programs. The latest AMT to be successfully introduced by Company G was wire erosion for the precision cutting of steel. Discussions with this Company centred on their planned implementation of an 8-axis CNC lathe for the production of thread-rolled components. The introduction of this technology was reliant on the Company realising a new business opportunity. The MD felt that technology vendors alone would be insufficient to support this new project. In order to address this lack of support the Company enlisted the aid of MAS Cymru. MAS Cymru provided research into the various technology options and aided the development of activity based costing mechanisms. This new supporting administrative resource aided the Company in developing a price advantage over an overseas competitor. The companies discussed in this section demonstrate the potential impact of external support for companies that are inexperienced in AMT implementation. Company I demonstrated the negative effects of inadequate vendor support through the selection of an AMT that did not fully meet their needs. Both Company C and Company I indicated the importance of the support of KTP programs to achieving benefits from their AMT implementations. Company I, in particular demonstrated how such external support can aid successful implementation of an ambitious AMT program even where there is no previous experience. Company G recognised the value of government-funded support in regard to both the specifics of a particular technology and supporting administrative procedures when implementing an AMT in response to a specific business opportunity.
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5. DISCUSSION OF RETROSPECTIVE RESEARCH FINDINGS

The purpose of this study was to examine the impact of AMT in ten small companies and to contribute to the knowledge of AMT adoption by indicating those issues that are of greatest concern when implementing an AMT within such a company. The method employed in this study consisted of the development of a structured interview based on the results of a survey of the published literature. The methodology has been successful in that it provided a mechanism for capturing the experiences of small company managers in a format that allowed cross-case analysis. All of the companies that took part in this study have achieved positive benefits as a result of AMT implementation. Of the specific AMT programs that were discussed during interviews with the companies, nine of the programs resulted in positive benefits. This demonstrates that AMT can be an important tool for small companies in developing competitive advantages. However, in achieving these benefits from their AMT implementations, eight of the ten case-study companies had to overcome significant barriers. The results imply that the major difficulties that small companies face when implementing an AMT are derived from a lack of previous experience in technological introduction. As a result of this relative inexperience, small companies have difficulties in developing the required expertise, in analysing the full financial implications and in understanding the impact of AMT on the overall manufacturing process. These findings tie in with the overall analysis presented in this chapter, as in addition to the section specifically covering consideration of company technological experience, the sections on inherent and integrated benefits and support mechanisms are also related to experience with AMT. Analysis of the of the case-study companies experiences indicated three important considerations for small companies when implementing AMT: Consideration of the inherent and integrated benefits of the proposed AMT Consideration of company technological experience Availability of vendor or other support mechanisms
The importance of considering manufacturing strategy is highlighted in the existing literature (Inman, 1991; Sohal, 1996). These results build on such considerations in a format that is useful to the small company manager in advocating consideration of the inherent and integrated benefits of the proposed AMT. The implication of this finding is that small company managers should consider the impact of the output of an AMT on downstream processing and that inexperienced implementers of technology are more likely to achieve anticipated benefits that are linked to the inherent capabilities of a technology. This view is evidenced by Companies E and J, the only companies not to suffer any
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negative impacts as a result of their AMT implementation. These were the only companies whose aim was only to exploit the inherent benefits of a technology. AMT installations that affect the wider manufacturing process are more likely to have an overall positive impact if the company has previous AMT experience; however, the exemplar provided by Company B indicates that it is still important for experienced companies to assess where their experience lies. Figure 6.1 demonstrates how the output of a technology might impact on the overall production process.
Fig. 6.1. Utilising Inherent and Integrated Benefits of AMT
In the first image, the AMT replaces a process, but the output of the AMT is identical to the output of the replaced process. Therefore, the advantages to the company only come from the improved performance of Variable 1 over Variable 2. In the second diagram, the company is using AMT as part of a process to create a new or improved output. However, if this is achieved due to the output of the
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AMT being different to the output of Process 1, then there is the possibility that the impact on process 2 is such that Variable 4 does not present an advantage over Variable 3. The published literature on AMT has highlighted many difficulties that companies may face when implementing and developing AMT, including a lack of previous experience in AMT implementation (Jonsson, 2000; Sohal et al., 2001). The companies exemplifying inexperience in AMT implementation in this research suffered the negative impacts of either unexpected costs, resistance to change or both. Resistance to change at various levels throughout the workforce is a well documented barrier to successful AMT implementation (Tantoush & Clegg, 2001; Macri et al., 2002). In the case-study companies, resistance to change was evident in Companies B, C, F and I. The results of this research indicates a separate distinction to that of large and small companies, in the differences in the needs of the experienced and inexperienced AMT implementer. However, it is reasonable to assume that small companies are more likely to be inexperienced in AMT adoption than large companies. An indicator of the impact of inexperience comes from the finding that seven of the companies placed the availability of vendor support as more important than system cost (the remaining three placed system cost and vendor support as equally important). This is in direct conflict of the findings of Saleh et al. (2001) that the attribute of vendor support is less important than system cost. In addition, it is notable that the case-study companies that had more experience in AMT implementation were indicating the use of mechanisms to encourage shop floor support, in line with the self interest factors of Udo and Ehie (1996), and the operator empowerment advice of Macri et al. (2002). As noted above, vendor support is considered by the published literature; however, other funded support mechanisms are rarely covered. Three of the case-study companies in this study indicated the importance of utilising government-funded support mechanisms to assist in their AMT implementation. That small companies are using such mechanisms to assist in AMT development may be an important distinction between the body of knowledge on AMT adoption and the factors that influence AMT implementation success in small companies. The reason that some of the observed companies are using funded support may be cultural, i.e. perhaps there is more access to such support in Wales than in other locations where AMT has been studied. However, another reason may be due to the fact that this study concentrated on small companies that are more likely to be eligible to receive such government-funded support. As this study only examines small companies it is difficult to quantify what constitutes low levels of experience in comparison to larger companies. Another limitation is due to the qualitative nature of the research gathering exercise. Although the interview used both open and closed questions, the
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responses were based on the opinions of managers; therefore there is little quantitative support for the findings of this study. A further limitation presents itself in defining whether or not an AMT implementation has been successful. The research has considered the results of retrospective data gathering, and therefore it is difficult to determine if the expectations of AMT as cited by managers during interviews are really the same as the expectations that existed during the planning stage of an AMT programme.
6. CONCLUSIONS FOR THE RETROSPECTIVE RESEARCH STAGE

The retrospective study contributes to the knowledge of AMT implementation in that it indicates those issues that are of greatest concern to managers implementing AMT in small companies. Analysis of the results leads to the conclusion that small companies have different needs to large companies when implementing technology and must more carefully consider their level of technological experience in order to select an appropriate AMT. A common issue for the case-study companies was to underestimate the impact of AMT on the company, leading to the requirement of additional capital expenditure in order to achieve anticipated benefits. The experiences of the case-study companies has demonstrated that where the output of a technology has limited impact on further processing, the likelihood of a company suffering negative impacts as a result of AMT implementation is reduced. The study also highlighted the importance of external support mechanisms to small companies and found that all of the case-study companies believed the available level of vendor support to be at least as important a consideration as system cost. Due to the potential inaccuracies of respondent post-rationalisation that are inherent in retrospective case-study research, the next stage of research further investigated the issues relating to AMT in small companies through longitudinal case-study development. This further research captured data on the progress of AMT adoption programmes as they develop through observation and interviews. Such research provided a better understanding of case-study company requirements and aspirations, plans and actions and the relationship between expectations and achievements.
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STAGE TWO METHOD
CHAPTER SEVEN:
STAGE TWO METHODOLOGY DEVELOPMENT

1. INTRODUCTION
In the earlier chapter on methodology, a two stage approach to the research was described. The purpose of the second stage was to interact with companies in the process of introducing technologies. This period of active observation, conducted over a longer period of time was designed to highlight issues that are not so readily apparent in retrospective research. Described earlier is the potential issue of respondent post-rationalisation. Another important issue to consider in retrospective case research is respondent bias. In Case-study C political and cultural difficulties with implementation are observed. That these issues were brought up in discussions with the Company was due to the openness of the respondent. The views expressed during the interview were the opinion of one manager, and all negative responses regarding the managerial style in operation were attributed to other managers in the Company. Potential for bias can also be seen in Cases E and J, in that the managers reported no negative impacts following the introduction of AMT. Even where there is no obvious potential for bias, bias may exist that is undetectable by the interviewer. In an interview situation it may be difficult for the interviewer to properly understand the interviewees personal opinions about the topic being discussed. Therefore, it may be difficult to determine how such opinions affect the answers given. For example, in Company A there is no immediately apparent potential for bias. The respondent described the implementation of a laser cutter and was very open regarding the difficulties that the Company faced. However, at the end of the interview, the respondent noted that on reflection it might have been better had the Company stayed closer to their core skills and implemented an updated CNC punch. It is impossible for the researcher to know if this was the interviewees preferred solution prior to the Companys technology investment. If so, that potentially represents a bias that could lead to the exaggeration of the issues faced in implementing an alternative technology. The results of the first stage have to be taken on face value, with conclusions developed from the information presented, despite the potential issues of respondent bias and post-rationalisation. However, in acknowledging such limitations, longitudinal studies can be used to gain a more in-depth view of the impact of AMT adoption in small companies. In isolation, drawing generalisable conclusions from the longitudinal studies would be difficult. However, where conclusions support the results of the retrospective stage, increased validity is gained for the initial findings.
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2. STAGE TWO DATA GATHERING

2.1 MANAGEMENT COMPETENCIES
The author was a part of a group of KTP supervisors that began development of a graphical mechanism for analysing the performance of small companies in the implementation of technology. The author presented this work at an international conference (PICMET 05) for the purposes of academic critique to inform further development of the mechanism (Millward et al., 2005). This work was further developed into an international journal article (Millward et al., 2006). The basis of the method employed in this graphical mechanism was consultation with a panel of experts that had each been involved in providing support to companies in the process of adopting a new technology. This resulted in Millward et al. examining four areas of company performance: knowledge; resources; quality; and, innovation and change. These four areas were considered in terms of both management competencies and the impact on the company of the introduction of technology. Through consideration of performance in each of these areas, using a semantic differential scale, a radar diagram could be produced. This radar diagram produced a footprint of company technological impact and management competency (see figure 7.1).
Technology Management Map
Knowledge 100
Innovation & Change
Resources
Management Technology
Quality
Fig. 7.1. Example of a technology management map
Such technology management maps have the potential to provide a useful analysis tool in considering the impact of AMT adoption in the longitudinal case-studies. However, with such longitudinal study, the opportunity exists to explore further the issues behind each of the four main
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categories. Such exploration of sub-themes, together with the development of a voice of the company within the maps, forms the basis of the feedback obtained from academics at PICMET 05. In the study by Millward et al. each of the four categories were supported by lists of issues to be considered during scoring. This helped to ensure some level of parity between experts in what was a subjective scoring exercise. However, the individual issues that made up each of the four categories were not scored independently. For the purposes of evaluating competencies in longitudinal studies, it may be useful to further explore these sub-issues, therefore for this research a document was developed that attempted to score performance in each of these areas. The table below shows the four main areas considered in the work of Millward et al., together with the sub-issues advised for consideration in scoring performance (see table 7.1). Area Knowledge Sub-issues Market and competitors IPR Experience of technology implementation Strategic vision Project planning Support infrastructure Finance Staff Procedures and accreditations Customer satisfaction Use of quality managers or consultants Staff training and development Innovation risk propensity NPD processes Change management Shared strategic vision
Resources
Quality
Innovation and Change
Table 7.1. Topics and considerations for Management Maps
In developing a document to further explore the above sub-issues, it became apparent that some of the topics were made up of another level of sub-issues. For example, in investigating Knowledges sub-issue of Market and Competitors, there are questions to be answered in terms of: market presence; the level of awareness of competitor activities; and, the activities undertaken to gather market and customer intelligence. Similarly, in investigating the Resources sub-issue relating to Staff, questions naturally occur relating to: the effectiveness of current staff; staff expertise; and labour implications for company growth. The fact that different areas of enquiry arise in investigating the issues that make up the four categories leads to an imbalance in the number of questions asked in relation to each area. Therefore, in developing a radar diagram to describe management competencies, a weighting has to be applied to each of the areas. Each of the questions in the document presents multiple choice answers, with each of the answers providing a score. Generally, the score increases as answers indicate more in-depth knowledge of the
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area of enquiry. The lowest scoring answers provide a score of either zero or one. The reason for this difference is based on whether the lowest scoring option indicates either little or no knowledge of a subject. The author acknowledges that scoring a zero has implications regarding the use of a multiplier to weight the sections; however, it would be inaccurate to provide a positive score where no knowledge of a subject has been indicated. Due to this limitation, the accuracy of the final radar diagram was tested against a selection of previous management competency diagrams published by Millward et al. In the work by Millward et al. the studied companies were placed in categories based on the experts assessment of their performance in the introduction of technologies and processes. These categories were low impact, medium impact and high impact. In order to test the accuracy of the management competency document, another member of the methodology development team that was involved in a variety of the cases studied by Millward et al. was consulted. This team-member completed the management competency document, considering a company from each of the impact categories. The resulting radar diagram was then compared to the previously published management maps (see figure 7.2).
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Pr evio us Hig h Imp act
N ew Hig h Imp act
Knowl edge 100
Knowl edge 100
Innovati on &Change
Resour ces
Innovati on &Change
Resour ces
Qual i ty
Qual i ty
Pr evio us M ed ium Imp act
N ew M ed ium Imp act
Knowl edge 100
Knowl edge 100
Innovati on &Change
Resour ces
Innovati on &Change
Resour ces
Qual i ty
Qual i ty
Pr evio us Lo w Imp act
N ew Lo w Imp act
Knowl edge 100
Knowl edge 100
Innovati on &Change
Resour ces
Innovati on &Change
Resour ces
Qual i ty
Qual i ty
Fig. 7.2. Comparing published technology maps to those generated through the Management Competency Document
From figure 7.2, it can be seen that the areas contained in each of the radar diagrams corresponds well with the impact categories defined by Millward et al. However, it can also be seen that the individual values for Knowledge, Resources, Quality and Innovation & Change do not always correspond well. This might be expected, as the method for evaluating performance in each of these areas differs. For the purposes of this research, the answers behind the production of the radar diagrams is more important than the diagrams themselves, as the answers provide a more detailed understanding of the strategies and business practices within companies. However, that does not imply that the diagrams are not useful, as they provide a quick reference to a range of management competencies and are useful in evaluating different perspectives on the performance of individual companies. This evaluation of different perspectives assists in gaining a fuller picture of technology impact by prompting consideration of why different respondents place different values on particular
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aspects of management competency. Visual methods for the assessment of impact categories have been used before (McNary, 1997). McNary linked the mean values of pro- and anti- Deming managers across ten semantic differential scales. 274 respondents identified themselves to be either pro- or anti- Deming by answering whether they were aware of, and understood, Demings management principles; and, whether they practiced these principles (Deming, 1994). The respondents were then asked to rate their perceptions of their management practice on ten scales, each developed from Demings characteristics of a managerial leader. The visual output from the linking of the scales was useful in demonstrating the different profiles of pro- and anti- Deming managers. In assessing the longitudinal case-study companies, it might be useful to note where companies are placed in terms of low, medium or high impact as defined by Millward et al. In the study conducted by Millward et al., grouping of impact categories was undertaken prior to the development of Technology Management Maps. The purpose of this order was to test the validity of the subsequent maps by referring to the assessment of the impact of technology introduction on individual companies. A limitation of this method exists in analysing a management map to determine if a company should be labelled low, medium or high impact. Although Millward et al. demonstrated the mean management map areas for each of the impact categories, no boundaries were set for classification. Such classification might prove useful in the longitudinal cases for comparing participating companies against the characterisations of each of the impact categories described by Millward et al. It could be argued that an effective method of setting the boundary points for this study can be developed by comparing the smallest management map area for the high impact companies to the largest management area for medium impact companies. The mean difference between the two areas would then set the boundary between categorisation as a medium or high impact company. Similarly, a boundary would be set between low and medium impact categories. The values of performance in each of the four assessment criteria for the lowest performing high impact (LPHI) company; the highest performing medium impact (HPMI) company; the lowest performing medium impact (LPMI) company; and, the highest performing low impact (HPLI) company are presented in table 7.2. It is important to note that these are not the values associated with the lowest or highest ranked companies in each impact category. Rather, these values are taken from the reported Management Maps that demonstrated either the largest or smallest area. However, in examining the data, it can be seen that this rationale does not create a means by which to set the boundaries, as the area associated with LPMI is lower than the area value for HPLI.
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Knowledge
Resources
Quality
Innovation & Change 0.89 0.77 0.52 0.48
Area
LPHI HPMI LPMI HPLI
0.82 0.5 0.13 0.59
0.6 0.58 0.13 0.52
0.61 0.6 0.09 0.52
1.07 0.74 0.07 0.56
Table 7.2. Best and worst management performance in different impact categories
Another rationale for the boundaries for the impact categories can be developed from the mid-point between the mean areas of the original management maps. However, using such a rationale challenges the assignment to impact categories of the case-study companies. The reason for such change is that Millward et al. were interested in the impact of technology adoption and development relative to prior management competencies. Also, the study set the impact categories based on the subjective opinions of a cohort of academics that had been involved in the technology adoption programmes of the case-study companies. However, although some of the academics worked on several of the cases, there was not a common link between all of the cases. In addition, one of the programmes had been completed over eight years prior to the analysis; yet, another had been completed within the previous year. These limitations give rise to potential discrepancies on the relative ranking of the impact achieved by the case-study companies. Table 7.3 presents the mean management areas and the boundaries that will be used to aid assessment of the longitudinal cases. Mean Area High Impact Medium Impact Low Impact 1.26 0.41 0.26 Boundary >0.83 0.34 0.83 <0.34
Table 7.3. Mean areas and impact boundaries
As noted above, using these boundaries results in some re-ordering of the companies positioning within the impact categories. However, all of the high impact companies retain their original categorisation, as do the highest two medium impact companies and the lowest two low impact companies. The two lowest scoring medium impact companies move to take the two top positions in
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the low impact category. The top two low impact companies move into third and fifth position in the medium impact category respectively (see table 7.4). Old Impact Category New Impact Categorisation Company P High Impact Category D K N Q H Management Area 1.5 1.47 1.35 1.27 1.07 0.9 P D K N Q H
G Medium Impact Category M A B E
0.74 0.68 0.47 0.08 0.07
G M J A L
Low Impact Category
J L F C
0.56 0.43 0.06 0.01
B E F C
Table 7.4. Re-categorisation of Millward et al. (2006) case-study companies to conform to new impact boundaries
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Due to the new method of organising the companies into impact categories, there is a mis-alignment between the impact categories and the original characterisation of the modes of operation typified in each category. For example, Millward et al. placed companies in the low impact group due to avoidance of structured NPD processes. Two of these companies now make it into the medium impact category. However, it should be noted that Millward et al. were concerned with management competencies in relation to product development technology adoption, rather than the wider AMT that is the focus of this research. For this research, impact categorisation will be used to assist in gaining further in-depth understanding of how management competencies impact on AMT adoption and viceversa. However, certain limitations are acknowledged in the use of management competency assessment, management maps and impact categorisation, and in the assessment of the functionality of these methods. These limitations arise from the small number (two companies) of longitudinal cases participating in the research. However, the in-depth assessment of the performance of these companies provides a good starting point for wider research that builds on the results of this work.
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2.2
MANAGEMENT COMPETENCY DATA GATHERING DOCUMENT
The pages below demonstrate the questions and scoring used to investigate management competencies in the longitudinal cases.
Knowledge Market and Competitors 1. Visiting Trade Shows (select most appropriate) Dont go Sometimes go Regularly attend key events 0 1 2 Sometimes exhibit 3 Usually exhibit 4
2. Competitors (select most appropriate) Cannot identify Aware of some competitors competitors
Aware of key competitors
Aware of key competitors and their market share
In depth knowledge of competitors, their USP and relevant market share
3. Market / Customer Intelligence (select ALL that apply) Y N Formally surveys customers on company perception? Follows up lost sales to see if they purchased from a competitor? Records and analyses enquiry to sales ratio? 1 0
Knowledge IPR 1. IPR strategy (select most appropriate) No coherent IPR Aware of some Some use of IPR to strategy IPR methods protect the company Generate income from IPR or uses licensed IPR to reduce development costs Strategic use of IPR, planning IPR licensing developments and use of licensed IPR to cut cost or maintain market position
2. In new product development, is the use of IPR routinely considered? (select most appropriate) No 0 Yes, to protect ideas Yes, and further income generation from IPR is considered 1 2
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3. Is published IPR used as a reference source? (select most appropriate) No Yes, sometimes Yes, routinely 0 1 2
Knowledge Experience of Technology Implementation 1. Has the company installed any of the following: Y/N Number of years in place 3D CAD CAM Multi-axis machining MRP II Laser based technologies (cutters, RP, etc) Automation (robots, pick & place, etc) Vision Systems Max points:5 Max points: 25
2. On the scale, rate the success of previous technology implementation programmes? Business improvements leading Resistance to use leading to technology abandonment 1 2 3 4 5 to increased efficiency or revenue creation
3. What methods are used for assessing technology implementation requirements? (select most appropriate) No formal Advice from Generate a Advice from impartial Use of Discounted Cash Flow, method vendors requirements consultants Multi-attribute Decision Making or specification other to quantify potential investment benefit 0 1 2 3 4
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Knowledge - Strategic Vision 1. Company vision and mission (select most appropriate) Has no defined Has an official Has an official mission / vision mission mission statement or statement statement or vision that is vision that the communicated at MD is working director level towards 0 1 2
Has an official mission statement or vision that is communicated throughout management
Has an official mission statement or vision that is displayed for all to see
2. Steps are taken to encourage buy-in to the vision in the organisation; (select most appropriate) At director level At management At supervisor level At technician level To all staff level 1 2 3 4 5
3. How often is progress / achievement of the vision reviewed? (select most appropriate) Never < Annually Annually Monthly 0 1 2 Resources Project Planning 3
Weekly 4
1. What project planning software is used (not just available, but actively used? (select most appropriate) No software Spreadsheet Add- Dedicated Integrated MRPII on project planning project planning software and accountancy 0 1 2 3 4
2. Training who has access to training through the company? (Select ALL that apply) Production workers Supervisors Technical Staff Managers Directors 1 3. Procedures (Select ALL that apply) Company developed Performance manufacturing measuring procedures techniques employed 1 1 1 1
Formalised procedures implemented (e.g. 6 sigma, continuous improvement, lean manufacturing 1 1
Supply chain management procedures implemented 1
Accredited procedures developed (e.g. ISO 9001)
1 4. Accuracy of delivery dates
Y Is conformance to delivery schedules analysed? Is delivery data used to improve future delivery estimation? Following late delivery, are efforts made to find and address production planning? What percentages of orders are delivered on time? 90-100% 5 75-90% 4 50-75% 3 25-50% 2 1 1 1
N 0 0 0
<25% 1
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Resources Support Infrastructure 1. Training requests (select most appropriate) Training requirements Staff encouraged identified by to make training supervisors requests to their independently supervisors 1 2
Training requirements identified by supervisors in consultation with staff 3
Scheduled / Annual review of training for key staff 4
Scheduled / Annual review of training for all staff
2. Communication of training outcomes (select most appropriate) No analysis or Effectiveness of Trainee dissemination of training reviewed encouraged to knowledge following on completion disseminate training acquired knowledge to peers on completion
Formal communication routes to disseminate knowledge following training
3. Does the company use any of the following? (select ALL that apply) Access to government Contracted Dedicated insponsored support systems support house systems (grants, programmes, maintenance support etc) agreements 1 2 3 Resources Finance 1. Is the company profitable? No Yes 0 1
2. Does the company reinvest in product/service development? (select most appropriate) Rarely 1 Yes, when opportunities arise Yes, continuous development 2 3
3. Does the company regularly use part-funded grants for technology or development programmes? (select most appropriate) No, not investigated 0 No, not eligible 1
Yes, as required
Always investigated to aid developments
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Resources Staff 1. Does labour resource effect timely product delivery? (select most appropriate) Yes, products usually 0 late due to inadequate labour resource Yes, products often late due to inadequate labour resource Yes, products cannot be produced on time without overtime No, there is a good balance between commitments and labour No, adequate labour resource means products always on time (or late for other reasons) 1
2. Does the company have people with the expertise to deal with day to day activities (systems e.g. IT facilities)? (select most appropriate) Company systems are 1 supported externally (services purchased when required)
Company systems are supported externally (maintenance agreements) Company has some internal system expertise (with external support) Company has broad internal system expertise
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3. Does the company have people with the expertise to deal with day to day activities (production)? (select most appropriate) Sub-contractors supply >50% production expertise Sub-contractors supply <50% production expertise Sub-contractors supply some expertise (any level, but as part of a core competencies strategy) Company has a wide range of relevant expertise 1
4. Is the company able to access additional expertise to meet growth expectations (staff)? (select most appropriate) Difficulty in recruiting 1 suitably qualified staff Easily available labour pool for potential recruitment 2
5. Is the company able to access external expertise to meet growth expectations? (select most appropriate) Difficulty in finding 1 suitable external expertise Expertise available, 2 but cost prohibitive Expertise available to purchase Partnerships setup with relevant expertise 3 4
Quality 1. Are there quality monitoring procedures? No 0 Yes 1
2. Have quality accreditations been implemented? No 0 Yes 1
3. Are there written company procedures? No 0 Yes 1
4. Is a continuous improvement programme operated? No 0 Yes 1
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5. Is there a quality manager or are consultants used to evaluate quality (procedures and output)? (select most appropriate) No Use consultants Employ a quality manager Use both consultants and a quality manager 0 1 2 Inter-departmental meetings with representation at various levels 3
6. Are there formal channels for internal communication? (select most appropriate) No, communication is Departmental meetings Inter-departmental meetings each individuals represented by department responsibility heads 1 2 3
4 Wide range of external contact for marketing and developmental activities 4
7. Are there effective external communications? (select most appropriate) Communicate with Use suppliers as a source of Active supplier partnerships suppliers knowledge for development to aid company development
8. What percentage of staff has undergone some form of professional training via the company? (select most appropriate) None Key staff (e.g. <10%) Training benefit considered All staff encouraged to request on a case by case basis (all appropriate training (part of company staff able to request training) strategy)
1 Innovation and Change
1. Change initiation (select most appropriate) Driven entirely from Change Certain individuals autocratic encouraged tasked with identifying management through key potential improvements employees 1 2 3
Routes for communicating change requirements to management 4
All employees considered in managing change
5 Dedicated R&D department
2. Research and development (select most appropriate) No R&D facility R&D team put Person responsible for together when new R&D whose role is to projects approved find new opportunities 0 1 2 Product development in response to market request 3
Regular R&D team (run in parallel to other company roles) 3 Product development in response to market request 4
4 Product development to lead market
3. Risk propensity (select most appropriate) Product development Product development to update products in response to competitors 1 2
4. Rate of development (relevant to industry and size); (select most appropriate) Less than direct Less than industry average More than direct competitors competitors 1 2 3
More than industry average 4
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5. Structured development process (select most appropriate) No structured development process Development follows autocratic in-house created process 0 1 Development follows interdepartment inhouse created process 2 Development follows structured and proven development process Company investigates development best-practice for development programmes
3 Change managed through management support Change managed through best-practice (e.g. operator empowerment; change champion)
6. Allowing staff to instigate and develop change (select most appropriate) Resistance to all High resistance High resistance to Resistance to forms of change, to all forms of process technological at all levels change at developments implementation operator level
7. Encouragement of creativity (select most appropriate) Changes initiated Changes initiated Creativity encouraged from top-level only at department through upward head level management filtering 1 2 3
Creativity and changes encouraged for consideration from all levels 4
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2.3
LONGITUDINAL OBSERVATION
The section above details a method for gathering data to evaluate the selected case-study companies. Such gathering will provide a useful tool for developing some quantitative aspects from the academic observation and for gaining evaluative participation from company staff. However, the bulk of the material for case-study evaluation will be based on longitudinal observation. This requires the researcher to be in contact with the case-study companies on a regular basis, observing and recording events related to the introduction of AMT as they develop. The key to this method of data gathering is less dependant on the tools required to record information, and more reliant on access to various key personnel and levels within companies undertaking AMT adoption programmes.
3. COMPANY SELECTION
The criteria for potential longitudinal case-study companies were: The company must be small (<200 people) The company must be (or soon to be) engaging in some form of AMT investment The company must be open to investigation regarding their AMT adoption programme The company must be likely to permit sustained contact with an external researcher over an extended period of time (one year or more) Discovering companies that match such specific criteria represents a difficult task. Therefore, it was necessary to utilise a mechanism that was likely to uncover such companies. The selected mechanism was the KTP scheme, as utilised by two of the companies that took part in the retrospective study. Utilising the KTP scheme provided two clear benefits: it was known from initial contact which companies were likely to be adopting a suitable technology; and, such companies were agreeing to long-term collaboration with the university. An agreed by-product of such collaboration was the production of academic outputs. It must also be acknowledged that using the KTP scheme introduces certain limitations. It is a pre-requisite of participation in the KTP that the company will receive external support. In addition, participating also marks a company as innovation interested, and therefore, it might be questionable as to how well such companies represent the wider manufacturing base in Wales. Such limitations in research that relies on access to companies through the use of the KTP scheme has been acknowledged by Dorrington (2005) in the MPhil thesis An evaluation of the commercial and operational impact of implementing advanced design-led technologies within manufacturing-based SMEs. Dorrington addressed this limitation through the use of a validating case-study candidate that had not participated in a KTP programme. The impacts measured by Dorringtons research (lead times, product quality and cost reduction) were found to be
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comparable across all the case-study companies, including the validating case-study. However, the discovery of a suitable validating company that would allow sufficient access for an intelligent analysis of experience with design technologies depended on strong links with Dorringtons university department. When taken in the context of a dual stage research programme, such limitations are outweighed by the benefits of discovering and monitoring companies over the constrained period of the research study. The first stage of research examined a wider field of companies; the purpose of the second stage is to examine the discovered issues in more detail. In this objective, it is important to note that case-study is not the most suitable form of enquiry for generalisable results or for discovering generic issues. Rather, the results will inform the development of tools or recommendations for companies to consider in their AMT adoption and development programmes. It would probably be wise to then study further the results of this research in wider survey research programmes. However, this wider research is outside the scope of this particular PhD research study.
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STAGE TWO CASE-STUDY K
CHAPTER EIGHT:

1. INTRODUCTION
Company K is a boat building company that has been in operation for over 40 years. The Company produces 37 and 45 foot luxury motor yachts, employs 60 people and has an annual turnover of approximately 2.5 million. These luxury boats are built to the bespoke specifications of customers and sell for between 500000 an 1m each. The high level craftsmanship aesthetic using natural materials, as opposed to the new materials used by many of the Companys competitors, provides a unique selling point for the boats. In the summer of 2005, the Company approached PDR to explore the possibility of a KTP programme to improve design and production efficiency. The owner/managing director (MD) of the Company explained that he wished to grow his Company further, the main aim being to increase the Companys product throughput. At the time of the meeting, the Company had a throughput of 3.5 4 boats per year. Growth to this level had been achieved through increasing production worker numbers; however, the Company was now at capacity with no room to take on further numbers of staff. The Company hoped that by working with the university a plan could be developed for increasing throughput through a combination of efficiencies and technology use in design, design to manufacture and production operations. The timeline for observation of this case-study is presented in Appendix B, prior to the presentation of the management map capture documents generated for each of the longitudinal studies.
2. AMT IMPLEMENTATION
A plan for developing change within the Company was created in partnership between the MD and PDR. The plan was based on the development of an in-house design resource for the concept generation, specification and visualisation of potential purchases. In addition, new design procedures to speed up the development of each boat would be created. The plan acknowledged the importance of the retention of the Companys values whilst allowing the Company to take advantage of new design technologies and methodologies. The purpose of such new procedures was to accelerate their existing process from client specification to final production. It was perceived that this would involve implementing an advanced 3D CAD system which would enable the Company to:
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Transfer 2D yacht drawings across into 3D CAD as required Communicate effectively with the Naval Architect using a compatible interface Conduct a knowledge capture exercise regarding the design of new boats Provide full specification to clients of their required design Produce photo-realistic visuals and 3D virtual models to include the interior cabin layouts to allow client walkthroughs
Improve the overall image of the Company
It was intended that the installation of 3D CAD would provide an opportunity for the Company to introduce design led development and manufacture. Design activities can operate concurrently to CAD development improving the efficiency of development projects. Such efficiencies can be developed through a number of factors. Concept development in a 3D environment facilitates communication of design possibilities to clients through the use of high quality realistic visuals and interactive industrial animations. CAD driven communication at this early stage of development can have a positive impact on lead times as approved concepts often require less processing to enter detail design and manufacture. In addition, the potential for the development of a library of CAD components can allow a Company to present design possibilities to prospective clients in real-time. This aids the potential customer in realising the design options available. Further, communication with clients and potential customers in the CAD environment brings the initial stages of development closer to downstream processing; in addition to the inherent efficiencies that such CAD use presents, this style of development opens up the possibilities for intelligent manufacture through technologies such as CAM and MRP II links and improved communication with external design engineers and other subcontractors. At the start of the programme, the Associate undertook an investigation into the development operations of the Company (see figure 8.1). The purpose of this exercise was to gain a better insight into the working practices of the Company. It was felt that this information would be important in setting up the most appropriate procedures for the Company; understanding whom such new procedures would have greatest impact on; and, whose influence and support would be required for such implementation to be successful. This schematic of the Company identified various business functions, their interaction, and the personnel responsible for these areas.
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Fig. 8.1 Development activities within Company K.
The investigation into the interactions within the Company indicated that for each new boat a customer specification was developed and used to inform purchasing (materials and components)
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and the build plan; 3D CAD was developed to produce output for CNC processing for sheet parts (mainly furniture) and sub-contract manufactured parts; and, 2D drawings were issued to the workshop for below deck systems installation and cabin fit out. These procedures used various systems, including 3D CAD, 2D CAD and paper based systems to identify all component and material requirements from the two different CAD systems. It was agreed that integrating these systems would provide improved efficiencies at this front-end of development work. High-end 3D CAD programs often include part management systems to automatically produce bills of materials. This was identified as likely to produce a great time saving to the Company, as not only could required part reports be generated without manual interrogation of drawings, but purchasing could be planned in line with the current stage of development, reducing individual order costs and making better use of the Companys limited storage facilities. In order to develop such systems and procedures, a number of tasks were identified: Source a CAD system or systems that could meet the client facing requirements identified and provide active component management Assess the accuracy of existing 2D drawings Update drawings and re-model in a 3D environment Model the 1000+ third party components Transfer old 3D models to the new system Encourage other operators to use the new system when specifying new components Develop a virtual library linking supplier information to component models Develop new reporting procedures to instigate procurement Encourage and train non-technical staff to use the new procedures
In order to source the most appropriate software solution for their needs the Company developed a specification document that described in detail what the Company hoped to achieve through any new technological investment. This was distributed to a number of vendors who were then invited to present software solutions to the Company. As a result of this exercise, one vendor stood out as having a solution very much in line with the Companys needs and future aspirations in terms of CAM communication to multi-axis machining. Although this was the Companys preferred solution, the cost of the system was a barrier to investment (two seats of the software was initially priced at 17000). Through negotiation with the vendor a significant reduction in cost was achieved, bringing the cost of two seats of the software to 8000; this discounted price was reliant on the Company agreeing to act
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as a reference site for the vendor. Given that the Company was able to access 3600 of Government funding for purchasing technology, this new price was now affordable. The installed CAD solution was supplied with a comprehensive support package of on-site training and a telephone helpline to aid in overcoming unforeseen problems. In addition, due to the way the procurement exercise had been executed, the vendors had a good knowledge of the aims of the Company regarding their technological investment. The advice of the vendors was that the first task should be modelling of components and development of the library of parts. Although this time consuming task would bring little immediate commercial reward, this was seen to be the best way to develop the strategy towards the future aims of the Company. The argument presented by the vendors was that this would allow the procurement and planning aspects of the strategy to be ready for future boat builds. The view of the MD was that following implementation and the significant investment made, the technology should have an impact on current production as soon as possible. Therefore the MDs preferred plan was to defer creation of the component library and start to transfer and update the below-deck systems. The MD believed that it should be possible for the CAD operators to model components and create assembly models of the boat systems already installed in the current boat build and to then get ahead of production. This would ensure that further installation could be informed by the new CAD output. According to the MD, this would lead to a reduction in the lead-time on the current boat build, as a significant number of the boats installed systems would be supported by drawings with increased accuracy and improved detail. In practice the MDs plan did not reap the anticipated rewards. On investigating practices in the workshop and comparing against existing drawings, the Associate discovered numerous discrepancies. This significantly impacted on the time required to transfer 2D drawings into the 3D environment, as modelling and assembly setup was reliant on the gathering of physical measurements from production. This presented a difficulty in getting ahead of production as the MD had desired, because the drawings had been shown not to present an accurate enough representation of the actual build. Further difficulties occurred as boat system production was found not to be linear. The MDs plan for system installation saw each successive system being installed on completion of the previous system. In practice this did not happen, systems were installed concurrently to avoid fitting problems. Despite these barriers being communicated to the MD, the MD remained insistent that system drawings must be created for workshop use before addressing the design strategy for the next boat build. The MD argued that as components were being modelled for the existing boat systems, then those components would be available for the development of the next
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build and would form the foundation for the development of a parts library in line with the original strategy. Accurate assembly models and drawing outputs of the boat systems materialised at approximately the same time as the as the installations of such systems were completed, some six months after initial installation of the new CAD facility. Therefore, no positive impact in terms of lead-times for production was achieved. During this time the MD had worked independently on the design of the systems for the next boat-build, and had made significant changes to the layout. As a result of these changes, the assemblies created over the previous six months had little value except in the potential for re-use of the modelled component parts.
3. ANALYSIS OF MANAGEMENT ASSESSMENT RESPONSES

The KTP Associate and KTP supervisor involved in this case-study both completed a Management Assessment questionnaire. The questionnaire aimed to investigate management competencies in the areas of knowledge, resources, quality and innovation. The answers provided by the respondents were used to generate management maps (figures 8.2 and 8.3).
Case K Management Map KTP associate perspective

Knowledge 100
Innovation & Change
Resources
Quality
Fig. 8.2. Management Map generated from Associate response
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Case K Management Map KTP Supervisor perspective
Knowledge 100
Innovation & Change
Resources
Quality
Fig. 8.3. Management Map generated from supervisor perspective
The 15 case-study companies analysed in the development of management maps by Millward et al. (2006) were categorised into high impact, medium impact and low impact groups. The mean areas of the maps for each of these groups were: High Impact 1.26 Medium Impact 0.41 Low Impact 0.26
In Case-study K, the areas of the management maps as evaluated by the KTP supervisor and Associate were: Supervisor: 0.23 Associate: 0.21
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Using the impact groups above, the management maps describe Company K as a low impact company. According to Millward et al., the low impact companies were characterised by owner managers that stifled use of structured NPD processes and undermined effective manufacturing.
3.1
MANAGEMENT KNOWLEDGE
The management assessment document enquired about management knowledge in four areas: market and competitors; IPR; experience of technology implementation; and, strategic vision. In the areas of market and competitors, it was observed that the Company actively markets itself through exhibiting at one of the industrys top annual exhibitions. This marketing strategy has served the Company well and provided sales in line with the Companys capacity. The Company is aware of their main competitors and has shown some evidence of in-depth knowledge of competitor activity. Within the remits of the knowledge assessment, knowledge of market and competitors is where the Company performs best. However, this performance is based on the personal knowledge of the MD rather than strategic market research and systematic competitor analysis. The Companys main interaction with IPR is through production of a hull design licensed from an external naval architect. The Company generates very little of its own IPR. During the period of casestudy observation, the Companys only structured attempt to protect their developments was through written agreements with sub-contract manufacturers regarding the ownership of component design. However, such efforts were not developed with professional legal advice and so design ownership between the Company and sub-contact manufacturers remains ambiguous. 3D CAD was installed at the Company in 2003. In evaluating the success of this AMT implementation, the Associate gave a score of four (out of five). The reason for this score was that the Company had used to the CAD to achieve much of what they intended. That is, for planning installations and the development of interior furniture. The supervisor gave a score of three. This was due to his opinion that although there had been successful use of 3D CAD, the Company had failed to utilise the capabilities of the system to its full potential. Although 3D CAD was being used, it had not been developed as the standard platform from which development potentials were interrogated. In addition, much of the below deck fitting plans remained in 2D format. At the beginning of the programme, this reliance on 2D plans and the lack of integration of 3D CAD throughout the development process was attributed to a lack of resources to undertake the necessary developments. This was, in part, the reason for undertaking the KTP programme. That is, to investigate and introduce new development processes and systems. However, throughout the programme the actions of the MD indicated that he wished the additional resource provided by the KTP to concentrate primarily on the further
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development of 2D output, despite agreeing to the benefits of further developing the use of a 3D environment and new integrated development and procurement systems. Any strategic vision for the future development of the Company resides with the MD. Discussions with the MD during the longitudinal observation indicated a belief in continued development of the quality of his products. This quality is manifested in the use of high quality natural materials crafted and installed by highly capable tradesmen. However, this vision is not formally communicated to others within the Company. Discussions with personnel at various levels within the Company indicated a culture of working within an autocratic regime, where staff made efforts to meet the individual requirements of current work rather than towards a higher, common goal.
3.2
COMPANY RESOURCES
Company K has not invested resources in developing accredited procedures; however, as indicated by figure 8.1 above, the Company operates to its own set of development and manufacturing procedures. Using these procedures, the Company has continually operated profitably and maintained high quality standards. However, the MD has communicated that he wishes to grow the Company further. The current procedures were set-up for operating labour intensive, craft-based manufacture. Once at capacity with this strategy, the Company were able to introduce further efficiency through the installation of more sophisticated CAD. This strategy together with 3D CAD allowed further growth through the introduction of a new product variant. However, with the new product in production, the Company soon reached capacity again. With no room for further expansion of the labour force, any further growth would need to be accommodated through re-development of Company procedures. It was this necessity that prompted involvement in the KTP programme. Although receptive to the development of new procedures that would more completely embrace AMT adoption at the outset of the programme, it soon became apparent that managing change within the Company would be a difficult task. Observation of the Company did not provide an impression of a culture that is receptive to staff development through further training; especially, training that takes place off-site during working hours. The Associate was required to attend a number of off-site training modules as part of the KTP programme. Each of these required a week away from the Company. In meetings the MD expressed concern at the amount of time spent on such training, indicating that these represented un-productive periods in the programme. In addition, the Associate observed suspicion from Company colleagues following such time away. It was common for colleagues to refer to such training time as time off or holidays, demonstrating that such practice was unusual within the Company.
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As indicated above, at the time of observation, the Company was profitable; however, the MD indicated that the recent introduction of a new product had impacted on the manufacturing efficiency of the Company, resulting in a reduction in profitability. The fact that the Company remained profitable, together with a willingness to re-invest in product development and the strategic use of government grant aid, resulted in both the supervisor and Associate rating the Company highly in terms of financial resources. The production of products within the Company usually requires the use of paid overtime. This indicated to the KTP supervisor that there were inadequate labour resources within the Company to produce products on-time. However, the Associate offered an alternative observation that the use of overtime was in response to late design changes. Experience within the Company indicated that customers were allowed to instigate design changes at virtually any point in the development process. This continued customer interaction was seen as a selling point of the Company, that is, the Company would be continually responsive to the desires of the customer in developing a bespoke product. Following such customer instigated changes, any additional costs in terms of new materials or components would be added to the development bill; however, the Company were seen to be reluctant to change the agreed delivery dates despite the impact such changes may have on the manufacture time. During the time of the observation, this design change impact on the delivery schedule was seen to impact on the profitability of the Company. In addition, this overrunning of the production schedule impacted the start date of a subsequent boat, increasing the pressure on the Company to speed up development and use additional expensive labour overtime. In terms of resources available to meet the Companys growth expectations, the Associate believed that there is a readily available labour pool that the Company can draw on. However, the supervisors opinion differed, believing that although the unskilled and semi-skilled labour that forms the bulk of the Companys employment is readily available, the skilled positions required for effective development of the Company are more difficult to access. As the KTP partnership developed, the supervisor became increasingly of the opinion that access to skilled expertise in terms of CAD usage was an important aspect in the MDs decision to undertake the programme. That is, following an unsuccessful recruitment exercise to employ a CAD technician, the MD decided to undertake the KTP programme, as the University would play an active part in selecting an Associate that would develop the Companys CAD usage. Once in place, the MD seemed more concerned that the Associate should play an active role in developing CAD drawings (thereby providing an additional labour resource) than in the strategic development of design within the Company.
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3.3
QUALITY PROCEDURES
The Companys approach to quality procedures is based on regular meetings between the MD and company managers. These meetings focus on day-to-day management of sections and progress towards completion of current production requirements. It is at these meetings that production requirements are explained, informing the Companys administration officers of which production specifications to refer to in order to plan procurement. The MD viewed this process as an example of the team ethos within the Company, and an example of good practice for stimulating interdepartment communication. Although such contact does represent regular cross-company communication, the scope of the meetings was limited. The meetings did not focus on Company development nor represent a forum for communicating or stimulating innovative ideas.
3.4
INNOVATION AND CHANGE
The profile of innovation indicated by the management assessment responses demonstrate that all innovative developments are instigated by the MD. Although the Company utilises a range of design technologies, there is no structured R&D department or NPD process within the Company. One of the aims of the KTP programme was to develop such a function; however, in operation, the MD was reluctant to let such development proceed. The MD loaded the Associate with individual design tasks, which effectively prevented the investigation of strategic process development. The reasons for presenting such barriers to the development of new processes is difficult to determine; however, it is probably important to note that the Company had developed successfully to its current position on the basis of developments to customer needs as perceived by the MD. Therefore, it is easy to imagine a reluctance to change from a formula that has brought the Company such success. Conversely, it is equally important to note that further growth for the Company was proving difficult due to capacity limitations, and therefore further growth was dependant on strategic change. Despite such barriers to further innovative developments, the Associate believed that the Company developed products more frequently than direct competitors.
4. ANALYSIS FROM PREVIOUS RESULTS

This case-study enhances the knowledge gained from the retrospective cases, in that further analysis can be made regarding the impact of support mechanisms, consideration of previous experience and the inherent and integrated benefits of the installed technology. In addition, insight is gained into the impact of influential individuals and management style on the success of technology adoption.
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4.1
SUPPORT MECHANISMS
The results of the retrospective stage indicated that companies placed high importance on the availability of vendor and other support mechanisms. The same high importance can be seen from the longitudinal case-study, in that the Company used university support and government funding to aid selection, purchase and implementation of the CAD system. In addition, in negotiations with the vendor, the Company was keen to establish telephone support and training for relevant members of staff. Although this research concurs with previous results regarding the perceived importance of support, it is more difficult to establish the influence of such support on the impact of technology adoption within the Company. The support sought and obtained by the Company can be placed in two categories, namely, financial and expertise. Financial support contributed to the purchase of CAD and expertise (60% of the costs of the KTP programme are paid for by the UK government). The expertise support identified the most suitable technology based on communicated aspirations; helped to negotiate a lower cost for the purchased technology; and, provided a labour resource to implement the CAD. The Associate investigated production requirements; developed CAD models and assemblies; and, updated production drawings. Table 8.1 demonstrates the financial contributions towards the technology adoption programme.
Investment Body
Sum of Investment 25000 Including 4400 towards CAD 33000
Company investment in technology and expertise Government support towards technology and knowledge transfer
Table 8.1. Investment in technology adoption and support
The CAD installed during the case-study period did not represent the Companys first experience with 3D CAD. A less sophisticated 3D CAD system had been previously installed in the company. However, the previous CAD system did not have data management systems or photo-realistic rendering and animation. In addition, the previous CAD had limited options for expandability. Despite having had 3D CAD for a number of years, it was the support mechanisms that provided the investigation into manufacturing requirements and facilitated updating systems to make better use of CAD.
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4.2
CONSIDERATION OF PREVIOUS EXPERIENCE
Another finding from the retrospective cases was that companies should consider both their levels and areas of experience in technology adoption. Such consideration is demonstrated as important in Case-study K through the decision to upgrade to a high-end 3D CAD system. Such development could be viewed as a natural next step in developing technological competence and was in line with the Companys aspirations to increase throughput via increased efficiencies. The Associate and Companys own CAD operator initially adapted to the new system with little problems. However, as production requirements became more pressing, the Companys operator slipped back into using the old system due to time constraints preventing the transfer of files to the new system. The Design Manager did not develop strategies for finding time to transfer components and assemblies to the new system. This lack of transfer had serious implications for one of the major aims of the technology implementation. That is, the transfer was vital in making use of the new data management systems, converging the information required for efficient procurement with boat development and build strategies. The Associate, not having access to the previously installed CAD system continued to develop models in the newly implemented system. This meant that as components were being modelled, supporting information could be added and reports for the development of procurement efficiencies could be created. However, there was significant resistance to change from the Companys administration officers. Although an investigation into purchasing requirements had been undertaken and much effort exerted in inputting such information into the CAD data management system, the purchasing officers failed to evaluate, further develop or use the system. The purchase of the technology and support had been undertaken without consultation with non-technical staff. In addition, throughout the programme, management did not develop mechanisms to encourage administration officers to engage with the new technology and strategies. This lack of encouragement and communication may have influenced the Design Managers lack of concern that the new system was not being taken up by the Companys own CAD operator.
4.3
CONSIDERATION OF INTEGRATED AND INHERENT BENEFITS
The retrospective investigation indicated that small companies often find technology implementation easier when the output of the new technology has limited impact on further processing or other systems. The new CAD system introduced within Company K had a number of both integrated and inherent benefits. Inherent benefits included efficiencies in modelling (e.g. automated pipework and routing), abilities in presentation output and customisable assembly drawing outputs. The Associate developed these aspects of the CAD with little resistance from company personnel. The modelling
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efficiencies were used to produce new assemblies following an investigation into build procedures in the workshop; presentation abilities were used to communicate ideas to clients; and, new assembly drawings were issued to the workshop (to positive responses in an internal review). The potential integrated benefits of the system are described above in the integration of supplier information to CAD models for use in purchasing strategies. Developing these integrated benefits for the technology proved to be very difficult. It can be argued that these integrated benefits were where the Company had the potential to make the greatest gains in terms of efficiency. The barriers to the development of such integrated benefits centred on the resistance of non-technical staff to engagement with the system. This was compounded by a lack of encouragement from the MD in terms of communicating the personal advantages that such a system could bring to administration officers. Such personal advantages could have included reductions in workload and stress.
4.4
MANAGERIAL IMPACT
In developing a plan for the improvement of the Companys design function and design communication to manufacturing at the start of the project, the Company indicated a desire to develop the following benefits: Reduce design cycle time Improve design output Improve customer understanding of design potential More efficient boat layout (for below deck systems) Interrogation of fit and design change impact in a virtual environment Improved data to manufacturing operations Development of a component library Efficiency in procurement and storage Increased product throughput
The Company developed a specification for the selection of a CAD system that could allow the development of each of these aims. Through this process a system was chosen and two seats installed at the Company. The support offered by the vendors of the system indicated that to achieve the aims stated, the best starting point would be the development of the component library. This would in future facilitate the use of the system to plan the next complete boat build, and through revisions, meet the aims of: more efficient boat build; interrogation of fit; and, improved data to manufacture.
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The MD disagreed with the presented strategy, being concerned that the system should be used as soon as possible to produce output for use in manufacture. It is not insignificant that at the time of installation of the 3D CAD, current boat production was running behind schedule and the Company was likely to incur significant penalties and make a loss on the boat due to late delivery. This might explain the MDs reluctance to allocate resources to the development of future efficiencies and to concentrate all efforts on rectifying the current production problems. The MD had viewed the physical fit-out of boat systems as a series of sequential actions, installed system by system. In investigating the requirements for producing 3D CAD of the boat systems, the Associate discovered that in fact much of the system development is necessarily concurrent. This is because certain aspects of systems scheduled for later installation become impossible to fit around previously installed systems. Therefore, it became apparent that it was impossible to get ahead of production in a boat that had already been started. In addition, the Associate discovered a number of discrepancies between the design office drawings of boat systems and the manner in which systems were actually fitted. As a result much time had to be spent reconciling manufacturing and design office opinions of how the systems should be implemented. Over a period of six months, the Associate developed models and drawing output of all of the below deck systems, roughly completing the systems in line with production. The Company recognised that an accurate record of the boat systems had been developed, providing much more detailed and useful information for production than they had ever had before. However, at this stage it became apparent that the effort would be of little use in future production, as during development of the systems, the MD had updated the design for future boats, so that the systems information was no longer relevant. This level of managerial autonomy may be attributed to a lack of technological knowledge at managerial level. The MD did not appreciate the volume of work involved in developing large, complex assemblies from component models. Whilst few components were updated, had the MD fully understood the strategy, he might have encouraged an investigation into the proposed changes in boat system assembly. This would have aided the Company in achieving another of their strategic aims in interrogating proposed builds in a virtual environment prior to investing workshop time.
5. CASE CONCLUSIONS
Case-study Company K indicated a perceived importance of previous experience and accessibility of support mechanisms. It was also shown that developing integrated benefits in AMT adoption is more difficult than the development of a technologys inherent capabilities. These findings concur with the results of the retrospective research stage.
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Much of the literature on AMT indicates that most companies that invest in technology will eventually make use of the capabilities, even if not in the planned way or in the planned timescales. Therefore, in the fullness of time it may be that Company K will make good use of their investment and start to see some of the planned benefits. On revisiting the issue of post-rationalisation, in time the Company may derive either some of the planned benefits or some other benefits, and label the implementation a success. However, from the point of view of this research, this implementation can be seen as unsuccessful, as approximately eighteen months after the Companys first exploration into the adoption of new technology, and an investment in the order of 25000, the Company had limited useful output. The investigation into the boat system development undertaken by the CAD operator did produce useful information that could potentially improve future manufacturing. However, the actual drawings produced will only be useful as a proven template for future output. In addition, this output did not represent a significant step change in the capabilities of the old CAD system to the new CAD and could have been produced without further technology investment had such investigations been undertaken previously.
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STAGE TWO CASE-STUDY L
CHAPTER NINE:

1. INTRODUCTION
This case-study documents the implementation and development of an automated packaging solution in a medical products manufacturing Company (Case-study Company L). The Company employs around 150 people and has an annual turnover of around 15m. The Company has been operating since 1966 and has developed, in-house, several successful product ranges; however, the bulk of the Companys revenue is generated from a single mature product range. Until 2006, Company L operated under a single owner-manager. Upon the retirement of the ownermanager, the Company was subject to a management buy-out which established a new board of directors. Product development is an important function within the Company, as the Company does not undertake contract manufacture. There is one identifiable leading product range manufactured by the Company; iterative further development of this range has been ongoing throughout the Companys history. In 2005, the Company embarked on a dual KTP programme with PDR. This dual KTP used two associates to explore separate but related aspects for the introduction of NPD procedures within the Companys R&D department. KTP Associate 1 examined concept selection and portfolio management procedures within a particular product range. KTP Associate 2 examined the likely impact of new legislation on the Companys primary range. Throughout the programme, both associates were involved in the development of new products. The introduction of new manufacturing technology that is the focus of this chapter was not directly related to the KTP programme. However, involvement in the KTP provided the author with access to the staff involved in the Companys AMT programme. This was due to the fact that the AMT installation was managed by the Companys R&D department, and the particular member of staff responsible for the specific technology considered was also the Companys industrial supervisor for Associate 1. As with Case K, the timeline for observation of this Case-Study L is presented in Appendix B, prior to the presentation of the management map capture documents.
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2. AMT IMPLEMENTATION
The Company has some experience with the implementation of AMT, having used 3D CAD for many years. This was installed initially as an add-on to 2D CAD, developing into full 3D CAD through revisions to the software released over time. In addition, the Company introduced CAM and HSM in 2005. A growing area for the business is in the production of products that assist in reducing harm to drug users. The main customers for these products are regional charities that distribute the products to users within their communities. Growth within this area is expanding due to both the targeting of new regions and the Company increasing its market share. The Company believes that the increase in market share is due to the better application of end-user needs in developing their relevant products. However, growth within this area has led to difficulties in producing to demand; therefore, the Company began examining potential technologies to assist production. The most labour intensive aspect of production was the packaging of the harm-reducing components into individual bags for users. Therefore, it was decided by the Company that automation in this area of production would bring the greatest rewards in terms of: Increased efficiency Reducing the labour component Increasing throughput (to meet expanding demand)
The technology was first considered in August 2006. The major metric leading to the aims stated above was the 57 minutes required to fill a carton with 50 packs of product. This time was based on two operatives per shift on a three shift pattern. During the months following August 2006, a potential eight technological solutions were examined. These technologies would require capital expenditure ranging from 22K to 46K and had the potential to increase maximum annual output to 4.3 million units. In August 2006, annual output was approximately 300K units per annum. In December 2006 a technological solution was installed on a trial basis. This particular technology consisted of automated packaging movement and sealing. Components were dropped into bags by production operatives as the bags passed by. The bags were transported between filling stations before being automatically sealed and dropped into a shipping carton. Operating procedures needed to be extensively changed in order to accommodate the machine. Previously, each production operative worked at individual stations, being responsible for keeping their station stocked with all the components to complete packs and fill cartons. With the technology installed, each operative sat at a station loading a smaller selection of components into passing bags (see figures 9.1 and 9.2).
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Fig. 9.1. Operating procedure for packing prior to automation
Fig. 9.2. Packing procedure during technology trial
In justifying the use of automation to production operators, the Engineering Manager (EM) pointed out that automation reduced the time to complete one full box of product from 57 minutes to 12 minutes. However, the Engineering Manager acknowledged that this was based on three operatives loading components. Therefore, the result was the equivalent of a reduction from 57 minutes to 36 minutes, a saving of 21 minutes per carton. It appears to the author that the time saving as a result of automation is in fact much greater than in the explanation offered above. The original 57 minutes per carton is based on two operators; therefore, in a shift of eight hours 8.4 cartons are filled. Utilising the automation, a shift of eight hours completes 40 cartons. Prior to automation, a single operator
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completed a box in 114 minutes; therefore, compared to the 36 minutes per carton per operator achievable via the automation, there is a potential time saving of 78 minutes per carton. The above benefits in terms of increased throughput and a reduced labour component were witnessed within the 4 week trial of a particular technology. However, despite obvious business benefits, production operators expressed dissatisfaction with the use of the machine. Of major concern to operators was a perceived negative impact on their traditional working practices. The main objections communicated via the supervising operator were concerned with pace, freedom of movement and working space. Prior to the introduction of the automation, each operator worked at their own pace; with the use of technology, pace was determined by the speed settings of the machine. In addition, traditionally operators were free to move around the factory space. With operators tied to the machine such freedom was limited. The supervisor explained that this impacted on operators ability to take necessary unscheduled breaks for lavatory use. However, the Engineering Manager responded that such breaks were possible when absolutely necessary as the machine could be paused. Obviously, such pauses would completely halt production, which would highlight the regularity of how often such breaks occurred. The Engineering Manager expressed a belief that of greater, but un-stated concern to production operators was the likely impact on what he termed cake-breaks. It appeared that a tradition had developed of operators bringing confectionary into the production area to be shared among colleagues. Consumption of such confectionary was not limited to scheduled breaks, but would rather be consumed on an ad hoc basis throughout the shift. A further concern for operators was the impact of the technology on their working space. Operators had customised their personal environments and complained that the introduction of automation removed their ability to control the height of their chairs and desks. In fact, the operating height of the machine could be adjusted; however, regular adjustment was not practical. Therefore, a working height had to be agreed between the operators of each shift. Interestingly, the supervisor that first brought up the need for some form of automation was now the main focus of resistance to change. This led the Engineering Manager to believe that the initial request was part of a political manoeuvre to justify being unable to meet expanding demand rather than a genuine request for technological assistance. Following the four week trial of the automation, technology adoption plans were dropped due to severe resistance to change from the factory floor. However, further increases in production requirements resulted in production operatives re-requesting such a technological solution in April 2007. Such volume increase had been predicted prior to the initial installation of the technology; however, production operatives had indicated that they did not believe that such increases would actually transpire. As a result, three more machines were scheduled to be trialled over the following months. The machines considered were more technologically advanced than the originally tested
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machine, and as a result also significantly more expensive. However, it was hoped that some of the features would help to overcome some of the resistance issues experienced with the first machine. Historically, this function within the Company has built for stock; however, a 40% growth rate in the first four months of 2007 required the operators to build to order. Between August 2006 and April 2007, the section has seen labour numbers grow from two staff per shift on a three shift pattern to thirteen people on a day-time shift only. The second and third shifts were dropped in order to remove additional shift overheads (more expensive labour and longer energy use). However, despite dropping shifts, the overall level of personnel involved in production more than doubled in order to keep up with demand. It is the opinion of the Engineering Manager that the production operatives experienced a cultureshock when automation was first introduced. However, the stress factor of such rapid increases in production requirements when demand increased from 500K packs per annum to 750K packs per annum may have encouraged operators to re-assess their aversion to technology. Despite the new call for automation from production operatives, there continued to be resistance in the form of complaints regarding trialled technologies. Production requirements continued to grow; but at a much slower rate. By July 2007 the day shift had increased to 14 operators and the Engineering Manager acknowledged that labour costs were starting to become uneconomical. Production costs suffered further negative impact as the Company had to sub-contact some of the work to meet demand. This initially resulted in quality issues. The Company continued to explore a technological solution to meet demand, planning to implement a fully automated solution by the end of 2007. This focus on full automation will increase the Companys investment costs in the order of 50K to 70K. However, it will also mean a reduction of operator numbers by at least six personnel. It is the view of the Engineering Manager that the operators missed their opportunity to embrace technology, as increases in demand make it inevitable that a technological solution be installed at some point. Due to the resistance generated by operators, that technology is now likely to directly replace many operators.
3. ANALYSIS OF MANAGEMENT ASSESSMENT RESPONSES

The R&D manager, the Engineering Manager and Associates 1 and 2 completed management assessment questionnaires for this case-study. The Engineering Manager had the most direct contact with the installation of the technology considered. As head of the R&D department, which is ultimately responsible for AMT implementation, the author believed the R&D managers viewpoints would also
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prove useful in developing an understanding of how management competencies impact AMT adoption. The Associates roles within the Company were to develop new practices for managing NPD. In developing such procedures they were exposed to the political and cultural barriers associated with change management. Therefore, their experiences are also useful in the analysis of impact of management competencies on technological change. As in Case-study K, responses to the management assessment questionnaire were used to produce management maps (figures 9.3, 9.4, 9.5 and 9.6).
Company L Management Map Engineering Manager perspective
Knowledge 100
Innovation & Change
Resources
Quality
Fig. 9.3. Management Map generated from Engineering Manager response
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Company L Management Map R&D Manager perspective

Knowledge 100
Innovation & Change
Resources
Quality
Fig. 9.4. Management Map generated from R&D manager response
Company L Management Map KTP associate1 perspective

Knowledge 100
Innovation & Change
Resources
Quality
Fig. 9.5. Management Map generated from Associate 1 response
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Knowledge 100
Innovation & Change
Resources
Quality
Fig. 9.6. Management Map generated from Associate 2 response
In Case-study L, the areas of the management maps as evaluated by the respondents were: Engineering Manager: 0.53 R&D Manager: 0.68 Associate 1: 0.95 Associate 2: 0.82
The areas defined by the management maps in three of the responses place Company L in the medium impact category. The responses from Associate 1 place the Company in the high impact category. According to Millward et al. (2006) medium impact companies often demonstrate aspirations for knowledge and innovation development; however, technology implementation in such companies tends to drive improvements in project resources and product quality. High impact companies are characterised by the initiation and maintenance of effective development processes to support the implementation of technology.
3.1
MANAGEMENT KNOWLEDGE
All of the respondents indicated that the Company is at least aware of their key competitors; however, the level of knowledge perceived varied between awareness, knowledge of various market shares or in-depth knowledge. Of the respondents, the Engineering Manager probably has the least direct
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contact with external sources, which may explain his more pessimistic view of the Companys market intelligence activities. In terms of IPR use, three of the respondents indicate that the Company uses some IPR for the protection of the Company. One respondent indicated slightly more sophisticated levels of IPR use. This respondent, Associate 1, is involved in an aspect of the business that has developed products in collaboration with an external third party. Therefore, Associate 1 has in-depth knowledge of the practicalities, including licensing agreements, between the parties. As indicated above, the Company has previous experience in technology implementation. On the whole, respondents appear to indicate that technology implementation has had medium success, rating previous implementations at three or four out of five. There does not appear to be a standard assessment mechanism leading to investment decisions. Respondents, who have been involved with different technology implementation programmes, vary the highest level of assessment techniques from vendor advice through to the use of sophisticated financial metrics. The responses indicate that the Company is ineffective in its communication of its strategic vision. Whilst all respondents agree that a coherent vision exists, they cannot agree on who has access to such a mission statement. Even the managers disagree on how often the vision is reviewed. The mean score for knowledge across the respondents is 58. It is interesting to note that the Associates score the Company much higher than the R&D manager and the Engineering Manager who are both long-term members of staff. This may be indicative of the Associates scoring the Company based on their experiences in developing new knowledge rather than on historical events.
3.2
COMPANY RESOURCES
Of the four factors investigated, Resources received the lowest score from all respondents. This may initially seem surprising given that the Company is relatively wealthy for its size. However, the resources investigated were concerned not only with financial aspects, but also project planning, developed support infrastructure and staff expertise. The results indicate that the Company is quite adept in its project planning, especially in terms of meeting production and delivery requirements. Whilst not all the respondents acknowledge analysis of delivery conformance, they all estimated that between 75% and 90% of orders are delivered on time. The respondents acknowledged that the Company provides training for its personnel. The Engineering Manager only acknowledged the training available to production operators; however, the other respondents indicated that training is available to all members of staff. Such universal access to
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training has been apparent during the observations leading to this case-study. As part of the KTP programme, the Associates were required to undertake several training modules; however, the Company was responsive to additional training requests, especially where benefit for the department could also be achieved. In addition, during the time of the KTP involvement, the R&D manager was pursuing an MSc in Rapid Product Development. This required the Company to release the R&D manager from his role for one afternoon each week to attend lectures. The cost of this study was also borne by the Company. The Engineering Manager has indicated that there is a requirement for overtime in meeting delivery targets. Increasing efficiencies in production through the reduction of reliance on overtime and expensive shift patterns is a major driving force in the exploration of technology adoption. In terms of the observed technology adoption plans, as demand increases the impact of the labour component is having an increasingly negative impact of the economics of the product. Although the respondents perceive that on-time delivery is achieved in more than 75% of cases, the R&D manager also indicated that inadequate labour resources has a negative impact on timely product delivery. Within resources, the Company scores adequately in most of the investigated areas, especially in terms of finance and access to Company expertise. Where the Company is let down in terms of the overall score for the resources section appears to be in their analysis of performance; communication mechanisms; and, in the effectiveness of production staff.
3.3
QUALITY PROCEDURES
In terms of quality, the Engineering Manager and the R&D manager paint similar pictures of the Companys competencies. The Company is ISO accredited, works to written procedures, employs a quality manager and uses formal communication channels through inter-departmental meetings. They use suppliers as a source of knowledge but have not engaged in active supplier partnerships nor do they use external contacts for marketing or development activity. One area where the views of the R&D manager differed from the Engineering manager was in accessibility to formal training, with the R&D manager indicating that such training was only really available to key members of staff. The Associates concurred with the views of the Managers in most areas related to quality. However, one shared viewpoint among the Associates that differed from the Managers was in the level of external contact for marketing and development activities. In this area the Associates give the Company the highest available score. During the KTP programme, the Associates projects had suffered difficulties due to the Companys limited ability to provide useful market information. Therefore, this scoring was surprising to the author. However, part of the remit of the Associates was
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to further develop such data gathering activities. Given that the data capture exercise took place late in the programmes time-scale, it may be that the high score relates to the improvements that the Associates have seen in this area due to the mechanisms that they have developed. The mean score for quality across all of the responses is 74, which is the highest score achieved from the four factors of management competency investigated.
3.4
INNOVATION AND CHANGE
The Engineering Manager indicates that product development within the Company acts only to update existing products. There is support for this viewpoint in that the Company has operated for many years on the success of a few mature product ranges. However, the R&D manager and the Associates see a wider role for product development, indicating that such developments take place either for the establishment of market leading products or developments in response to customer needs. Of course, each of these views could be equally correct, with the success of iterations of an existing product being dependent on accurately meeting needs and as a result becoming the leading product. However, alternatively, given the investment that the Company is making in its R&D activities through the use of the KTP programme, the R&D manager and Associates may be referring to the future potential of product development; whereas the Engineering Manager may be scoring the Company on the basis of past performance. The Company has an established, dedicated R&D department with seven staff. However, the R&D manager has indicated that the role of R&D within the Company has changed to a significant degree following the departure of the owner-manger. Although the R&D manager has been in his position for ten years, he has stated that hes only really been managing R&D for the last two years. Prior to the changes facilitated by the change in directorship, he states that he would not have recognised the distinction. In the prior management regime the R&D manager was responsible for the day-to-day management of the department rather than the strategic management of the Companys development activities. The distinction is seen in that following the establishment of a new board of directors; the R&D department has been transformed into a more autonomous function. This has required the R&D manager to develop mechanisms to make justified development recommendations to the board. The R&D manager has indicated that the combination of MSc study and the use of the KTP programme have been instrumental in the departments development of the sophisticated NPD processes necessary for operation in the new environment. Despite the changes that have taken place within the R&D department, all of the respondents indicate that there is a high level of resistance to change within the organisation. For the Associates, the main
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focus of such resistance to change has been in developing better links with other departments in order to inform product development decision making. Such resistance to change has been seen mainly at a managerial level. In addition to such resistance at a managerial level, the case-study above indicates severe resistance to change at a production operator level.
4. ANALYSIS FROM PREVIOUS RESULTS

In this section the results of the retrospective stage of research are used to assist in the evaluation of Case-study Company L. In addition, such consideration of earlier findings will help to determine if there is additional support for the previous results as a consequence of this case-study.
4.1
SUPPORT MECHANISMS
The importance of support mechanisms was indicated by the Engineering Manager through the use of suppliers advice in selecting and testing potential technological solutions. In addition, the Engineering Manager stated that levels of support would be an important factor in the final selection of a vendor of technology. However, due to the stop-start nature of the observed attempts to install a technological solution, satisfaction with available support and impact due to vendor support cannot be determined. A further indicator of the importance of support mechanisms to the Company may be derived through the use of the KTP scheme to attempt to develop more sophisticated NPD practices within the R&D department. However, it has been indicated by the R&D manager that the initial decision to undertake the KTP programme was more connected to the availability of subsidised labour (the KTP Associates) than for the development of change. Early on in the KTP programme significant changes to the Companys management structure started to emerge as a result of the owner-managers announcement of his decision to retire. According to the R&D manager, this impacted on the KTP programme in a number of ways. The changes at top management level distracted attention from the R&D department, allowing the department an unprecedented autonomy in operation. This allowed the KTP to operate for a time with little management intervention and so allowed the Associates to attempt to develop NPD processes in line with the objectives set in the KTP documentation. The R&D manager believes that had such changes at a higher level not been in place, that there would have been increased pressure for tangible output from the KTP Associates above research into new ways of working. Later in the programme, the new management regime re-focussed attention on the R&D department and indicated concern at the lack of tangible output. At this point it became evident that the R&D department was unused and unprepared for autonomous direction. However, the new management regime was not structured to provide the autocratic direction of the previous ownermanager. These changes worked in the favour of the aims of the KTP programme, for it forced the
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department to implement the decision making criteria identified as part of a best-practice NPD process. Therefore, the level of support accessed by the Company may not be indicative of the importance that a company places on such support.
4.2
CONSIDERATION OF PREVIOUS EXPERIENCE
As indicated above, the Company has some experience of technological installation. The 3D CAD and HSM installations are related to the Companys development processes, CAD being a core NPD tool and HSM being used primarily in the development of prototype tooling. The new technology being considered is in a separate part of the business and at the opposite end of production (being concerned with packaging prior to boxing and dispatch). However, there was little evidence of consideration of previous experience when selecting the new technology. The Engineering Manager, responsible for the new technology installation, was not involved in the previous installations, nor was he aware of any of the difficulties that the Company had to overcome to make effective use of other AMTs. In fact, in terms of the HSM, the R&D manager has indicated that the Company still does not exploit the technology to its fullest potential, or even for the anticipated benefits that originally justified the purchase of the HSM centre.
4.3
CONSIDERATION OF INTEGRATED AND INHERENT BENEFITS
The results of the retrospective stage and Case-study K indicate that inherent benefits are easier to achieve than integrated benefits. However, this case has demonstrated that resistance to change can have a very negative impact on technology adoption programmes even when such technology has limited impact in terms of production output. Perhaps this is indicative of a further issue for consideration in terms of the potential impact of technology on the operating practices of Company personnel. As explained in an earlier chapter, Companies E and J provided evidence for the positive relationship between expected AMT benefits and the inherent capabilities of a selected AMT. Company E installed pick and place automation and Company J installed a live-tool CNC lathe; it was shown that these technologies had no impact on downstream operations. Given that Company L had difficulty in achieving benefits from AMT despite the technology having limited impact on further operations; consideration is required of the factors influencing the different outputs in the three cases. Although the output of the technology in Case L was identical to the previous output; the production of the new output required significant labour interaction. Figure 9.7 demonstrates that within Company E the output from the AMT had no impact on Process 2 as the component output was identical to the previous components produced by Process 1. However,
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there was a potential impact, as the increased speed of production could have caused a bottleneck between the AMT output and Process 2. The potential for the bottleneck was avoided by increasing the labour input at Process 2, utilising the labour that previously operated Process 1.
Fig. 9.7. Labour increase at Process 2 to remove bottleneck
Similarly, in Company J the use of AMT had no negative impact on further production (see figure 9.8). The Labour from Process 1 was removed, and the output from the AMT had a positive impact on further production, further enhancing overall cycle times.
Fig. 9.8. Removal of Labour Input A due to AMT installation
A common factor in the new manufacturing routes in Companies E and J is the removal of labour from a process that is replaced by AMT. Within Company L the new AMT relied on the same production operatives using the new technology as had worked on the previous production process (see figure 9.9).
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Fig. 9.9. Same labour operates new AMT
The results of Case-study L indicate that although the utilisation of inherent benefits may be easier to achieve than integrated benefits due to decreased complication throughout manufacturing; there may still be challenges to be overcome. For Company L, a challenge presented itself in the workforces resistance to change. The resistance was so severe as to cause Company management to investigate a significantly more expensive technological solution that would remove the labour altogether.
4.4
MANAGERIAL IMPACT
The initial call for technological assistance in production came from the supervising production operator as a reaction to increasing demand for output. In response to this call, the Engineering Manager began to investigate technological solutions, and developed a specification document for technologies that would increase efficiency and improve product throughput. The specification considered purchase costs and potential increases in output. As a result of this exercise, contact was made with a potential equipment supplier, and a trial machine was installed at the Company. Operators (including the supervisor) resisted use of the new technology to such a degree that the technology adoption plans were abandoned. During the trial of the technology, it was explained to production workers that demand was set to continue to expand. In addition, some metrics were presented to communicate how the new technology assisted the Company in continuing to meet such demand. However, Company management appeared to make no effort to communicate personal benefits to production workers of engaging with the technology. With the technology adoption plans abandoned the response of management to increasing demand was to increase the numbers of operators engaged in production. This initially enabled the Company to meet demand; however it caused an increase in production costs. As demand increased further the Company resorted to using external sub-contractors to assist production. This further increased costs and also temporarily impacted on product quality. These factors encouraged the Company to re-visit planning for a
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technological solution. The stress associated with increasing demand also prompted the production operators to re-voice the requirement for technological assistance. However, due to the previous resistance issues, the Company was suspicious the operators would again not engage with technology. Therefore, unknown to current operators, management decided to investigate the installation of more sophisticated automation that would remove the requirement for much of the current relevant labour force.
5. CASE CONCLUSIONS
Case-study Company L did not provide any further evidence for the perception of the importance of previous experience in the technological installations; however, had previous experience been taken into account the Company may have attempted to develop mechanisms to encourage more support for the technological installation from the shop-floor. Given that the original call for technological assistance came from the shop-floor it is surprising that the same operators were the focus of the resistance to change. However, the Company made no attempt to develop the initial call for assistance into a champion for the chosen technology. Instead, management developed their technology implementation plans in isolation from production operators. This may be indicative of the historical culture within the Company, developed in response to the autocratic nature of the ownermanager. In justifying the technological solutions selected to production operatives, the Company focussed on business benefits above personal benefits for the operators. Further, it may not have helped the Companys case that the business benefits explained were under-estimated and that the Company appeared prepared to solve the demand problem in a manner that involved little change to operating procedures (i.e. adding additional labour). That this could not be a long-term solution, and that behind the scenes management were preparing to replace people with a further technological solution, was not communicated to employees. An acknowledged factor in the resistance to change was the impact that the technology had on the freedom of operators. Although it might seem humorous to envisage a production unit taking unscheduled cake-breaks, such behaviour may be indicative of a localised manufacturing culture that has been effective in establishing high-levels of control over their operating procedures. The lack of interaction with production personnel in terms of attempting to encourage support and communicating personal benefits seems at odds with managers assertion that the Company is willing to invest in personnel through access to training. Such training can be an effective mechanism for ensuring personal benefit in Company development plans. In fact, the Engineering Manager indicated that the main beneficiaries of training are production personnel. However, no distinction was made between external and internal training. This may be a key differential in deriving personal
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benefit from training, with external, formalised training being worth more. It is probably this second alternative that the R&D manager was referring to in stating that training is only really available to key members of staff. The training given to the R&D manager (Masters level product development) was seen to have a very significant impact on the development of operating procedures within R&D. This may indicate that the higher the level of staff given access to training, the greater the potential benefits to the Company. This is because training at Managerial level has the potential to impact on the working practices of many employees. In terms of separating inherent and integrated benefits for assessment of downstream impact, this Case-study adds a further level of complication to such considerations. Whilst the aim of the Company was only to derive efficiencies from inherent benefits, the technology relied on the same operating personnel. This indicates that it may only be easier to access the inherent benefits over integrated benefits where the old labour is removed from the new process. Such removal of the established labour provides the Company with easier access to the benefits of the technology as there is reduced likelihood of negative impacts due to resistance to change. Within the technology adoption programme, support was sought in terms of vendor advice. Looking at the Company in a wider context, support has been used through engagement with a KTP programme. However, by admission of the R&D manager, initially the KTP was only sought to provide support in terms of subsidised labour. Through using the KTP programme, the R&D manager came to acknowledge the potential benefits of external support due to improvements that he came to notice within his department. However, the R&D manager indicated that had it not been for a change of toplevel management, then the Company might not have engaged so fully with the KTP and would probably not have derived the benefits that they have achieved. The new board instigated a new focus on departmental efficiencies and looked to departments to make autonomous decisions or recommendations. Departments within the Company were unprepared for this change in management style, having previously operated under autocratic control based on the decisions made by the owner. Evident from this case-study, perhaps incidentally to the technology introduction actually examined, is that given the right circumstances it is possible to change managerial behaviour and reverse potentially negative managerial impact. In this case, these right circumstances have been the exit of an autocratic manager and the installation of a new board, providing an opportunity for the R&D department to embrace NPD best-practice mechanisms. However, mechanisms to improve autonomous decision making have not yet been implemented within the manufacturing sections of the business. Had the operations section of the business been through the same the development process as the R&D department, perhaps some of the resistance issues could have been overcome.
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The Company has recognised the potential of such support mechanisms and, at the time of writing, is beginning to consider how a KTP programme might assist in the further development of manufacturing operations.
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DISCUSSION
CHAPTER TEN:
DISCUSSION
1. INTRODUCTION
The case-studies within this research have provided a detailed insight into the AMT adoption programmes of twelve small Welsh companies. As the methodology presented in figure 3.1 demonstrates, the results of case-analysis have been presented at the end of stage one for the retrospective cases (chapter six), and within chapters eight and nine (the longitudinal case-studies) for stage two. This chapter collates the lessons learned from interaction, observation and analysis of the cases in both stages. Such review of the cases demonstrates the impact of AMT and answers the main research aim of identification of the critical factors for the selection and implementation of AMT in small companies. The two-stage research design undertaken acknowledged limitations in the retrospective stage in regard to difficulties in identifying respondent bias and post-rationalisation. Another purpose of the two-stage approach was to create a balance between a higher number of cases, but with limited depth, against a lower number of cases studied in significantly greater detail. At the end of the retrospective stage three recommendations were developed, advising small companies to consider: The inherent and integrated benefits of any proposed AMT The extent and nature of any previous experience with AMT The availability of mechanisms to support the development of AMT
The section below will examine how the longitudinal cases support, challenge or expand on the results of the retrospective stage.
2. CROSS CASE ANALYSIS

In Case K, support for each of the considerations revealed by the retrospective stage was demonstrated. The Company showed a perceived importance of consideration of previous experience and of the availability of support mechanisms. In addition, the case-study demonstrated that utilisation of the inherent benefits of AMT is easier to achieve than utilisation of integrated benefits. Further, the case revealed the potential impact of management style and knowledge on the level of achievable success from technology adoption.
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DISCUSSION
The Management Map below demonstrates the mean scores of the respondents to the Management Assessment Questionnaire for Case-Study K (Figure 10.1).
Combined Management Map - Case K
Knowledge
Innovation & Change
Resources
Quality
Associate
Supervisor
Mean
Fig. 10.1. Mean Management Map for Case-Study K
The map demonstrates, in terms of the mean responses, that the Company performs better in Quality and Resources and is weakest in Knowledge. The individual responses place a different order of importance. Both respondents placed Quality as the highest performing factor; however, the supervisor scored knowledge lower than innovation whereas the associate indicated that the Company performed worst in innovation and change. Given the difficulties that the Company experienced with their technology implementation programme, the Management Map demonstrates accuracy in indicating lower performance in terms of Knowledge and Innovation and Change. Within this particular case, management knowledge and the ability to instigate innovation and change are inextricably linked. The MD demonstrated a lack of knowledge of the details of the manufacturing processes and of the capabilities of the newly installed technology. This led to a negative impact on the Companys ability to exploit the full potential of the new investment. It can be argued that it is not the role of the MD to understand the fine points of every operation within the Company; however, the MD also demonstrated an unwillingness to take onboard the advice and guidance of the individuals more closely linked to operational procedures. Case-study L did not demonstrate a perceived importance of the consideration of previous experience in technology installation. However, that the observed technology implementation did not represent
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DISCUSSION
the first time that the Company had experienced difficulty in adopting AMT suggests that such consideration may have been useful, or could prove useful in the future. The Company did demonstrate a perceived importance of support mechanisms to assist in developing technology and processes. Within the realm of the observed technology implementation, support was gained from potential technology vendors. In addition, the Companys R&D department was engaged in a KTP programme. The positive development as a result of the KTP programme led to consideration for the development of an additional KTP programme to assist development in manufacturing operations. Observations of technology implementation did not lead to further support for the idea that inherent benefits from AMT are easier to achieve than integrated benefits, as the Company only wished to access inherent benefits, but still faced major challenges in making use of the technology. However, the case did prompt further analysis of the impact of AMT on particular process routes, highlighting the potential impact from labour that is forced to change their operating procedures. As with Case-Study K, a management map that represents the mean scores of the respondents was created for Case-Study L (see figure 10.2). The mean management map is quasi-symmetrical with scores for each of the axis being around the 50% mark. Quality and Innovation and Change are the strongest performing areas, with scores above the 50% mark.
Combined Management Map - Case L
Knowledge
Innovation & Change
Resources
Quality
Engineering Manager Associate 2
R&D Manager Mean
Associate 1
Fig. 10.2. Mean Management Map for Case-Study L
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DISCUSSION
Quality is the highest scoring factor with Innovation and Change next. It is interesting that Innovation and Change should be scored so highly when the AMT implementation programme observed suffered such difficulties. However, it is important to note that the Management Assessment Questionnaire is aimed at providing a picture of management within the Company at the time of AMT implementation, rather than an assessment of the management of the AMT programme. This distinction is particularly relevant in this case, as not all of the respondents were directly involved in the AMT programme. The scoring for Innovation and Change is more likely to be a reflection of the changes being undertaken in R&D, an area in which all of the respondents were involved. The measure for Quality displays the greatest variability in responses, ranging from 61% from the R&D manager to 94% from Associate 1. However, the responses from the Engineering Manager and Associate 2 were close to the score of the R&D manager, at 67% and 72% respectively. Similar overall levels of variability were recorded in the Knowledge measurement with the Engineering Manager scoring the Company at 41%; the R&D manager scoring 54%; Associate 2 scoring 67%; and, Associate 1 scoring 70%. This case highlights a limitation of the longitudinal research design. As this Company is slightly larger than Company K, access at director level was more sporadic; and questionnaires were completed at manager level within a single department (although one manager had cross-departmental responsibility with Manufacturing). Had there been respondents from other department heads or at director level, a better picture of the Companys perception of their own performance might have been gained. Validity for the use of Management Maps as a predictive tool for AMT adoption may have made a convincing argument had the Company with the greatest success in their observed AMT implementation demonstrated greater scores in the Management Assessment Questionnaire. However, figure 10.3 demonstrates that Company L performed much better in the Assessment Questionnaire than Company K. Paradoxically, Company K were able to achieve more benefit from their AMT implementation than Company L. Despite Case-Study K highlighting a number of limitations to the exploitation of technology, the Company was able to use the technology and make some improvements in production planning. The resistance to change experienced in Company L prevented the Company from drawing any benefit from technology, as implementation plans were abandoned. It is worth noting that the Company is planning a new technology implementation to negate rather than overcome such resistance problems. However, such technology implementation was not achieved during the observed period. It might be that the autocratic nature of the MD at Company K was a factor in making sure that some benefit was derived from the installed technology. This MD was insistent that certain tasks would be achieved. However, there is a balance required between a single160
DISCUSSION
minded determination to achieve set-goals and taking on-board external advice to maximise the return on efforts to develop technology use. Within Case L, the balance of power appeared to rest with production operators who were able to spoil technology implementation plans when they perceived an unpopular change to working practices.
Combined Case Study Management Map
Knowledge
Innovation & Change
Resources
Quality
Case K
Case L
Fig. 10.3. Mean Management Map for Case-Studies K and L
2.1
NEGATIVE MANAGERIAL AND LABOUR IMPACTS ON RETROSPECTIVE CASES
The section above presents new insights from the longitudinal cases into negative managerial and labour impacts on technology adoption; therefore, particular cases from the retrospective stage are reviewed to consider these issues. The data gathering and subsequent analysis of the retrospective cases highlights five cases where negative impacts were influenced either by managerial or labour factors. Negative managerial impacts were captured in Companies B, C and H. Negative labour impacts were captured in Companies A, B and F. Within Company A, the negative impact was on downstream processing, a manual labour activity. The nature of this negative impact was to change the operating procedure of manual workers to deal with more complex parts. Therefore, although in Case A the negative impact was on downstream operations, there are parallels to the issues in Case L due to the nature of the negative impact, that is, changes in operating procedures.
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DISCUSSION
In Case-Study B, the managing director reported resistance to the use of MRP II technologies, the implication being that this was because it was difficult for operators to see what the benefits of this system were. Although this might be seen as a negative impact due to labour reaction to technology, there is also a managerial influence on the negative impact. That is, Company management were unable to effectively review the qualitative benefits and transform these into quantifiable benefits for the Company. Company C observed resistance to change not only with regards to technology implementation, but also to the vision behind such implementation. The adoption of technology within this case was part of a wider strategy to integrate business functions. However, middle managers did not appear to share this vision; some were against the development of technology and those that adopted technology resisted allowing access to the AMT from other departments. There was also resistance to change from the workforce; however, as in Company B, this may also be viewed as a managerial impact, as managers developed no mechanisms to increase morale or encourage buy-in to the new technology. It was noted that Company H suffered a number of negative impacts following their installation of a VTC. Such negative impacts as production conflicts and high training costs may have been unavoidable, and absorbed as part of the cost of installation. However, negative impacts such as higher than anticipated installation, tooling and maintenance costs indicate oversights in the AMT planning stage. Within this case, such oversights were attributed to the short space of time in which the MD was required to make the entrepreneurial decision to invest in order to develop a specific opportunity. As with Companies B and C, it is difficult to separate the negative labour/managerial impact in Case F. The MD indicated that the original operator selected from the existing workforce to operate the technology failed to develop as hoped. As a result, the MD decided to buy-in new expertise with relevant experience. The use of new, experienced labour represented a negative impact in terms of increased labour costs. However, such a negative impact could equally be deemed to be the result of current labour failing to interact with the technology or inappropriate decision making at a managerial level. The labour and managerial impact observed in the longitudinal cases and the retrospective stages of this research indicates that there are five important considerations for small companies when implementing and developing AMT: levels of experience; availability of external support; consideration of inherent and integrated benefits; impact on operating procedures; and, levels of managerial support.
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DISCUSSION
3. CONSIDERATION OF PUBLISHED LITERATURE

The interview documents used for data capture during the retrospective stage of the research focused on three areas highlighted in the literature review. This section examines how the results of such data gathering and observations of the longitudinal cases relate to some of the publications previously considered.
3.1
PLANNING FOR AMT
Burcher and Lee (2000) found that in order of importance, companies invest in AMT in order to: Obtain competitive advantage Obtain financial benefit Counter competitive threat Enhance company image Counter skill deficiency
In addition, Burcher and Lee found that most companies invest in AMT in response to market conditions rather than due to the availability of new technology and that companies assess their AMT proposals through evaluation of both quantitative and qualitative factors. They found that most companies were using multiple formal appraisal techniques and that there was no identifiable differential to the use of such methods in large or small companies. During the retrospective stage of this research, the respondent companies were asked to rate their reasons for investing in AMT and to identify the most important drivers behind these investments. The results of these questions support some of the findings of Burcher and Lee. The cumulative scores across all the cases demonstrate that obtaining competitive advantage received the most consistent high scores and countering skill deficiency received the lowest scores (see table 10.1).
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DISCUSSION
Reason For AMT Investment Counter Skill Deficiency Counter Competitive Threat Obtain Financial Benefit Enhance Company Image Obtain Competitive Advantage Others Quality Flexibility Increase Production Moving the Company Forward Improving Company Technical Ability Business Growth Survival
A 3 5 5 2 4 4 4
Retrospective Case-study Companies B C D E F G H I 4 3 1 1 5 1 5 5 4 5 5 1 5 5 5 5 5 5 3 4 4 4 5 5 2 5 4 3 4 1 4 5 5 5 5 3 5 5 5 5 5 5 5 5 5
J 4 4 4 3 4
Total 32 44 44 33 46 19 4 5 5 5 5 5
Rank 4 2 2 3 1 5
5 5 5
Table 10.1. Reasons Case-study Companies invested in AMT
In terms of the drivers of AMT, the case-study responses also support the finding that companies are investing in AMT in response to market conditions (see table 10.2).
Most Important Driver of AMT Availability of New Technology Response to Market Conditions Entrepreneurial Decision Others Continuous Improvement Quality/Productivity Retrospective Case-study Companies B C D E F G H I X X X X X X X X X X Total 6 3 1 1
A X
Table 10.2. Drivers of AMT for Case-study Companies
It can also be seen from the responses that most companies claim to have considered both quantitative and qualitative factors in planning their technological implementations (see table 10.3). However, the majority of the companies do not use multiple techniques. In addition, although six of the companies claim to have used formal techniques, only three of these companies are able to name these techniques. The implication of the results is that the case-study companies are not using evaluation procedures to the level of sophistication as implied by the work of Burcher and Lee.
Appraisal Factors Quantitative Qualitative Use of Multiple Techniques Use of Formal Methods Able to name methods Retrospective Case-study Companies B C D E F G H I J X X X X X X X X X X X X X X X X X X X X X X Total 9 8 1 6 3
A X X X X X
Table 10.3. Case-study Companies assessment of competing technologies
Swamidas and Kotha (1998) suggested that there was no direct connection between AMT use and financial performance, but rather, the use of AMT generates indirect financial benefits, e.g. via new
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DISCUSSION
opportunities due to increased quality and lead-time reduction. The case-study responses indicate that obtaining financial benefit is the joint second most important reason for AMT investment (together with countering competitive threat). However, it is also interesting that four of the companies that rated highly obtaining financial benefit also indicated the importance of an increase in quality. Rating the importance of increasing quality was not an issue included in the structured interview, but was added by the respondents when asked if there were any additional factors believed to be important when considering AMT implementation. This focus on quality improvement may be viewed as evidence of support for obtaining financial benefit through indirect methods. Obtaining financial benefit was the key driver for the first of the longitudinal cases. Obtaining competitive advantage was less of a driver for Company K as the managing director believed that the Company already had a competitive advantage through the bespoke nature of development and the quality of the products. However, the Company was prevented from exploiting this to its full potential due to limitations in production capacity. In keeping with the findings of Inman (1991) that consideration of manufacturing strategy is the most important step for successful implementation; the Company developed a strategic plan with the assistance of a university partner. The implementation and development plan considered the Companys technological experience and resulted in a specification for performance of a new CAD system. The specification considered both quantitative (capabilities, system compatibility) and qualitative (efficiency routes, quality improvement) factors. The Company did not use formal assessment techniques for system selection; instead potential vendors were invited to present and demonstrate their products, explaining how they would meet the specification developed by the Company. Company L investigated technology introduction for similar reasons to Company K, that is, in response to increasing demand from the market and to counter production capacity limitations. However, Company L examined only quantitative aspects in planning for AMT, considering issues such as investment cost, unit cost and maximum production output. There were no formal appraisal techniques for choosing technologies, with selection being based on the results of trial periods using potential equipment.
3.2
According to Lei et al. (1996), companies that invest in AMT are often able to exploit the properties of their new technology in order to enter new markets. Of the companies that took part in the retrospective stage of the research, eight were able to successfully realise new business opportunities. Of these eight, five companies specifically indicated that they used their technology to enter new markets (see table 10.4).
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Operational Impacts Improvement in competitiveness Increase in labour costs Overall positive labour cost impact New business achieved Entering new markets
Retrospective Case-study Companies B C D E F G H I X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X A
J X X X X X
Total 8 8 6 8 5
Table 10.4. Operational impacts of AMT for the Case-study Companies
Sohal (1996) provided a list of common positive impacts from AMT adoption, which included: Improved Volume Throughput Reduced Product Recall times Reduced Labour Costs Improved Lead Times Reduced Customer Complaints Increased Flexibility Lower Unit Costs Improved Product Quality
In order to assess the relevance of these potential benefits to the case-study companies, respondents were asked to indicate the improvements (or deterioration) in these areas (see table 10.5). In addition, Sohal demonstrated that most companies achieved significant improvements in their competitiveness due to AMT adoption. Table 10.4 demonstrates that eight of the retrospective case-study companies believed that AMT introduction had led to improvements in their competitiveness. From Table 10.5 it can be seen that most of the companies achieved most of the benefits listed by Sohal. However, the benefit of improved recall times was only indicated as a positive benefit for four companies. This is probably because most of the technologies that were discussed focused on engineering or production improvements and had less to do with improved control or traceability.
Positive Impacts from AMT Throughput Recall times Labour costs Lead times Complaints Flexibility Unit costs Quality Key Retrospective Case-study Companies C D E F G H X X X X X* X X X X X X* X X* X X* X X X X X X X X X X* X X X X X X X X X X X X X* X Total 9 4 6 8 8 8 8 9
Greatest benefit
B X* X X X X
I X X X X X X* X
J X X X X X X* X
2 2 1 2 2 1
X* X
Those marked with * represent the greatest positive impact for each company
Table 10.5. Comparison of positive impacts from AMT in the Case-study Companies
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DISCUSSION
Sohal indicated that reduction in labour costs was a common benefit from AMT use. However, as indicated in the literature review, Small (1999) was less convinced of the labour cost reduction potential of AMT. Table 10.4 demonstrates negative impacts due to increased labour costs in eight of the companies. These negative impacts are due either to increases in salary costs or reductions in efficiency during learning curves. However, of these eight companies, five companies witnessed overall improvements in labour costs due to a reduced labour component in the production of products. None of the case-study companies used AMT to reduce overall numbers of staff. This is perhaps a significant difference in the strategic aims of AMT in small and large companies. The reduction of overall labour numbers would represent a significant reduction in resources available to a small company. Therefore, in any strategic avenue explored to increase business, small companies can ill-afford to lose labour. This may not be the case for larger companies as the loss of labour replaced by AMT is likely to represent a small percentage of their available workforce. Neither of the longitudinal cases has obtained significant positive operational impact. In Company K, this is due to a failure to develop the integrated benefits of their technology. It is through these integrated factors that the Company had the potential to develop gains in terms of improved throughput, reduced labour costs and shorter lead times. Company L suffered such severe resistance to change that the Company initially abandoned their technology adoption plans. From Table 10.5 it can be seen that Improved Volume Throughput and Improved Product Quality are the most commonly cited benefits of AMT implementation. In addition, Table 10.1 demonstrates that the case-study companies invest in AMT in order to counter competitive threat and obtain financial benefit. That improving volume throughput and product quality can be tools for competitive advantage and therefore lead to financial benefits lends support to Sohals finding that, in general, companies achieve the benefits that they expect from AMT.
3.3
CRITICAL SUCCESS FACTORS FOR AMT
Udo and Ehie (1996) recognised a number of important factors to facilitate AMT implementation and development success. Of these factors, Udo and Ehie state that self-interest factors are the most critical determinant for successful implementation. Such self-interest factors are dependant on the involvement of production operators and effective company communication. The data capture from the retrospective stage provides conflicting views on the perceived importance of such factors. From Table 10.6, it can be seen that Involvement of Production Operators was one of the lowest ranking factors for successful implementation. In addition, in Table 10.8 it is shown that only half of the companies undertook consultations with their production operators prior to implementation. However, nine of the companies claimed to have used mechanisms to actively encourage operator support.
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DISCUSSION
Consideration of Manufacturing Strategy Evaluation of Competitive Environment Economic Evaluation Involvement of Production Operators Communication Throughout Organisation Others Communication with customers Informing stakeholders of progress Preparation and correct selection
A 3 2 2 4 3
J 5 5 4 4 4
Tot al 47 42 38 38 41 Tot al 43 37 35 37 39 J X X X X
Important factors for successful implementation
Retrospective Case-study Companies B C D E F G H I 4 5 5 5 5 5 5 5 5 5 5 3 4 4 5 4 3 5 2 5 4 4 5 4 1 3 5 4 3 4 5 5 2 5 5 4 4 4 5 5 5 5 4
Table 10.6. The perceived relative importance of particular factors for successful AMT adoption of the Case-study Companies
Examining the data, it can be seen that the low overall score for involvement of production operators is influenced by the very low score given by Company B, a company that views its operators as suppliers. All of the other companies rated the importance of the involvement of production operators at three or above. If Company B was removed from the table, the importance of operator involvement would rank above economic evaluation, becoming joint third with the evaluation of the competitive environment (see table 10.7).
Important factors for successful implementation Consideration of Manufacturing Strategy Evaluation of Competitive Environment Economic Evaluation Involvement of Production Operators Communication Throughout Organisation Retrospective Case-study Companies B C D E F G H I 5 5 5 5 5 5 5 5 5 3 4 4 5 4 5 2 5 4 4 5 4 3 5 4 3 4 5 5 5 5 4 4 4 5 5
Ran k
A 3 2 2 4 3
J 5 5 4 4 4
Table 10.7. Perceived relative importance of factors excluding Company B
All of the retrospective stage respondents indicated the importance of utilising an implementation champion to drive forward their AMT developments. However, in half of the companies this champion was the relevant companys managing director. Whilst this might have proved an effective mechanism for those companies, such use of a champion does not appear to be a key component in encouraging wider support from the workforce (see table 10.8).
Mechanisms adopted to drive AMT development Recognisable implementation champion Consultations with production operatives Active encouragement of operator support Operators informed of business benefits Company invested in operator training Retrospective Case-study Companies B C D E F G H I X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Total 10 5 9 10 9
A X X X X X
Table 10.8. Mechanisms to drive successful AMT adoption used by the Case-study Companies
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Ra nk
1 2 4 4 3
1 3 4 3 2
DISCUSSION
Inman (1991) states that management commitment is a critical factor for AMT implementation success. In addition, Udo and Ehie recognised the importance of commitment, ranking it as more important than communication or co-ordination. However, Gupta et al. (1998) found that introducing AMT can have an adverse effect on commitment of employees. Table 10.9 demonstrates responses to questions posed to the retrospective case-study companies regarding commitment before and after AMT implementation. According to the respondents, the management of nine of the companies were committed to AMT development prior to implementation. Eight of the respondents claimed that their production operators were also committed to AMT development prior to implementation. Of the two companies that believed they did not have operator commitment initially, one company believed that there was workforce commitment following AMT installation.
Commitment to AMT Management committed to AMT (prior to implementation) Operators committed to AMT (prior to implementation) Management and operator commitment following implementation Retrospective Case-study Companies B C D E F G H I J X X X X X X X X X X X X X X X X X X X X X X X Total 10 8 9
A X X X
Table 10.9. Commitment to AMT in the Case-study Companies
Company B had neutral rather than opposed operators prior to implementation. Company C had both committed and opposed managers and neutral operators. Within Company B, the respondent claimed that success and personal benefits achieved through technology use resulted in commitment from both management and operators following implementation. Company C did not manage to generate such support following its implementation. Such lack of commitment from operators is unsurprising given that Company C scored the importance of involvement of production operators lower than most of the other companies; did not consult with production operators; did not engage in encouraging operator support; and, did not invest in operator training. However, Company C did achieve most of their planned aims from AMT and indicated that they were very satisfied with their AMT investment. Examining the tables above, many of the companies can be seen to be operating in a manner likely to facilitate effective and successful adoption of technologies. In table 10.10 it is shown that Companies A, D, E, H and I are using all five identified mechanisms to drive AMT development and have recognised the importance of involvement of production operators.
Support for AMT Using the 5 identified AMT driving mechanisms Scored involvement of operators at 4 or 5 Retrospective Case-study Companies B C D E F G H I J X X X X X X X X X X
A X X
Table 10.10. Aspects of support for AMT development employed at some of the Case-study Companies
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DISCUSSION
It would be reasonable to argue that these companies should demonstrate the most effective use of AMT; however, some of these companies experienced significant barriers to successful development of their technologies. As covered earlier, the difficulties that Company A faced were due to the output of the technology having a negative impact on further production and the requirement for further unexpected expenditure. The mechanisms adopted to drive AMT focused on communication and encouragement from management to workers and therefore had no positive effect regarding any inadequacies at the planning stage. Company H reported a balanced array of both positive and negative impacts; however, as in Company A, the negative impacts were mostly the result of limitations in planning. For Company H, these limitations were likely the result of an accelerated planning stage due to time limitations in exploiting a particular opportunity. Company I suffered minor difficulties in terms of operator politics, with other barriers being unexpected further capital expenditure and machine reliability. In the case of Company I it is useful to note that this was one of the most inexperienced implementers of technology within the cohort of retrospective case-study companies. It is difficult to assess critical success factors in terms of positive influences in regards to the longitudinal cases, as neither company achieved implementation success. However, it is possible to determine where these companies deviated from the advice of other authors. Table 10.11 demonstrates the observed mechanisms utilised in each of the longitudinal cases to drive their AMT adoption plans.
Mechanisms recognised in the literature Consideration of Manufacturing Strategy Evaluation of Competitive Environment Economic Evaluation Involvement of Production Operators Communication Throughout Organisation Recognisable implementation champion Consultations with production operatives Active encouragement of operator support Operators informed of business benefits Company invested in operator training Table 10.11. Mechanisms utilised in the longitudinal cases to drive AMT adoption Case K Case L
Y Y Y N N Y N N N Y
Y Y Y N N Y N N Y N
The most obvious difference between the mechanisms employed by the longitudinal cases and those advised in the literature is the lack of engagement with personnel most directly affected by technology use. Given the assertion by Udo and Ehie that self-interest factors are the most critical determinant of AMT success, it is not surprising that both of these companies have failed to gain substantial benefits from their attempts to adopt new technologies.
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4. THE CRITICAL FACTORS FOR AMT ADOPTION IN SMALL COMPANIES

Table 10.12 displays the 17 identified benefits that the retrospective case-study companies achieved through AMT introduction. Of these benefits, nine were company specific benefits and eight were generic benefits brought about through AMT use. The group of generic benefits represents all of the case-study companies. Both the generic and specific benefits can be further divided into tangible and intangible benefits.
Benefit achieved New business Improve throughput Reduce lead-time Reduce labour costs Reduce unit cost Improve quality Increase flexibility Obtain competitive advantage Increased capacity Increase efficiency Improve reliability Reduce complaints Improved capabilities Introduce volume production Increased variety of shape Improved design for manufacture Enhance company image Company obtaining benefit B, C, D, F, I, J B, C, E, F, G, H C, F, G, H, I D, E, G, H, J B, F, G, H A, B, C, D, E, G A, D, F, G, H, I C, I, J D E E F I J A C C
Generic Benefits
Specific Benefits
Table 10.12. Benefits achieved by case-study companies
Each of the companies that indicated the positive benefit of the development of new business stated that such new contracts were as a direct result of new capabilities. This link between successful exploitation of new capabilities and the development of new business is strengthened by the experience of Company F. The MD of Company F indicated that initially they were unable to successfully develop new business utilising their new technology. However, the Company later developed a new side to the business, developing new products that exploited the relevant efficiencies of the newly installed laser cutter. The benefits of improved throughput; reduced lead-times; reduced labour costs; reduced unit costs; improved quality; and, increased flexibility can be grouped together in the benefit of improved production efficiencies or outputs. Combined benefits in this category were obtained in all of the casestudy companies. In order to determine the critical factors leading to such production improvements, it is useful to examine where the case-study companies have been unable to exploit such benefits. Table 10.13 lists the negative impacts reported by the case-study companies.
Intangi ble Benefit s
Tangible Benefits
Intangi ble Benefit s
Tangible Benefits
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DISCUSSION
Negative Impact Unexpected further investment Difficulties managing transition Increased labour cost Resistance to change Political difficulties Decreased throughput Worsened process integration Difficulties exploiting capabilities Table 10.13. Negative impacts suffered by case-study companies
Company Affected A, D, F, H, I F, G, H, I A, B, F B, C C, I A A I
More companies reported the negative impact of unexpected further investment than any other negative impact. This impact may by symptomatic of the lack of use of sophisticated methods to evaluate the full impact of particular AMT on production processes. However, observations of the methods that small companies employ to make investment decisions indicates that such companies are unlikely to adopt sophisticated decision making and impact evaluation tools. The majority of the small companies observed in this study lack the particular skills, experience and resources to implement sophisticated financial modelling tools. However, unexpected further investment, be it in the form of capital expenditure or increased running costs can be a particularly difficult barrier to overcome, especially in a resource constrained small company environment. Difficulties in managing the transition covers reported issues such as reliance on sub-contractors and production conflicts during AMT installation and development. To some degree such issues might be unavoidable as companies aim to exploit a new technology, but at the same time must meet their production commitments. It is when such issues become difficult to resolve, or take longer than planned to be resolved that such issues become a real barrier to effective development of AMT. The three companies that reported increases in labour costs are indicative of a difference between expected and unexpected negative impacts as a result of AMT implementation. In Cases A and F the negative labour cost impact was unexpected. Both of these companies had not realised that they would need to employ additional expertise in order fully exploit their new technology. In Case B, an increase in labour cost, due to increased wages, was an expected negative impact. For some managers, the fact that the increase was expected might be seen as a cost of the system, and therefore not a negative impact at all. However, the automotive industry in which Company B operates requires continual cost-down in production, and therefore any activity that increases cost may be perceived as a negative impact. The results make apparent that the critical factors for assisting successful development of AMT within the small companies are related to the aims of the individual company. It can be seen that companies
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DISCUSSION
are investing in AMT either to develop new business, both within their current market or to enter new markets, or to introduce improved production efficiencies and outputs. Another reported benefit is to obtain competitive advantage; however, such competitive advantage is a product of improvements in production output or new business generation.
Negative Impact Unexpected further investment Difficulties managing transition Increased labour cost Resistance to change Political difficulties Decreased throughput Worsened process integration Difficulties exploiting capabilities Company Affected A, D, F, H, I F, G, H, I A, B, F B, C C, I A A I Critical Factor Planning Internal Support Impact Assessment External Support
Table 10.14. Negative impacts and potentially ameliorating factors
In table 10.14 the negative impacts experienced by the case-study companies have been paired to factors that have the potential to ameliorate such impacts. The most critical factor to reduce unexpected further investment is improved planning for AMT focussing on the impact of the AMT throughout the production process. However, improved planning for the inexperienced implementer may be difficult to achieve. The difficulties in terms of further unexpected investment required by Company I indicate that companies can suffer such negative impacts as a result of inappropriate advice from vendors. However, as Case I was gathered in retrospect it is impossible to determine the accuracy of the technology specification developed by the Company and provided to the vendor. Difficulties in managing the transition to AMT use and unexpected increases in labour costs are also linked to planning for technology. In terms of managing the transition, if sufficient planning has been undertaken, then learning curve impact and current production requirements can be taken into account. However, such a recommendation does not mean that with proper planning there will be no difficulties associated with the transitional period, but rather that these issues are identified beforehand in order that preparation can reduce the impact. Such impact reduction techniques may include the identification of particularly quiet periods in production, acknowledgement of the learning curve for production staff and staging operator training to reduce production impact. In the case-study companies, unexpected increases in labour costs have been the result of the requirement to buy new labour with new expertise. If it had been established that such new expertise was required beforehand the result may not have been a reduction in the labour cost associated with AMT introduction, only that such increases could have been taken into account when making investment decisions. Resistance to change and political difficulties have the potential to be positively influenced through the development of internal support mechanisms. Of the retrospective cases, the greatest negative
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DISCUSSION
impact in these areas was experienced by Company C. Here the Managing Director had been unable to develop a consensus view on technology integration throughout the Company. The development of internal support mechanisms, tied to improved communication throughout an organisation, has the potential to improve morale, engagement with technology and movement towards a common goal for a company. Such issues were also the focus of the difficulties that Longitudinal Case L suffered with their AMT implementation. Again, internal support, accurate information on why the Company required AMT, and communication of the positive impacts for staff concerned may have averted the difficulties that the Company experienced. Throughout this thesis, much consideration has been given to the impact assessment of AMT on further processing. The experiences of Company A have indicated just how critical a factor this is to successful development of AMT. In addition, external support mechanisms have also been covered in much detail and are identified as a critical success factor.
5. THE DEVELOPMENT OF RECOMMENDATIONS

The longitudinal studies either demonstrated support or expanded upon the outcomes of the retrospective stage; therefore, the following sections on the development of recommendations are in addition to, or are an expansion of, the previously demonstrated outcomes. Table 10.15 presents a set of recommendations for small companies when considering AMT adoption. These recommendations are presented as four aspects to be considered in turn. First there are two aspects of technology planning: requirements and impact assessment. Following this are two aspects of support planning: internal support and external support.
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DISCUSSION
1. Requirements
2. Impact Assessment Installation planning
Technology Planning
Target market assessment Competitor capabilities Customer expectations Needs assessment Quantifying benefits
Further investment assessment Management training investment Operator training investment Changes to working practices Production commitments Output to next production stage
3. Internal Support
4. External Support Training mechanisms
Support Planning
Relevant experience Communication benefits and difficulties Management support and conflict Operator support and culture
Vendor assessment Customer/supplier advice Vendor references Government support (financial) Government/education support (expertise)
Table 10.15. Considerations to assist in technology implementation
Each of these recommendations has been created from a review of the twelve case-studies, considering the difficulties that were observed and how such difficulties have been addressed. The recommendations are developed as a series of points for consideration rather than complex strategic tools. Whilst financial or scenario modelling procedures might provide the most accurate simulations of likely impacts of particular technologies, such tools are outside of the scope of the participating companies, and are therefore unlikely to be used. Even intuitive MADM systems that rely on developing weightings for technology feature-sets draw on unfamiliar techniques for the observed companies. Therefore, the most useful output of the observations within this research is an ordered set of instructions that companies can draw upon to check that they have properly considered the most pertinent issues. In generating the requirements aspects, it was observed that many of the cases were able to develop new business due to new capabilities. Therefore, if new business is an aim of the technology implementation it is important to assess the requirements of the target market. In addition, in order to enter a new market, knowledge of competitor capabilities and potential customer expectations may provide insights into how a particular technology has the potential to provide a competitive advantage. The aim of AMT investment is not always for the development of new business; other reasons include: reducing costs; remaining competitive; and, addressing quality issues. Whatever the reason
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DISCUSSION
for AMT, a comprehensive review of needs is required if a company is to make an intelligent selection between competing technologies. Within any needs assessment it may prove useful to quantify the potential benefits to assist in comparisons between potential solutions. Such quantification may also prove useful in the development of internal support as it can be used to justify the investment and communicate potential benefits relevant to all stakeholders. Many of the difficulties that the case-study companies reported were due to unexpected impacts as a result of AMT implementation. The impact assessment aspect of the recommendations is designed to assist in properly considering such negative influences. Table 10.16 presents a further breakdown of the sub-considerations within Impact Assessment.
Impact Assessment Issues Installation planning Further investment assessment Management training investment Operator training investment Changes to working practices Production commitments Output to next production stage Sub-considerations Delivery, installation, infrastructure (piping, power, storage, etc.) Consumables, supporting hardware, required software, software upgrades, new expertise Understanding/overview of the technology, specific discipline knowledge required Current capabilities, required capabilities, in-house training, training suppliers, training cost (actual cost, training support costs, loss of resources while training) Who will operate the new technology? How will it change what operators do? Will the change be the same for all operators? How will commitments be met if there is downtime? How will learning curve impact production? Will workers be lost while training? What is the output to the next operation? Does this differ from previous output? Does the AMT change the working practices of subsequent operators? Will there be a quantifiable change in the production line (e.g. speed of production, potential for bottleneck?)
Table 10.16. Further breakdown of considerations within Impact Assessment
The advice regarding support is split into two sections: the support that a company can promote and develop internally; and, access to external support. All of the case-study companies have demonstrated a view that external support is an important consideration in the adoption of a new technology. Within the advice regarding internal support there is the recommendation for the consideration of previous experience. Any review of previous relevant experience is likely to highlight difficulties encountered and prompt discussion of possible solutions. In addition, a formal review of previous experience can be used as a mechanism to bring together champions of previous installations with likely champions of any new adoptions in order to enhance knowledge transfer within a company. Effective communication of potential benefits of AMT has been reported as an important mechanism in developing internal support, especially where these benefits can be translated into benefits for those whose working practices are affected by the AMT implementation. However, the identification
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DISCUSSION
and communication of such benefits is not always an easy task, as potential benefits are often intangible in nature. AMT benefits such as quality or flexibility improvements may result in a better perception of the company in the market; reduced complaints; reduced rework; or improved responsiveness to customer needs. These can be classed as business benefits that lead to improvements in market position; higher returns from sales; or increased sales. Such benefits take time to be realised and may not be perceived by production operators as personal benefits. However, these are benefits that can filter down to production operators. The most obvious of these is the safeguarding of jobs due to increased competitiveness of the company. Other related potential benefits that could develop might include: increased salaries, bonuses or benefits related to company performance or promotion opportunities based on company expansion. There are a number of external support mechanisms that the case-study companies have recognised. However, it is worth noting that although all have indicated the importance of external support, not all have had positive experiences with the support that they have received. This indicates that it is important for companies to consider the type of support that is most suitable to their needs, and to develop mechanisms for evaluating the potential differences between support suppliers. Many of the companies relied on the technology vendor to supply the required support. Whilst this can be an effective mechanism, there are also apparent limitations in such a strategy. Support vendors are likely to present the positive aspects of particular technologies that they supply, and may be inclined to over-sell their expertise in certain technologies in order to generate sales. This may be a particular danger where the vendor is a distributor rather than a creator of technology. Using educational support in the form of training or formal collaborations with universities is a mechanism that has proven more effective for some companies than others. Longer-term collaborative programmes with external organisations can provide significant rewards in generating new ways of interacting with technology for the creation of business benefits. However, the nature of such programmes is likely to be invasive, require substantial changes to working practices and draw heavily on company resources in order to maximise benefit. Therefore, before entering into such programmes it would be wise for companies to consider if the timing is right for them in terms of the upheaval such programmes require. If not, it may be more appropriate for companies to consider some of the other support mechanisms, that while not as potentially revolutionary to technology exploitation, may provide more accessible shorter-term benefits.
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DISCUSSION
6. AIDING SMALL COMPANY AMT ADOPTION

Figure 10.4 presents a tool to assist the implementation of AMT in small companies. The four stages presented in Table 10.15 have been translated into questions for company managers to consider. The first question, Why do we need AMT? addresses the consideration of the requirements for a new technology. The practical output of this stage is the generation of a specification of the needs for AMT. This needs specification document may consider technical, market and business factors. Technical considerations emerging from the requirements should quantify aspects such as improved cycle times; reduced lead times; and reduced unit costs. Market aspects should consider how the AMT might improve the market relevance and user experience from products. Business factors should consider such issues as the capabilities of competitors and how an AMT might advance competitive advantage for the company. The second question, What is likely to happen? prompts an assessment of the practical impact of any new technology. The outputs from this stage are a skills specification for the development of necessary knowledge and expertise; and, the design of the system. The purpose of referring to a system design is to encourage managers to think of any new technology not as a stand-alone unit, but rather as an integral part in a new system of production. The third question, Who is on-board for the development? covers the recommendation regarding the development of internal support. The considerations within this stage include the identification of persons not only with the required experience, but also influence, to champion AMT adoption. The identification of such a champion should be framed within an assessment of the operating culture and the likely response to change. An understanding of the culture can be useful in developing mechanisms to encourage buy-in to technological and operational change throughout the organisation. In practical terms, such buy-in might be developed from the quantification of potential business benefits and the translation of such advantages into measured benefits for all personnel affected. The fourth question, How can we access further support? demonstrates the move to involve external organisations in the AMT adoption process. The considerations recommend identification of training options and partners, including the training and expertise available from potential technology vendors. In addition, there should be an investigation into mechanisms that might exist to assist or support innovative development within the company. These closing considerations should lead to the finalisation of AMT selection.
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DISCUSSION
Between each of the stages are keys; these are designed to prompt review of the completed stage and act as a check that the company is ready to proceed to the next stage of AMT development. Between the first and second stages, the key asks the question How close can we remain to our core skills and experience while meeting our specification? Whilst any new technological endeavour will create new challenges for a company, through identification of the relationship between particular technology options and existing experience companies can plan to maximise their available expertise. The purpose of this is to minimise unexpected disruptions and avoid unexpected further investment. The passage between stage two and three is blocked by two key questions. The increase in complexity at this point in the AMT development tool is representative of the case-study companies experiences of difficulties in assessing the full impact of AMT implementation. The first key poses the question, Can we buy or develop the skills required? An answer to this question is needed to ensure that the company is ready to develop internal support for potential AMT, as effective use of such support is dependant on buy-in and development of relevant personnel. The second key presents the question, Can we design the system to minimise negative impacts? The question is of major importance to the AMT adoption process, as its answer requires acknowledgement that an AMT may not operate in isolation. This will assist a manager in understanding whether inherent or integrated AMT benefits are required, the likely impact on post-processing and requirements for changes in working practices. The final key, Have we a team that supports the development and understands the business and personal benefits? acts as a check that the company is ready to engage with external support. The premise is that once the company has developed the required internal support, it can use its AMT team to assess potential external mechanisms for training, support and final selection of the most suitable AMT against their needs specification.
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DISCUSSION
Fig. 10.4. Tool to assist AMT implementation in small companies

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DISCUSSION
7. SUMMARY AND LIMITATIONS

The case-study companies examined in this thesis have reported some differences in the relative importance of issues or interaction with evaluative techniques than suggested in some previous AMT studies. However, the research presented here does indicate that small companies may improve their implementation success by adopting or considering some of the critical mechanisms suggested in the literature. Using mechanisms to encourage acceptance of AMT is of major importance in avoiding resistance to change and political disputes. However, there are further considerations that are of particular importance for the small company. The discussion following the retrospective stage of the research indicated three important recommendations for small companies to consider. The longitudinal study supported the findings of the retrospective stage and indicated the further considerations of managerial and labour impact. Autocratic management styles have been shown to be a barrier to successful AMT implementation and development as they are at odds with the peoplefocus and communication aspects of technology adoption best-practice. In Case K this was evidenced in the MDs deviation from presented advice and a failure to encourage company-wide engagement with the new technology. The potential of AMT to change the working practices of production operators is a significant danger in the development of technology adoption programmes. It is worth noting that none of the Case-Study companies planned to use AMT in order to reduce their overall production worker numbers; nor were any individuals jobs at risk as a result of AMT adoption. However, the extensive resistance to change observed in Case L has prompted the Company to explore new technological options that will place operators employment at risk. Whilst companies recognise the importance of support from production operators, many of them do not consult with workers about their AMT plans, nor do they select an implementation champion from the workforce. In the longitudinal cases, such failure to engage production operators was an important factor of their unsuccessful AMT developments. Analysis of the case-study responses demonstrates that small companies invest in AMT for many of the same reasons as large companies. However, the cases also indicate that small companies are less sophisticated in their abilities to assess the impact of AMT and select between competing technologies. Whilst many companies develop their own mechanisms to inform their AMT investment decisions, there was no evidence from the case-studies of any recognised formal decision making procedures being utilised. There was no evidence of the use of multiple techniques and no evidence of the use of DCF. An implied inadequacy of the planning and decision making procedures that the companies undertook can be derived from the negative impacts that many companies experienced, especially where the result was a requirement for further unexpected investment.
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Throughout this thesis it has been acknowledged that the case-studies have placed high importance on the availability of support, especially support from the vendor. Further, it has been mentioned that not all of the companies have been satisfied with the levels of support that they have received. It is acknowledged that it may be difficult for a purchaser to evaluate the extent of expertise held by a particular vendor. Examination of issues associated with vendor competency presents an interesting and potentially very important aspect of AMT adoption for small companies. However, it is a limitation of the methodology utilised in this study that such issues were covered only from the viewpoint of the purchasing company. Use of the technology adoption guidance presented in figure 10.4 may help small companies make more informed vendor selections; however, a further study that incorporates detailed examination of external support mechanisms is likely to lead to further important guidance for the maximisation of the potential benefits of AMT. As a reaction to the limitations in the AMT planning observed in the case-studies, a tool has been developed to assist managers in staged considerations and developments in preparation for AMT adoption. Acknowledging the particular levels of sophistication that these companies applied in investment planning, a balance was required between the levels of complexity presented and creating a user-friendly and useful AMT implementation mechanism. It was a challenge to generate a tool that was both generic enough to be relevant to all of the case-studies yet specific enough to be useful. Within this summary it is important to acknowledge the limitations of the research and the potential impact of such limitations on the overall results. The most obvious limitation of the research design is the use of case-studies for the identification of critical factors for AMT adoption and the development of a tool to assist small companies in implementing AMT. The nature of case-study research is such that a small sample is being used to generate a depth of understanding of particular situations. Early in this research it was argued that this was the most appropriate route to take as only in-depth interaction could present the differences in operational use of AMT in small companies compared to the larger companies more often examined. However, it must be acknowledged therefore, that the results of this thesis are the critical factors for AMT adoption in the case-study companies, rather than the critical factors for AMT adoption in all small Welsh companies. Whilst it may be reasoned that most small companies are likely to face similar implementation and development barriers, it is only further research that can either confirm or refute such a statement. Further, the research is concerned with the impact of AMT on small Welsh companies; however, it has been stated that there is some likelihood that the results will be of interest to companies in other locations. Whilst it is reasonable to speculate that the results will be of interest to companies in other places, it does not follow that the results of any repeated studies will be the same. This thesis does not consider in any detail the presence of idiosyncratic factors particular to the location of study. Such factors that might influence
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the results could include, inter alia, access to grant or sponsored support mechanisms or the particular industries resident in Wales. There is a further limitation of the research developed due to the AMT implementation performance of the longitudinal cases. It is disappointing that both of the longitudinal cases should demonstrate such difficulties with the installation of AMT. If one of the longitudinal cases had presented a particularly successful implementation another strand of enquiry against the retrospective results could have been developed. However, the difficulties encountered by both of the cases adds support for the conclusion that installing technology is a difficult task, with much of the difficulties centred on the changes required in operating procedures of personnel. The potential for this limitation would have been impossible to avoid because, as Voss et al. (2002) note, it is only possible to select cases with particular outcomes in retrospect. Another limitation of the longitudinal research was the fixed or limited observational period. In the retrospective stage it was evident that most managers become satisfied with their AMT adoption programmes when looking back. This appears to be because most companies will make use of their investments in one way or another. It would be interesting to re-visit the longitudinal case-studies at some point in the future to conduct a retrospective style interview in order to assess how their perceptions change over time. The manner in which this thesis has been developed has drawn largely on qualitative data based on the experiences and opinions of company managers. Whilst this has been important in developing an understanding of the perceptions of manufacturing managers and directors, it would be interesting to test if research based on quantitative methods would support the findings of this thesis. In addition to the identification of the impact of AMT and the critical factors that influence such impact, it was an aim of this research to use such knowledge to assist company managers in the implementation of AMT. To this end, a tool has been developed that attempts to relate important considerations in effective AMT adoption to particular stages of implementation. In its presentation, this tool is linear; however, in actuality there is likely to be periods of iteration between stages. For example, in designing a system to minimise negative impacts, changes may be made to the specification. Or, if the required skills cannot be developed, changes may be required to the system design. These periods of potential iteration have been purposely omitted from the adoption tool in order to present a useable and easy-to-understand device. However, it must be acknowledged that this tool is developed only from the observations of performance within the case-studies and has yet to be tested in a live industrial scenario.
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CHAPTER ELEVEN:
CONCLUSIONS
1. INTRODUCTION
The purpose of the research presented in this thesis was to discover the impacts of AMT in small companies, to identify the critical factors that influence such impacts, and to develop a tool to assist small companies in the implementation of AMT. In this final chapter the answers to these research questions are presented together with an assessment of the practical output of the research, an identification of the contribution to knowledge, and, acknowledgement of the requirement for further research to qualify and expand on the results presented.
2. RESEARCH QUESTIONS
2.1 WHAT IS THE IMPACT OF AMT IN SMALL COMPANIES?
The observations of the case-study companies have demonstrated two strands of impact in relation to technology adoption. One is the impact of AMT on company performance; the other, the impact of company factors on the potential of AMT. The major positive impacts on company performance observed was the generation of new business due to improved capabilities and improvements in competitiveness due to improvements in product quality and volume throughput. The major negative impact on company performance was the requirement for further unexpected investment. This impact is indicative of inadequate assessment of the impact of AMT throughout the organisation. In terms of the impact of company factors on the potential of AMT, negative impacts were observed. These negative impacts were based around political or cultural factors suppressing the development of the benefits of AMT. Examples of these factors include autocratic management styles inhibiting aspects of technology use, political disputes preventing access to technology, and workforce resistance to changes in operating procedures.
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2.2
WHAT ARE THE CRITICAL FACTORS THAT LEAD TO SUCH IMPACTS IN SMALL COMPANIES?
The critical factors that influence the experience of positive or negative impacts in small companies are: the correct diagnosis of the requirements for AMT; a thorough assessment of the impact of AMT; the development of internal support; and, the identification of the most appropriate external support. Understanding the requirements for AMT and undertaking an investigation into the potential impacts throughout the organisation is the key to avoiding, or minimising, the potential for further unexpected investment. This second critical factor is especially important where the company is looking to extract integrated benefits from AMT. The development of internal support is critical to understanding and ameliorating the potential for political and cultural difficulties in implementation. Finally, the identification of appropriate external support will provide access to further knowledge and expertise to support any gaps in the technological experience of the company.
3. OUTPUT FROM THE RESEARCH

The answers to the research questions above provide research output in the form of an understanding of the impact of AMT and a series of recommendations for consideration when implementing AMT. Another aim of the research was to develop such knowledge into a tool to assist company managers in their AMT adoption programmes. This tool, presented as figure 10.4 represents the translation of the observed impacts and identified critical factors into a useable guide for technology implementation. Further, this research has been used for the development of peer reviewed academic output (see Appendix C) in order that the study might contribute to scholarly debate on the issues of AMT development in smaller companies.
4. NEW KNOWLEDGE
In working towards the aims and objectives of this PhD research, the study has developed new knowledge in the area of AMT implementation in small Welsh companies. The new knowledge that this research has developed includes: Identification of differences in the priorities of associated AMT factors to those described in the literature. That is, availability of support has been shown to be as important as cost; the companies are not using sophisticated technology evaluation techniques; and, the companies are not employing multiple evaluation techniques.
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Identification of different important implementation considerations for inherent or integrated systems. That is, identification of the increased complexity, and therefore potential negative impacts, in implementations that seek to exploit AMT benefits from an integrated system.
An understanding of the ways in which small companies plan for AMT and inherent limitations in such plans. That is, it has been observed that the companies are not undertaking assessments of the potential impacts of their investments, and that many of the case-study companies do not invest in the development of internal support.
A tool to assist implementation that addresses recognised limitations at an appropriate level of sophistication. That is, the consolidation of the above factors into a flowchart for staged consideration of the identified issues at an appropriate level of sophistication.
Each of the small companies that participated in this research approached AMT in a largely ad hoc fashion. That is, although the managers had an understanding of their goals from AMT introduction, formal or sophisticated procedures were not usually employed. This is a significant distinction from the understanding of AMT introduction that can be derived from previous research. It is this ad hoc approach, and subsequent inadequate planning, that results in a major hurdle for AMT introduction, which is the requirement for further unplanned investment. Such understanding of the operating methods and barriers formed the basis for developing a tool to assist in AMT development that is appropriate to the levels of sophistication found in small companies.
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CHAPTER TWELVE:
CRITICAL REFLECTION
1. INTRODUCTION
This research has developed new knowledge regarding the AMT experiences of twelve small companies, providing in-depth understanding of the issues that the case-study companies faced and presenting recommendations to assist such companies in future technology adoption programmes. Further, within the discussion chapter consideration is given to the limitations of the study due to the nature of the work and how additional studies may validate (or challenge) and further develop the results. However, these limitations focus on overcoming issues that are inherent to the type of study. The limitations discussed do not offer an overall critical reflection of the study as presented. Obviously, as the study progressed new knowledge and experience became available to the author. With this in mind, it is likely that should the author undertake a new study with identical aims, aspects of the study may be approached in different ways. The purpose of this final chapter is to present a critical reflection that will offer an improved research design that would overcome some of the limitations of the study should the research be repeated.
2. LIMITATIONS
Any chosen research design will be subject to limitations that may have been addressed had an alternative research strategy been pursued. It is to minimise such potential limitations that many researchers employ triangulation techniques to further validate results through the use of multiple strategies. The limitations of the research presented in this thesis can be split into two groups: limitations that can be addressed through drawing on the experience of this study and therefore facilitating an alternate or improved research design for any follow-up study; and, limitations that can be addressed through revisiting the gathered data and therefore potentially expanding upon the results. The second of these options forms a natural starting point for maximising the potential understanding of AMT use in small companies from the available data. Whilst time constraints dictated that neither of these activities was undertaken during this study, it is sensible to acknowledge the limitations, present a plan for re-visiting the data, and present new strategies and research designs as a pre-cursor to further work.
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2.1 LIMITATIONS DUE TO RESEARCH DESIGN The research presented in this study was created as a response to an identified gap in the literature regarding the experiences of small companies when implementing AMT. In order to address this gap, the author set out to question manufacturing managers and directors regarding their experiences with AMT. Further, the author sought to validate the responses of participating managers through longitudinal observation. Whilst such empirical observation provides an in-depth understanding of the AMT related events that took place in the case-study companies, there are other ways in which the same phenomenon might have been studied. Had the study started from a more theoretical standpoint, such as through the examination or exploration of studied events to company capabilities and/or core competencies, then further validity of the results may have been obtained through linkages to established management theories. It is in this regard that the study, as presented, might be criticised for a lack of an overarching conceptual framework. Equally though, the use of such theoretical propositions may have hindered the focus of this research on evaluating how the challenges of AMT development in small companies differ from those described in the literature. The author argues that to focus on the stories of company managers with relevant experience was an important exploratory step in understanding these small company issues. However, with this exploration complete, a logical next step in terms of additional research would be the relation of the observed phenomenon to existing theories, and the development of new theories.
2.2 LIMITATIONS DUE TO ANALYTICAL STRATEGY

Within this thesis, the small companies and the AMT related challenges that they face are presented in contrast to the existing literature which is generally more concerned with much larger organisations. However, such a viewpoint presents small companies as a discrete alternate set to large companies. Whilst such a viewpoint does uncover differences to the issues presented in the literature, it does not explore the differences that exist between different types of small manufacturers. Such analysis of the differences between small companies and their expectations from AMT would allow for the further development of tools to assist small manufacturers, as the advice given could be better tailored to individual needs. These differences between company needs may be revealed by further analysis of the case-study responses, perhaps through an iterative mode of analysis, breaking down the impacts into further categories (e.g. expected and unexpected benefits) for higher-level cross-case analysis. Such analysis should take greater advantage of the embedded quantitative results, as this has the potential to add aspects of triangulation to the qualitative enquiry. Whilst the quantitative data might be too sparse for any level of statistical significance, the results may provide a good starting point for further development that leads to future quantitative work.
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The focus of the development of the management maps in this thesis concentrated on understanding the management competencies of the company. However, the technology impact as a result of the management competencies is an important aspect of understanding the relationship between management and the potential of technology investment. Time constraints dictated that only one of the aspects could be further developed in depth through this study. Development of the technology impact aspect of the maps, in line with the original aims of Millward et al. (2005) is likely to be an important aspect of any further development of this work. The research data has the potential to better relate the results of the retrospective and longitudinal research phases. An important aspect of the longitudinal data gathering was the exploration of management competencies in terms of Knowledge, Innovation and Change, Resources, and Quality (KIRQ). The retrospective data was not examined in such terms, instead being gathered in a Time Series exploration of Planning, Impact, and Perceived Success Factors. However, the data gathered in the retrospective phase can be analysed in terms of management competencies. Table 12.1 presents alignment of the issues explored in the retrospective data gathering phase to the management competency data gathering themes. Factors of the management competency Related aspects of retrospective data gathering maps Knowledge Market and competitor awareness Experience with technology Consideration of strategy Innovation and Change Change champions and development commitment Development processes Operator resistance Internal and external support Technology cost Use of formal procedures Communication Development of competitive advantage
Table 12.1. Potential for extracting management competency data from retrospective study
Resources Quality
The purpose of the exploration of the limitations of the data analysis undertaken during this PhD study is to inform improved data analysis. The author intends to address these limitations as a precursor to additional work that will expand upon the results of this PhD research using the analytical design presented in the section below.
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3. DESIGN FOR FURTHER DATA ANALYSIS

The understanding of small company operations in relation to AMT investment gained from this study delivers a new level of knowledge with which to analyse the case studies. The basis for such further analysis is the discovery that companies may access a range of expected and unexpected impacts; and, that the severity of such impacts can be influenced by the intention to access either inherent or integrated benefits from technology. This knowledge can be used to separate case studies and benefits into different groups. Examination of the structured interview data to extract KIRQ scores for the case-study companies, together with classification of impacts provides the potential for the development of company profiles. Categorisation of the companies is this manner will provide a useful basis for the development of AMT implementation tools that recognise the differences between small manufacturing companies. Using this system the validity of the knowledge statements presented in the Conclusions chapter can be assessed for different profiles. It must be acknowledged that due to the limited number of cases presented in this study, agreement or disagreement with the statements for any of the profiles is unlikely to be robust. However, the exercise will be very useful for the development of hypotheses to be tested in further work. Presented in table 12.2 is a nine step plan for re-evaluation of the data with the aim of developing a tool to assist small companies in implementing AMT while acknowledging that different situations may require different advice.
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Stage 1. Data Grouping 2. Development of retrospective KIRQ scores 3. Development of profiles 4. Analysis 1: Statements
5. Analysis 2: Triangulation
6. Revision of statements 7. Longitudinal Case Analysis 8. Technology Impact 9. Implementation tool
Details Grouping of the impacts into expected and unexpected impacts and intentions into integrated system developments and inherent capability access Re-evaluation of captured data for the development of KIRQ score and presentation of management competency maps Use of the output of stages 1 and 2 for the development of company profiles for the assessment of likely AMT impact Assessment of each of the profiles against the statements: Support is more important than cost Companies are not using sophisticated analysis techniques Integrated systems require increased assessment of potential negative impact Companies are not evaluating operational impact of AMT Companies are not adequately developing internal support Compilation of quantitative results into data groupings Assessment of quantitative output against Analysis 1 Triangulation of each analytic output for validation or contradiction of findings with qualitative results Revision of statements as they best suit each of the developed profiles Assessment of cases to select appropriate profile Assessment of cases against appropriate set of statements Assessment of profiles against technology impact Development of predictive model of management KIRQ against potential impact of technology Development of a stages AMT implementation tool customised/targeted for each of the developed small company profiles
Table 12.2. Nine step data analysis plan
Figure 12.1 makes the iterative analysis of the design apparent through classification of the stages to data, analysis and development phases.
Fig. 12.1. Iterative data analysis
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The potential output of the new research design is an improved tool for assisting in small company technological innovation and a basis upon which to develop a framework for quantitative research that will test a number of predictive hypothetical statements regarding the likely impact of AMT in small companies.
4. FRAMEWORK FOR REVISED STUDY

The installation of new technology within a company for the purposes of introducing efficiencies, developing flexibility or improving output represents an innovative development. The research presented in this thesis demonstrates the complexity of issues associated with attempting to implement AMT. This is further acknowledged in the new research design presented above, which attempts to present a plan for separating the influence of particular issues for different companies. However, despite such complex relationships in the factors governing innovative potential; competition, technological developments and market expectations require companies to seek improvements in the effectiveness of such activities (Huang et al., 2002). In a review of the published literature regarding innovation, undertaken by Hoffman et al. (1998), the authors noted that many formal and structured approaches to innovation are inappropriate for SMEs. This view is supported by McAdam et al. (2004) who note that despite much literature having been generated that examines effective industrial innovation, very little of such literature focuses on how SMEs might improve their innovative capabilities. This section presents a framework for additional work that has the potential to build upon the empirical research of this PhD study by producing results that link the impacts of AMT on small companies to existing management theories. Within the realm of innovation research, much research has examined the impact of core capabilities. Leonard-Barton (1992) describes four aspects of core capabilities within companies: knowledge; technical systems; managerial systems; and, values and norms. Leonard-Barton argues that while core capabilities assist in innovation, the inherent association with change is bound to challenge aspects of such capabilities; therefore, the management of this paradox becomes a critical factor in successful innovation. In discussing the influence of different core capabilities on the success of NPD, Leonard-Barton indicates the importance of management values. These management values are shown to represent an aspect of the company that cannot easily be imitated by competitors as they are based on the imprint of company founders. The parallels between the core capabilities described by Leonard-Barton and the development of KIRQ maps for the assessment of management competencies and technology impact can be used to create a conceptual framework for investigating relationships in technological
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innovative development in small companies. Leonard-Barton stated that change was inherent in innovation. Planned for change can be viewed as a combination on input and output factors. Figure 12.2 presents a framework for investigating AMT driven innovation in terms of the relationships between input and output. The input factors are based on Knowledge and Resource competencies; the output is concerned with the relationship between these factors and their influence on Innovation and Quality.
Fig. 12.2. AMT driven change investigative framework
The framework is developed from the theoretical proposition that change is an inherent factor of innovation; and, that input competencies are related to output conditions in terms of further innovative ability and improvements in quality. Using such a framework for an investigation of the impact of AMT on small companies will assist in relating the output to wider research in the field of small company innovative development. Millward et al. overlaid technology impact in the KIRQ categories on top of a management assessment that also used KIRQ categories. This was used to present a visual map of technology impact. A particular limitation of this technique was a lack of understanding of the relationships that led to the observed impacts. Using the framework presented above, such limitations can be addressed. The KR input values and IQ output values above can be presented as before and after technology implementation values respectively. In order to achieve this, however, the innovation and quality scores of the management competency data gathering have to be incorporated into the Knowledge and Resources values. Within this framework it is assumed that prior to the innovative activity (AMT implementation), innovative ability is a factor of knowledge, and quality (product and process) is covered by both knowledge and company resources. Similarly, the additional knowledge gained through the innovative activity is a product of the innovation and change factor, and, the
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resources are incorporated into the ex post quality factor. Such an investigation into the impact of AMT in terms of the relationships between these competency factors will aid development of profiles as discussed in the research design presented above, and will therefore relate the results both to management theory (in terms of generating and testing new hypotheses on the relationships between competencies and technology impact) and present an assistive tool for small company use with increased validity.
5. FURTHER WORK
Within the discussion chapter and above, the limitations of this research were explored. Such limitations form a natural starting point for the exploration of possible further research initiatives that have the potential to support or expand upon the findings presented in this thesis. The focus of this thesis was on gaining an in-depth understanding of small company operation; therefore, the aims have not been to develop statistically significant findings. However, an acknowledged limitation of this is that although detailed, it is unknown to what degree the findings can be generalised across the wider body of small Welsh manufacturers and beyond. This presents a number of natural next-steps in terms of further research. Using the updated design presented above, the study might be repeated in other locations, both of similar and dissimilar industrial make-up to Wales. Such studies might assist in separating those issues that are cultural from those associated with the size of the companies under investigation. Another sensible development would be to use the results as the basis for a more quantitative survey based study that aims to test the findings of the thesis in a much wider capacity. Interesting results may also be obtained from revisiting the companies that took part in this study at some future point. Revisiting the longitudinal cases would provide interesting research in terms of the companies future utilisation of technology. From the research presented in this thesis there are particular opportunities for the development of further academic publications which will require some further research in preparation. The further development of the management maps, in line with the presented framework, via the management assessment questionnaire would benefit from the peer review associated with publication. In addition, the small company AMT implementation tool would benefit from publication as a precursor to a wider research study that aims to test and further develop such AMT implementation procedures in small companies. Exploration of the potential for funded research to test and further develop the implementation tool is the next intended activity of the author. This thesis has focussed on an assessment of the impact of AMT from a company perspective. Another interesting outcome that could be developed from the work could be the mechanisms by
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which third parties interact with small companies to assist and support AMT adoption. The impact of the vendor or other supporting party has been largely ignored throughout this thesis, except where company managers have expressed dissatisfaction with such support. In presenting a detailed understanding of the AMT experiences of small companies there is a significant opportunity to improve the effectiveness of the support bodies aiming to assist such technological development.
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Oakshott L. (2001) Essential Quantitative Methods for Business Management and Finance (2nd edition). Basingstoke: Palgrave Patton M.Q. (1990) Qualitative Evaluation and Research Methods (2nd edition). California: Sage Publications Rangone A. (1998) On the applicability of analytical techniques for the selection of AMTs in smallmedium sized firms. Small Business Economics, 10(3), 293 304 Saleh B., Hacker M. and Randhawa (2001) Factors in capital decisions involving advanced manufacturing technologies. International Journal of Operations & Production Management, 21(10), 1265 1288 Sarkis J. (1997) Evaluating flexible manufacturing systems alternatives using data envelopment analysis. The Engineering Economist, 43(1), 25 47 Schroder R. and Sohal A.S. (1999) Organisational characteristics associated with AMT adoption: Towards a contingency framework. International Journal of Operations & Production Management, 19(12), 1270 1291 Sethi A.K. and Sethi S.P. (1990) Flexibility in Manufacturing: A Survey. The International Journal of Flexible Manufacturing Systems, 2(4), 289 328 Sherer S.A., Kohli R. and Baron A. (2003) Complementary investment in change management and IT investment payoff. Information Systems Frontiers, 5(3), 321 333 Small M.H. (1999) Assessing manufacturing performance: an advanced manufacturing technology portfolio perspective. Industrial Management & Data Systems, 99(6), 266 277 Small M.H. (1998) Objectives for adopting advanced manufacturing systems: promise and performance. Industrial Management & Data Systems, 98(3), 129 137 Small M.H. (2006) Justifying investment in advanced manufacturing technology: a portfolio analysis. Industrial Management & Data Systems, 106(4), 485 508 Sohal A.S. (1996) Assessing AMT implementations: an empirical field study. Technovation, 16(8), 377 383 Sohal A.S., Burcher P.G., Millen R. and Lee G. (1999) Comparing American & British practices in AMT adoption. Benchmarking: An International Journal, 6(4), 310 324
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REFERENCES
Sohal A.S., Schroder R., Uliana E.O. and Maguire W. (2001) Adoption of AMT by South African manufacturers. Integrated Manufacturing Systems, 12(1), 15 34 Spina G., Bartezzaghi E., Bert A., Raffaella C., Draaijer D. and Boer H. (1996) Strategically flexible production: the multi-focused manufacturing paradigm. International Journal of Operations & Production Management, 16(11), 20 41 Swmidass P.M. and Kotha S. (1998) Explaining manufacturing technology use, firm size and performance using a multidimensional view of technology. Journal of Operations Management, 17(1), 23 37 Tantoush T. and Clegg S. (2001) CADCAM integration and the practical politics of technological change. Journal of Organizational Change Management, 14(1), 9 27 Taskinen T. and Smeds R. (1999) Measuring change project management in manufacturing. International Journal of Operations & Production Management, 19(11), 1168 1187 Udo G.J. and Ehie I.C (1996a) Critical success factors for advanced manufacturing systems. Computers and Industrial Engineering, 31(1/2), 91 94 Udo G.J. and Ehie I.C. (1996) Advanced manufacturing technologies: Determinants of implementation success. International Journal of Operations & Production Management, 16(8), 6 26 U.S. Small Business Administration (2007) Table of small business size standards matched to North American industry classification system codes. [Online] http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf Voss C., Tsikriktsii N. and Frohlich M. (2002) Case research in operations management. International Journal of Operations and Production Management, 22(2), 195 219 Yin R.K. (2003) Case Study Research: Design and Methods (3rd edition). California: Sage Publications Youssef M.A. (1992) Getting to know Advanced Manufacturing Technologies. Industrial Engineering, 24(2), 40 42
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APPENDIX A
The following pages present the data captured during structured interviews in the retrospective stage of the research. Table A.1 below provides details of the positions of the interviewees and the date and length of the interviews. Company A B C D E F G H I J Interviewee Technical Director Developments Manager Managing Director Managing Director Technical Manager Owner/Managing Director Managing Director Owner/Managing Director Owner/Managing Director Owner/Managing Director Date 16 April 2004 6 August 2004 9 August 2004 7 September 2004 20 September 2004 21 September 2004 24 January 2005 10 February 2005 12 July 2005 12 July 2005 Length of Interview (to nearest hour) 2 hours 2 hours 2 hours 4 hours 2 hours 3 hours 2 hours 2 hours 3 hours 2 hours
Table A.1. Details of the retrospective stage interviews
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Case Study Date No. of employees Turnover AMT discussed
A 16 April 2004 200 19m Laser Cutter
Planning for AMT The purpose of this section of questions is to determine: What do small companies wish to gain from AMT implementation; what processes do they go through to justify AMT implementation; and, how do they select appropriate technologies? Was there a set planning stage prior to AMT investment? How long was the planning stage? Yes
6 months not continuous, delays from other business issues
What were the perceived benefits of AMT implementation? Speed of cutting Accuracy Intricacy variation of shape Following the decision to implement an AMT, were formal assessment techniques used to select the most appropriate AMT in which to invest? (E.g. the development of a specification that the technology must meet) Yes
Yes In any assessment of different AMTs were both the quantitative and qualitative factors of the technologies considered? Comments: Minimum specification levels set for Quantitative data. E.g. speed, thickness of cut, compatibility Qualitative indicators included reputation of the supplier, experience, evaluating the benefits achieved by other users of the considered equipment Were multiple appraisal techniques implemented? Yes How many appraisal techniques were used? 2 Can any of the assessment techniques used be named? e.g. Discounted Cash Flow (DCF), Multi Attribute Decision Making (MADM), Other 1. Evaluation of capital expenditure 2. Business justification for the technology (appears to be an informal version of the examples given) 3. 4.
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Counter skill deficiency Not important 3 1 2 Counter competitive threat Not important 1 2 3 Obtain financial benefits Not important 1 2 3 Enhance company image Not important 2 3 1 Obtain competitive advantage Not important 1 2 3 Other reason (state): Improve Quality Not important 1 2 3 Other reason (state): Flexibility Not important 1 2 3
4 4 4 4
5 5
5 5 5 5
4 4 4
Which of the following were drivers for AMT implementation? Availability of new technology Not a Driver Driver Response to market conditions Not a Driver Driver Entrepreneurial decision Driver Not a Driver Other factor (state): Perceived need to stay Not a Driver Driver one step ahead of competition Which of the above was most important to Market conditions and need to your company? stay ahead
Vendor Support
Not important
System Cost
Not important
1 2 3 4 5 Manufacturing Flexibility Not important 4 5 1 2 3 Technical and Management Support Not important 1 2 3 4 5 Other reason (state): user friendly from shop floor point of view Not important 1 2 3 4 5 Other reason (state): Not important 1 2 3 4 5 Were external parties used to aid the implementation of AMT? Technology Vendor (or agent) Independent Consultant University Other (please state)
Yes X
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Operational Impact of AMT Have the AMT implementations in which you have been involved generally led to significant improvements in overall competitiveness? No
Comments: Accuracy of parts caused difficulties in te accuracy implemented during downstream processing
Very dissatisfied
Very satisfied
Comments: After problems were overcome the results were that the benefits outweighed the costs. Did not get full anticipated benefit due to unforeseen costs that resulted largely from reduced constraints placed on designers which in turn led to increased complexity of parts
No
Comments: Concurrent use of old and new technology i.e. phase in-phase out made possible due to space resources
Yes Yes
Comments: Users had to be trained

Yes
Comments: Indirect cost: an additional (fractional) CAD/CAM operator; extra cover (transfer of cost and reduction of capacity in drawing office) Training courses: once skilled operators required an increase in salary
Yes Y/N
Comments: In a subtle way: once designers realised capability, i.e. designers prepared quotations for products they wouldnt otherwise have done.
Comments: Only a small percentage in the end had to implement design constraints due to impact on downstream mamnufacturing
Y/N
Comments: Increased ability to produce complex parts caused nesting problems and increased work load for CAD/CAM operator. Further AMT investment required to solve this bottleneck (further CAD investment to efficiently nest complex shapes & additional fractional operator required More consumables required (cutting gases) which required significant investment in pipework, storage and logistics
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Yes
Identification of driving force: Works manager he saw this as a big technological step forward, the project was his baby. Perhaps not enough regard for the full consequences because historically the company had a good relationship with technology investment.
Yes Yes
Comments: Their skill and resultant pay increase/ more valuable in the labour market. Prior to implementation they were told that this would make their jobs safer as the company would be stronger
Yes
Comments: as above
Prior to implementation, were both management and operators commited to AMT development? (Tick all that apply)
Management Operators
Committed X X
Neutral
Opposed
Yes
Consideration of company manufacturing strategy Not important 1 2 3 4 5 Evaluation of the competitive environment Not important 1 2 3 4 5 Economic evaluation Not important 1 2 3 4 5 Involvement of production operators Not important 1 2 3 4 5 Communication (inter-departmental / management-shop floor) Not important 1 2 3 4 5 Other reason (state): Not important 1 2 3 4 5
Yes
Comments:
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APPENDIX A
Further information gained through the interview: The interviewee described a scenario in which maybe the wrong technology was selected (opinion of the interviewee). The interview discussed the replacement of an old, breaking down CNC punch with laser cutting technology. The increased flexibility afforded to the drawing office resulted in more complex shapes which resulted in a bottleneck at the nesting stage. As a result an extra fractional position was required to aid the operator in completing the nesting operation. In addition, the tightened tolerances of using a laser as opposed to CNC punching led to problems for the welders, who were unused to working to such tight tolerances. Post-analysis by the interviewee led the respondent to the opinion that investment in an updated CNC punch would have led to many of the required benefits while remaining closer to the core skills of the company.
208
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B 6 August 2004 130 9m MRP II (main) CNC; CAD/CAM; Vision Systems; Robotics
Planning for AMT The purpose of this section of questions is to determine: What do small companies wish to gain from AMT implementation; what processes do they go through to justify AMT implementation; and, how do they select appropriate technologies? Was there a set planning stage prior to AMT investment? How long was the planning stage? 6 months 2 years Yes
What were the perceived benefits of AMT implementation? Economic Improvement (Robotics) Control Improvement (MRP II) Knowledge Improvement (MRP II) Quality and Consistency (CNC; CAD/CAM; Vision Systems; Robotics) Following the decision to implement an AMT, were formal assessment techniques used to select the most appropriate AMT in which to invest? (E.g. the development of a specification that the technology must meet) Yes
In any assessment of different AMTs were both the quantitative and No qualitative factors of the technologies considered? Comments: Typically looking for quantitative benefits (exception being MRP II). Found it difficult to assess the qualitative benefits (main benefits) of MRP II. Were multiple appraisal techniques implemented? No How many appraisal techniques were used? Can any of the assessment techniques used be named? e.g. Discounted Cash Flow (DCF), Multi Attribute Decision Making (MADM), Other 1. Financial Modelling 2. 3. 4.
209
APPENDIX A
Counter skill deficiency Not important 1 2 3 Counter competitive threat Not important 1 2 3 Obtain financial benefits Not important 1 2 3 Enhance company image Not important 2 3 1 Obtain competitive advantage Not important 1 2 3 Other reason (state): reducing quality issues Not important 1 2 3 Other reason (state): Not important 1 2 3
4 4
4 4 4 4 4
5 5
5
5
5 5
5
Which of the following were drivers for AMT implementation? Availability of new technology Driver Not a Driver Response to market conditions Not a Driver Driver Entrepreneurial decision Driver Not a Driver Other factor (state): continuous improvement Not a Driver Driver Which of the above was most important to CI better quality, lower price your company?
Vendor Support
Not important
2 2
3 3
4 4
5
5 5 5
System Cost
Not important
Manufacturing Flexibility Not important 1 2 3 Technical and Management Support Not important 1 2 3 Other reason (state): cost benefit Not important 1 2 3 Other reason (state): Not important 1 2 3
4 4
4 4
5
5
Were external parties used to aid the implementation of AMT? Technology Vendor (or agent) Independent Consultant University Other (please state)
Yes X X
210
APPENDIX A
Comments: With exception of MRP II
Yes
Very dissatisfied
Very satisfied
Comments: Above refers to MRP II Rest = 4

Yes
Comments: Resistance to change in MRP II Short Medium term capacity in technology staff (learning curve) Discovery of latent bugs short term quality issues and costs
Yes Yes
Comments: Extensive training needed

Yes
Comments: Unskilled labour became semi-skilled (salary increase)

Yes Yes
Comments: increased capability led to more interest form market

Comments:
No
Comments: All company technology implementation programmes costed with a 25% contingency budget
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Yes
Dedicated champion
No Yes
Comments: Always kept workers up to date with financial and strategic business plan. Open visual management
Yes
Comments: as above
Committed X
Neutral X
Opposed
Yes
Consideration of company manufacturing strategy Not important 1 2 3 4 5 Evaluation of the competitive environment Not important 2 3 4 5 1 Economic evaluation Not important 1 2 3 4 5 Involvement of production operators Not important 1 2 3 4 5 Communication (inter-departmental / management-shop floor) Not important 2 3 4 5 1 Other reason (state): communications with customers Not important 1 2 3 4 5
Yes
Comments: Company performance statistics show results
213
APPENDIX A
Further information gained through the interview: The interviewee described that in the automotive trade discussions are held with customers and not suppliers, and that the workforce is seen as a supplier and therefore should not influence strategic technology decisions.
214
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C 9 August 2004 47 1.7m 5 axis CNC; CAD/CAM; Phenolic processing technology
Planning for AMT The purpose of this section of questions is to determine: What do small companies wish to gain from AMT implementation; what processes do they go through to justify AMT implementation; and, how do they select appropriate technologies? Was there a set planning stage prior to AMT investment? How long was the planning stage? Not specified Yes
What were the perceived benefits of AMT implementation? Improve client communications Improve development times Improve product quality Competitive advantage Enhance company image Access new markets Following the decision to implement an AMT, were formal assessment techniques used to select the most appropriate AMT in which to invest? (E.g. the development of a specification that the technology must meet) Yes
In any assessment of different AMTs were both the quantitative and No qualitative factors of the technologies considered? Comments: Costs were considered and the suitability of the CAD/CAM for the companys needs. It was assumed that Qualitative factors such as quality of products would increase Were multiple appraisal techniques implemented? Yes How many appraisal techniques were used? Can any of the assessment techniques used be named? e.g. Discounted Cash Flow (DCF), Multi Attribute Decision Making (MADM), Other 1. SWOT analysis for CAD 2. Matrix of possible solutions with costs etc. 3. 4.
215
APPENDIX A
Counter skill deficiency Not important 3 4 5 1 2 Counter competitive threat Not important 5 1 2 3 4 Obtain financial benefits Not important 1 2 3 4 5 Enhance company image Not important 5 1 2 3 4 Obtain competitive advantage Not important 5 1 2 3 4 Other reason (state): enhancing quality of products (USP) Not important 5 1 2 3 4 Other reason (state): Not important 1 2 3 4 5
Which of the following were drivers for AMT implementation? Availability of new technology Driver Not a Driver Response to market conditions Not a Driver Driver Entrepreneurial decision Not a Driver Driver Other factor (state): continuous improvement Driver Not a Driver Which of the above was most important to Response to market your company? conditions and improve competitiveness
Vendor Support
Not important
5 5
5 5 5
System Cost
Not important
1 2 3 4 Manufacturing Flexibility Not important 1 2 3 4 Technical and Management Support Not important 1 2 3 4 Other reason (state): university support Not important 1 2 3 4 Other reason (state): resultant product quality Not important 1 2 3 4
Yes X X X
216
APPENDIX A
Operational Impact of AMT Have the AMT implementations in which you have been involved generally led to significant improvements in overall competitiveness? Yes
Comments: CAD/CAM link meant that we could produce very high quality mouldings (phenolics) that our competitors couldnt, and it won us our first contracts Not many foundries have CAD(&CAM). This vastly improved our communication with design consultants etc. who use the technology
Very dissatisfied
Very satisfied
Comments: With backing from other managers this could have been even more effective. E.g if time for development was given for using the CAM to make patterns then this could have increased tooling capacity and reduced reliance on external sub-contractors
Yes
Comments: Short-term firefighting work took key personnel away from CAM development work
Yes Yes
Comments: In house training for phenolic moulding technology. Very little time spent on appropriate CAD training
No
Comments: TCS programme helped subsidise CAD/CAM, along with back-up from university for CAM and other training
Yes Yes
Comments:
Comments: New phenolic contracts won as a direct result of technology (especially due to increased communication through CAD/CAM). However, internal politics often prevented realisation in other parts of the company.
No
Comments:
217
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218
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Yes
Different individual championed different technologies

No No
Comments: Technology implementation a purely managerial decision

Yes
Comments:
Varied (politics)
Committed X (MD)
Neutral
Opposed X (other co. mgmt)
No
Consideration of company manufacturing strategy Not important 1 2 3 4 5 Evaluation of the competitive environment Not important 5 1 2 3 4 Economic evaluation Not important 1 2 3 4 5 Involvement of production operators Not important 1 2 3 4 5 Communication (inter-departmental / management-shop floor) Not important 5 1 2 3 4 Other reason (state): keeping stakeholders informed of progress Not important 1 2 3 4 5
219
APPENDIX A
Comments: Varied commitment from managers; there was some support for the phenolics plant. The nature of the TCS kept development of CAD/CAM in check. However, often managers were distracted by firefighting and their customers so did not keep up support for technology. Not much support from workers in foundry; in phenolics there was initially support from workers, but political aspects of development reduced commitment over time.
Further information gained through the interview: Communication and political divisions between phenolics and casting divisions are having a negative impact on the development of the business as a onestop solution for mass-transport customers.
220
APPENDIX A
D 7 September 2004 74 4m CAD/CAM; HSM; Wire erosion; autospark erosion
Planning for AMT The purpose of this section of questions is to determine: What do small companies wish to gain from AMT implementation; what processes do they go through to justify AMT implementation; and, how do they select appropriate technologies? Was there a set planning stage prior to AMT investment? How long was the planning stage? 6 months Yes
What were the perceived benefits of AMT implementation? Lower labour costs Increased capacity Competitive edge Better quality Better customer service Following the decision to implement an AMT, were formal assessment techniques used to select the most appropriate AMT in which to invest? (E.g. the development of a specification that the technology must meet) No
In any assessment of different AMTs were both the quantitative and Yes qualitative factors of the technologies considered? Comments: Quality aspects were paramount. It was very important to improve the quality of existing machines in order to provide excellent quality and customer service improvements. Were multiple appraisal techniques implemented? No How many appraisal techniques were used? Can any of the assessment techniques used be named? e.g. Discounted Cash Flow (DCF), Multi Attribute Decision Making (MADM), Other 1. 2. 3. 4.
221
APPENDIX A

Not important
3 3
4 4 4
Counter competitive threat Not important 1 2 Obtain financial benefits Not important 1 2 Enhance company image Not important 1 2 Obtain competitive advantage Not important 1 2 Other reason (state): Not important 1 2 Other reason (state): Not important 1 2
5
5 5
3
3 3 3 3
4
4 4 4
5
5 5
Which of the following were drivers for AMT implementation? Availability of new technology Driver Response to market conditions Driver Entrepreneurial decision Driver Other factor (state): Driver Which of the above was most important to your company?
Not a Driver
Not a Driver
Not a Driver
Not a Driver
Vendor Support
Not important
4 4 4 4 4 4
5
5
System Cost
Not important
2 3 1 Manufacturing Flexibility Not important 1 2 3 Technical and Management Support Not important 1 2 3 Other reason (state): Not important 1 2 3 Other reason (state): Not important 1 2 3
5 5
5 5
Yes X X
222
APPENDIX A
Comments:
Yes
Very dissatisfied
Very satisfied
Comments: Never absolutely fulfils your anticipation, there are always some downsides, i.e. cost of failure is always higher. i.e. reap the benefits 95% of the time, but take a thumping when things go wrong.
Yes
Comments: Have to walk before you can run. Sometimes have to stop, especially during learning curve. Training, the entry price and juggling are things that need to be considered.
Yes Yes
Comments:
Yes
Comments: High cost for training. Not a salary impact as all skilled workers already due to AMT background.
Yes Yes
Comments: new deal with an overseas aerospace company

Comments: Initially yes, but external factors led to the loss of the contract. However, another contract that will utilise AMT is in development
Yes
Comments: Its never possible to understand the full ramifications especially in terms of power consumption and site services, training requirements. Also, its difficult to benchmark your performance, especially in terms of qualitative factors, assessing the additional competitive advantage over competitors.
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Yes
MD first, then encourage ownership from the shop floor team leader selected from the shop floow
Yes Yes
Comments: Change agent in the team (selected from viewing the workforce) Asking the opinions of workers Finding out what the workers think would be good for the company
Yes
Comments: As engineers, they grasp the implications before any need to impose it on them An AMT culture in this firm allows the workers to identify with the benefits for them. i.e. taking out the disliked parts of the job.
Committed X X
Neutral
Opposed
Yes
Yes
Comments:
225
APPENDIX A
Further information gained through the interview: MD indicated a perceived importance of previous experience on the successful implementation of technology. Experience of first auto-spark erosion was a valuable experience in terms of knock on effect of AMT introduction. E.g. in the development of lights out manufacture there is increased planning
requirements and therefore pressure on workers. The MD found that often younger operators take to technology easier, but there is downfalls then due to mistakes through lack of experience.
226
APPENDIX A
E 20 September 2004 83 6.5m Pick and Place Automation
What were the perceived benefits of AMT implementation? Increased efficiency Labour reduction Reliability (elimination of human error) Quality Speed Increased flexibility Following the decision to implement an AMT, were formal assessment techniques used to select the most appropriate AMT in which to invest? (E.g. the development of a specification that the technology must meet) Yes
In any assessment of different AMTs were both the quantitative and Yes qualitative factors of the technologies considered? Comments: Measuring against human performance. Assessment of costs of different systems Were multiple appraisal techniques implemented? No How many appraisal techniques were used? Can any of the assessment techniques used be named? e.g. Discounted Cash Flow (DCF), Multi Attribute Decision Making (MADM), Other 1. 2. 3. 4.
227
APPENDIX A

Not important Not important
1 1
2 2
3 3
4 4
5 5 5 5 5
Counter competitive threat Obtain financial benefits Not important 1 2 3 Enhance company image Not important 3 1 2 Obtain competitive advantage Not important 3 1 2 Other reason (state): increase production Not important 1 2 3 Other reason (state): quality/repeatability Not important 1 2 3
4
4 4 4 4
5 5
Which of the following were drivers for AMT implementation? Availability of new technology Driver Not a Driver Response to market conditions Not a Driver Driver Entrepreneurial decision Driver Not a Driver Other factor (state): quality/productivity Not a Driver Driver Which of the above was most important to quality/productivity your company?
Vendor Support
Not important
5 5 5 5
5 5
System Cost
Not important
1 2 3 4 Manufacturing Flexibility Not important 1 2 3 4 Technical and Management Support Not important 1 2 3 4 Other reason (state): obtain competitive advantage Not important 1 2 3 4 Other reason (state): Not important 1 2 3 4
No
228
APPENDIX A
Comments: More efficient which has cut costs
Yes
Very satisfied
No
Comments: Off-site training, concurrent implementation, very few teething problems

Yes Yes
Comments: 2 day off site course

No
Comments: Not a significant impact more skill = more pay, but less labour required
Yes No
Comments: Opportunity of contract work, but not really explored this further
Comments:
No
Comments: Further investment could improve the efficiency further, but this is not a planned investment at the moment as its not seen as that important
229
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230
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Yes
Purchasing/Production/Engineering
Yes Yes
Comments: Told there would be no job losses (this was then seen to be correct)
Yes
Comments: Team-work approach

Committed X X
Neutral
Opposed
Yes
Consideration of company manufacturing strategy Not important 1 2 3 4 5 Evaluation of the competitive environment Not important 3 4 5 1 2 Economic evaluation Not important 1 2 3 4 5 Involvement of production operators Not important 1 2 3 4 5 Communication (inter-departmental / management-shop floor) Not important 4 5 1 2 3 Other reason (state): Preparation and correct selection Not important 1 2 3 4 5
Yes
Comments: May invest in new testing equipment and placing equipment for the future
231
APPENDIX A
F 21 September 2004 22 800K Laser cutter (main); CAD/CAM
Planning for AMT The purpose of this section of questions is to determine: What do small companies wish to gain from AMT implementation; what processes do they go through to justify AMT implementation; and, how do they select appropriate technologies? Was there a set planning stage prior to AMT investment? How long was the planning stage? 4 month Yes
What were the perceived benefits of AMT implementation? Profit Quality In order to compete To re-invest in the business To gain prestigious work To enter new markets Following the decision to implement an AMT, were formal assessment techniques used to select the most appropriate AMT in which to invest? (E.g. the development of a specification that the technology must meet) Yes
In any assessment of different AMTs were both the quantitative and Yes qualitative factors of the technologies considered? Comments: CAD?CAM massively increases the quality and time as all aspects of a piece of work can be checked in the virtual environment Were multiple appraisal techniques implemented? No How many appraisal techniques were used? Can any of the assessment techniques used be named? e.g. Discounted Cash Flow (DCF), Multi Attribute Decision Making (MADM), Other 1. 2. 3. 4.
232
APPENDIX A
Counter skill deficiency Not important 1 2 3 4 Counter competitive threat Not important 1 2 3 4 Obtain financial benefits Not important 1 2 3 4 Enhance company image Not important 4 1 2 3 Obtain competitive advantage Not important 1 2 3 4 Other reason (state): moving the company forward Not important 1 2 3 4 Other reason (state): Not important 1 2 3 4
5 5
5 5
5 5
5
Which of the following were drivers for AMT implementation? Availability of new technology Driver Response to market conditions Driver Entrepreneurial decision Driver Other factor (state): quality/productivity Driver Which of the above was most important to your company?
Vendor Support
Not important
4 4 4 4 4 4
5 5 5 5
5 5
System Cost
Not important
Yes X
233
APPENDIX A
Comments:
Yes
Very dissatisfied
Very satisfied
Comments: Originally chose the wrong personnel to run the machine. Difficulties with technical support charges
Yes
Comments: Expensive period due to the necessary use of external sub-contractors during this period
Were existing staff able to operate the new technology
No
Brought in new staff to install the technology

Was there a requirement for new expertise from the labour force following implementation?
Yes
Comments: A lot of in-house training from the new expert brought into the company plus some vendor training
Yes
Comments: Employees paid more after training

Yes
Comments: Not initially, technology used to bring in-house previously sub-contracted work. Later the company developed a new aspect of the business that used the new technology (laser cutter)
Yes
Comments:
Yes
Comments: Running costs much higher than expected resulting in old technology (punching) being used on some work as cheaper to run and less expensive to maintain
234
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APPENDIX A

Yes
MD and the new expert

No Yes
Comments: Singing the praises of the new equipment. The example of the MD putting his faith in the machine
Yes
Comments:
Committed X X
Neutral
Opposed
Yes
Consideration of company manufacturing strategy Not important 1 2 3 4 5 Evaluation of the competitive environment Not important 1 2 3 4 5 Economic evaluation Not important 4 5 1 2 3 Involvement of production operators Not important 1 2 3 4 5 Communication (inter-departmental / management-shop floor) Not important 1 2 3 4 5 Other reason (state): Preparation and correct selection Not important 1 2 3 4 5
Yes
Comments: Helped to resolve resource restrictions that were preventing the company from developing as it wanted to.
236
APPENDIX A
Further information gained through the interview: Although vendor support was perceived to be very important; the company was disappointed with the levels of support that they actually received from the vendor. The MD believed that the company has invested more in technology over the last 2-3 years than it had in the previous 20 years.
237
APPENDIX A
G 24 January 2005 22 1m Planned tread-rolling and CNC turning (main); Wire Erosion; CAD/CAM
Planning for AMT The purpose of this section of questions is to determine: What do small companies wish to gain from AMT implementation; what processes do they go through to justify AMT implementation; and, how do they select appropriate technologies? Was there a set planning stage prior to AMT investment? How long was the planning stage? 2 years Yes
What were the perceived benefits of AMT implementation? New business Remain competitive Reduction of labour components Following the decision to implement an AMT, were formal assessment techniques used to select the most appropriate AMT in which to invest? (E.g. the development of a specification that the technology must meet) No
In any assessment of different AMTs were both the quantitative and Yes qualitative factors of the technologies considered? Comments: Evaluate different competitors against each other (from specified turned parts). Therefore, qualitative analysis from output parts; in addition to quantitative considerations (speed, tolerances etc.) Were multiple appraisal techniques implemented? No How many appraisal techniques were used? Can any of the assessment techniques used be named? e.g. Discounted Cash Flow (DCF), Multi Attribute Decision Making (MADM), Other 1. 2. 3. 4.
238
APPENDIX A

Not important
2 3 4 Counter competitive threat - overseas Not important 1 2 3 4 Obtain financial benefits Not important 1 2 3 4 Enhance company image Not important 1 2 3 4 Obtain competitive advantage Not important 1 2 3 4 Other reason (state): company technical ability Not important 1 2 3 4 Other reason (state): Not important 1 2 3 4
5
5 5
5 5
5
Which of the following were drivers for AMT implementation? Availability of new technology Driver Not a Driver Response to market conditions Driver Not a Driver Entrepreneurial decision Not a Driver Driver Other factor (state): Driver Not a Driver Which of the above was most important to Entrepreneurial decision your company?
Vendor Support
Not important
5
5
System Cost
Not important
1 2 3 Manufacturing Flexibility Not important 1 2 3 Technical and Management Support Not important 1 2 3 Other reason (state): quality Not important 1 2 3 Other reason (state): Not important 1 2 3
4
4 4 4 4
5 5 5
5
No
239
APPENDIX A
Comments:
Yes
Very satisfied
Yes
Comments: Training often 2-3 months of problems i.e. meeting short term deliveries plus having time to learn to use the machine properly
Yes
This is helped by the companys previous experience of technology. Did buy in someone new for wore erosion as this was a totally new technology for the company.
Yes
Comments: New training (production, evaluation techniques)

Yes
Comments: Yes as efficiency drops while learning. Not a salary impact as already using a skilled workforce.
Yes
Comments: Driven by new business opportunity. Actively looking for further opportunities to exploit new technology. New business opportunities for wire erosion, as the technology quickly became the standard production route in the tool room. Also the CNC has replaced certain skills
Yes
Comments: In progress for tread rolling. Wire erosion became vital as traditional toolmaking skills are disappearing. People that have adopted the new technology from old skills are more flexible and can apply their knowledge better.
No
Comments: We do enough analysis to understand all expected costs.
240
APPENDIX A
-------------------------------------------------
Best possible
------------------------------------------------- -------------------------------------------------
Worst possible
Before After
------------------------------------------------- -------------------------------------------------
Best possible
Labour costs
------------------------------------------------- -------------------------------------------------
Best possible
Lead times
------------------------------------------------- -------------------------------------------------
Best possible
Customer complaints
------------------------------------------------- -------------------------------------------------
Best possible
Before After
Unit costs
Worst possible
------------------------------------------------- -------------------------------------------------
Best possible
------------------------------------------------- -------------------------------------------------
Best possible
Product quality
------------------------------------------------- -------------------------------------------------
Best possible
------------------------------------------------- -------------------------------------------------
Best possible
-------------------------------------------------
Best possible
241
APPENDIX A

Yes
Management consensus avoids political disputes

No Yes
Comments: Find out who is comfortable with running the technology. Find the operator with the right technical skills, toolmaking skills and temperament.
Yes
Comments: Communicate as part of the quality objectives

Management Operators understand that they are improving skills
Committed X X
Neutral
Opposed
Yes
Yes
Comments:
242
APPENDIX A
Further information gained through the interview: In winning the tread rolling contract the company is committing to a strategic change in moving away from small batch production to medium volume production. In order to do this the company brought in the Governments Manufacturing Advisory Service. This help was very instrumental in winning the contract as it demonstrated how fully opening up accounts to the potential customer could demonstrate ways of being competitive over an overseas competitor. It also helped us to see how we could commit to price-down components over subsequent years of delivery.
243
APPENDIX A
H 10 February 2005 5 140K CAD/CAM; Vertical Turning Centre (main)
Planning for AMT The purpose of this section of questions is to determine: What do small companies wish to gain from AMT implementation; what processes do they go through to justify AMT implementation; and, how do they select appropriate technologies? Was there a set planning stage prior to AMT investment? How long was the planning stage? 3 weeks (pushed by opportunity) Yes
What were the perceived benefits of AMT implementation? Competitive advantage New business Enhance company image Business growth Following the decision to implement an AMT, were formal assessment techniques used to select the most appropriate AMT in which to invest? (E.g. the development of a specification that the technology must meet) In any assessment of different AMTs were both the quantitative and qualitative factors of the technologies considered? Comments: Cycle times, dimensions, tolerances proved by supplier Proofing on actual product On site training from supplier engineers Yes
Yes
Were multiple appraisal techniques implemented? No How many appraisal techniques were used? Can any of the assessment techniques used be named? e.g. Discounted Cash Flow (DCF), Multi Attribute Decision Making (MADM), Other 1. 2. 3. 4.
244
APPENDIX A
Counter skill deficiency Not important 1 2 3 Counter competitive threat - overseas Not important 1 2 3 Obtain financial benefits Not important 1 2 3 Enhance company image Not important 1 2 3 Obtain competitive advantage Not important 1 2 3 Other reason (state): business growth Not important 1 2 3 Other reason (state): Not important 1 2 3
4 4
5 5 5
5
4 4
4 4 4
5 5
5
Vendor Support
Not important
4 4
5
5 5
System Cost
Not important
4
4 4 4
5
5 5
No
245
APPENDIX A
Comments:
No
Very satisfied
Yes
Comments: Conflict against using the machine for purposes other than what the machine was bought for (i.e. requirement of shifts etc.)
Yes
Might have to bring in more unskilled operators as business grows

Yes
Comments: Training ongoing with regards to CAD and new machine.

Yes
Comments: Impact as in training swallows production time. Learning curve impact. As staff become better trained they will earn more money. This development is part of the company strategy so that current employees will end up supervising new employees and technology.
No
Comments: The AMT was installed in response to a new business opportunity; therefore, not developed opportunities yet, but have a marketing campaign based around the opportunity. Use and marketing of the machine is part of the company strategy to get potential customers interested in the company.
No
Comments: Not yet

Yes
Comments: Tooling costs much higher. Installation costs were very expensive (much higher than anticipated). Swarf disposal has not yet been factored (potentially very expensive). Purchase of fork lift not yet factored.
246
APPENDIX A
-------------------------------------------------
Best possible
------------------------------------------------- -------------------------------------------------
Worst possible
Before After
------------------------------------------------- -------------------------------------------------
Best possible
Labour costs
------------------------------------------------- -------------------------------------------------
Best possible
Lead times
------------------------------------------------- -------------------------------------------------
Best possible
Customer complaints
------------------------------------------------- -------------------------------------------------
Best possible
Before After
Unit costs
Worst possible
------------------------------------------------- -------------------------------------------------
Best possible
------------------------------------------------- -------------------------------------------------
Best possible
Product quality
------------------------------------------------- -------------------------------------------------
Best possible
------------------------------------------------- -------------------------------------------------
Best possible
-------------------------------------------------
Best possible
247
APPENDIX A

Yes
Driven by the MD
Yes Yes
Comments: Involved in discussions with sales reps Good communication with work force
Yes
Comments: Aware of benefits to themselves

Committed X X
Neutral
Opposed
Yes
Yes
Comments:
248
APPENDIX A
I 12 July 2005 13 750K CAD/CAM; HSM
Planning for AMT The purpose of this section of questions is to determine: What do small companies wish to gain from AMT implementation; what processes do they go through to justify AMT implementation; and, how do they select appropriate technologies? Was there a set planning stage prior to AMT investment? How long was the planning stage? 5-6 months Yes
What were the perceived benefits of AMT implementation? Bring in sub-contracted work Better quoting More control over delivery of work Communication (technological) with customers Following the decision to implement an AMT, were formal assessment techniques used to select the most appropriate AMT in which to invest? (E.g. the development of a specification that the technology must meet) In any assessment of different AMTs were both the quantitative and qualitative factors of the technologies considered? Comments: Examined various machines; advice from experienced users No
Yes
Were multiple appraisal techniques implemented? No How many appraisal techniques were used? Can any of the assessment techniques used be named? e.g. Discounted Cash Flow (DCF), Multi Attribute Decision Making (MADM), Other 1. 2. 3. 4.
249
APPENDIX A
Counter skill deficiency Not important 1 2 3 Counter competitive threat - overseas Not important 1 2 3 Obtain financial benefits Not important 1 2 3 Enhance company image Not important 1 2 3 Obtain competitive advantage Not important 1 2 3 Other reason (state): survival Not important 1 2 3 Other reason (state): Not important 1 2 3
4 4 4 4 4 4 4
5 5 5 5 5 5
5
Vendor Support
Not important
5
5
System Cost
Not important
4
4
5
5 5 5
4
4 4
Yes
250
APPENDIX A
Operational Impact of AMT Have the AMT implementations in which you have been involved generally led to significant improvements in overall competitiveness? Yes
Comments: Being able to tender for more jobs; increased technical competence over time; competitive advantage (especially over manual manufacturers) on price and speed; increased manufacturing flexibility; reducing lead times.
Very dissatisfied
Very satisfied
Comments: That the machine didnt do what it said on the tin reduced overall satisfaction; some unreliable issues on the controller (esp. in terms of compound curves). Issues getting the vendor to resolve problems, with the vendor wanting to charge 7K for a postprocessor. However, AMT still important, and we perhaps wouldnt still be in business without it.
Yes
Comments: Trying to assign the best route to meet delivery needs inexperienced on new machine but still need to assess the nest manufacturing route. We forced learning by taking on contracts that could only be achieved with the new technology.
Yes Yes
Comments: Re-training alleviating redundancy fears Lots of operators worried about the impact of AMT Communications with staff as they were unsure if they could use the new technology and get required results venturing into the unknown.
Yes
Comments: A few staff became more expensive not a major impact Some political workforce problems as the higher trained operators get paid more than the other workers
Yes
Comments: Tender for more complex work To enter the automotive sector (i.e. component car parts whereas previously been involved in packaging for parts) Car impact systems
251
APPENDIX A
Yes
Comments: Did think that they might go into other types of mould making but this hasnt really happened Being a small company it is difficult to always work to the longer-term strategies as have to work to short-term profit to survive and pay overheads.
Yes
Comments: Additional capital expenditure as vendors specified compressor was inadequate Vendors want to sell a post-processor for the control to resolve problems of overload when cutting complex compound curves. Problems only materialised when with experience the company started to use the machine to its full capabilities
252
APPENDIX A
-------------------------------------------------
Best possible
------------------------------------------------- -------------------------------------------------
Worst possible
Before After
------------------------------------------------- -------------------------------------------------
Best possible
Labour costs
------------------------------------------------- -------------------------------------------------
Best possible
Lead times
------------------------------------------------- -------------------------------------------------
Best possible
Customer complaints
------------------------------------------------- -------------------------------------------------
Best possible
Before After
Unit costs
Worst possible
------------------------------------------------- -------------------------------------------------
Best possible
------------------------------------------------- -------------------------------------------------
Best possible
Product quality
------------------------------------------------- -------------------------------------------------
Best possible
------------------------------------------------- -------------------------------------------------
Best possible
-------------------------------------------------
Best possible
253
APPENDIX A

Yes
The MD and 2 hey operators

Yes Yes
Comments: Consultation with the operators Allaying fears of redundancy Encouraging their support to use the machines Communications to understand the importance of AMT to the business Used a KTP to help overcome the barriers
Yes
Comments: As above
Committed X X
Neutral
Opposed
Yes
Yes
Comments: Would love to get another machining centre; however as many customers have gone out of business the priority is stabilisation. Order book has reduced from 12 weeks in 2004 to 3 weeks in 2005. Same for the whole industry
254
APPENDIX A
J 12 July 2005 13 500K Live tool CNC lathe; CNC; vertical turning centre; CAD/CAM
What were the perceived benefits of AMT implementation? Opportunity for NPD Reduce labour component Increase volume throughput Following the decision to implement an AMT, were formal assessment techniques used to select the most appropriate AMT in which to invest? (E.g. the development of a specification that the technology must meet) No
In any assessment of different AMTs were both the quantitative and Yes qualitative factors of the technologies considered? Comments: Looked at four machines two serious contenders based on specification. Worked with the vendor to give the company what they needed. Were multiple appraisal techniques implemented? No How many appraisal techniques were used? Can any of the assessment techniques used be named? e.g. Discounted Cash Flow (DCF), Multi Attribute Decision Making (MADM), Other 1. 2. 3. 4.
255
APPENDIX A
Counter skill deficiency Not important 1 2 3 Counter competitive threat - overseas Not important 1 2 3 Obtain financial benefits Not important 1 2 3 Enhance company image Not important 3 1 2 Obtain competitive advantage Not important 1 2 3 Other reason (state): Not important 1 2 3 Other reason (state): Not important 1 2 3
4 4 4
4
5 5 5 5 5 5 5
4
4 4
Vendor Support
Not important
5
5
System Cost
Not important
4
4 4 4 4
5
5 5 5
Yes
256
APPENDIX A
Comments: Can handle more volume work Can create complex parts with low levels of labour interaction Been able to develop contracts on the back of development capabilities and machining capabilities
Yes
Very satisfied
Yes
Comments: Software training used government grant to help with costs

Yes No
Comments: Existing staff trained later

Yes
Comments: Brought in 2 new operators with relevant experience

Yes
Comments: Yes because of new additional labour in the company. Use a rating system in the company: Apprentice Semi-skilled Skilled Yearly appraisal so moving between levels is not necessarily related to AMT Bonus is paid to shop rather than individuals so there is support among peers for high-flying operators
Yes
Comments: Won new contracts with customers that company already supplied. Won new contracts with competitors of customers as reputation developed Work outside the capabilities of other local sub-contractors
No
257
APPENDIX A
-------------------------------------------------
Best possible
------------------------------------------------- -------------------------------------------------
Worst possible
Before After
------------------------------------------------- -------------------------------------------------
Best possible
Labour costs
------------------------------------------------- -------------------------------------------------
Best possible
Lead times
------------------------------------------------- -------------------------------------------------
Best possible
Customer complaints
------------------------------------------------- -------------------------------------------------
Best possible
Before After
Unit costs
Worst possible
------------------------------------------------- -------------------------------------------------
Best possible
------------------------------------------------- -------------------------------------------------
Best possible
Product quality
------------------------------------------------- -------------------------------------------------
Best possible
------------------------------------------------- -------------------------------------------------
Best possible
-------------------------------------------------
Best possible
258
APPENDIX A

Yes
The MD
No Yes
Comments: Bonus structure paid to shop quarterly Have an understanding of company needs Want to develop lights out to gain an extra few hours after final shift Good to see investment
Yes
Comments: Discussion weekly to indicate company plans

Committed X X
Neutral
Opposed
Yes
Yes
Comments:
259
APPENDIX B
APPENDIX B
The following pages present the data captured through the Management Assessment Questionnaire developed during the longitudinal phase of the research. In tables B.1 and B.2 below, the main points of interaction via observation and data capture, leading to the development and analysis of the longitudinal case studies, are presented.
22 Sept 05 Present: A1; MD Location: Exhibition Duration: 4hrs Sept 05-Nov 05 Development of specification for technology needs. Email exchange between MD and A1 24 Feb 06 Present: A1; MD; A2 Location: Company Duration: 2hrs 16 Mar 06 Present: A1; MD; A2 Location: Company Duration: 3hrs 12 Apr 06 Present: A1; MD; A2 Location: Company Duration: 3hrs 2 May 06 Present: A1; MD; A2; DM Location: Company Duration: 6hrs
Initial meeting; discussion of company and technological aims 5 May 06 Present: A1; MD; A2; DM Location: Company Duration: 4hrs CAD vendor presentations 16 Nov 06 Present: A1; A2; DM; PM Location: Company Duration: 4hrs Technology output review Key:
23 May 06 Present: A1; MD; A2; DM Location: Company Duration: 3hrs Software selection 23 Nov 06 Present: A1; A2; DM; PM Location: Company Duration: 4hrs Technology output review
Plan for incompany review of procedures and technology needs 24 July 06 Present: A1; MD; A2; DM; PM Location: Company Duration: 3hrs Project review 14 Dec 06 Present: A1; A2; DM; PM Location: Company Duration: 4hrs Technology output review
Technology plan revision
Final technology specification development 31 Aug 06 Present: A1; A2; DM; PM Location: Company Duration: 4hrs Technology output review 21 Dec 06 Present: A1; A2; DM; PM Location: Company Duration: 4hrs Technology output review
CAD vendor presentations
8 Aug 06 Present: A1; A2; DM; PM Location: Company Duration: 4hrs Technology output review 19 Dec 06 Present: A1 and A2 Location: University Management Map capture documents completed
7 Nov 06 Present: A1; A2; DM; PM Location: Company Duration: 4hrs Technology output review 15 Jan 07 Present: A1; MD; DM; PM Location: Company Duration: 3hrs Project review
Author (A1) Associate (A2) Managing Director (MD) Design Manager (DM) Production Manager (PM) Table B.1. Key dates for data gathering in Case K
260
APPENDIX B
Nov 05 21st: KTP programme begins. Technical meetings drive NPD process project and provide background on management change within the Company Apr 06 13th Tech meeting. RD, A1, A2, A3. 2hrs
Dec 05 7th Tech meeting. RD, A1, A2, A3. 2hrs
Jan 06 12th Tech meeting. RD, A1, A2, A3. 2hrs 25th Technical meeting. RD, A1, A2, A3. 2hrs
Feb 06 13th Project Review. Present: A1, A2, A3, RD, Managing Director
Mar 06 28th Tech meeting. RD, A1, A2, A3. 2hrs
Sept 06 7th: A1 given copies of confidential documents regarding investment potential of AMT 21st Project Review. Present: A1, A2, A3, RD, EM 27th Feb 07 15th Tech meeting. RD, A1, A2, A3. 2hrs 28th Tech meeting. A1, A2, A3. 2hrs
May 06 12th Tech meeting. RD, A1, A2, A3. 2hrs 22nd Project Review. Present: A1, A2, A3, RD 26th Tech meeting. A1, A2, A3. 2hrs Oct 06 25th: A1 interviews EM. Technology justification explained and observation of trial technology in use. 3hrs
June 06 6th Tech meeting. RD, A1, A2, A3. 2hrs 13th Tech meeting.A1, A2. 1hr 26th Tech meeting.A1, A3. 1hr Nov 06 20th Tech meeting. RD, EM, A1, A2, A3. 2hrs
July 06 3rd Tech meeting. RD, A1, A2, A3. 2hrs 25th Tech meeting at PDR: A1, A2, A3. 1hr. Dec 06 20th: A1 interviews EM. Discussion of further technology trials. 1hr
Aug 06 Company consideration of AMT implementation begins Jan 07 5th Tech meeting. RD, A1, A2, A3. 2hrs 16th Project Review. Present: A1, A2, A3, RD, EM, Managing Director
Mar 07
July 07 Aug 07 12th: A1 interviews 22nd Tech meeting. EM. Discussion of RD, A1, A2, A3. 2hrs technology options removing labour. 2hrs 20th Tech meeting. RD, A1, A2, A3. 2hrs Key: Author (A1) Associate1 (A2) Associate2 (A3) Engineering Manager (EM) R&D Manager (RD)
Apr 07 13th: A2&A3 complete management map documents. 19th: A1 interviews EM. Discussion of resistance to change. 1hr EM&RM provide management map responses Sept 07 4th Tech meeting. RD, EM, A1, A2, A3. 2hrs 7th Project Review. Present: A1, A2, A3, RD, Managing Director
May 07 16th Tech meeting. A1, A2, A3. 1hr 22nd Project Review. Present: A1, A2, A3, RD, EM, Managing Director 25th New Process Implementation meeting. Present: A1, A2, A3, RD 30th Oct 07 2nd Tech meeting. RD, EM, A1, A2, A3. 2hrs 31st Tech meeting. A1, A2, A3. 2hrs
June 07
Nov 07 7th Tech meeting. RD, EM, A1, A2, A3. 2hrs 21st: Final project review. A1, A2, A3, EM & RM. 3hrs
Table B.2. Key dates for data gathering in Case L
261
Management Assessment Questionnaire

Company: Date: Case Study Company K 13 December 2006 Veiw Point: KTP Supervisor
Knowledge Market and Competitors

1. Visiting Trade Shows (select most appropriate) Dont go 0 2. Competitors (select most appropriate) Cannot identify competitors Aware of some competitors Aware of key competitors Aware of key competitors and their In depth knowledge of competitors, market share their USP and relevant market share 2 3 4 Sometimes go 1 Regularly attend key events 2 Sometimes exhibit 3 Usually exhibit 4
Answers
0 3. Market / Customer Intelligence (select Formally surveys customers on company perception? Follows up lost sales to see if they purchased from a competitor? Records and analyses enquiry to sales ratio?
ALL that apply)
Y 1 2
N 0 0 0 0
0 0
Section Total (weighted)
14.29
Knowledge IPR
1. IPR strategy (select most appropriate) No coherent IPR strategy Aware of some IPR methods Some use of IPR to protect the company Generate income from IPR or uses Strategic use of IPR, planning IPR licensed IPR to reduce development licensing developments and use of costs licensed IPD to cut cost or maintain market position 2 3 4 0
2. In new product development, is the use of IPR routinely considered?(select most appropriate) No Yes, to protect ideas Yes, and further income generation from IPR is considered 0 1 2 1 3. Is published IPR used as a reference source?(select most appropriate) No Yes, sometimes Yes, routinely 0 1 2 0
3.13
Knowledge Experience of Technology Implementation

1. Has the company installed any of the following Y/N 3D CAD CAM Multi-axis machining MRP II Laser based technologies (cutters, RP, etc) Automation (robots, pick & place, etc) Vision Systems Max points: 5
Number of years in place <1 <1 <1 <1 <1 <1 <1 2 2 2 2 2 2 2 3 3 3 3 3 3 3 4 4 4 4 4 4 4 5+ 5+ 5+ 5+ 5+ 5+ 5+ 1 3
Max points: 25
2. On the scale, rate the success of previous technology implementation programmes? Resistance to use leading to technology abandonment 1 2 3 4 5 Business improvements leading to increased efficiency or revenue creation
3.
What methods are used for assessing technology implementation requirements?(select most appropriate) Advice from vendors Generate a requirements specification Advice from impartial consultants Use of Discounted Cash Flow, Multi-attribute Decision Making or other to quantify potential investment benefit 4 3
No formal method
6.25
Knowledge Strategic Vision

1.
Company vision and mission (select most appropriate) Has an official mission statement or Has an official mission statement or Has an official mission statement or Has an official mission statement or vision that the MD is working vision that is communicated at vision that is communicated vision that is displayed for all to see towards director level throughout management 0 1 2 3 4 0
Has no defined mission / vision statement
2. Steps are taken to encourage buy-in to the vision in the organisation;(select most appropriate) At director level 1
3.
At management level 2
At supervisor level 3
At technician level 4
To all staff 5 1
How often is progress / achievement of the vision reviewed?(select most appropriate) < Annually 0 1 Annually 2 Monthly 3 Weekly 4 0
Never
1.92
Knowledge Total
26
Resources Project Planning

1. What project planning software is used (not just available, but actively used?(select most appropriate) No software 0 Spreadsheet Add-on 1
ALL that apply)
Dedicated project planning softwareIntegrated project planning and accountancy 2 3
MRPII 4 1
2. Training who has access to training through the company? (Select Production workers 1 3. Procedures (Select
ALL that apply)
Supervisors 1
Technical Staff 1
Managers 1
Directors 1 1
Company developed manufacturing Performance measuring techniques Formalised procedures procedures employed implemented (e.g. 6 sigma, continuous improvement, lean manufacturing 1 4. Accuracy of delivery dates Is conformance to delivery schedules analysed? Is delivery data used to improve future delivery estimation? Following late delivery, are efforts made to find and address production planning? What percentages of orders are delivered on time? 90-100% 75-90% 5 4 50-75% 3 1 1
Supply chain management procedures implemented
YN 1 1 1 25-50% 2 <25% 1
0 0 0
0 0 1
7.98
Resources Support Infrastructure

1. Training requests (select most appropriate) Training requirements identified by Staff encouraged to make training Training requirements identified by Scheduled / Annual review of supervisors independently requests to their supervisors supervisors in consultation with training for key staff staff 1 2. Communication of training outcomes (select most appropriate) No analysis or dissemination of knowledge following training Effectiveness of training reviewed Trainee encouraged to disseminate Formal communication routes to on completion acquired knowledge to peers on disseminate knowledge following completion training 0 3. Does the company use any of the following?(select Access to government sponsored support (grants, programmes, etc) 1
ALL that apply)
Scheduled / Annual review of training for all staff 4 5 1
Contracted systems support maintenance agreements
Dedicated in-house systems support
10.74
Resources Finance
1. Is the company profitable? No Yes
0 1
2. Does the company reinvest in product/service development?(select most appropriate) Rarely Yes, when opportunities arise Yes, continuous development 1 2 3 2
3. Does the company regularly use part-funded grants for technology or development programmes?(select most appropriate) No, not investigated No, not eligible Yes, as required Always investigated to aid d l 0 1 2 3 3
21.42
Resources Staff
1. Does labour resource effect timely product delivery?(select most appropriate) Yes, products usually late due to inadequate labour resource Yes, products often late due to inadequate labour resource Yes, products cannot be produced on time without overtime No, there is a good balance between commitments and labour No, adequate labour resource means products always on time (or late for other reasons) 0 1 2
4 2
(select most appropriate) 2. Does the company have people with the expertise to deal with day to day activities (systems e.g. IT facilities)?
Company systems are supported externally (services purchased when required) Company systems are supported externally (maintenance agreements) Company has some internal system expertise (with external support) Company has broad internal system expertise
4 2
(select most appropriate) 3. Does the company have people with the expertise to deal with day to day activities (production)?
Sub-contractors supply >50% production expertise Sub-contractors supply <50% production expertise Sub-contractors supply some expertise (any level, but as part of a core competencies strategy) Company has a wide range of relevant expertise
2 3
4 3
4. Is the company able to access additional expertise to meet growth expectations (staff)?select most appropriate) ( Difficulty in recruiting suitably qualified staff Easily available labour pool for potential recruitment 1
2 1
5. Is the company able to access external expertise to meet growth expectations? (select most appropriate) Difficulty in finding suitable external expertise Expertise available, but cost prohibitive Expertise available to purchase Partnerships setup with relevant expertise 1 2 3 4 2
13.90
Resource Total
34
Quality
1. Are there quality monitoring procedures? No Yes
0 1
2. Have quality accreditations been implemented? No 0 Yes 1 3. Are there written company procedures? No Yes
0 1
4. Is a continuous improvement programme operated? No 0 Yes 1 5. Is there a quality manager or are consultants used to evaluate quality (procedures and output)? (select most appropriate) No 0 Use consultants 1 Employ a quality manager 2 Use both consultants and a quality manager 3
6. Are there formal channels for internal communication?(select most appropriate) No, communication is each individuals responsibility 1 Departmental meetings Inter-departmental meetings represented by department heads 2 3 Inter-departmental meetings with representation at various levels 4 3
7. Are there effective external communications?(select most appropriate) Communicate with suppliers Use suppliers as a source of knowledge for development 1 2 Active supplier partnerships to aid Wide range of external contact for company development marketing and developmental activities 3 4 1
(select most appropriate) 8. What percentage of staff has undergone some form of professional training via the company?
None
Key staff (e.g. <10%)
Training benefit considered on a All staff encouraged to request case by case basis (all staff able to appropriate training (part of request training) company strategy) 1 2 3 Section Total (weighted) 1 38.85
Quality Total
39

1. Change initiation (select most appropriate) Driven entirely from autocratic management 1 Change encouraged through key employees 2 Certain individuals tasked with Routes for communicating change identifying potential improvements requirements to management 3 4 All employees considered in managing change 5 1
2. Research and development (select most appropriate) No R&D facility R&D team put together when new Person responsible for R&D whose Regular R&D team (run in parallel Dedicated R&D department projects approved role is to find new opportunities to other company roles) 0 3. Risk propensity (select most appropriate) Product development to update products 1 Product development in response to Product development in response to Product development in response to Product development to lead market competitors market request market request 2 3 4 5 3 1 2 3 4 2
4. Rate of development (relevant to industry and size);(select most appropriate) Less than direct competitors 1 5. Structured development process (select most appropriate) No structured development process Development follows autocratic in- Development follows interhouse created process department in-house created process 0 1 2 Development follows structured and proven development process Company investigates development best-practice for development programmes 3 4 0 Less than industry average 2 More than direct competitors 3 More than industry average 4 1
6. Allowing staff to instigate and develop change(select most appropriate) Resistance to all forms of change, at High resistance to all forms of all levels change at operator level High resistance to process developments Resistance to technological implementation Change managed through management support Change managed through bestpractice (e.g. operator empowerment; change champion) 4 5 3
0 7. Encouragement of creativity (select most appropriate) Changes initiated from top-level only 1 Changes initiated at department head level
Creativity encouraged through upward management filtering 2 3
Creativity and changes encouraged for consideration from all levels 4 Section Total (weighted) 1 35.53
Innovation Total
36
Radar Output
Knowledge Resources Quality Innovation & Change 26 34 39 36
Case K Management Map KTP Supervisor perspective
Knowledge 100
Innovation & Change
Resources
Quality
Area IKR Area IQR Management Map Area Impact Category
884.532225 1343.23875 0.222777098 Low Impact

Company: Date: Case Study Company K Dec-06 Veiw Point: KTP associate

1. Visiting Trade Shows (select most appropriate) Dont go Sometimes go 0 2. Competitors (select most appropriate) Cannot identify competitors Aware of some competitors 1 Regularly attend key events 2 Sometimes exhibit 3 Usually exhibit 4
Answers
Aware of key competitors and their In depth knowledge of competitors, market share their USP and relevant market share 2 3 4 2
0 3. Market / Customer Intelligence (select ALL that apply) Y Formally surveys customers on 1 company perception? Follows up lost sales to see if they purchased from a competitor? Records and analyses enquiry to sales ratio? 2
N 0 0 0 2
0 0
14.29
Knowledge IPR
1. IPR strategy (select most appropriate) No coherent IPR strategy Aware of some IPR methods Some use of IPR to protect the company Generate income from IPR or uses Strategic use of IPR, planning IPR licensed IPR to reduce development licensing developments and use of costs licensed IPD to cut cost or maintain market position 2 3 4 0
2. In new product development, is the use of IPR routinely considered? (select most appropriate) No 0 Yes, to protect ideas Yes, and further income generation from IPR is considered 1 2 0 3. Is published IPR used as a reference source? (select most appropriate) No 0 Yes, sometimes Yes, routinely 1 2 0
0.00

1. Has the company installed any of the following: Y/N 3D CAD CAM Multi-axis machining MRP II Laser based technologies (cutters, RP, etc) Automation (robots, pick & place, etc) Vision Systems Max points: 5 Number of years in place <1 <1 <1 <1 <1 <1 <1 2 2 2 2 2 2 2 3 3 3 3 3 3 3 4 4 4 4 4 4 4 5+ 5+ 5+ 5+ 5+ 5+ 5+ 2 5
Max points: 25
2. On the scale, rate the success of previous technology implementation programmes? Business improvements leading to Resistance to use leading to 1 2 3 4 5 increased efficiency or revenue technology abandonment creation
3.
What methods are used for assessing technology implementation requirements? (select most appropriate) No formal method Advice from vendors Generate a requirements Advice from impartial consultants Use of Discounted Cash Flow, specification Multi-attribute Decision Making or other to quantify potential investment benefit 0 1 2 3 4 2
8.13

1. Company vision and mission (select most appropriate) Has no defined mission / vision Has an official mission statement or Has an official mission statement or Has an official mission statement or Has an official mission statement or statement vision that the MD is working vision that is communicated at vision that is communicated vision that is displayed for all to see towards director level throughout management
2. Steps are taken to encourage buy-in to the vision in the organisation; (select most appropriate) At director level At management level At supervisor level 1
3.
At technician level 3 4
To all staff 5 1
Never
How often is progress / achievement of the vision reviewed?(select most appropriate) < Annually Annually 0 1 2
Monthly 3
Weekly 4 0
3.84
Knowledge Total
26

1. What project planning software is used (not just available, but actively used? (select most appropriate) No software Spreadsheet Add-on Dedicated project planning software Integrated project planning and accountancy 0 1 2 3 MRPII 4 1
2. Training who has access to training through the company? (Select ALL that apply) Production workers Supervisors Technical Staff 1 1
Managers 1 1
Directors 1 1
3. Procedures (Select ALL that apply) Company developed manufacturing Performance measuring techniques Formalised procedures implemented Supply chain management procedures employed (e.g. 6 sigma, continuous procedures implemented improvement, lean manufacturing 1 4. Accuracy of delivery dates Is conformance to delivery schedules analysed? Is delivery data used to improve future delivery estimation? Following late delivery, are efforts made to find and address production planning? What percentages of orders are delivered on time? 90-100% 75-90% 5 4 1 1 1
YN 1 1 1 50-75% 3 25-50% 2 <25% 1
0 0 0
1 0 1
6.84

1. Training requests (select most appropriate) Training requirements identified by Staff encouraged to make training supervisors independently requests to their supervisors 1 2 Training requirements identified by Scheduled / Annual review of supervisors in consultation with training for key staff staff 3 4 Scheduled / Annual review of training for all staff 5 1
2. Communication of training outcomes (select most appropriate) No analysis or dissemination of Effectiveness of training reviewed Trainee encouraged to disseminate Formal communication routes to knowledge following training on completion acquired knowledge to peers on disseminate knowledge following completion training 0 1 2 3 0
3. Does the company use any of the following? (select ALL that apply) Access to government sponsored Contracted systems support Dedicated in-house systems support support (grants, programmes, etc) maintenance agreements 1 2 3 3
7.16
Resources Finance
1. Is the company profitable? No Yes 0 1
2. Does the company reinvest in product/service development? (select most appropriate) Rarely 1 Yes, when opportunities arise 2 Yes, continuous development 3 2
3. Does the company regularly use part-funded grants for technology or development programmes? (select most appropriate) No, not investigated 0 No, not eligible Yes, as required Always investigated to aid 1 2 3 2
17.85
Resources Staff
1. Does labour resource effect timely product delivery?(select most appropriate) Yes, products usually late due to 0 inadequate labour resource Yes, products often late due to inadequate labour resource Yes, products cannot be produced on time without overtime No, there is a good balance between commitments and labour No, adequate labour resource means products always on time (or late for other reasons) 1 2
4 4
(select most appropriate) 2. Does the company have people with the expertise to deal with day to day activities (systems e.g. IT facilities)? Company systems are supported 1 externally (services purchased when required)
Company systems are supported externally (maintenance agreements) Company has some internal system expertise (with external support) Company has broad internal system expertise
4 3
3. Does the company have people with the expertise to deal with day to day activities (production)?(select most appropriate) Sub-contractors supply >50% 1 production expertise Sub-contractors supply <50% production expertise Sub-contractors supply some expertise (any level, but as part of a core competencies strategy) Company has a wide range of relevant expertise 2 3
4 3
4. Is the company able to access additional expertise to meet growth expectations (staff)?(select most appropriate) Difficulty in recruiting suitably 1 qualified staff Easily available labour pool for potential recruitment 2 2
5. Is the company able to access external expertise to meet growth expectations?(select most appropriate) Difficulty in finding suitable 1 external expertise Expertise available, but cost prohibitive Expertise available to purchase Partnerships setup with relevant expertise 2 3 4 2
19.46
Resource Total
34
Quality
1. Are there quality monitoring procedures? No Yes 0 1
2. Have quality accreditations been implemented? No 0 Yes 1 3. Are there written company procedures? No Yes
0 1
4. Is a continuous improvement programme operated? No 0 Yes 1 5. Is there a quality manager or are consultants used to evaluate quality (procedures and output)? (select most appropriate) No Use consultants Employ a quality manager Use both consultants and a quality manager 0 1 2 3
6. Are there formal channels for internal communication? (select most appropriate) No, communication is each Departmental meetings Inter-departmental meetings individuals responsibility represented by department heads 1 2 3
Inter-departmental meetings with representation at various levels 4 3
7. Are there effective external communications? (select most appropriate) Communicate with suppliers Use suppliers as a source of Active supplier partnerships to aid Wide range of external contact for knowledge for development company development marketing and developmental activities 1 2 3 4 2
8. What percentage of staff has undergone some form of professional training via the company? (select most appropriate) None Key staff (e.g. <10%) Training benefit considered on a All staff encouraged to request case by case basis (all staff able to appropriate training (part of request training) company strategy) 0 1 2 3 Section Total (weighted) 0 55.50
Quality Total
56

1. Change initiation (select most appropriate) Driven entirely from autocratic Change encouraged through key management employees 1 2 Certain individuals tasked with Routes for communicating change identifying potential improvements requirements to management 3 4 All employees considered in managing change 5 1
2. Research and development (select most appropriate) No R&D facility R&D team put together when new Person responsible for R&D whose Regular R&D team (run in parallel Dedicated R&D department projects approved role is to find new opportunities to other company roles) 0 1 2 3 4 0
3. Risk propensity (select most appropriate) Product development to update Product development in response to Product development in response to Product development in response to Product development to lead market products competitors market request market request 1 2 3 4 5 1
4. Rate of development (relevant to industry and size); (select most appropriate) Less than direct competitors Less than industry average More than direct competitors 1 2 3
More than industry average 4 3
5. Structured development process (select most appropriate) No structured development process Development follows autocratic in- Development follows interDevelopment follows structured and Company investigates development house created process department in-house created process proven development process best-practice for development programmes 0 1 2 3 4 0
6. Allowing staff to instigate and develop change (select most appropriate) High resistance to process Resistance to all forms of change, at High resistance to all forms of all levels change at operator level developments
Resistance to technological implementation
Change managed through management support
Change managed through bestpractice (e.g. operator empowerment; change champion) 4 5 0
0 7. Encouragement of creativity (select most appropriate) Changes initiated from top-level Changes initiated at department only head level 1
Innovation Total
19
Radar Output
Case K Management Map KTP associate perspective
Knowledge 100
Innovation & Change
Resources
Quality
706.73076 1494.06 0.220079076 Low Impact

Company: Date: Case Study L Apr-07 Veiw Point: Engineering Manager

1. Visiting Trade Shows Dont go
(select most appropriate)
Answers
Sometimes go 0 1
Regularly attend key events 2
Sometimes exhibit 3
Usually exhibit 4 2
2. Competitors (select most appropriate) Cannot identify competitors Aware of some competitors
Aware of key competitors and their market share 2 3
In depth knowledge of competitors, their USP and relevant market share 4 2
0 3. Market / Customer Intelligence Formally surveys customers on company perception? Follows up lost sales to see if they purchased from a competitor? Records and analyses enquiry to sales ratio?
(select ALL that apply)
Y 1 2
N 0 0 0 0
0 0
7.14
Knowledge IPR
1. IPR strategy (select most appropriate) No coherent IPR strategy Aware of some IPR methods
Some use of IPR to protect the company
Generate income from IPR or uses Strategic use of IPR, planning IPR licensed IPR to reduce licensing developments and use of development costs licensed IPD to cut cost or maintain market position 2 3 4 2
1
2. In new product development, is the use of IPR routinely considered? No 0 Yes, to protect ideas Yes, and further income generation from IPR is considered 1 2
1 3. Is published IPR used as a reference source? No 0 Yes, sometimes Yes, routinely 1 2 1

12.50

1. Has the company installed any of the following: Y/N 3D CAD CAM Multi-axis machining MRP II Laser based technologies (cutters, RP, etc) Automation (robots, pick & place, etc) Vision Systems Max points: 5
Max points: 25
3. What methods are used for assessing technology implementation requirements? No formal method Advice from vendors Generate a requirements specification
Advice from impartial consultants
Use of Discounted Cash Flow, Multi-attribute Decision Making or other to quantify potential investment benefit 4 4
11.88

1. Company vision and mission (select most appropriate) Has no defined mission / vision Has an official mission statement Has an official mission statement Has an official mission statement Has an official mission statement statement or vision that the MD is working or vision that is communicated at or vision that is communicated or vision that is displayed for all towards director level throughout management to see
2. Steps are taken to encourage buy-in to the vision in the organisation; (select most appropriate) At director level At management level At supervisor level At technician level 1
3.
To all staff 4 5 2
2
Never
How often is progress / achievement of the vision reviewed? < Annually Annually 0 1
Monthly 2 3
Weekly 4 1
9.60
Knowledge Total
41

1. What project planning software is used (not just available, but actively used? (select most appropriate) No software Spreadsheet Add-on Dedicated project planning Integrated project planning and software accountancy 0 1 2 3
MRPII 4 1
2. Training who has access to training through the company? (Select ALL that apply) Production workers Supervisors Technical Staff 1 3. Procedures (Select ALL Company developed manufacturing procedures
that apply)
Managers 1 1
Directors 1 1
Performance measuring techniques employed
1 4. Accuracy of delivery dates Is conformance to delivery schedules analysed?
YN 1 1 1 50-75% 3 25-50% 2 <25% 1
0 0 0
Is delivery data used to improve future delivery estimation? Following late delivery, are efforts made to find and address production planning? What percentages of orders are delivered on time? 90-100% 75-90% 5 4
1 0 0
9.12

1. Training requests (select most appropriate) Training requirements identified Staff encouraged to make training Training requirements identified by supervisors independently requests to their supervisors by supervisors in consultation with staff 1 2 3
Scheduled / Annual review of training for key staff 4
Scheduled / Annual review of training for all staff 5
2. Communication of training outcomes (select most appropriate) No analysis or dissemination of Effectiveness of training reviewed Trainee encouraged to disseminate Formal communication routes to knowledge following training on completion acquired knowledge to peers on disseminate knowledge following completion training 0 3. Does the company use any of the following? (select ALL Access to government sponsored Contracted systems support support (grants, programmes, etc) maintenance agreements 1
that apply)
Dedicated in-house systems support
7.16
Resources Finance
0 1
2. Does the company reinvest in product/service development? Rarely 1 Yes, when opportunities arise 2 Yes, continuous development 3
2
3. Does the company regularly use part-funded grants for technology or development programmes? No, not investigated 0 No, not eligible Yes, as required Always investigated to aid d l t 1 2 3
17.85
Resources Staff
1. Does labour resource effect timely product delivery? Yes, products usually late due to 0 inadequate labour resource Yes, products often late due to inadequate labour resource Yes, products cannot be produced on time without overtime No, there is a good balance between commitments and labour No, adequate labour resource means products always on time (or late for other reasons) 1 2
4 2
2. Does the company have people with the expertise to deal with day to day activities (systems e.g. IT facilities)? Company systems are supported 1 externally (services purchased when required) Company systems are supported externally (maintenance agreements) Company has some internal system expertise (with external support) Company has broad internal system expertise 2
4 3
3. Does the company have people with the expertise to deal with day to day activities (production)? Sub-contractors supply >50% 1 production expertise Sub-contractors supply <50% production expertise Sub-contractors supply some expertise (any level, but as part of a core competencies strategy) Company has a wide range of relevant expertise 2 3
4 4
4. Is the company able to access additional expertise to meet growth expectations (staff)? Difficulty in recruiting suitably 1 qualified staff Easily available labour pool for potential recruitment 2
1
5. Is the company able to access external expertise to meet growth expectations? Difficulty in finding suitable 1 external expertise Expertise available, but cost prohibitive Expertise available to purchase Partnerships setup with relevant expertise 2 3 4
18.07
Quality
1. Are there quality monitoring procedures? No 0 Yes 1 2. Have quality accreditations been implemented? No 0 Yes 1 3. Are there written company procedures? No Yes
0 1
4. Is a continuous improvement programme operated? No 0 Yes 1 5. Is there a quality manager or are consultants used to evaluate quality (procedures and output)? (select most appropriate) No Use consultants Employ a quality manager Use both consultants and a quality manager 0 6. Are there formal channels for internal communication? No, communication is each Departmental meetings individuals responsibility 1 1
Inter-departmental meetings represented by department heads 2 3
Inter-departmental meetings with representation at various levels 4 4
7. Are there effective external communications? (select most appropriate) Communicate with suppliers Use suppliers as a source of Active supplier partnerships to aid Wide range of external contact for knowledge for development company development marketing and developmental activities 1 2 3 4 2
8. What percentage of staff has undergone some form of professional training via the company? (select most appropriate) None Key staff (e.g. <10%) Training benefit considered on a All staff encouraged to request case by case basis (all staff able to appropriate training (part of request training) company strategy) 0 1 2 3 Section Total (weighted) 2 66.60
Quality Total
67

1. Change initiation (select most appropriate) Driven entirely from autocratic Change encouraged through key management employees 1 2
Certain individuals tasked with identifying potential improvements 3
All employees considered in managing change 5 5
2. Research and development (select most appropriate) No R&D facility R&D team put together when new Person responsible for R&D projects approved whose role is to find new opportunities 0 1 2
Regular R&D team (run in parallel to other company roles) 3
Dedicated R&D department
3. Risk propensity (select most appropriate) Product development to update Product development in response Product development in response Product development in response Product development to lead products to competitors to market request to market request market 1 4. Rate of development (relevant to industry and size); Less than direct competitors Less than industry average 1 2
More than direct competitors 2 3
5. Structured development process (select most appropriate) No structured development Development follows autocratic in- Development follows interhouse created process department in-house created process process 0 1 2
Development follows structured and proven development process
Company investigates development best-practice for development programmes 3 4 3
6. Allowing staff to instigate and develop change (select most appropriate) Resistance to all forms of change, High resistance to all forms of High resistance to process at all levels change at operator level developments
Change managed through bestpractice (e.g. operator empowerment; change champion) 4 5
Innovation Total
61
Radar Output
Company L Management Map Engineering Manager perspective

Knowledge 100
Innovation & Change
Resources
Quality
2009.07434 3254.076 0.526315034 Medium Impact

Company: Date: Case Study L Apr-07 Veiw Point: R&D Manager

1. Visiting Trade Shows (select most appropriate) Dont go Sometimes go 0 2. Competitors (select most appropriate) Cannot identify competitors Aware of some competitors 1
Answers
Sometimes exhibit 3
Usually exhibit 4 1
0 3. Market / Customer Intelligence(select ALL that apply) Y Formally surveys customers on 1 company perception? Follows up lost sales to see if they purchased from a competitor? Records and analyses enquiry to sales ratio? 2
N 0 0 0 2
0 0
10.72
Knowledge IPR
Generate income from IPR or uses licensed IPR to reduce development costs
Strategic use of IPR, planning IPR licensing developments and use of licensed IPD to cut cost or maintain market position 3 4 2
(select most appropriate) 2. In new product development, is the use of IPR routinely considered? No 0
Yes, to protect ideas Yes, and further income generation from IPR is considered
1 2 1
3. Is published IPR used as a reference source?(select most appropriate) No 0 Yes, sometimes Yes, routinely 1 2 1
12.50

1. Has the company installed any of the following: Y/N 3D CAD CAM Multi-axis machining MRP II Laser based technologies (cutters, RP, etc) Automation (robots, pick & place etc) Vision Systems y y y y
Max points: 5
Max points: 25
3. What methods are used for assessing technology implementation requirements?(select most appropriate) No formal method Advice from vendors Generate a requirements Advice from impartial consultants Use of Discounted Cash Flow, specification Multi-attribute Decision Making or other to quantify potential investment benefit
15.63

2. Steps are taken to encourage buy-in to the vision in the organisation(select most appropriate) At director level At management level At supervisor level At technician level 1
3.
To all staff 4 5 2
Never
How often is progress / achievement of the vision reviewed?(select most appropriate) < Annually Annually Monthly 0 1 2 3
Weekly 4 3
15.36
Knowledge Total
54

1. What project planning software is used (not just available, but actively used?(select most appropriate) No software Spreadsheet Add-on Dedicated project planning Integrated project planning and software accountancy 0 1 2 3
MRPII 4
2. Training who has access to training through the company?(Select ALL that apply) Production workers Supervisors Technical Staff 1 3. Procedures (Select ALL that apply) Company developed Performance measuring manufacturing procedures techniques employed 1 1
Managers 1
Directors 1 4
YN 1 1 1 25-50% 2 <25% 1
0 0 0
Is delivery data used to improve future delivery estimation? Following late delivery, are efforts made to find and address production planning? What percentages of orders are delivered on time? 90-100% 75-90% 5 4 50-75% 3
1 0 0
15.96

1. Training requests (select most appropriate) Training requirements identified Staff encouraged to make by supervisors independently training requests to their supervisors 1 2
Training requirements identified Scheduled / Annual review of by supervisors in consultation training for key staff with staff 3 4
2. Communication of training outcomes (select most appropriate) No analysis or dissemination of Effectiveness of training reviewed Trainee encouraged to Formal communication routes to on completion disseminate acquired knowledge disseminate knowledge following knowledge following training to peers on completion training 0 1 2 3 0
3. Does the company use any of the following?(select ALL that apply) Access to government sponsored Contracted systems support Dedicated in-house systems support (grants, programmes, maintenance agreements support etc) 1 2 3 1
8.95
Resources Finance
0 1
2. Does the company reinvest in product/service development?(select most appropriate) Rarely 1 Yes, when opportunities arise 2 Yes, continuous development 3 3
3. Does the company regularly use part-funded grants for technology or development programmes?(select most appropriate) No, not investigated 0 No, not eligible Yes, as required Always investigated to aid d l t 1 2 3 2
21.42
Resources Staff
4 0
2. Does the company have people with the expertise to deal with day to day activities (systems e.g. IT facilities) (select most appropriate) Company systems are supported 1 externally (services purchased when required) Company systems are supported externally (maintenance agreements) Company has some internal system expertise (with external support) Company has broad internal system expertise 2
4 3
(select most appropriate) 3. Does the company have people with the expertise to deal with day to day activities (production)? Sub-contractors supply >50% 1 production expertise
Sub-contractors supply <50% production expertise Sub-contractors supply some expertise (any level, but as part of a core competencies strategy) Company has a wide range of relevant expertise
2 3
4 4
(select most appropriate) 4. Is the company able to access additional expertise to meet growth expectations (staff)? Difficulty in recruiting suitably 1 qualified staff
Easily available labour pool for potential recruitment
2 2
5. Is the company able to access external expertise to meet growth expectations? (select most appropriate) Difficulty in finding suitable 1 external expertise Expertise available, but cost prohibitive Expertise available to purchase Partnerships setup with relevant expertise 2 3 4 2
15.29
Resource Total
44
Quality
1. Are there quality monitoring procedures? No 0 Yes 1 2. Have quality accreditations been implemented? No 0 Yes 1 3. Are there written company procedures? No 0 Yes 1 4. Is a continuous improvement programme operated? No 0 Yes 1 5. Is there a quality manager or are consultants used to evaluate quality (procedures and output)? (select most appropriate) No Use consultants Employ a quality manager Use both consultants and a quality manager 0 1 2 3 2
6. Are there formal channels for internal communication?(select most appropriate) No, communication is each Departmental meetings Inter-departmental meetings Inter-departmental meetings with individuals responsibility represented by department heads representation at various levels 1 2 3 4
7. Are there effective external communications?(select most appropriate) Communicate with suppliers Use suppliers as a source of Active supplier partnerships to knowledge for development aid company development 1 2 3
Wide range of external contact for marketing and developmental activities 4 2
(select most appropriate) 8. What percentage of staff has undergone some form of professional training via the company? None Key staff (e.g. <10%) Training benefit considered on a All staff encouraged to request case by case basis (all staff able appropriate training (part of to request training) company strategy)
1 Section Total (weighted) 61.05
Quality Total
61

2. Research and development (select most appropriate) No R&D facility R&D team put together when new projects approved 0 1
Person responsible for R&D whose role is to find new opportunities 2
3. Risk propensity (select most appropriate) Product development to update Product development in response Product development in response Product development in response Product development to lead products to competitors to market request to market request market 1 2 3 4 5 4
4. Rate of development (relevant to industry and size);(select most appropriate) Less than direct competitors Less than industry average More than direct competitors 1 5. Structured development process (select most appropriate) No structured development Development follows autocratic process in-house created process 2 3
Development follows interdepartment in-house created process 1 2
Development follows structured Company investigates and proven development process development best-practice for development programmes 3 4 4
6. Allowing staff to instigate and develop change(select most appropriate) Resistance to all forms of High resistance to all forms of High resistance to process change, at all levels change at operator level developments
Innovation Total
74
Radar Output
Company L Management Map R&D Manager perspective

Knowledge 100
Innovation & Change
Resources
Quality
3211.138245 3616.90725 0.68280455 Medium Impact

Company: Date: Case Study L Apr-07 Veiw Point: KTP Associate1

Answers
Sometimes exhibit 3
Usually exhibit 4 4
N 0 1 0 0
0 0
14.29
Knowledge IPR
1 2 2
18.75

1. Has the company installed any of the following: Y/N 3D CAD CAM Multi-axis machining MRP II Laser based technologies (cutters, RP, etc) Automation (robots, pick & place etc) Vision Systems y y Max points: 5 y y y
Max points: 25
19.38

3.
To all staff 4 5 5
Never
Weekly 4 3
17.28
Knowledge Total
70

MRPII 4
Managers 1
Directors 1 4
YN 1 1 1 25-50% 2 <25% 1
0 0 0
0 0 0
14.82

14.32
Resources Finance
0 1
21.42
Resources Staff
4 2
4 4
2 3
4 4
2 1
19.46
Resource Total
52
Quality
Quality Total
94

Innovation Total
65
Radar Output

Knowledge 100
Innovation & Change
Resources
Quality
4049.1633 5481.735 0.95308983 High Impact

Company: Date: Case Study L Apr-07 Veiw Point: KTP Associate2

Answers
Sometimes exhibit 3
Usually exhibit 4 3
N 0 1 0 0
0 0
14.29
Knowledge IPR
1 2 1
12.50

1. Has the company installed any of the following: Y/N 3D CAD CAM Multi-axis machining MRP II Laser based technologies (cutters, RP, etc) Automation (robots, pick & place etc) Vision Systems y y Max points: 5 y y y
Max points: 25
16.88

3.
To all staff 4 5 5
Never
Weekly 4 3
23.04
Knowledge Total
67

MRPII 4
Managers 1
Directors 1 5
YN 1 1 1 25-50% 2 <25% 1
0 0 0
0 0 0
15.96

8.95
Resources Finance
0 1
17.85
Resources Staff
4 3
4 4
2 3
4 4
2 1
18.07
Resource Total
47
Quality
Quality Total
72

Innovation Total
71
Radar Output

Knowledge 100
Innovation & Change
Resources
Quality
3936.81106 4258.293 0.819510406 Medium Impact
APPENDIX C
APPENDIX C
Below are lists of all of the Authors conference and journal papers published over the period of this research study (May 2003 December 2007). Those marked * are directly related to the work contained within this thesis and therefore full texts of these papers are presented in the following pages. In addition, full text is presented of a paper currently under consideration by the International Journal of Technology Management (IJTM). The IJTM paper was submitted following an invitation for the expansion of the paper submitted to PICMET 07.
CONFERENCE PAPERS
Walters A.T., Hoyle R., Lewis A., Millward H., 2004, A comparison of the impact of advanced manufacturing within different sized companies, Proc. 21st International Manufacturing Conference, University of Limerick, Ireland, 1st 3rd September 2004, Ed. Phelan P., ISBN 1-8746537-7-1, pp. 527-534 * Dorrington P., Walters A.T., 2004, Organisational change requirements for advanced manufacturing technology implementation, Proc. RENT XVIII, Managing Complexity and Change in SMEs, LOK Research Centre, Copenhagen, Denmark, 24 26 November 2004, Ed. Christensen P.R., Hoeg K., Flemming P., ISBN 87-91181-836, p.85 * Walters A.T., Hoyle R., 2005, Implementation of advanced manufacturing technologies in response to business opportunities in two small companies, Proc. of PICMET 05, Hilton Portland and Executive Tower, Portland, Oregon, USA, 31 July 4 August 2005, Ed. Anderson T.R., Daim T.U., Kocaoglu D.F., ISBN 1-890843-12-1 * Millward H., Byrne C., Walters A.T., Lewis A., 2005, The relationship between technology management and product development boundaries in small and medium-sized enterprises, in Anderson T.R., Daim T.U., Kocaoglu D.F. (ed.), Technology Management: A Unifying Discipline for Melting the Boundaries, PICMET, Portland, ISBN 1-890843-11-3, pp. 509 519 * Bowden R., Walters A.T., Mumby A., 2007, Developing Creativity in the Product Development Process within a Small to Medium Sized Enterprise, 14th International Product Development Management Conference, Porto, Portugal, 10 12 June 2007 Walters A.T., 2007, Challenges in Managing the Convergence of Information and Product Design Technology in a Small Company, Proc. of PICMET 07, Hilton Portland and Executive Tower, Portland, Oregon, USA, 5 9 August 2007. Ed. Anderson T.R., Daim T.U., Kocaoglu D.F., ISBN 1-890843-15-6, pp 799 806, doi:10.1109/PICMET.2007.4349397 * Sky J., Walters A.T., 2007, A Case Study of Remote Product Development Activities, The 24th International Manufacturing Conference, Waterford Institute of Technology, Ireland, 29 31 August 2007. Roberts G., Walters A.T,, Davies J.L., Mumby A. 2007, A Case Study of a Dual Education Approach to Implementing New Product Development Processes in a Small to Medium-Sized Enterprise, International Conference on Engineering and Product Design Education, Northumbria University, 13 14 September 2007.
JOURNAL PAPERS
Walters A.T., Millward H., Lewis A., 2006, Case Studies of Advanced Manufacturing Technology Implementation in Small Companies, International Journal of Innovation and Technology Management, 3(2), ISSN 0219-8770, pp. 149 169, doi:10.1142/S0219877006000752 *
289
APPENDIX C
Millward H., Byrne C., Walters A.T., Lewis A., 2006, New Product Development within Small and Medium-Sized Enterprises: Analysis Through Technology Management Maps, International Journal of Innovation and Technology Management, 3(3), ISSN 0219-8770, pp. 283 302, doi:10.1142/S0219877006000806 * Walters A.T., Millward H., Challenges in Managing the Convergence of Information and Product Design Technology in a Small Company, International Journal of Technology Management, Under consideration. *
290
APPENDIX C
APPENDIX C1: CONFERENCE PAPERS

Over the following pages, the full texts of five conference papers are presented: A comparison of the impact of advanced manufacturing within different sized companies Organisational implementation Implementation of advanced manufacturing technologies in response to business opportunities in two small companies The relationship between technology management and product development boundaries in small and medium-sized enterprises Challenges in Managing the Convergence of Information and Product Design Technology in a Small Company change requirements for advanced manufacturing technology
291
A COMPARISON OF THE IMPACT OF ADVANCED MANUFACTURING WITHIN DIFFERENT SIZED COMPANIES A.T. Walters, R. Hoyle, A. Lewis, H. Millward National Centre for Product Design and Development Research, University of Wales Institute, Cardiff, Western Avenue, Cardiff, CF5 2YB ABSTRACT This paper reports a survey of published outcomes examining the impact of AMT within companies of various sizes. The paper is part of a research project that will identify the critical factors for the selection and implementation of AMT in small companies. Much of the literature examining AMT concentrates on US manufacturing and places little or no emphasis on the differences between large and small organisations. Given the resources required to implement AMT, such indiscriminate study may provide results with a bias to large companies that have more opportunity to invest in AMT and therefore more experience in the factors affecting implementation. In order to counter such bias, the authors have enlisted the help of two industrial experts that have experience in AMT implementation in small companies. This research will resolve the absence of an understanding of the particular issues facing small companies when implementing AMT. The study has the potential to make a significant contribution to knowledge in the field through the identification of generic issues. KEYWORDS: Advanced Manufacturing Implementation 1. INTRODUCTION
Quality and flexibility in manufacturing has become as important a focus as cost reduction in Western companies over the past two decades [1]. To aid industries achievement of such a shift in focus, much research has been conducted into the application of AMT. The importance of these new manufacturing objectives are indicated in the UK Governments Manufacturing Strategy which advocates that, In the face of low-cost competition, firms must move up the value added chain and embrace knowledge-intensive, high skilled manufacturing [2]. Youssef [3] defines AMT as a group of integrated hardware-based and software-based technologies, which if properly implemented, monitored and evaluated, will lead to improving the efficiency and effectiveness of the firm in manufacturing a product or providing a service. Common examples of AMT include Computer Aided Design and Manufacture (CAD/CAM), Computerised Numeric Control (CNC) machines, industrial robots, etc. Successful implementation of AMT has been associated with numerous tangible and intangible benefits [4]. Tangible benefits include: Inventory savings; reduced floor space; improved return on equity; and, reduced unit costs. Intangible benefits include: Enhanced competitive advantage; increased flexibility; improved speed of response; and, improved product quality and reliability [5, 6]. The potential benefits of AMT are widely reported, however, much of the literature on AMT indicates that companies are often dissatisfied with the benefits that such technological investment has brought to their businesses [7, 8, 1, 6,]. Difficulties with the implementation and maintenance of AMT include: Communication; commitment; education; investment in support mechanisms; and, lack of previous experience in AMT implementation [9, 10]. Following a review of the literature, the author has classified the previously published research on AMT into four broad categories: Planning for AMT; Operational impact of AMT;
Critical success factors for the implementation of AMT; and, Relationship between size and AMT adoption. Much of the literature examining AMT concentrates on US manufacturing and places little or no emphasis on the differences between large and small organisations. Given the resources required to implement AMT, such indiscriminate study may provide results with a bias to large companies that have more opportunity to invest in AMT and therefore more experience in the factors affecting implementation. In order to counter such bias, the authors have enlisted the help of two industrial experts (one a small company director (CD), the other a manufacturing consultant (MC)) that have experience in AMT implementation in small companies. Using industry experts to assess AMT factors that have not received extensive coverage in the published literature is not unprecedented. Saleh et al [7] referred to a panel of five industrial experts to compliment a literature review on capital decision-making involving AMT. The authors recognise that the experiences of two industrial experts does not constitute a comprehensive survey of the AMT factors affecting small companies. However, the differences in their individual experiences compared to those presented by the published literature indicate the need for further research that examines AMT specifically from a small company perspective. 2. PLANNING FOR AMT
Burcher and Lee [11] found from their survey of 161 UK manufacturing practitioners that in order of importance (as ranked by the surveyed companies), companies invest in AMT to: obtain competitive advantage; obtain financial benefits; counter competitive threat; enhance company image; and, counter skill deficiency. The study indicates that most of the AMT implementations were undertaken as a response to market conditions rather than being driven by technological factors. In addition, the authors argue that companies assess AMT proposals carefully through evaluation of both quantitative and qualitative factors and that most companies employed more than one appraisal technique. The results of the survey indicated to the authors that there is no pattern of differentiation between larger or smaller companies in terms of the number or types of appraisal techniques employed by a company. The assertions regarding the drivers for AMT and the evaluation techniques used are in keeping with the small company experiences described by CD and MC. However, both CD and MC describe a different order of importance for the reasons small companies invest in AMT to those presented by Burcher and Lee. In the experiences of the industrial experts, countering competitive threat and obtaining financial benefit were more important than achieving competitive advantage. Small [1] surveyed 114 US companies, 57% of which employed less than 200 staff. The results of the survey indicated that the most important objective for the implementation of AMT was improving product quality. CD and MC also place the improvement of product quality as an important objective of AMT implementation, however, as indicated above, more importance is given to countering competitive threat and obtaining financial benefit. The business customs of both the UK and the US are often accused of being cultures in which managers are under pressure to produce short-term results. Burcher and Lee argue that such an accusation is unfounded in regards to many of the companies that they surveyed in respect to AMT investment planning. Many companies were found to be employing discounted cash flow (DCF) analysis to justify their investments in the longer-term. However, problems have been associated with the DCF method when considering AMT implementations due to difficulties in attributing financial value to the intangible benefits associated with such investments [4]. Difficulties in evaluating the qualitative factors of AMT investments led Saleh et al [7] to develop a framework for managers to incorporate intangible attributes into the decision process when considering alternative AMT investments (Figure 1). The research
conducted by Saleh et al found that each of the sub-attributes for the each of the four categories were of equal importance to managers. Therefore, managers can compare alternative AMTs by indicating on a common scale how well each technology meets the sub-attribute characteristic. However, the authors also found that manufacturing flexibility and system cost were of greater importance to managers than the attributes of vendor support and technical and management support. Therefore, average scores for the sub-attributes of manufacturing flexibility and system cost need to be weighted accordingly.
Fig. 1 Framework for evaluating advanced manufacturing systems (from Saleh et al [7]) The assertions made by Saleh et al regarding the relative values to companies of AMT attributes did not hold true for the industrial experts consulted as part of this report. For both CD and MC, Vendor Support and Technical and Management Support were deemed more important than Manufacturing Flexibility and System Cost. MC explained that as small companies often do not have broad technical expertise they perceive the level of support available from the vendor to be a critical factor for successful implementation, therefore, potentially justifying greater system cost. 3. OPERATIONAL IMPACT OF AMT
The implementation of AMT allows companies to diverge from the traditional manufacturing strategies of striving for low-cost leadership and differentiation. Effective implementation of AMT enables companies to achieve economies of scale and scope simultaneously. That is, implementing AMT reduces the cost of future product innovation, allowing the company to increase its speed of response to market and competitive changes. Therefore, investment in AMT represents a strategic option, the value of which increases in an environment of competitive and market uncertainties. Further, such economies of scope has the potential to influence the risk propensities of a company, e.g., in exploiting opportunities provided by a new AMT, a previously risk-averse company may become risk-prone and attempt to challenge another companys position in a related market [12]. In measuring the impact of design-led AMT in small to medium sized companies, Dorrington et al [13] found that time, cost and quality factors were all positively influenced. Dorrington et al argue that an important contributory factor to these benefits is enhanced communication throughout the organisation. An example cited by the author describes the ability
of a CAD/CAM designer to discuss the manufacturability of a concept at an early stage, thus reducing the requirement for additional design work during the manufacturing phase. Sohal [14] studied the effects of AMT implementation in seven Australian organisations of varying size (from 30 to nearly 3000 employees). The benefits obtained by the companies that were the focus of this study included: improvements in volume throughput; reductions in product recall time; savings on labour costs; reductions in lead times; and, a reduction in customer complaints. However, although the benefits achieved were significant, a number of problems were also reported, including: a lack of in house programming skills; inter-departmental conflicts; poor communication between management and the information technology department; implementation of necessary shop-floor discipline; conflict between short-term production requirements and long-term goals; and, convincing a Board of Directors to approve the project. When assessing the impact of AMT, CD found that although significant improvements were achieved at the manufacturing stage that was the focus of the investment, the new technology actually had a negative effect on downstream manufacturing processes. This was attributed to the downstream processes having difficulty in working to the tighter tolerances and increased complexity achievable from the new investment. Cost benefits from increased efficiency were offset by a number of hidden costs associated with the new technology. For example, this particular technology required consumables in the form of cutting gases, however, the use of such gases themselves required significant investment in the form of additional pipe work and storage facilities. In addition, the increased flexibility of the new technology created a bottleneck at the point of programming the new machine as operators struggled to effectively input the increasingly complex patterns into the machine. To resolve this issue the company made a further investment in more sophisticated CAD/CAM modules. This scenario demonstrates a case where in order to achieve the benefits envisaged by the company there was a very significant increase in the expected cost of investment. This implies a barrier to successful implementation of AMT for the smaller company as they may have difficulty in accessing the required resources of spiralling implementation and development costs. One of the benefits cited by Sohal was reduction in labour costs; however, Small [5] warns that justification of AMT implementation based on such a benefit may be flawed. Following a survey of 116 US manufacturing firms, Small found that the implementation of AMT often resulted in marginal decreases in the number production operators and marginal increases in average labour costs. The author concluded that although many companies achieved their objective of operator reductions this did not necessarily result in savings in labour costs. 4. CRITICAL SUCCESS FACTORS FOR THE IMPLEMENTATION OF AMT
Inman [15] proposed a seven-step strategy for successful implementation for advanced Flexible Manufacturing Systems (FMS). The seven steps proposed are: Define the firms manufacturing strategy; Define the environment; Ensure management commitment; Technical evaluation; Economic evaluation; People involvement; and, Installation. Inman argues that the most important of these is the definition of the companys manufacturing strategy asserting that it is crucial that technology acquisition decisions are consistent with company manufacturing strategy. In addition, the author states that it is important for businesses to determine if their industry is suitable for competing on grounds of flexibility. The report suggests an indication of suitability can be gained by the rate at which new products are introduced in a specific industry. In industries with a high rate of product introduction, the ability to launch new products may be more important than minimising cost. Following a review of the available literature together with a survey of 92 US manufacturing companies that had implemented some form of AMT, Udo and
Ehie [16, 17] produced a predictive model linking critical success factors to tangible and intangible benefits of AMT (Figure 2).
Fig. 2 AMT implementation predictive model (from Udo and Ehie [15]) The authors identified four AMT determinants (triple C factors, self-interest factors, housekeeping factors, and literacy factors) that significantly affected AMT implementation measured through AMT benefits. The results of the study indicated that self-interest factors were the most critical determinant of AMT success. The implication of this result is such that where shop-floor operatives can be encouraged to perceive a technological investment as a system that can yield personal gains to them, the likelihood of the company achieving successful implementation is increased. Cost justification was found to be the most important predictor of implementation success in the housekeeping category. The authors argue that a believable cost justification has the capability to make shop-floor operatives conscious of profit and loss issues, and as a result has the potential to enhance the companys competitive position. The literacy factors relate to education of the workforce; the results of the study indicate that investment in education of shop-floor operatives is directly related to many of the AMT benefits. McDermott and Stock [18] identified links between certain types of organisational culture and implementation success via a survey of 97 US manufacturing companies. The study demonstrated that companies with a flexible group orientation (that is, companies that have tendencies towards internal flexibility and spontaneity) gained higher levels of satisfaction from their AMT implementations. These levels of satisfaction were present even where companies witness no significant operational or organisational benefits. The authors proposed that in such cases companies might be deriving implementation satisfaction from the process of implementation, perhaps as a capability or team building exercise. Continuing the theme of organisational culture and implementation success, a study of 101 US companies conducted by Gupta et al [19] found that AMT implementation could have an adverse effect on the commitment of employees. In the study the authors argue that the implementation of AMT often leads to increased uncertainty in the manufacturing environment, thus making it more threatening to work in. Such findings add weight to the importance of both the self-interest factors and literacy factors as identified by Udo and Ehie. In keeping with the findings of Udo and Ehie and Gupta et al, MC considered involvement of production operators
to be the most important factor in achieving successful implementation of a new manufacturing technology. This is in contradiction to Inman, as it is the experience of MC that small companies place more importance on the involvement of shop floor workers than on aligning their investment to their manufacturing strategy. It may be that in the smaller company there is greater likelihood that the manufacturing strategy is driven completely by the will of the company owner / manager. Where such an owner / manager is also the main decision maker for technological investments, consideration of alignment to a manufacturing strategy may happen intuitively. 5. RELATIONSHIP BETWEEN SIZE AND AMT ADOPTION
Sohal et al [9], in their study of AMT implementation in 84 South African countries, found a number of noteworthy differences between larger and smaller companies. Perhaps unsurprisingly, the study found that larger companies make larger AMT investments. Such a discovery is in line with previous research that has considered the characteristics of companies implementing AMT [20]. However, a related but interesting discovery concerned the different risk attitudes of large and small companies. The results of this study indicated that failure to achieve financial targets and deficiencies in relevant managerial skills were less important risks for large companies. Another important difference between larger and smaller companies was the increased likelihood of larger companies to already employ personnel with the necessary skills to implement and maintain AMTs at the time of implementation. The authors argue that the major challenges to smaller companies are the management of both the financial resources and skills required for successful implementation. These findings support the opinions of the industrial experts consulted, as both CD and MC placed high value on AMT vendor support due to the lack of expertise contained within small companies. In addition, the earlier cited example of AMT implementation by CD highlighted the barriers to successful implementation due to an increasing requirement for further investment. Earlier in this report, issues regarding the inclusion of qualitative factors in AMT investment decisions are discussed. Rangone [21] argues that many of the frameworks developed for AMT investment decisions have not been developed with small or medium sized enterprises (SME) in mind. Rangone attempts to assess the applicability of major non-conventional AMT appraisal and selection techniques to smaller companies. The techniques assessed by the author are: modified DCF; strategic approach; and, multi-attribute decision making (MADM). The report concludes that MADM methods can be particularly beneficial to smaller companies since they are intuitive, that is, based on a human-like logic. Additionally, MADM techniques do not require specific competence or sophisticated information systems. 6. DISCUSSION
The literature has demonstrated that AMT implementation can yield many tangible and intangible rewards for manufacturing organisations. However, it is also noted that many companies are failing to acieve their anticipated benefits following implementation. Due to many of the benefits associated with AMT adoption being intangible, much research has been conducted into evaluation of qualitative factors to aid justification of investment. Achieving implementation success is another area that has received much attention in the literature. However, a great deal of the literature concentrates on US manufacturing. Researchers have established that there is a link between technological investment and productivity growth in the US; however, it is yet to be shown if similar investment in technology will yield the same benefits for European countries [22]. AMT research based in the US has a tendency either to examine large firms that have certain levels of previous experience with technology
implementation, or to be indiscriminate in company selection to achieve generalisable results. Given the resources required to implement AMT, such indiscriminate study may provide results with a bias to large companies that have more opportunity to invest in AMT and therefore more experience in the factors affecting implementation. In measuring the effects on a company of introducing new AMT, researchers have measured a combination of quantitative and qualitative indicators. Examples of previously used indicators include lead times, project cost and product quality and return on equity, throughput times, competitiveness, work conditions and response times. The impact of AMT implementation upon small companies is an under researched area. Many of the studies that have been conducted in this area have focussed on highlighting the differences between large and small companies in regard to AMT implementation. While such studies provide valuable insights into the effects of technological implementation within smaller organisations, it also highlights a need for in-depth study that focuses exclusively on the relevant issues faced by small companies. A well-documented and significant barrier to successful implementation is resistance to change at various levels within the workforce. Tantoush and Clegg [23] advocate that it may not be politically possible to implement technological change within an organisation even if such changes have been rationally deemed necessary. Even small organisations, often regarded as naturally inclined to change, suffer political barriers to technology implementation [24]. The purpose of this paper is to examine AMT literature in preparation for in-depth study on the impact of AMT on small Welsh companies. The merit in studying small Welsh companies is demonstrated by the high percentage of Welsh manufacturing companies that fit such a description. The Welsh Assembly Governments Wales in Figures publications show that in 2002 over 90% of manufacturing companies employed less than 100 people and that 88% of manufacturing companies employed less than 50 people [25]. Further argument for the importance of small business to Wales is given by the Federation of Small Businesses who state that 71% (compared with 57% in the UK) of all Welsh private sector employment and 63% (54% UK) of business turnover in Wales is generated by SMEs [26]. Previous research has indicated that companies from differing geographical locations invest in AMT for similar reasons and face similar adoption issues [27, 6]. Therefore, it is believed by the authors that a study of the impact of AMT on small Welsh companies has the potential to make a significant contribution to knowledge in the wider field through the identification of generic issues. 7. [1] [2] [3] [4] [5] [6] [7] REFERENCES M.H. Small, Objectives for adopting advanced manufacturing systems: promise and performance, Industrial Management & Data Systems, Vol. 98 No. 3 (1998), 129-137. DTI, The Governments Manufacturing Strategy, DTI/Pub 5962/2.5k/4/02/NP (2002). M.A. Youssef, Getting to know Advanced Manufacturing Technologies, Industrial Engineering, Vol. 24 No. 2 (1992), 40-42. R.S. Kaplan, 1986, Must CIM be justified by faith alone?, Harvard Business Review, 8795. M.H. Small, Assessing manufacturing performance: an AMT portfolio perspective, Industrial Management & Data Systems, Vol. 99 No. 6 (1999), 266-277. A.S. Sohal, P.G. Burcher, R. Millen and G. Lee, Comparing American & British practices in AMT adoption, Benchmarking: An International Journal, Vol. 6 No. 4 (1999), 310-324. B. Saleh, M. Hacker and Randhawa, Factors in capital decisions involving advanced manufacturing technologies, International Journal of Operations & Production Management, Vol. 21 No. 10 (2001), 1265-1288.
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F.T.S. Chan, M.H. Chan, H. Lau and R.W.L. Ip, Investment appraisal techniques for AMT, Integrated Manufacturing Systems, Vol. 12 No. 1 (2001), 35-47. P. Jonsson, An empirical taxonomy of advanced manufacturing technology, International Journal of Operations & Production Management, Vol. 20 No. 12 (2000), 1446-1474. A.S. Sohal, R. Schroder, E.O. Uliana and W. Maguire, Adoption of AMT by South African manufacturers, Integrated Manufacturing Systems, Vol. 12 No.1 (2001), 15-34. P. Burcher and G. Lee, Competitiveness strategies and AMT investment decisions, Integrated Manufacturing Systems, Vol. 11 No. 5 (2000), 340-347. D. Lei, M.A. Hitt and J.D. Goldhar, Advanced manufacturing technology: Organisational design and strategic flexibility, Organization Studies, Vol. 17 No. 3 (1996), 501-523. P. Dorrington, A. Lewis and H. Millward, Assessing the operational impact of implementing advanced engineering design-led technologies within a selection of manufacturing SMEs, Proc. of the 3rd Advanced Engineering Design Conf., Czech Technical University, Prague, Czech Republic, June 2003. A.S. Sohal, Assessing AMT implementations: an empirical field study, Technovation, Vol. 16 No. 8 (1996), 377-383. R.A. Inman, Flexible manufacturing systems: Issues and implementation, Industrial Management, Vol. 31 No. 4 (1991), 7-11. G.J. Udo and I.C. Ehie, Advanced manufacturing technologies: Determinants of implementation success, International Journal of Operations & Production Management, Vol. 16 No. 8 (1996), 6-26. G.J. Udo and I.C. Ehie, Critical success factors for advanced manufacturing systems, Computers and Industrial Engineering, Vol. 31 No. 1/2 (1996), 91-94. C.M. McDermott and G.N. Stock, Organisational culture and advanced manufacturing technology implementation, Journal of Operations Management, Vol.17 No. 5 (1999), 521-533. A. Gupta, J. Prinzinger and D.C. Messerschmidt, Role of organisational commitment in advanced manufacturing technology and performance relationship, Integrated Manufacturing Systems, Vol. 9 No. 5 (1998), 272-278. R. Schroder and A.S. Sohal, Organisational characteristics associated with AMT adoption: Towards a contingency framework, International Journal of Operations & Production Management, Vol. 19 No. 12 (1999), 1270-1291. A. Rangone, On the applicability of analytical techniques for the selection of AMTs in small-medium sized firms, Small Business Economics, Vol. 10 No. 3 (1998), 293-304. M. OMahony and W. de Boer, Britains relative productivity performance: Updates to 1999, National Institute of Economic and Social Research, (2002). T. Tantoush and S. Clegg, CADCAM integration and the practical politics of technological change, Journal of Organizational Change Management, Vol. 14 No. 1 (2001), 9-27. D.M. Macri, M.R. Tagliaventi and F. Bertolotti, A grounded theory for resistance to change in a small organisation, Journal of Organizational Change Management, Vol. 15 No. 3 (2002), 292-310. National Assembly for Wales, Statswales: Manufacturing local units, by employment size band, http://www.statswales.wales.gov.uk/eng/TableViewer/wdsview/dispview.asp (2003). Federation of Small Businesses in Wales, Manifesto for the National Assembly elections May 2003: A Winning Wales Complement Document, http://www.fsb.org.uk/policy/apu/devolved/wales/assets/MANIFenglish.pdf (2003). P. Burcher, G. Lee and A. Sohal, Lessons for implementing AMT: Some case experiences with CNC in Australia, Britain and Canada, International Journal of Operations & Production Management, Vol. 19 No. 5/6 (1999), 515-526.
ORGANISATIONAL CHANGE REQUIREMENTS FOR ADVANCED MANUFACTURING TECHNOLOGY (AMT) IMPLEMENTATION Peter Dorrington & Andrew Walters* National Centre for Product Design and Development Research (PDR), University of Wales Institute, Cardiff (UWIC), Western Avenue, Cardiff, CF5 2YB, UK *Corresponding author; email: atwalters-pdr@uwic.ac.uk Abstract The implementation of AMTs is seen as an important research topic due to its potential impact on competitiveness of smaller companies. A survey of existing literature on organisational change leads the authors to categorise the previously published research into three broad categories: organisational learning, operator empowerment and internal politics. The results of the literature survey are used to aid analysis of a case study companys organisational change performance. The consensus from both the literature review and case study findings are that in order to utilise AMTs to their full potential SMEs must be willing to undergo a degree of organisational change. Such organisational change must incorporate a degree of organisational learning, which is likely to include increasing the skills of employees and adapting the ways in which they work. In turn, this encourages companies to take an enabling approach to technology implementation that allows operators to interact more creatively within an organisation. Both organisational learning and operator empowerment are tools that will impact upon the internal politics of an organisation. A positively influencing approach to internal politics within an organisation has the potential to create an environment conducive to change. The findings from this paper are to be used as part of a wider study that will further investigate the impact of AMTs on small Welsh manufacturing companies.
Introduction The purpose of the research presented in this paper is to develop an understanding of the organisational change requirements for small companies planning to implement an advanced manufacturing technology (AMT). Much of the published research regarding AMT implementation has concentrated on large US manufacturing organisations, however, AMT has been identified as an important research topic that may aid improvement in the competitiveness of smaller European manufacturing companies [1, 2]. This paper reports a survey of published outcomes examining issues of organisational change within manufacturing companies. The results of the literature review are used to aid analysis of a small companys achievements in AMT implementation. This paper forms part of a wider research project to identify the critical factors for the selection, implementation and development of AMT in small Welsh companies. Over the last two decades, quality and flexibility in manufacturing have become as important a focus as cost reduction in Western companies [3]. Due to such a shift in focus, much research has been conducted into the application of AMT. The importance of these new manufacturing objectives are indicated in the UK Governments Manufacturing Strategy which advocates that, In the face of low-cost competition, firms must move up the value added chain and embrace knowledge-intensive, high skilled manufacturing [4]. Youssef [5] defines AMT as a group of integrated hardware-based and softwarebased technologies, which if properly implemented, monitored and evaluated, will lead to improving the efficiency and effectiveness of the firm in manufacturing a product or providing a service. Common examples of AMT include Computer Aided Design and Manufacture (CAD/CAM), Computerised Numeric Control (CNC) machines, industrial robots, etc. Successful implementation of AMT has been associated with numerous tangible and intangible benefits [6]. Tangible benefits include: Inventory savings; reduced floor space; improved return on equity; and, reduced unit costs. Intangible benefits include: Enhanced competitive advantage; increased flexibility; improved speed of response; and, improved product quality and reliability [7, 8]. The potential benefits of AMT are widely reported, however, much of the literature on AMT indicates that companies are often dissatisfied with the benefits that such technological investment has brought to their businesses [3, 8, 9, 10]. Difficulties with the implementation and maintenance of AMT include: Communication; commitment; education; investment in support mechanisms; and, lack of previous experience in AMT implementation [11, 12]. A well-documented and significant barrier to successful implementation is resistance to change at various levels within the workforce. Tantoush and Clegg [13] advocate that it may not be politically possible to implement technological change within an organisation even if such changes have been rationally deemed necessary. Even small organisations, often regarded as naturally inclined to change, suffer political barriers to technology implementation [14]. Following a review of the literature, the authors have categorised the previously published research in regards to organisational change in manufacturing companies into three broad categories: Organisational learning; operator empowerment; and, internal politics. Organisational learning The published literature on technological change within manufacturing companies has indicated that the drivers of such change include: To obtain competitive advantage; to obtain financial benefit; to counter competitive threat; to improve product quality; etc [5, 15]. However, when examining three UK automotive component suppliers, Lee et al [16] found that the drivers for change in these organisations was pressures imposed by their customers, i.e. major vehicle manufacturers. The authors note that smaller companies face numerous barriers to technological change including: negative attitudes and perceptions of
the effects of change; resource constraints; and, a lack of interaction with external expertise to facilitate technology implementation. However, the authors also advocate the importance of innovation and high skilled manufacturing stating that:
Most of the resources within a company are accessible by competitors (e.g. capital, raw materials, standard technologies), therefore competitive advantage derives from the knowledge and abilities of the workforce.
In order to aid analysis of the efforts of their case study companies attempts to become more competitive during a period of technological change, Lee et al developed eight characteristics of organisational learning. These characteristics were based on those developed by Weaver (1994, cited in Lee et al [16]): Shared mental models: Encouraging a shared vision of the organisation Learning values: Encouraging individual and group interaction to create new organisational learning Experimentation and innovation: Mechanisms to tap creativity from employees Legitimate politics: Encouraging employees to pursue their own goals and interests where these can be aligned to the needs of the business Learning from the past: Monitoring and evaluating results to guide future decisionmaking Synthesising perspectives: Encouraging employees to be responsive to alternative perspectives Commitment to professional development: Encouraging employees to develop their knowledge and skills Participative information search: Analysis of the business environment to enhance company planning
Following evaluation of the performance of the case study companies against these characteristics, Lee et al suggest that small and medium sized enterprises (SMEs) have a tendency to focus on those areas of organisational change that present least challenge in implementation. The authors suggest that these changes centre on improvements in face-toface communication between managers and workers, an aspect of organisational change that is easier for the smaller firm to maintain than it is for the larger company. Sherer et al [17] examined the importance of investment in organisational change management in aiding the successful implementation of a new technology. The authors argue that many companies fail to place enough emphasis on the changes that employees must make to the way that they work in order to successfully utilise a new technology. The study focussed on a single multi-national companys perspective, however, the particular technological implementation examined was a corporate wide system upgrade. The authors concluded that the investment that the company had made in managing the change had a significant impact in improving client satisfaction and reducing resistance from the workforce. Operator empowerment Adler and Borys [18] state that efficient manufacturing requires certain levels of formalisation of processes and procedures. However, they also note that bureaucracy often
has a negative impact on innovation and change within companies. In their study of organisational bureaucracy, the authors identified two types of formalisation, coercive and enabling. The authors advocate an enabling approach when implementing an AMT that requires increased skill levels on the part of the operator. Such an approach requires the company to allow more discretion in the ways in which people work, with procedures that empower users of technology. This provides an environment in which operators interact more creatively within the organisation. The study therefore suggests that with this type of formalisation there is reduced risk of inhibiting organisational change. The literature on AMT has often advocated the importance of operator empowerment to successful implementation [13, 14, 18, 19]. Macri et al [14], state that it is important that proposed changes within an organisation are understood to be both desirable and necessary by shop floor operators. Should this not be the case, the authors warn that production operators may engage in acts of sabotage towards new systems and procedures. Udo and Ehie [19] identified four determinants of AMT implementation success: Triple C factors: Communication, co-ordination and commitment Self-interest factors: Employee morale, satisfaction, belief in AMT, appropriate reward Housekeeping factors: Action plan, effective team, vendor support, cost justification, functions integration, effective facilitator Literacy factors: Understanding of AMT, understanding of firm business, training, clear goals and objectives, expectations of AMT
Each of these factors was shown to significantly affect AMT implementation success measured through AMT benefits. However, results of the study indicated that self-interest factors were the most critical determinant of AMT success. The implication of this result is such that where shop-floor operatives can be encouraged to perceive a technological investment as a system that can yield personal gains to them, the likelihood of the company achieving successful implementation is increased. Literacy factors relate to education of the workforce; the results of the study indicate that investment in education of shop-floor operatives is directly related to many of the AMT benefits. In developing a framework to assess change management success, Taskinen and Smeds [20] undertook research to ascertain the state of the art in measuring change management projects. This research took the form of interviews with the managing directors of three global consulting companies. Each of the consulting companies highlighted the importance of measuring the willingness to change of personnel. Such findings add weight to the importance of both the self-interest factors and literacy factors as identified by Udo and Ehie. The findings of Lee et al [16] are also in keeping with the theme of operator empowerment and enabling formalisation. The authors state that it is important to encourage legitimate politics within the company and suggest the dispersal of power and authority throughout the organisation, providing autonomy of departments in addressing their own objectives. Internal politics According to Taskinen and Smeds [20] there is a shift from the requirement of the effective management of operations to the efficient and effective management of change.
The study suggests that the identification of resistance to change within an organisation is an important aspect of successful change implementation. The literature regarding organisational learning and operator empowerment present these issues as tools designed to impact upon an organisations internal politics in such a way as to create an environment that is conductive to change. The existence of political barriers to change within organisations has been noted many times in the published literature. Tantoush and Clegg [13] assert that although many firms adopt AMT for profit-motivated reasons they fail to achieve such benefits because they are unable to manage the politics of the technology and its impact upon organisational design. According to Macri et al [14], even small organisations, often regarded as naturally inclined to change, suffer political barriers to technology implementation. Although, as noted above, it is the position of Lee et al [16] that when small companies are determined to implement change, communication is an area in which they out-perform larger companies. However, a contradictory example is provided by Jones [21] in a case-study paper examining the management style within a small company. In this paper the author notes that, the MD expressed little interest in developing the workforce and was more concerned to investigate opportunities for outsourcing existing activities or investing in new machinery. Whilst this particular publication is concerned only with a single organisation, the autocratic nature of the company studied shares many parallels to the case-study company that is the focus of this research. Organisational change and technology implementation The case study company examined in this paper is an automotive component manufacturing company, with 50 employees, based in South Wales. A number of AMT implementations were undertaken by this company, including the installation of 3D CAD/CAM facilities, the development of a phenolics moulding plant and the installation of 5axis CNC machining capabilities. The CAD/CAM implementation was undertaken in order to improve communication with clients during the early stages of their design work. Being a supplier to larger automotive companies, the majority of their clients wished to discuss and review design requirements and modifications with the aid of 3D CAD data. Therefore, the Company perceived that the installation of sophisticated 3D CAD would allow them to safeguard their position as a supplier to their current clients and improve their prospects for winning new contracts. In addition, the Company believed that such technological implementation would allow the company to pursue new markets through the exploitation of their new in-house design facilities. Having no previous experience of product design, the company identified an opportunity to partake in a Teaching Company Scheme (TCS) to aid both the technological implementation and new strategic direction of the organisation. In addition, following quite extensive market research into the phenolics and rail industry an opportunity was identified to develop a plant that could produce phenolic mouldings with uniform wall sections from closed moulds, with repeatable accuracy through use of a 5-axis CNC machine. TCS, recently renamed Knowledge Transfer Programme (KTP), is a UK governmentbacked scheme aimed at strengthening the competitiveness and wealth creation of the UK by stimulating innovation in industry through structured collaborations with universities. The case study companys involvement with the TCS was typical in that a graduate (TCS associate) was placed within the company for two years to provide expertise relevant to the development being undertaken. The managing director (MD) of the company had created a vision that the company would become a one-stop shop for the mass transport industry, providing aluminium castings, polyurethane mouldings and phenolic mouldings. However, the communication of this vision to staff below the management level was not demonstrated to be a high priority. Communication of the company vision and direction to shop-floor workers was occasionally discussed, however, no time was ever allocated to develop mechanisms to achieve this. Due
to this lack of communication, production operators and in some cases higher managers, remained unaware of the companys technological aspirations and new strategic direction until the TCS associate was in place. Even at that juncture, explanation of the proposed changes was left to be provided by the TCS associate in ad hoc conversations with operators. Further to the vision of being able to provide the one-stop shop, it was also the MDs vision to unite the three factions of the company (casting, pu, and phenolic) and integrate the use of technology. However, this created political barriers within the organisation. The company had recently purchased an advanced 5-axis CNC machine, principally for trimming phenolic mouldings. However, as part of the MDs wider company vision use of the new CNC was to be instrumental in the development of in-house casting pattern making. This presented a problem as the Phenolics manager had assumed ownership of the CNC following its installation in his department. The Phenolics manager was uninterested in further development of the casting side of the company and attempted to prevent access to the CNC for such development work. In addition, further development was also hindered by the autocratic management style of the Business Development Manager. The MD actively encouraged the TCS Associate to explore the use of the CNC machine for in-house pattern and toolmaking. However, the Business Development Manager remained unconvinced that the use of CNC and CAM could lead effective in-house development opportunities. It was perceived by the TCS associate that the Business Development Manager actively resisted such change by generating tasks that prevented further AMT development. Resistance to change was not contained to management, there was also deep suspicion of the impact that such technological implementation would have on the organisation from the shop floor. One of the perceived advantages of using CAD to drive casting production was the use of rapid prototyping (RP) techniques to create complex resin patterns that would be extremely difficult to replicate by traditional techniques. In addition, patterns created from RP resins have the potential for a superior surface finish than traditional wooden hand patterns. At the time of implementation, it was not explained to the pattern-makers that the production of CAD driven patterns was intended to secure additional contracts that would otherwise be unattainable. The strategy was such that this should strengthen the casting division of the company, thereby improving the security of the pattern makers employment. The structured nature of the TCS requires the participating company to commit to the personal development of the TCS. Usually, this commitment takes the form of the provision of time away from the company for appropriate training. The benefit to the company is increased knowledge on the part of the associate that can be utilised to improve some aspect of the business. Although, the company never tried to prevent such off-site training, it was made clear that the company viewed time away as non-productive. As such, it was perceived by the associate that such time away was viewed as an interruption to productivity that the company was required to endure in order to partake in the TCS. The company was not contractually obliged to provide personal development opportunities to any other employee. Therefore, requested training was routinely declined on the grounds of cost, without analysis of the potential benefits employees with increased skills might bring to the company. Communication between the shop-floor operatives and the TCS associate indicated that operators suffered rather low morale levels that might have been improved had some form of personal development been accessible. However, as is often the case when implementing a new manufacturing technology, additional expertise was required from certain members of the workforce. The CNC operator was required to update his skills from 3-axis knowledge to 5-axis. The TCS associate required further training on both CAM and CNC operations. The new phenolic mouldings operation resulted in a number of staff being trained in this area. The TCS associate and the CNC operator were both afforded increased
levels of autonomy in order to develop their skills, however, the phenolics staff were trained in a more structured manner under the direction of the Phenolics Manager. AMT implementation success indicators The findings of the literature review suggest that resistance to change; internal politics; ineffective communication; and, low operator morale has a negative impact upon organisational change. The case-study company that is the focus of this paper has demonstrated problems in each of these areas. However, such a negative impact on organisational change does not necessarily imply that AMT implementation will be unsuccessful. In a questionnaire designed by the authors to assess the operational impact of AMT, the company indicated that they felt that they had achieved significant improvements in their overall competitiveness following the introduction of AMT. Once the CAD/CAM link had been established, the company were able to produce phenolic mouldings that they considered to be of far superior quality to their competitors. It was this quality, the company believes, that was of paramount importance in the successful tendering of their first contracts. In addition, the traditional manufacturing nature of the casting industry meant that very few foundries had CAD facilities Therefore, a competitive advantage was secured in being able to easily communicate with design consultants and large clients that regularly produced data in CAD formats. In order to assess the companies performance in a number of key AMT implementation success markers the authors developed a number of visual analogue scales (VAS) [7, 19]. VAS are ratio scales that have two fixed ends with descriptions. The respondent is requested to mark a line between the two ends to indicate performance in the area being considered. Such scales allow for easy comparison between events providing the respondent with a better range with which to express their opinion than with numerical rating scales. These scales indicate that the implementation of AMT had a positive impact on: Volume throughput; recall times; lead times; customer complaints; production flexibility; and, product quality (see figure 1).
Fig. 1. VAS results showing relative impact of AMT on a number of AMT success markers
Discussion The implementation of a new technology within a company often requires significant organisational change. In addition, the literature indicates that companies of all sizes potentially face barriers to organisational change. It may be reasoned that such barriers
contribute to the dissatisfaction of many companies with the benefits that they have achieved following AMT implementation. That AMT implementation may have a negative impact on organisational design is supported by Gupta et al [22] in a study examining the effects of organisational commitment on AMT implementation success. The authors found that AMT implementation could have an adverse effect on the commitment of employees due to increased uncertainty in the manufacturing environment making it more threatening to work in. Udo and Ehie [19] found a number of critical success factors for AMT implementation, including employee training, intra-organisational communication and employee moral. Making improvements in any of these areas may require significant organisational change. Lee et al [16] argue that SMEs may be better placed to deal with such issues than larger companies, as it is easier for smaller companies to maintain face-to-face communications between management and the workforce. The literature indicates the importance of considering organisational learning, operator empowerment and company politics during periods of organisational change. The experience of the TCS associate indicates that the case study company considered in this paper did not place high levels of importance on these issues during its AMT implementation. However, it is also important to note that the company still achieved many of the anticipated benefits following implementation. Communication of product ideas between the clients and the company was improved and products of increased complexity and quality were produced to shorter timescales. Ultimately, the company believes that the implemented technological changes were paramount to the continued growth of the firm. Further Work The authors recognise that the research presented here has a limitation is respect to quantifying any additional gains that may have been available to the case study company had they better addressed the political and motivational barriers to organisational change. However, it is felt that the case study does provide an insight into the issue of organisational change and technological implementation in a small company that will be useful to the development of further research into the impact of AMT implementation on small companies. The impact of AMT on small companies has been shown to be an under researched area [1]. The purpose of this paper is to examine the AMT and organisation change literature in preparation for in-depth study on the impact of AMT on small Welsh companies. The merit in studying small Welsh companies is demonstrated by the high percentage of Welsh manufacturing companies that fit such a description. The Welsh Assembly Governments Wales in Figures publications show that in 2002 over 90% of manufacturing companies employed less than 100 people and that 88% of manufacturing companies employed less than 50 people [23]. Further argument for the importance of small business to Wales is given by the Federation of Small Businesses who state that 71% (compared with 57% in the UK) of all Welsh private sector employment and 63% (54% UK) of business turnover in Wales is generated by SMEs [24]. Previous research has indicated that companies from differing geographical locations invest in AMT for similar reasons and face similar adoption issues [25, 8]. Therefore, it is believed by the authors that a study of the impact of AMT on small Welsh companies has the potential to make a significant contribution to knowledge in the wider field through the identification of generic issues. References [1] A.T. Walters, R. Hoyle, A. Lewis, H. Millward, A Comparison of the Impact of Advanced Manufacturing within Different Sized Companies, Proc. 21st International Manufacturing Conference, University of Limerick, Ireland, 1st 3rd September 2004.
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[10] F.T.S. Chan, M.H. Chan, H. Lau and R.W.L. Ip, Investment appraisal techniques for AMT, Integrated Manufacturing Systems, Vol. 12 No. 1 (2001), 35-47. [11] P. Jonsson, An empirical taxonomy of advanced manufacturing technology, International Journal of Operations & Production Management, Vol. 20 No. 12 (2000), 1446-1474. [12] A.S. Sohal, R. Schroder, E.O. Uliana and W. Maguire, Adoption of AMT by South African manufacturers, Integrated Manufacturing Systems, Vol. 12 No.1 (2001), 15-34. [13] T. Tantoush and S. Clegg, CADCAM integration and the practical politics of technological change, Journal of Organizational Change Management, Vol. 14 No. 1 (2001), 9-27. [14] D.M. Macri, M.R. Tagliaventi and F. Bertolotti, A grounded theory for resistance to change in a small organisation, Journal of Organizational Change Management, Vol. 15 No. 3 (2002), 292-310. [15] P. Burcher and G. Lee, Competitiveness strategies and AMT investment decisions, Integrated Manufacturing Systems, Vol. 11 No. 5 (2000), 340-347. [16] G. Lee, D. Bennett and I. Oakes, Technological and organisational change in small to medium sized manufacturing companies: A learning organisation perspective, International Journal of Operations & Production Management, Vol. 20 No. 5 (2000), 549-572 [17] S.A. Sherer, R. Kohli, A. Baron, Complementary investment in change management and IT investment payoff, Information Systems Frontiers, Vol. 5 No. 3 (2003) 321-333
[18] P.S. Adler and B. Borys, Two types of bureaucracy: enabling and coercive, Administrative Science Quarterly, Vol. 41 No. 1 (1996) 61-89 [19] G.J. Udo and I.C. Ehie, Advanced manufacturing technologies: Determinants of implementation success, International Journal of Operations & Production Management, Vol. 16 No. 8 (1996), 6-26. [20] T. Taskinen and R. Smeds, Measuring change project management in manufacturing, International Journal of Operations & Production Management, Vol. 19 No. 11 (1999) 1168-1187 [21] O. Jones, The persistence of autocratic management in small firms: TCS and organisational change, International Journal of Entrepreneurial Behaviour & Research, Vol. 9 No. 6 (2003) 245-267 [22] A. Gupta, J. Prinzinger and D.C. Messerschmidt, Role of organisational commitment in advanced manufacturing technology and performance relationship, Integrated Manufacturing Systems, Vol. 9 No. 5 (1998), 272-278. [23] National Assembly for Wales, Statswales: Manufacturing local units, by employment size band, http://www.statswales.wales.gov.uk/eng/TableViewer/wdsview/dispview.asp (2003). [24] Federation of Small Businesses in Wales, Manifesto for the National Assembly elections May 2003: A Winning Wales Complement Document, http://www.fsb.org.uk/policy/apu/devolved/wales/assets/MANIFenglish.pdf (2003). [25] P. Burcher, G. Lee and A. Sohal, Lessons for implementing AMT: Some case experiences with CNC in Australia, Britain and Canada, International Journal of Operations & Production Management, Vol. 19 No. 5/6 (1999), 515-526.
Implementation of Advanced Manufacturing Technologies in Response to Business Opportunities in Two Small Companies
Andrew Walters, Robert Hoyle
Manufacturing Advisory Service (MAS) Cymru, National Centre for Product Design & Development Research (PDR), University of Wales Institute, Cardiff (UWIC), UK
AbstractThis paper investigates technological implementation in response to specific business opportunities. The case study companies examined in this paper are a small UK engineering company and a small UK automotive supplier. Each of the companies discovered that the impact of the technology driven opportunities would not be felt in production alone. In order to realise the opportunities new administrative procedures would be required and managerial political barriers would need to be overcome. This paper forms part of a research project that will identify the critical factors for the implementation of advanced manufacturing technologies (AMT) in small companies. Previous research has indicated that although many firms adopt AMT for profit-motivated reasons they fail to achieve such benefits because they are unable to manage the politics of the technology and its impact upon organisational design. Much of the literature examining AMT places little or no emphasis on the differences between large and small organisations. Given the resources required to implement AMT, such indiscriminate study may provide results with a bias to large companies with more opportunity to invest in AMT. This research will resolve the absence of an understanding of the particular issues facing small companies when implementing AMT.
improving the efficiency and effectiveness of the firm in manufacturing a product or providing a service. Common examples of AMT include Computer Aided Design and Manufacture (CAD/CAM), Computerised Numeric Control (CNC) machines, industrial robots, etc. Successful implementation of AMT has been associated with numerous tangible and intangible benefits [10]. Tangible benefits include: Inventory savings; reduced floor space; improved return on equity; and, reduced unit costs. Intangible benefits include: Enhanced competitive advantage; increased flexibility; improved speed of response; and, improved product quality and reliability [20, 22]. The potential benefits of AMT are widely reported, however, much of the literature on AMT indicates that companies are often dissatisfied with the benefits that technological investment has brought to their businesses [3, 13, 17, 19]. Difficulties with the implementation and maintenance of AMT include: Communication; commitment; education; investment in support mechanisms; and, lack of previous experience in AMT implementation [9, 23]. II. LITERATURE REVIEW A. Planning for AMT Burcher and Lee [2] found from their survey of 161 UK manufacturing practitioners that in order of importance (as ranked by the surveyed companies), companies invest in AMT to: obtain competitive advantage; obtain financial benefits; counter competitive threat; enhance company image; and, counter skill deficiency. The study indicates that most of the AMT implementations were undertaken as a response to market conditions rather than being driven by technological factors. In addition, the authors argue that companies assess AMT proposals carefully through evaluation of both quantitative and qualitative factors and that most companies employed more than one appraisal technique. The results of the survey indicated to the authors that there is no pattern of differentiation between larger or smaller companies in terms of the number or types of appraisal techniques employed by a company. Small [19] suggested that the motivations for companies considering AMT can be grouped into three categories: technical / operational objectives; total quality management (TQM) based objectives; and, business or market-related objectives. Technical / operational objectives relate to the operational concerns of costs, productivity and quality assurance. TQM-based objectives relate to issues such as improvements in management and engineering expertise and
I. INTRODUCTION This paper investigates the impact of advanced manufacturing technology (AMT) on two case study companies, each of which has implemented, or is planning to implement, an AMT in response to a specific business opportunity. The purpose of this paper is to examine two different approaches to AMT implementation and to assess the impacts upon each company. The research presented in this paper is part of a wider research project that will identify the critical factors for the selection and implementation of AMT in small companies. Quality and flexibility in manufacturing has become as important a focus as cost reduction in Western companies over the past two decades [19]. To aid industries achievement of such a shift in focus, much research has been conducted into the application of AMT. The importance of these new manufacturing objectives are indicated in the UK Governments Manufacturing Strategy which advocates that, In the face of low-cost competition, firms must move up the value added chain and embrace knowledge-intensive, high skilled manufacturing [5]. Youssef [28] defines AMT as a group of integrated hardware-based and software-based technologies, which if properly implemented, monitored and evaluated, will lead to
integration within the organisation. Business or marketrelated objectives refer to such issues as reductions in delivery lead time, flexibility and improved speed of reaction to customer needs. In determining these classifications of AMT motivations, Small surveyed 114 US companies, 57% of which employed less than 200 staff. The results of the survey indicated that the most important objective for the implementation of AMT was improving product quality. High levels of importance were also placed on the technologies ability to reduce unit production costs. The business cultures of both the UK and the US are often accused of being cultures in which managers are under pressure to produce short-term results. Burcher and Lee argue that such an accusation is unfounded in regards to many of the companies that they surveyed in respect to AMT investment planning. Many companies were found to be employing discounted cash flow (DCF) analysis to justify their investments in the longer-term. However, problems have been associated with the DCF method when considering AMT implementations due to difficulties in attributing financial value to the intangible benefits associated with such investments [10]. Difficulties in evaluating the qualitative factors of AMT investments led Saleh et al. [17] to develop a framework for managers to incorporate intangible attributes into the decision process when considering alternative AMT investments. The authors identified four attributes for evaluating AMT: Manufacturing Flexibility; system cost; vendor support; and, management support. Each of the attributes had a number of sub-attributes, each of equal importance to managers. Therefore, managers can compare alternative AMTs by indicating on a common scale how well each technology meets the sub-attribute characteristic. However, the authors also found that manufacturing flexibility and system cost were of greater importance to managers than the attributes of vendor support and technical and management support. Therefore, average scores for the sub-attributes of manufacturing flexibility and system cost need to be weighted accordingly. B. Operational Impact of AMT The implementation of AMT allows companies to diverge from the traditional manufacturing strategies of striving for low-cost leadership and differentiation. Effective implementation of AMT enables companies to achieve economies of scale and scope simultaneously. That is, implementing AMT reduces the cost of future product innovation, allowing the company to increase its speed of response to market and competitive changes. Therefore, investment in AMT represents a strategic option, the value of which increases in an environment of competitive and market uncertainties. Further, such economies of scope has the potential to influence the risk propensities of a company, e.g., in exploiting opportunities provided by a new AMT, a previously risk-averse company may become risk-prone and
attempt to challenge another companys position in a related market [11]. In measuring the impact of design-led AMT in small to medium sized companies, Dorrington et al. [4] found that time, cost and quality factors were all positively influenced. Dorrington et al. argue that an important contributory factor to these benefits is enhanced communication throughout the organisation. An example cited by the author describes the ability of a CAD/CAM designer to discuss the manufacturability of a concept at an early stage, thus reducing the requirement for additional design work during the manufacturing phase. Sohal [21] studied the effects of AMT implementation in seven Australian organisations of varying size (from 30 to nearly 3000 employees). The study concluded that in general the companies achieved the benefits that they expected from the AMT and that each of the companies achieved significant improvements in their overall competitiveness. The benefits obtained by the companies that were the focus of this study included: improvements in volume throughput; reductions in product recall time; savings on labour costs; reductions in lead times; and, a reduction in customer complaints. However, although the benefits achieved were significant, a number of problems were also reported, including: a lack of in house programming skills; inter-departmental conflicts; poor communication between management and the information technology department; implementation of necessary shopfloor discipline; conflict between short-term production requirements and long-term goals; and, convincing a Board of Directors to approve the project. One of the benefits cited by Sohal was reduction in labour costs; however, Small [20] warns that justification of AMT implementation based on such a benefit may be flawed. Following a survey of 116 US manufacturing firms, Small found that the implementation of AMT often resulted in marginal decreases in the number production operators and marginal increases in average labour costs. The author concluded that although many companies achieved their objective of operator reductions this did not necessarily result in savings in labour costs. C. Critical Success Factors For the implementation of AMT Inman [8] proposed a seven-step strategy for successful implementation for advanced Flexible Manufacturing Systems (FMS). The seven steps proposed are: Define the firms manufacturing strategy; Define the environment; Ensure management commitment; Technical evaluation; Economic evaluation; People involvement; and, Installation. Inman argues that the most important of these is the definition of the companys manufacturing strategy asserting that it is crucial that technology acquisition decisions are consistent with company manufacturing strategy. In addition, the author states that it is important for businesses to determine if their industry is suitable for competing on grounds of flexibility. The report suggests an indication of suitability can be gained by the rate at which new products
are introduced in a specific industry. In industries with a high rate of product introduction, the ability to launch new products may be more important than minimising cost. Following a review of the available literature together with a survey of 92 US manufacturing companies that had implemented some form of AMT, Udo and Ehie [25, 26] produced a predictive model linking critical success factors to tangible and intangible benefits of AMT. The authors identified four AMT determinants that significantly affected AMT implementation measured through AMT benefits: Triple C factors: Communication, co-ordination and commitment Self-interest factors: Employee morale, satisfaction, belief in AMT, appropriate reward Housekeeping factors: Action plan, effective team, vendor support, cost justification, functions integration, effective facilitator Literacy factors: Understanding of AMT, understanding of firm business, training, clear goals and objectives, expectations of AMT The results of the study indicated that self-interest factors were the most critical determinant of AMT success. The implication of this result is such that where shop-floor operatives can be encouraged to perceive a technological investment as a system that can yield personal gains to them the likelihood of the company achieving successful implementation is increased. Within triple C factors, the authors determined that commitment appeared to have a greater impact on achievable benefits than either communication or co-ordination. The authors proposed an explanation that even with good communication and co-ordination there is unlikely to be an effect upon implementation success without commitment from management and workers. Cost justification was found to be the most important predictor of implementation success in the housekeeping category. The authors argue that a believable cost justification has the capability to make shop-floor operatives conscious of profit and loss issues, and as a result has the potential to enhance the companys competitive position. The literacy factors relate to education of the workforce; the results of the study indicate that investment in education of shop-floor operatives is directly related to many of the AMT benefits. Udo and Ehie conclude the winning firms will be those that keep pace with the changes by updating their workers knowledge through in-service and external training. McDermott and Stock [12] identified links between certain types of organisational culture and implementation success via a survey of 97 US manufacturing companies. The study demonstrated that companies with a flexible group orientation (that is, companies that have tendencies towards internal flexibility and spontaneity) gained higher levels of satisfaction from their AMT implementations. These levels of satisfaction were present even where companies witness no
significant operational or organisational benefits. The authors proposed that in such cases companies might be deriving implementation satisfaction from the process of implementation, perhaps as a capability or team building exercise. Continuing the theme of organisational culture and implementation success, a study of 101 US companies conducted by Gupta et al. [7] found that AMT implementation could have an adverse effect on the commitment of employees. In the study the authors argue that the implementation of AMT often leads to increased uncertainty in the manufacturing environment, thus making it more threatening to work in. Such findings add weight to the importance of both the self-interest factors and literacy factors as identified by Udo and Ehie. D. Relationship between size and AMT adoption Sohal et al [23], in their study of AMT implementation in 84 South African countries, found a number of noteworthy differences between larger and smaller companies. Perhaps unsurprisingly, the study found that larger companies make larger AMT investments. Such a discovery is in line with previous research that has considered the characteristics of companies implementing AMT [18, 24]. However, a related but interesting discovery concerned the different risk attitudes of large and small companies. The results of this study indicated that failure to achieve financial targets and deficiencies in relevant managerial skills were less important risks for large companies. Another important difference between larger and smaller companies was the increased likelihood of larger companies to already employ personnel with the necessary skills to implement and maintain AMTs at the time of implementation. The authors argue that the major challenges to smaller companies are the management of both the financial resources and skills required for successful implementation. Earlier in this paper, issues regarding the inclusion of qualitative factors in AMT investment decisions are discussed. Rangone [16] argues that many of the frameworks developed for AMT investment decisions have not been developed with small or medium sized enterprises (SME) in mind. Rangone attempts to assess the applicability of major non-conventional AMT appraisal and selection techniques to smaller companies. The techniques assessed by the author are: modified DCF; strategic approach; and, multi-attribute decision making (MADM). The report concludes that MADM methods can be particularly beneficial to smaller companies since they are intuitive, that is, based on a humanlike logic. Additionally, MADM techniques do not require specific competence or sophisticated information systems. III. METHODOLOGY The outcome of the literature review has highlighted that little research has been conducted into the impact that implementation of AMT has on smaller European
manufacturing companies. The aim of this research is to identify the critical factors for the selection and implementation of AMT within small companies. Therefore, it is the purpose of this research to resolve the absence of an understanding of the particular issues facing small companies when implementing AMT. The merit in studying small Welsh companies is demonstrated by the high percentage of Welsh manufacturing companies that fit such a description. The Welsh Assembly Governments Wales in Figures publications show that in 2002 over 90% of manufacturing companies employed less than 100 people and that 88% of manufacturing companies employed less than 50 people [14]. Further argument for the importance of small business to Wales is given by the Federation of Small Businesses who state that 71% (compared with 57% in the UK) of all Welsh private sector employment and 63% (54% UK) of business turnover in Wales is generated by small and medium sized enterprises [6]. The results of the literature review were used to develop a questionnaire for exploratory research into the effects of AMT on small Welsh manufacturing companies. Voss et al [27], describe a two stage approach to such case / survey research. Initially data is gathered from manufacturers experience in the relevant area. This retrospective data is used to aid the development of hypothesis or models. However, the authors warn that such retrospective data may be subject to post-rationalisation by the case study respondent. That is, the respondent may interpret previous events using knowledge that was not available at the time. To counter this risk, a second stage of longitudinal research is undertaken to test models and gain more in-depth knowledge from fewer companies. In order to develop an initial understanding of impact of AMT on smaller companies the author aims to interview twelve small Welsh manufacturing firms. This number has been set due to the practicalities and time constraints of the research project. The findings presented in this paper are developed from the outcomes of two of the twelve interviews. IV. CASE STUDY COMPANY A Case study Company A is an automotive component manufacturing company, with 50 employees, based in South Wales. Annual turnover is around 1.7 million. A number of AMT implementations were undertaken by this company, including the installation of 3D CAD/CAM facilities, the development of a phenolics moulding plant and the installation of 5-axis CNC machining capabilities. The CAD/CAM implementation was undertaken in order to improve communication with clients during the early stages of their design work. Being a supplier to larger automotive companies, the majority of their clients wished to discuss and review design requirements and modifications with the aid of 3D CAD data. Therefore, the Company perceived that the installation of sophisticated 3D CAD would allow them to safeguard their position as a supplier to their current clients
and improve their prospects for winning new contracts. In addition, the Company believed that such technological implementation would allow the company to pursue new markets through the exploitation of their new in-house design facilities. Having no previous experience of product design, the company identified an opportunity to partake in a Teaching Company Scheme (TCS) to aid both the technological implementation and new strategic direction of the organisation. In addition, following quite extensive market research into the phenolics and rail industry an opportunity was identified to develop a plant that could produce phenolic mouldings with uniform wall sections from closed moulds, with repeatable accuracy through use of a 5axis CNC machine. TCS, recently renamed Knowledge Transfer Programme (KTP), is a UK government-backed scheme aimed at strengthening the competitiveness and wealth creation of the UK by stimulating innovation in industry through structured collaborations with universities. The case study companys involvement with the TCS was typical in that a graduate (TCS associate) was placed within the company for two years to provide expertise relevant to the development being undertaken. The managing director (MD(A)) of the company had created a vision that the company would become a one-stop shop for the mass transport industry, providing aluminium castings, polyurethane mouldings and phenolic mouldings. However, the communication of this vision to staff below the management level was not demonstrated to be a high priority. Communication of the company vision and direction to shopfloor workers was occasionally discussed; however, no time was ever allocated to develop mechanisms to achieve this. Due to this lack of communication, production operators and in some cases higher managers, remained unaware of the companys technological aspirations and new strategic direction until the TCS associate was in place. Even at that juncture, explanation of the proposed changes was left to be provided by the TCS associate in ad hoc conversations with operators. Further to the vision of being able to provide the onestop shop, it was also the MD(A)s vision to unite the three factions of the company (casting, pu, and phenolic) and integrate the use of technology. However, this created political barriers within the organisation. The company had recently purchased an advanced 5-axis CNC machine, principally for trimming phenolic mouldings. However, as part of the MD(A)s wider company vision use of the new CNC was to be instrumental in the development of in-house casting pattern making. This presented a problem as the Phenolics manager had assumed ownership of the CNC following its installation in his department. The Phenolics manager was uninterested in further development of the casting side of the company and attempted to prevent access to the CNC for such development work. In addition, further development was also hindered by the autocratic management style of the Business Development Manager.
The MD(A) actively encouraged the TCS Associate to explore the use of the CNC machine for in-house pattern and toolmaking. However, the Business Development Manager remained unconvinced that the use of CNC and CAM could lead effective in-house development opportunities. It was perceived by the TCS associate that the Business Development Manager actively resisted such change by generating tasks that prevented further AMT development. Resistance to change was not contained to management, there was also deep suspicion of the impact that such technological implementation would have on the organisation from the shop floor. One of the perceived advantages of using CAD to drive casting production was the use of rapid prototyping (RP) techniques to create complex resin patterns that would be extremely difficult to replicate by traditional techniques. In addition, patterns created from RP resins have the potential for a superior surface finish than traditional wooden hand patterns. At the time of implementation, it was not explained to the pattern-makers that the production of CAD driven patterns was intended to secure additional contracts that would otherwise be unattainable. The strategy was such that this should strengthen the casting division of the company, thereby improving the security of the pattern makers employment. The structured nature of the TCS requires the participating company to commit to the personal development of the TCS. Usually, this commitment takes the form of the provision of time away from the company for appropriate training. The benefit to the company is increased knowledge on the part of the associate that can be utilised to improve some aspect of the business. Although, the company never tried to prevent such off-site training, it was made clear that the company viewed time away as non-productive. As such, it was perceived by the associate that such time away was viewed as an interruption to productivity that the company was required to endure in order to partake in the TCS. The company was not contractually obliged to provide personal development opportunities to any other employee. Therefore, requested training was routinely declined on the grounds of cost, without analysis of the potential benefits employees with increased skills might bring to the company. Communication between the shop-floor operatives and the TCS associate indicated that operators suffered rather low morale levels that might have been improved had some form of personal development been accessible. However, as is often the case when implementing a new manufacturing technology, additional expertise was required from certain members of the workforce. The CNC operator was required to update his skills from 3-axis knowledge to 5-axis. The TCS associate required further training on both CAM and CNC operations. The new phenolic mouldings operation resulted in a number of staff being trained in this area. The TCS associate and the CNC operator were both afforded increased levels of autonomy in order to develop their skills, however, the phenolics staff were trained in a more structured manner under the direction of the Phenolics Manager.
V. CASE STUDY COMPANY B Case study Company B is a tool making and precision engineering company with 22 employees, based in South Wales. Annual turnover is around 1 million. The Company has been trading since 1990 and has a history of AMT implementations, introducing CAD in 1994 and CAM in 1995. The latest AMT to be successfully introduced by the Company was wire erosion for the precision cutting of steel. This technology was introduced in 2003. This case study examines the Company in the process of planning the implementation of a new AMT. The latest planned addition to the Companys technological portfolio is an 8-axis CNC lathe for the production of thread-rolled components. The introduction of this technology is reliant on the company realising a business opportunity to undertake volume batch production of complex engineered components (20000 parts per annum). This presents several challenges for the company: The Company has no experience of volume batch production (currently the Company undertakes contracts to produce unique production batches in quantities measured in hundreds of units). The Company had no experience of volume costing and quotations The contract required a commitment to price reductions over time The thread-rolling process is completely new to the Company Company B were presented with the opportunity to tender for the contract to supply the thread-rolled parts due to its historical links with the purchaser. Initially, the purchaser intended to source the thread-rolled components from overseas companies. However, it was part of the purchasers contingency strategy to source a local lower- volume supplier of the parts. During negotiations between the purchaser and Company B, the managing director (MD(B)) of Company B requested the opportunity to investigate the possibility of tendering for the supply of the entire contract. The MD(B) recognised that external expertise was required to aid the Company in addressing the challenges that the potential contract presented. This led the MD(B) to enlist the help of the Manufacturing Advisory Service (MAS). MAS are a UK government funded organisation that provides either free or subsidised assistance to manufacturing companies. Initially, MAS were commissioned to undertake a research project into the principles of the thread-rolling process, suppliers of thread-rolling equipment, general operating parameters and associated costs. Consideration of the research report presented by MAS led the Company to conclude that they would be comfortable developing volume batch production using the identified technologies. The MD(B) requested that MAS help the company develop a suitable costing mechanism for volume production. Discussions between MAS and Company B resulted in a brief for a costing procedure that:
Identifies the dominant cost components Identifies cost / price down opportunities Identifies commercial and technical risks and builds in suitable contingencies Supports an open book relationship with the end customer Following this brief, the MAS team developed an activity based cost calculation that can be applied at each stage of manufacture. This system allows the Company to easily review costs as job specifications emerge and change. The results of this exercise demonstrated that the company could compete effectively with overseas suppliers. The competitive price, commitment to price reductions over time and logistical considerations led the purchaser to commit to supply from Company B. When supply of this component commences, the MD(B) estimates that the effect will be a doubling of the Companys annual turnover. Although the purchaser has made a commitment to receive supply from Company B, the project is currently paused while the purchaser develops other aspects of the final assembly. In the meantime, Company B is developing their operations in preparation for volume supply. In selecting the most appropriate technology to implement, the company placed primary consideration on the quality of the output components. In order to evaluate this aspect all potential suppliers were requested to produce a common part designed by Company B. This provided the company with a tangible assessment of the technologies capabilities that could be factored together with other considerations such as vendor support and system cost. MD(B) advocates the importance of the management team reaching a consensus judgement regarding investment decisions in order avoid political disputes during implementation and development. According to MD(B), this view is borne from the Companys early experiences with technology, where implementation was sometimes hampered by uncooperative managers. Operating staff for the new technology have been selected from the currently employed workforce. The management team entered discussions with those members of staff deemed to have the correct aptitude for operating the
5 4 3 2 1 0 Counter skill deficiency Counter competitive threat
new technology in order to discover which were interested in developing their skills and undertaking further training. The Company believes that the successes that they have had with technology implementation are in part due to the commitment made to workforce development. External after-hours training is a mechanism that the Company has employed to support most of their AMT implementations. This supports the Companys strategy of developing the existing workforce above employing new expertise wherever possible. VI. RESULTS The interview document developed following the literature survey addressed three aspects of AMT implementation: Planning Operational impact Critical success factors This section of the paper presents some of the results from the questionnaire. A. Planning for AMT During the course of the interviews, each of the companies was asked to indicate the relative importance of a number of issues when planning for AMT on a scale of one to five (see figure 1). The given headings were: Counter skill deficiency Counter competitive threat Obtain financial benefit Enhance company image Obtain competitive advantage In addition, the companies were given the opportunity to indicate and score any additional factors that they deemed appropriate. Company A added the category Enhancement of Product Quality, which was scored with a Five. Company B added Improvement of Company Technical Ability, which was also scored with a five.
Company A Company B
Obtain financial Enhance benefit company image
Obtain competitive advantage
Fig. 1. Relative importance of issues when considering AMT
Company A found all of the presented issues, other than countering skill deficiency, to be of equal, high importance. Company B placed highest importance on countering competitive threat and obtaining competitive advantage. Another issue indicated to be important by Company B was to obtain financial benefit. However, countering skill deficiency and enhancing company image were rated as being the least important issues.
Another aspect of the enquiry into the planning stage of AMT implementation examined the attributes of the technology being considered (see figure 2). The presented areas for consideration were: Vendor support System cost Manufacturing flexibility Technical and management support Output quality
5 4 3 2 1 0 Vendor support System cost Manufacturing flexibility Technical & management support Output quality
Company A Company B
Fig. 2. Relative importance of attributes when considering AMT
Both of the companies placed high importance on the attributes of output quality, system cost and vendor support. Each of the attributes were rated on a scale of 1-5, however, Company B rated vendor support, manufacturing flexibility and technical and management support as four to five, whereas output quality was rated as a five. Manufacturing flexibility and technical and management support were seen as less important issues for Company A. B. Operational impact of AMT In order to assess the companies performance in a number of key AMT implementation success markers the authors developed a number of visual analogue scales (VAS)
6 5 4 3 2 1 0 -1 Volume throughput Product Recall times Labour costs Lead times
[7, 19]. VAS are ratio scales that have two fixed ends with descriptions. The respondent is requested to mark a line between the two ends to indicate performance in the area being considered. Such scales allow for easy comparison between events providing the respondent with a better range with which to express their opinion than with numerical rating scales. During the interviews, each of the companies was asked to indicate their performance before and after AMT implementation on a number of different markers. These markers were: Volume throughput; product recall times; labour costs; lead times; customer complaints; production flexibility; unit costs; and, product quality (see figure 3).
Company A Company B
Customer complaints
Unit costs
Product quality
Fig. 3. Operational impact of AMT
Figure 3 indicates upon which markers the implementation of AMT had the greatest impact for each of the companies. For Company A, the greatest impact of AMT was on production flexibility, for Company B the greatest
impact was on volume throughput. Both companies found that the next greatest impact was the reduction of lead times. For Company A, the introduction of AMT had a negative impact on labour costs, that is, following the introduction of
new manufacturing technologies the cost of labour increased. In addition, AMT had no impact on the unit costs of Company A. Company B found that AMT implementation had no impact on either product recall times or customer complaints. C. Critical Success Factors In the final section of the interview, the companies were asked about their opinions on what are the critical factors for successful implementation of AMT. Again, the companies were asked to rate factors on a scale of 1 5 (see figure 4). The factors presented to the companies were:
5 4 3 2 1 0 Alignment to manufacturing strategy Evaluation of the competitive environment Economic evaluation
Consideration of company manufacturing strategy Evaluation of the competitive environment Economic evaluation Involvement of production operators Communication (inter-departmental / management-shop floor)
In addition, Company A added the category keeping stakeholders informed of progress, which was rated with a five.
Company A Company B
Involvement of production operators
Communication
Fig. 4. Factors affecting successful implementation
Both companies felt that alignment to company strategy is an important factor to consider if implementation is to be successful. However, Company A felt that evaluation of the competitive environment, economic evaluation and communication were of equal importance whereas Company B placed slightly lower importance on all of other presented factors. VII. DISCUSSION The literature has demonstrated that AMT implementation can yield many tangible and intangible rewards for manufacturing organisations. However, it is also noted that many companies are failing to achieve their anticipated benefits following implementation. Due to many of the benefits associated with AMT adoption being intangible, much research has been conducted into evaluation of qualitative factors to aid justification of investment. Achieving implementation success is another area that has received much attention in the literature. However, a great deal of the literature concentrates on US manufacturing. Researchers have established that there is a link between technological investment and productivity growth in the US; however, it is yet to be shown if similar investment in technology will yield the same benefits for European countries [15]. AMT research based in the US has a tendency either to examine large firms that have certain levels of previous experience with technology implementation, or to be indiscriminate in company selection to achieve generalisable
results. Given the resources required to implement AMT, such indiscriminate study may provide results with a bias to large companies that have more opportunity to invest in AMT and therefore more experience in the factors affecting implementation. In measuring the effects on a company of introducing new AMT, researchers have measured a combination of quantitative and qualitative indicators. Examples of previously used indicators include lead times, project cost and product quality and return on equity, throughput times, competitiveness, work conditions and response times. The impact of AMT implementation upon small companies is an under researched area. Many of the studies that have been conducted in this area have focussed on highlighting the differences between large and small companies in regard to AMT implementation. While such studies provide valuable insights into the effects of technological implementation within smaller organisations, it also highlights a need for indepth study that focuses exclusively on the relevant issues faced by small companies. This paper presents the results of two case studies from a research project that attempts to resolve the absence of AMT research concerning small companies. The first case study covered in this paper examined a company undertaking an extensive AMT implementation project. This company demonstrated problems with resistance to change, ineffective communication, internal politics and low operator morale. The literature suggests that such
problems may have a negative impact on the implementation of new technology. However, in a structured interview devised by the author to assess the operational impact of AMT, the company indicated that they felt that they had achieved significant improvements in their overall competitiveness. Although the company had suffered many barriers to successful implementation, they had also taken measures to aid the technological implementations. Company A had committed to a two year implementation programme supported by a university. In addition, the business opportunities associated with the AMT implementation had been the subject of extensive research by the company. The second case study company also used external expertise to aid implementation; however, this expertise took the form of short-term advice and guidance. In order to take advantage of the business opportunity, Company B had to investigate both a new technological implementation and new management and administrative processes. However, the Companys previous experience with technological implementation gave the Company the confidence to attempt to establish the required changes. It could therefore be reasonable to argue that previous experience of AMT implementation is an important factor in successful implementation. However, when examining AMT implementation in small, often young, companies, there is often little technological history. REFERENCES
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The Relationship between Technology Management and Product Development Boundaries in Small and Medium-sized Enterprises
Huw Millward, Chris Byrne, Andy Walters, Alan Lewis
The National Centre for Product Design & Development Research (PDR), University of Wales Institute Cardiff (UWIC), Cardiff CF5 2YB, UK
AbstractSmall and medium-sized enterprises (SMEs) are in a prime position to develop new products due to their close relationships with customers, suppliers and competitors. The new product development (NPD) process is interdisciplinary in nature, typically covering early concept design, detailed engineering and high-volume manufacture. This paper examines how technology management in SMEs can overcome the boundaries inherent across these product development disciplines, and thereby refine and accelerate the whole process. The National Centre for Product Design & Development Research (PDR) have employed government-backed Knowledge Transfer Partnerships (KTPs) to establish two-year collaborative projects with SMEs who are undertaking NPD activities, and this research study employs a case-study methodology based on 15 KTPs that have been successfully completed over the last eight years. The case studies represent a diverse range of SMEs operating across numerous sectors, implementing an equally diverse range of technology. Analysis of these case studies assesses the impact of the product development activities and maps out the interactions between the technology and the management systems for each company. The results highlight the key technology management drivers, which in turn are related to overcoming the main barriers to NPD. Recommendations are made for enhancing technology management for NPD activities within SMEs.
I. INTRODUCTION Small and medium-sized enterprises (SMEs) within the UK, particularly those companies in the manufacturing sector, operate in a harsh economic climate with increased low-cost competition from overseas. Government strategy advocates that these types of companies move up the value-added chain in order to generate a clear competitive advantage. New product development (NPD) represents one route for SMEs to harness product innovation and apply their core knowledge in new directions. Studies have shown that successful NPD provides higher returns than practically any other type of similar investment [3]. Therefore implementing technology to facilitate and enhance in-house NPD activities provides an attractive option for SMEs to improve their competitiveness and profit growth, when compared to the traditional lowadded-value manufacturing route. Furthermore, SMEs are often in a prime position to identify new product opportunities as a consequence of their close working relationships with customers, suppliers and competitors. It is appropriate to classify tools and techniques that facilitate the NPD process as design-led technology because design is at the hub of the process, linking the front-end customer interactions with the final manufacturing solution.
Typical examples of design-led technology are computeraided design (CAD) and computer-aided manufacturing (CAM) software. The implementation of design-led technology within manufacturing companies has been shown to have a positive impact on all the key metrics: development lead-times, project costs and product quality [15]. Furthermore, design-led technology has the most significant impact when it drives the transition from manual manufacturing techniques to automated low-volume production (for example bespoke products), and this evolution is particularly pertinent to the needs of SMEs in comparison to large well-established organisations. In the context of SMEs, technology implementation cannot be viewed in isolation due to the idiosyncratic management culture. Small family-run firms do not necessarily have the discipline, knowledge or vision to harness the implicit benefits of design-led technology. In order to analyse technology management within SMEs it is therefore necessary to identify the subtle interactions between management aspirations and technology outcomes. The aim of this paper is to develop a methodology that efficiently maps out the management of technology within SMEs, and to apply the output from this analysis to identify those technology management factors that are influential in overcoming the boundaries in the NPD process. The analysis is based on case-study material generated from partnerships between The National Centre for Product Design & Development Research (PDR) and a wide range of SMEs. PDR is based at University of Wales Institute, Cardiff (UWIC), and a combination of research and commercial activities focus on the strategic importance of design in the development of new products, systems and methodologies. PDR has a long-term commitment to collaboration with SME partners, and this paper examines the performance of 15 such companies that have undergone strategic change through technology implementation and NPD activities. Knowledge transfer was the key mechanism for initiating and supporting the implementation of technology within these case-study companies, and the two-year collaborative projects have provided the university partner with a unique insight into the technical and managerial challenges within each particular setting. The qualitative assessment of each project shows that the overall impact of collaborative NPD varies greatly across the 15 companies. The impacts are categorised and related to the technology management footprint across the exemplar companies. The final phase of the paper highlights the relationship between technology management and NPD
boundaries, and provides recommendations for design and development activities within the key SME sector. II. PREVIOUS RESEARCH A review of the typical product development processes can be employed to identify the main boundaries, and any review of the product development management literature leads to the work of Dr Robert G. Cooper. Cooper is the originator and developer of the stage-gate process [6, 8], which has been adopted by many companies, and acts as a roadmap to drive new products to market. The stage-gate process needs to be refined for each individual project, but essentially the process lays out the key activities stage by stage, and defines the decision points (or gates) that are needed to make the transition between stages. Thoroughly planned and resourced development stages (including market launch) with pre-defined tough go or kill critical decision points is now considered best practice across much of industry. An overview of an optimised stage-gate process is given below: 1. Discovery Stage. Front end of the process should be proactive and aim to generate breakthrough ideas. 2. Preliminary Investigation. A quick assessment of the market, technical issues, intellectual property rights and financial considerations. 3. Detailed Investigation. The business case needs to be built through studying customer requirements, competitor analysis and technical feasibility, which should then lead to product definition. 4. Design and Development. The technical development of the new product needs to consider the final manufacturing process, operational considerations and marketing needs. 5. Verification and Validation. The testing of the new product covers in-house design verification and batch manufacture validation through customer trials. 6. Market Launch. The start of full production and commercial launch and sales. 7. Post-Launch Review. Monitor customer feedback and assess lessons learnt from the project. The product development stages show that this is a broad interdisciplinary field, covering a number of boundaries. Although the NPD process is well understood, it is not necessarily well implemented. Leading product development management studies [5, 7] have identified a number of factors that affect the success of the NPD process: a) undertaking up-front research, and building in the voice of the customer; b) sharp, early product definition in order to target differentiated, superior products; c) a market-focused orientation with effective internal and external communications; d) competent, truly cross-functional project teams guided by strong project leaders;
e)
senior management support with unhindered access to financial, personnel and political resources.
These factors are further emphasised in [12], who state that ongoing development success depends heavily on the total organisations ability to continually do all things right, rather than doing some things right on an ad hoc, irregular basis. It is therefore not surprising that failure rates for new products are high. The authors stress that management shouldnt assume there is one best way to develop new products there is no quick fix instead companies should attempt to understand why past attempts have failed. In reviewing NPD success factors, [1] highlight some important differences between US and UK companies. They report that US companies tend to be more focused, choosing fewer products to develop, such that there is a sense of urgency and consequently development times are shorter. The US launch more than 50% of their intended new products, whilst UK companies only launch 15%. The study notes that UK managers are far more sceptical about the ability of tools and techniques to aid NPD. The majority of the NPD literature focuses on the activities of large, well-established companies; the literature on design and development within SMEs is more limited. A notable study of six UK SMEs by [17] identified a number of common themes and concerns. They report that SMEs typically avoid formal documented procedures, fail to undertake effective competitor analysis, do not collect adequate data with which to monitor their development performance, and engage manufacturing personnel too late in the development process. However, the most worrying factor identified was the lack of determination to bring about change, and this was attributed to the SME managers overoptimistic view of their own performance. An ancillary study [10] has examined the barriers to product innovation in small UK-based manufacturing companies, and highlights the fact that entrepreneurs put too much emphasis on technology issues at the expense of effective marketing, and that internal skills need improving (e.g. through employing more graduates). Successful product development relies not only on advanced technology but also on management strategy, therefore SMEs managerial culture is an important consideration. A critical review of small business strategy in the UK [2] has shed new light on the stereotypical owner/manager; these key players are considered special social characters who strive for autonomy and independence, and this manifests itself in an autocratic, egocentric, impulsive and often unpredictable managerial style. When these characteristics are translated into the complex NPD environment, they inhibit joined-up thinking and present a significant barrier to integrating design activities within an overall business strategy [9]. However, [4] points out that the culture within flexible, small family-owned organisations, with horizontal structures and rapid decision making, can be an asset for design success and design leadership. The
difficulty of harnessing these underlying advantages has been referred to as the paradox of the SME by [11]. He highlights the scenario whereby a typical SME can move swiftly into a new field in order to grasp an emerging opportunity but lacks the budget and staff to take the risk of investing in the NPD process. Therefore small companies face a familiar set of challenges when considering new technology: the financial resources and management skills required for successful implementation [16], and overcoming resistance to change at various levels within the workforce [14]. III. METHODOLOGY PDR have employed the Knowledge Transfer Partnership (KTP) model as an effective mechanism for partnership and collaboration with a wide range of SMEs. KTP is a government-backed knowledge and technology transfer programme that has been in operation in the UK for approximately 25 years. The aim of the KTP scheme is to strengthen the competitiveness and wealth creation of the UK by stimulating innovation in industry through structured collaborations with leading universities and research organisations. KTP is managed for the government by Momenta. A typical KTP programme is a two-year partnership between one company, one university and Momenta. Each individual KTP programme is designed to address the key elements central to the successful development of a specific company. The two-year project provides employment for a well-qualified graduate KTP Associate for the duration of the programme. In line with other researchers [13], PDR have found that the KTP model is an ideal vehicle through which to analyse NPD activities, and the associated technology and managerial interfaces within small companies. The well-defined management and structure of the KTP process promotes a detailed analysis of the company from the university partners perspective. The KTP Associate is assigned two PDR-based supervisors and at least one supervisor from the company. Regular contact with the company fosters a level of trust and co-operation that generates an in-depth understanding of the subtle issues and challenges inherent in any small company. These collaborations are characterised by a commitment to effective project management through mandatory meetings: monthly technical meetings and quarterly strategic-review meetings. The documentation arising from these structured meetings (technical reports, presentation material, etc.), in parallel with weekly informal meetings, results in a comprehensive portfolio of case-study material. This research study has selected a series of anonymous KTP-based case studies to illustrate the impact of NPD activities and the management of the associated technology. The selection criteria for the case-study companies were as follows:
a)
Small to medium-sized company - between five and 150 employees - currently undertaking or having recently completed a KTP programme with PDR; b) Refinement of its in-house design capability and implementation of design-led technology to enhance NPD activities.
PDR have successfully completed 20 KTP programmes since 1995, and 15 of the programmes conformed to the selection criteria. A series of structured interviews was conducted with the cohort of PDR-based KTP supervisors from these 15 programmes in order to document their subjective assessment of each collaboration. A pair of supervisors, who had a close working involvement with the management of the technology within the respective KTP company, was selected for each interview. They were asked to provide a joint answer to questions, and thereby form a consensus. The aim was to record two factors: (1) the overall impact of the NPD collaboration on the company in terms of a ranking score, and (2) a map of technology management within each company. In designing the questionnaire to capture the technology management footprint, four generic factors were identified that could be applied to both management aspirations and technology impact: (1) knowledge, (2) resources, (3) quality, and (4) innovation & change. Worst possible case and best possible case scenarios were developed for each of these four factors across the management and technology assessments, and this led to a series of Visual Analogue Scales (VAS) as the basis to the questionnaire design. VAS are continuous scales that provide a true ratio score, and have been used in another similar study to provide semi-qualitative data on NPD impacts [21]. It should be noted that the interviewees had a sound understanding of the benefits and limitations of the VAS scoring technique. An example of the management assessment VAS sheet is given in Table 1. The lower bound mark (0%) and upper bound mark (100%) on each scale are annotated with guidance notes to highlight the extremes (i.e. the worst possible case and best possible case). The interviewees were asked to mark each of the four scales with a single vertical line and thereby provide an assessment of the management culture within the KTP company. The time point for this assessment was early in the programme. The technology assessment VAS sheet is shown in Table 2, and the four scales now represent the technology impact as an outcome of the joint company, university and Associate team. The time point for this assessment was late in the programme. Each interview therefore produced eight VAS percentage scores, and these could be grouped to provide an overall technology management map for the specific KTP company. In addition, general comments on the commercial and financial impact of each KTP programme were noted during each interview, together with the longer-term strategic challenges for the companies.
TABLE 1. MANAGEMENT ASSESSMENT QUESTIONNAIRE VAS SHEET

Worst Possible Scenario Knowledge (understanding prior to KTP) Best Possible Scenario
No reliable understanding of the market, the competitors or IPR issues. No experience of technology implementation. No understanding of the potential for the technology, and the wider impact across the company (staff & costs). Worst Possible Scenario No project management/planning. No defined budget. No additional staff support. Unrealistic development times.
In-depth knowledge of the market, competitors and IPR issues. Understanding the wider potential and implications of the technology. Previous experience of successful technology implementation. Strategic long-term vision coupled with knowledge transfer activities. Best Possible Scenario
Resources (finance, staff & time)
Effective project planning, adequately resourced in terms of costs, staff and time. Support from all company disciplines, with the appropriate staff skills and experience. Contingency planning. Quality (procedures and communications)
Worst Possible Scenario Failure to write and maintain any procedures. Ineffective internal and external communications. Poor record of staff training and development.
Best Possible Scenario
Worst Possible Scenario Change actively blocked by management. Narrow management vision, not fully communicated to staff. Mundane projects, avoiding any risk.
ISO quality procedures used to drive continuous improvement and create a quality culture. Measure customer satisfaction. Employ quality manager/consultants and invest in staff training and development. Innovation & Change (risk management) Best Possible Scenario Willingness to invest in highly innovative projects and manage the risks. Understanding of all the product development stages needed to achieve successful product launch. Shared management vision, harnessing the creativity of staff and driving change throughout the company.
TABLE 2. TECHNOLOGY ASSESSMENT QUESTIONNAIRE VAS SHEET

Worst Possible Scenario Knowledge (development through the KTP) Best Possible Scenario
Poor skill base and failure to acknowledge deficiencies in the skill base. Lack of understanding to fully exploit technology. Poor compatibility with existing systems due to limited understanding.
Fully-trained and proactive skill base throughout the company (continual professional development of employees). Employees are positive and supportive to new technology developments and applications. In-depth knowledge of the technology, capabilities and benefits.
Worst Possible Scenario
Resources (project costs and lead times)
Poor implementation of technology leading to reduced productivity: increased costs Optimised use of technology to maximise productivity: reduced costs and labour and labour overheads, longer lead times, increased rework and maintenance overheads, shorter lead times, lower maintenance requirements. requirements. Highly profitable return on investment. Poor return on investment. Quality (product and procedures) Worst Possible Scenario Best Possible Scenario Reduction in product quality: limited repeatability, poor tolerance control and an increase in customer complaints. Technology provides no flexibility and no added functionality to the product range. Increase in product quality: improved repeatability, high tolerance control, extended product life, and high customer satisfaction. Technology provides flexibility (customisation) and extra functionality to the product range. Quality awards, prizes and industry recognition. Innovation & Change (technology driven change) Best Possible Scenario Continual exploitation and development of the technology to maximise benefits. Catalyst for product and market diversification. Competitive market advantage. New industry-leading processes and products. Proactive and supportive to customers technical demands.
Resistance to technical change, and failure to respond to customers demand for change. Technology isolated and failure to realise technological benefits.
IV. CASE STUDIES Company A employs 47 staff and is a specialist-polymer manufacturing company producing a wide range of components for engineering applications. The aim of the KTP programme was to implement a knowledge-based CAD system together with an advanced CAM facility to improve lead times, quality and customer communications through an enhanced design-for-manufacturing process. Company B is a specialist packaging company, with a staff of 26. The company use a range of in-house moulding and machine tools for precision applications. These components are made to order for specialist engineering projects such as mould tools for the medical or the domesticgoods packaging industry. The aim of the KTP programme was to establish the company as a market leader through the ability to offer customers an intelligent CAD-based design resource linked directly to the CAM technology. Company C has a staff of 65 and has been in existence for over 10 years in the retail of various domestic-goods products. The product range included low-risk, low technology components and assemblies. The company made a strategic decision to use their inherent market knowledge to diversify the business and develop a range of added value products; in particular, focusing on more high-risk/highprofit-margin products to increase turnover and penetrate new markets. Subsequently, a KTP programme was established to implement a complete product development environment utilising advanced 3D CAD-based design facilities. Company D is a medium-sized, mature business, with a staff of 140 primarily involved in the manufacturing of quality components for the automotive industry. Although the company employed a large technical support infrastructure, they had no dedicated design function or resource. The company commenced a KTP programme to develop a bespoke design facility through the implementation of advanced CAD-based design tools and a tailored design management system within a concurrent engineering environment. Company E has a staff of 25 and embarked upon a KTP programme to diversify the company from a general retail outlet into a quality design and manufacturing facility producing innovative leisure and sports products. The primary aim of the KTP programme was to develop and launch a new consumer product from initial concept design stages by establishing and integrating the necessary design tools, processes and manufacturing procedures for all NPD activities. Company F employs 22 staff and specialises in the manufacture of bespoke high-specification products for use within the chemical processing industries. The company
commenced a KTP programme to complement its current operations by integrating a bespoke CAD-based design facility. The aim of the KTP programme was to exploit the commercial potential of an innovative patent regarding a new range of sensor products for a specialised application to significantly reduce maintenance costs. The programme was designed to facilitate the complex research necessary to design, develop and validate working prototypes prior to full validation and market launch. Company G employs 58 staff and specialise in the production of composite-moulding products primarily for the automotive industry. The companys business was restricted to manufacturing mouldings and tooling from customer requirements. The company embarked upon a KTP programme to create an advanced CAD design facility and manage its integration within a quality-manufacturing environment. Company H employs 23 staff and is a leading manufacturer of commercial working marine vessels, using predominantly steel or aluminium construction to customers specifications. The KTP programme focused upon the selection and implementation of a new design facility, including a specialised CAD system and its integration with manufacturing, assembly and other key sub-systems across the company. Company J employs 32 staff and they design and manufacture security equipment for the domestic and commercial markets. The KTP programme was initiated to design, develop and launch a new mobile product by adopting and integrating advanced manufacturing techniques. Company K employs 12 staff and manufactures a range of packaging products for a variety of industries. The focus of the KTP programme was to develop a bespoke design and quotation system, thereby enabling the company to respond rapidly and effectively to customer orders. The programme facilitated the design of specialist software to interface with the companys operational structure including sales, packaging design, accounts and manufacturing. Company L employs 36 staff primarily in the retail of medical device products for the healthcare industry. The company commenced a KTP programme to establish a design for manufacture facility to research and develop their own range of specialist products and expand their existing market base. Company M employs 15 staff and manufactures highly specialised laboratory equipment for use within a chemical diagnostic environment. The KTP programme integrated a bespoke design infrastructure to promote the development of future products and to re-engineer existing products using advanced manufacturing methodologies.
Company N employs 11 staff and is engaged in the manufacture of playground equipment and other outdoor recreational furniture. The KTP programme focused upon updating the existing, traditional design environment by implementing advanced design-for-manufacture systems to not only improve design and manufacturing lead times but also communication with the existing operational framework. Company P employs 19 staff and specialises in the design, development and manufacture of bespoke street lighting systems for contract and commercial clients. The KTP programme focussed upon the implementation of an advanced design facility and its integration with manufacturing, sales, stock control, customers and subcontractors. The overall aim was to create a design capability to develop new products, offer an added value service to customers, attract new customers and diversify the company in new related markets. Company Q employs 25 staff and specialises in the design and manufacture of tools for attachment to predominately agricultural and construction vehicles. The KTP programme was designed to update the companys design capability by introducing an advanced CAD framework, together with a bespoke design management system to improve the companys operational efficiency and quality in relation to the design and manufacture of key components.
V. RESULTS The impact of the various NPD collaborations was scored by each pair of supervisors as a ranking score. The rank positions of the various case-study companies were then integrated into an overall assessment across the 15 KTP programmes, and this is shown in Table 3. The time point for the impact assessment was within a year of the programme finish. A series of comments based on the short-term impact of the various collaborations is also given in Table 3, and this has allowed the case-study collaborations to be divided into three impact groupings: six companies with high impact, five with medium impact and four with low impact. Although these are subjective assessments, the impact category gives a clear indication of performance and can now be used to group the output from the management and technology VAS scores. Each KTP-review interview generated eight percentage scores as a measure of knowledge, resources, quality and innovation & change in the two areas of management and technology. These can be displayed on a radar diagram to show the relative scores, and hence provide a visual map of the technology management within a specific case-study company. The six company collaborations rated high impact (from Table 3) have their technology management maps shown grouped together in Fig. 1. Similarly, the five medium impact category companies are shown in Fig. 2 and the four low impact companies have their technology management maps grouped together in Fig. 3.
TABLE 3. OVERALL IMPACT OF NPD COLLABORATIONS IN RANK ORDER. Rank 1 2 3 4 5 6 7 8 9 Case Study N H Q P K D M E G Comments The programme received a top government award, and transformed the company from a struggling operation into a technology-driven company. The 3D CAD made a significant impact and the use of real-time systems reduced response time from days to hours. The programme received a top government award, and the specialised design resource was at the hub of changing company culture, facilitating new manufacturing techniques and driving expansion of facilities and employment. The programme was a ideal balance between products and systems. Key product successfully launched and new system documented the engineering drawings and production needs. The sophisticated 3D CAD resource provided a clear competitive advantage, and turnover doubled each year of the collaboration. Targeted marketing and FEA verification tools drove expansion into international markets. The programme transformed the company from an intensive manual operation to a fully automated process. The CAD was integrated with bespoke quotation software to provide accurate costing, optimised scheduling and facilitated progression into specialised projects. The programme implemented best practice NPD procedures and refined their design capability. Use of rapid prototyping reduced development times and internal communications were significantly improved, plus new product launch validated new systems. The programme shifted the emphasis from analytical science to design engineering, through 3D CAD tools and analysis software. Product sensitivity improved and therefore new US-based customers could be targeted to drive profits. Totally new business venture expanded employment and gained a reasonable share of a new leisure market. 3D CAD and design control software drove innovation but this was not linked with manufacturing technology. Management could not provide commercial or technical support. The programme aligned the company in the value-added medical sector. The CAD-based resource and regulatory/quality skills drove a number of new products but economic pressures and resource limitations restricted full development. Category
High Impact
Medium Impact
10 11 12 13 14 15
A B L F J C
The programme linked CAD/CAM with advanced manufacturing technology, and in composites machining they had a unique quality advantage over all UK competitors. However, the design resource was kept isolated and the demands of their key customer restricted the NPD activities. The company would not have survived without the KTP programme: quality significantly improved and lead times reduced. Although the CAD/CAM system was ideal for the company, weak management and a regressive workforce minimised any long-term benefits. The programme provided an opportunity for a sales operation to undertake NPD and thus exploit a gap in the market. Market research, detailed CAD and prototyping defined the product but the company had no appreciation of the costs and timescales needed for full development. The company had an innovative solution to a customers recurring problem. 3D CAD, rapid prototyping and test rigs progressed the new product but financial barriers and a total lack of design documentation halted the project. A new product was developed through 3D CAD and reverse engineering technology, but a fatal flaw killed the project. The research knowledge wasnt captured and there was no system in place to re-focus development activities. The sales-dominated company had highly-speculative ideas but no willingness to undertake adequate research. Their CAD resource was re-directed into graphics, structured NPD was actively blocked and no resources were made available.
Low Impact
Company N
Knowledge
Company H
Knowledge
Innovation & Change
Resources
Innovation & Change
Resources
Quality
Quality
Company Q
Knowledge
Company P
Knowledge
Innovation & Change
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Resources
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Quality
Company D
Knowledge
Company K
Knowledge
Innovation & Change
Resources
Innovation & Change
Resources
Quality
Quality
Management
Technology
Figure 1. Technology management radar diagrams - high impact company collaborations
Company M
Knowledge
Com pany E
Knowledge
Innovation & Change
Resources
Innovation & Change
Resources
Quality
Quality
Company G
Knowledge
Company A
Knowledge
Innovation & Change
Resources
Innovation & Change
Resources
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Company B
Knowledge
Innovation & Change
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Figure 2. Technology management radar diagrams - medium impact company collaborations
Company L
Knowledge
Company F
Knowledge
Innovation & Change
Resources
Innovation & Change
Resources
Quality
Quality
Company J
Knowledge
Company C
Knowledge
Innovation & Change
Resources
Innovation & Change
Resources
Quality
Quality
Management
Technology
Figure 3. Technology management radar diagrams - low impact company collaborations
VI. DISCUSSION & CONCLUSIONS The methodology initiated in this paper has been able to map the inter-relating factors that govern the management of technology, and present this in a concise graphical form. Four general factors (knowledge, resources, quality, innovation & change) have been applied to both management aspirations and technology impact, and the preliminary results indicate that they adequately cover the pertinent issues. The interview technique employed in this study has been reliant on an indepth knowledge of the collaborating company, and an ability to translate subjective assessments into a VAS score. Each pair of interviewees was involved in a number of KTP company assessments, and this helped to add some form of reference datum when attempting to compare one companys performance with another. The range and distribution of VAS scores have shown that the lower and upper bounds of each scale were appropriately labelled. The VAS-based questionnaire would therefore appear to be a direct method for capturing the technology management footprint in the form of a radar diagram, and this methodology can now be developed further. The sets of results show that there is a reasonably good correlation between the shape and extent of the technology management maps and the high, medium or low impact category. Those KTP programmes that were rated as having a high impact on the company in terms of NPD can be classified as having a quasi-symmetric, full-area technology management map (Fig 1). It should not be surprising that the companies with in-depth product knowledge, full resource support, commitment to quality and a vision to innovate and implement change should undertake the most successful NPD activities. The common link between these high impact programmes is that each company put a high priority on implementing an appropriate NPD process to coordinate the design technology activities. Previous research has shown that the implementation of stage-gate NPD processes is best practice across most of industry, and these case studies emphasise that some form of NPD process is a pre-requisite for integrating technology management with NPD activities. With a NPD process defined and implemented, the product development boundaries did not pose significant challenges to these best performing companies. Company Ns use of real-time systems immediately captured the voice of the customer, which simplified market research and customer requirements. Company H could respond rapidly to customer demands, and the integration of design and manufacturing functions meant that production problems were virtually eliminated. The optimised stage-gate process shows design and development as stage four out of seven (i.e. the midpoint). Design-led technology can enhance design and development, but a process or system would also appear to be necessary to overcome the downstream (stages 1-3) and upstream (stages 5-7) product development boundaries. Product development in the absence of any effective NPD process is characterised by the low impact company
collaborations in Fig 3. The low impact category shows two companies with adequate technology management maps (Companies L and J) and two companies with minimal-area technology management maps (Companies F and C). None of these companies implemented a NPD process, and none of the four companies launched any new products as a result of the KTP collaboration. In the worst case, Company C actively blocked a stage-gate process because they believed it stifled creativity. In this environment the product development boundaries were clearly visible, in that the four companies handled product ideas in an unstructured manner, were unwilling to undertake market research, avoided design verification and undermined effective manufacturing. It should be noted that in these four family-run companies the owner/manager, acting in the role of managing director, had a clearly detrimental influence on product development. Their domineering personalities led them to make a disproportionately high number of key design decisions even though they had no knowledge of successful product development. In addition, the companies had to operate in resource-constrained environments, such that issues relating to time and costs were put ahead of other key factors, such as quality. Senior managements ineffectual hands-on approach to design, coupled with the twin obsessions of time and costs, produced situations in which NPD proceeded in a highly constrained manner. Hence this setting was rather unreceptive to the idea of a structured NPD process. The link between technology management and the various product development boundaries can be investigated further by reviewing the performance of the medium impact company collaborations, shown in Fig. 2. There are some interesting shapes to the technology maps, but the lack of a common pattern means that each company performance requires individual attention. Company G had the vision to implement change, and this is reflected in the high management scores, but a severe economic downturn in the core business meant that it was impossible for the new design-led technology to initiate any significant changes. However, for the four other companies in this category, we can see that the design-led technologies had a clear effect. The management footprints vary considerably, but the technology implementation has a significant impact, particularly with regard to resources and quality. The technology management maps for Companies M and A can be characterised as weighted towards knowledge and innovation for management but weighted towards resources and quality for the technology. In both these companies the management were astute enough to grasp new opportunities and implement the technology to realise these opportunities. Company Ms new product totally out-performed anything on the market, and Company As new mouldings set a new standard for quality and consistency. These successes were not developed further because there were discontinuities in their respective NPD processes. Company M isolated research and development from manufacturing, such that production limitations were never properly addressed.
Company A abandoned their design aspirations and attempted to de-skill in order to focus all their efforts into manufacturing. The technology management maps for Companies E and B show restricted management footprints but clear progression in terms of the technology. Company E demonstrates the largest change in footprint from management to technology scores, and this is attributed to quality new products driving diversification through the company. However, in this case the immature management could not bridge the gap between design aspirations and appropriate manufacturing systems. The technology management in Company B produced a situation that saved the company (their main competitors folded), and the improvements in product quality generated tangible customer delight. But the management and workforce still could not appreciate the benefits of the technology and actively blocked any further development, such that progress was effectively reversed. The companies in this medium impact category highlight the issue that management skills and aspirations might be severely limited but appropriate technology management collaborations can still have a significant impact in terms of reduced project costs, shorter lead times and improved product quality. This study has shown that the management of design-led technologies in order to initiate and maintain NPD activities needs to operate in conjunction with an appropriate NPD process. A form of stage-gate NPD process can channel product innovation and provide the direction and leadership within the context of a SME to overcome the main product development boundaries. The methodology developed in this paper has allowed the authors to identify technology management maps that are associated with successful NPD collaborations. This implies that the methodology could be adapted as a precursor for future collaborations with SMEs in order to map out their distinctive managerial culture in terms of the attitude towards knowledge, resources, quality and innovation & change. REFERENCES
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Challenges in Managing the Convergence of Information and Product Design Technology in a Small Company
Andrew T. Walters
National Centre for Product Design & Development Research (PDR), University of Wales Institute, Cardiff (UWIC), Cardiff CF5 2YB, UK
Abstract--In a manufacturing environment, product development technologies have the potential to be a central tool in the organisation of administrative and manufacturing tasks. Such integration of technology and information presents a strategic avenue for creating efficiencies in the development of highly complex products. This paper examines the implementation of a sophisticated CAD package in a small company that produces luxury motor yachts. The strategic aim was to bring the 1000+ components into the CAD environment, supporting each component with procurement information. The intention was that this would lead to: reduced design cycle times through the development of parts libraries; improved efficiencies in planning boat-building; and, reduced manufacturing cycle times through improved drawings with relevant supporting information. In a small commercial environment such strategic development presents a challenging task. In implementing the system, the researcher was presented with resistance to change; difficulties in managing the expectations of non-technologically driven management; and, difficulties with balancing the development of the strategic goals with pressures for commercial output. The research is based on a two-year structured partnership between the university department and the company. The department has run over twenty such partnerships with different companies and found them to be effective mechanisms for gaining insight into technology management issues. This case study highlights the difficulties that can arise when ambitious technology implementation plans, that impact on various business functions, are developed in an active commercial environment with limited labour resources.
achieving generalisable results [2, 9, 11]. Given the resources required to implement AMT, such indiscriminate study may provide results with a bias towards large companies that have more opportunity to invest in AMT and therefore more experience of the factors affecting implementation. The impact of AMT implementation on small companies is an under researched area. The objective of the wider research programme is to gain an understanding of the issues facing small company managers when implementing a new technology. Small business is especially important to Wales as 71% of all Welsh private sector employment is generated by small and medium sized enterprises (SME). In addition, SMEs account for 63% of business turnover in Wales [3]. Manufacturing is of particular importance to the Welsh economy as it accounts for around 20% of Welsh employment (just over 200000 people) and approximately 25% of the Welsh gross domestic product. In 2002, 93% of manufacturing companies in Wales employed fewer than 100 people and 87% employed fewer than 50 people [8]. II. BACKGROUND A. Technological Change The published literature on technological change within manufacturing companies has indicated that the drivers of such change include: to obtain competitive advantage; to obtain financial benefit; to counter competitive threat; and, to improve product quality [2, 17]. However, when examining three UK automotive component suppliers, Lee et al. [5] found that the drivers for change in these organisations was pressures imposed by their customers, i.e. major vehicle manufacturers. The authors note that smaller companies face numerous barriers to technological change including: negative attitudes and perceptions of the effects of change; resource constraints; and, a lack of interaction with external expertise to facilitate technology implementation. However, the authors also advocate the importance of innovation and high skilled manufacturing stating that: Most of the resources within a company are accessible by competitors (e.g. capital, raw materials, standard technologies), therefore competitive advantage derives from the knowledge and abilities of the workforce. In order to aid analysis of the efforts of their case study companies attempts to become more competitive during a period of technological change, Lee et al. developed eight characteristics of organisational learning. These
I. INTRODUCTION This paper documents the implementation of a high-end 3D CAD system in a small boat-building company and attempts to assess the challenges that were met. The case study at the core of this paper represents around eighteen months of regular contact between the author and the Company, during which time the Company planned for, purchased and installed the technology discussed. The purpose of this longitudinal case study is to support and expand upon the results of ten retrospective case studies on the impact of Advanced Manufacturing Technology (AMT) on small Welsh companies. As implied above, this paper forms part of a wider research programme into the impact of AMT on small Welsh companies. Much of the published research on AMT is either concerned with large firms that have certain levels of previous experience with technology implementation, or is indiscriminate in company selection for the purpose of
characteristics were based on those developed by Weaver (1994, cited in Lee et al. [5]): Shared mental models: Encouraging a shared vision of the organisation Learning values: Encouraging individual and group interaction to create new organisational learning Experimentation and innovation: Mechanisms to tap creativity from employees Legitimate politics: Encouraging employees to pursue their own goals and interests where these can be aligned to the needs of the business Learning from the past: Monitoring and evaluating results to guide future decision-making Synthesising perspectives: Encouraging employees to be responsive to alternative perspectives Commitment to professional development: Encouraging employees to develop their knowledge and skills Participative information search: Analysis of the business environment to enhance company planning Following evaluation of the performance of the case study companies against these characteristics, Lee et al. suggest that small and medium sized enterprises (SMEs) have a tendency to focus on those areas of organisational change that present least challenge in implementation. The authors suggest that these changes centre on improvements in face-toface communication between managers and workers, an aspect of organisational change that is easier for the smaller firm to maintain than it is for the larger company. Sherer et al. [10] examined the importance of investment in organisational change management in aiding the successful implementation of a new technology. The authors argue that many companies fail to place enough emphasis on the changes that employees must make to the way that they work in order to successfully utilise a new technology. The study focussed on a single multi-national companys perspective, however, the particular technological implementation examined was a corporate wide system upgrade. The authors concluded that the investment that the company had made in managing the change had a significant impact in improving client satisfaction and reducing resistance from the workforce. B. Operator empowerment Adler and Borys [1] state that efficient manufacturing requires certain levels of formalisation of processes and procedures. However, they also note that bureaucracy often has a negative impact on innovation and change within companies. In their study of organisational bureaucracy, the authors identified two types of formalisation, coercive and enabling. The authors advocate an enabling approach when implementing an AMT that requires increased skill levels on the part of the operator. Such an approach requires the company to allow more discretion in the ways in which people work, with procedures that empower users of
technology. This provides an environment in which operators interact more creatively within the organisation. The study therefore suggests that with this type of formalisation there is reduced risk of inhibiting organisational change. The literature on AMT has often advocated the importance of operator empowerment to successful implementation [1, 6, 12, 14]. Macri et al. [6], state that it is important that proposed changes within an organisation are understood to be both desirable and necessary by shop floor operators. Should this not be the case, the authors warn that production operators may engage in acts of sabotage towards new systems and procedures. Udo and Ehie [14] identified four determinants of AMT implementation success: Triple C factors: Communication, co-ordination and commitment Self-interest factors: Employee morale, satisfaction, belief in AMT, appropriate reward Housekeeping factors: Action plan, effective team, vendor support, cost justification, functions integration, effective facilitator Literacy factors: Understanding of AMT, understanding of firm business, training, clear goals and objectives, expectations of AMT Each of these factors was shown to significantly affect AMT implementation success measured through AMT benefits. However, results of the study indicated that selfinterest factors were the most critical determinant of AMT success. The implication of this result is such that where shop-floor operatives can be encouraged to perceive a technological investment as a system that can yield personal gains to them, the likelihood of the company achieving successful implementation is increased. Literacy factors relate to education of the workforce; the results of the study indicate that investment in education of shop-floor operatives is directly related to many of the AMT benefits. In developing a framework to assess change management success, Taskinen and Smeds [13] undertook research to ascertain the state of the art in measuring change management projects. This research took the form of interviews with the managing directors of three global consulting companies. Each of the consulting companies highlighted the importance of measuring the willingness to change of personnel. Such findings add weight to the importance of both the self-interest factors and literacy factors as identified by Udo and Ehie. The findings of Lee et al. [5] are also in keeping with the theme of operator empowerment and enabling formalisation. The authors state that it is important to encourage legitimate politics within the company and suggest the dispersal of power and authority throughout the organisation, providing autonomy of departments in addressing their own objectives.
C. Internal politics According to Taskinen and Smeds [13] there is a shift from the requirement of the effective management of operations to the efficient and effective management of change. The study suggests that the identification of resistance to change within an organisation is an important aspect of successful change implementation. The literature regarding organisational learning and operator empowerment present these issues as tools designed to impact upon an organisations internal politics in such a way as to create an environment that is conductive to change. The existence of political barriers to change within organisations has been noted many times in the published literature. Tantoush and Clegg [12] assert that although many firms adopt AMT for profit-motivated reasons they fail to achieve such benefits because they are unable to manage the politics of the technology and its impact upon organisational design. According to Macri et al. [6], even small organisations, often regarded as naturally inclined to change, suffer political barriers to technology implementation. Although, as noted above, it is the position of Lee et al. [5] that when small companies are determined to implement change, communication is an area in which they out-perform larger companies. However, a contradictory example is provided by Jones [4] in a case-study paper examining the management style within a small company. In this paper the author notes that, the MD expressed little interest in developing the
Case study company A B C D E F G H I J
workforce and was more concerned to investigate opportunities for outsourcing existing activities or investing in new machinery. Whilst this particular publication is concerned only with a single organisation, the autocratic nature of the company studied shares some parallels to the case-study company that is the focus of this paper. D. Retrospective Case Studies The method for the wider research programme is based on the analysis of case studies of manufacturers that have adopted some form of AMT. These case studies were gathered in two stages. An initial round of retrospective case studies was generated through interviews with company managers. Following consideration of the results of that first stage, time was spent monitoring the implementation of AMT in two further cases. This two stage approach to data gathering is based on a methodology presented by Voss et al. [15]. Voss et al., warn that retrospective data may be subject to post-rationalisation by the case study respondent. That is, the respondent may interpret previous events using knowledge that was not available at the time. To counter this risk, a second stage of longitudinal research is undertaken to test models and gain more in-depth knowledge from fewer companies. Table 1 presents an overview of companies interviewed in the retrospective stage and the AMT discussed.
TABLE 1. OVERVIEW OF CASE STUDY COMPANIES Sector Transformer manufacture Automotive Mass transport Tool making Electronic instruments Sub-contract engineering Precision engineering Automotive/Aerospace engineering Mould-making (polystyrene and polypropylene) Production engineering (hydraulic components) AMT discussed Laser cutter CNC, CAD/CAM, Vision Systems, MRP II, Robotics CNC, CAD/CAM, Phenolics CAD/CAM, CNC, Wire erosion, Spark erosion CAD/CAM, Pick & Place Laser cutter CAD/CAM, Wire erosion CAD/CAM, Vertical turning centre CAD/CAM, High speed machining (HSM) centre CAD, Live tool CNC lathe, Multi-axis vertical turning centre No. of employees 200 130 47 74 83 22 22 5 13 14
The results of the retrospective stage indicated three important issues for the implementation of AMT in small companies: consideration of the inherent and integrated benefits of the proposed AMT; consideration of company technological experience; and, availability of vendor or other support mechanisms [16]. Inherent benefits refer to a match between company requirements and the capabilities of an installed technology. Integrated benefits refer to achievable benefits as a result of an overall production process that utilises AMT at some point in that process. The implication
of this finding is that small company managers should consider the impact of the output of an AMT on downstream processing and that inexperienced implementers of technology are more likely to achieve anticipated benefits that are linked to the inherent capabilities of a technology. The following case study presented in this paper documents the first of the longitudinal studies. It is hoped that these longitudinal studies will overcome some of issues associated with respondent post-rationalisation that are inherent in retrospective case-study research.
III. CASE STUDY COMPANY K Company K is a boat building company based in Wales that has been in operation for over 40 years. The company produces 37 and 45 foot luxury motor yachts, employs 60 people and has an annual turnover of approximately 2.5 million. In the summer of 2005, the company approached a university department specialising in product development to explore the possibility of embarking on a structured partnership to improve design and production efficiency. The owner/managing director (MD) of the Company explained that he wished to grow his company further, the main aim being to increase the companys product throughput. At the time of the meeting, the company had a throughput of 3.5 4 boats per year. Growth to this level had been achieved through increasing production worker numbers; however, the company was now at capacity with no room to take on further numbers of staff. The Company hoped that by working with the university a plan could be developed for increasing throughput through a combination of efficiencies and technology use in design, design to manufacture and production operations. The university department agreed to undertake with the Company a two year Knowledge Transfer Partnership (KTP) programme. KTP is a government funded scheme aimed at strengthening the competitiveness and wealth creation of the UK by stimulating innovation in industry through structured collaborations with universities. Within these collaborations a recent graduate (the associate) is placed within the company for the duration of the programme to aid the development of new expertise. A plan for developing change within the company was created in partnership between the MD and the university. The plan was based on the development of an in-house design resource for the concept generation, specification and visualisation of potential purchases. In addition, new design procedures to speed up the development of each boat would be created. The plan acknowledged the importance of the retention of the company values whilst allowing the Company to take advantage of new design technologies and methodologies in an attempt to accelerate their existing process from client specification to final production. It was perceived that this would involve implementing an advanced 3D CAD system which will enable the company to: Transfer 2D yacht drawings across into 3D CAD as required Communicate effectively with the Naval Architect using a compatible interface to conduct a knowledge capture exercise regarding the design of new boats Provide full specification to clients of their required design Produce photo-realistic visuals and 3D virtual models to include the interior cabin layouts to allow client walkthroughs Improve the overall image of the company
It was intended that the installation of 3D CAD would provide an opportunity for the company to introduce design led development and manufacture. Design activities can operate concurrently to CAD development improving the efficiency of development projects. Such efficiencies can be developed through a number of factors. Concept development in a 3D environment facilitates communication of design possibilities to clients through the use of high quality realistic visuals and interactive industrial animations. CAD driven communication at this early stage of development can have a positive impact on lead times as approved concepts often require less processing to enter detail design and manufacture. In addition, the potential for the development of a library of CAD components can allow a company to present design possibilities to prospective clients in real time. This aids the potential customer in realising the design options available. Further, communication with clients and potential customers in the CAD environment brings the initial stages of development closer to downstream processing; in addition to the inherent efficiencies that such CAD use presents, this style of development opens up the possibilities for intelligent manufacture through technologies such as Computer Aided Manufacture (CAM) and Manufacturing Resource Planning (MRPII) links and improved communication with external design engineers and other subcontractors. At the start of the programme, the associate undertook an investigation into the development operations of the Company. The purpose of this exercise was to gain a better insight into the working practices of the Company. It was felt that this information would be important in setting up the most appropriate procedures for the Company; understanding whom such new procedures would have greatest impact on; and, whose influence and support would be required for such implementation to be successful. This schematic of the Company identified various business functions, their interaction, and the personnel responsible for these areas. The investigation into the interactions within the Company indicated that for each new boat a customer specification was developed and used to inform purchasing (materials and components) and the build plan; 3D CAD was developed to produce output for CNC processing for sheet parts (mainly furniture) and sub-contract manufactured parts; and 2D drawings were issued to the workshop for below deck systems fitting and cabin fit out. These procedures used various systems, including 3D CAD, 2D CAD and paper based systems to identify all component and material requirements from the two different CAD systems. It was agreed that integrating these systems would provide improved efficiencies at this front-end of development work. High-end 3D CAD programs often include part management systems to automatically produce bills of materials. This was identified as likely to produce a great time saving to the Company, as not only could required part reports be generated without manual interrogation of drawings, but purchasing could be planned in line with the
current stage of development, reducing individual order costs and making better use of the Companys limited storage facilities. In order to develop such systems and procedures, a number of tasks were identified: Source a CAD system or systems that could meet the client facing requirements identified and provide active component management Assess the accuracy of existing 2D drawings Update drawings and re-model in a 3D environment Model the 1000+ third party components Transfer old 3D models to the new system Encourage other operators to use the new system when specifying new components Develop a virtual library linking supplier information to component models Develop new reporting procedures to instigate procurement Encourage and train non-technical staff to use the new procedures In order to source the most appropriate software solution for their needs the Company developed a specification document that described in detail what the Company hoped to achieve through any new technological investment. This was distributed to a number of vendors who were then invited to present software solutions to the Company. As a result of this exercise one vendor stood out as having a solution very much in line with the Companys needs and also in line with future aspirations in terms of CAM communication to multi-axis machining. Although this was the Companys preferred solution, the cost of the system was a barrier to investment (two seats of the software was initially priced at 17000). Through negotiation with the vendor a significant reduction in cost was achieved, bringing the cost of two seats of the software to 8000; this discounted price was reliant on the Company agreeing to act as a reference site for the vendor. Given that the Company was able to access 3600 of Government funding for purchasing technology, this new price was now affordable. The installed CAD solution was supplied with a comprehensive support package of on-site training and a telephone helpline to aid in overcoming unforeseen problems. In addition, due to the way the procurement exercise had been executed, the vendors had a good knowledge of the aims of the Company regarding their technological investment. The advice of the vendors was that the first task should be modelling of components and development of the library of parts. Although this time consuming task would bring little immediate commercial reward, this was seen to be the best way to develop the strategy towards the future aims of the Company. The argument presented by the vendors was that this would allow the procurement and planning aspects of the strategy to be ready for future boat builds. The view of the MD was that following implementation and the significant investment made, the technology should
have an impact on current production as soon as possible. Therefore the MDs preferred plan was to defer creation of the component library and start to transfer and update the below-deck systems. The MD believed that it should be possible for the CAD operators to model components and create assembly models of the boat systems already installed in the current boat build and to then get ahead of production. This would ensure that further installation could be informed by the new CAD output. According to the MD, this would lead to a reduction in the lead-time on the current boat build, as a significant number of the boats installed systems would be supported by drawings with increased accuracy and improved detail. In practice the MDs plan did not reap the anticipated rewards. On investigating practices in the workshop and comparing against existing drawings, the associate discovered numerous discrepancies. This significantly impacted on the time required to transfer 2D drawings into the 3D environment, as modelling and assembly setup was relying on gathering physical measurements from production. This presented a difficulty in getting ahead of production as the MD had desired, as the drawings had been shown not to present an accurate enough representation of the actual build. Further difficulties occurred as boat system production was found not to be linear. The MDs plan for system installation saw each successive system being installed on completion of the previous system. In practice this did not happen, systems were installed concurrently to avoid fitting problems. Despite these barriers being communicated to the MD, the MD remained insistent that system drawings must be created for workshop use before addressing the design strategy for the next boat build. The MD argued that as components were being modelled for the existing boat systems, then those components would be available for the development of the next build and would form the foundation for the development of a parts library in line with the original strategy. Accurate assembly models and drawing outputs of the boat systems materialised at approximately the same time as the as the installations of such systems were completed, some six months after initial installation of the new CAD facility. Therefore, no positive impact in terms of lead-times for production was achieved. During this time the MD had worked independently on the design of the systems for the next boat-build, and had made significant changes to the layout. As a result of these changes, the assemblies created over the previous six months had little value except in the potential for re-use of the modelled component parts. IV. DISCUSSION This case study enhances the knowledge gained from the retrospective cases, in that further analysis can be made regarding the impact of support mechanisms, consideration of previous experience and the inherent and integrated benefits of the installed technology. In addition, insight is gained into
the impact of influential individuals and management style on the success of technology adoption. Whilst case study research has an inherent limitation regarding the applicability of results to other scenarios, the influences of owner managers has been documented in previously published research [4, 7]. A. Support Mechanisms The results of the retrospective stage indicated that companies placed high importance on the availability of vendor and other support mechanisms. The same high importance can be seen from the longitudinal case study, in that the Company used university support and government funding to aid selection, purchase and implementation of the CAD system. In addition, in negotiations with the vendor, the Company was keen to establish telephone support and training for relevant members of staff. Although this research
concurs with previous results regarding the perceived importance of support, it is more difficult to establish the influence of such support on the impact of technology adoption within the Company. The support sought and obtained by the Company can be placed in two categories, namely, financial and expertise. Financial support contributed to the purchase of CAD and expertise (60% of the costs of the KTP programme are paid for by the UK government). The expertise support identified the most suitable technology based on communicated aspirations; helped to negotiate a lower cost for the purchased technology; and, provided a labour resource to implement the CAD. The associate investigated production requirements; developed CAD models and assemblies; and, updated production drawings. Table 2 demonstrates the financial contributions towards the technology adoption programme.
TABLE 2. INVESTMENT IN TECHNOLOGY ADOPTION AND SUPPORT Company investment in technology and expertise 25000 Inc. 4400 towards CAD Government support towards technology and knowledge transfer 33000
The CAD installed during the case study period did not represent the Companys first experience with 3D CAD. A less sophisticated 3D CAD system had been previously installed in the Company. However, the previous CAD system did not have data management systems or photorealistic rendering and animation. In addition, the previous CAD had limited options for expandability. Despite having had 3D CAD for a number of years, it was the support mechanisms that provided the investigation into manufacturing requirements and facilitated updating systems to make better use of CAD. B. Consideration of Previous Experience Another finding from the retrospective cases was that companies should consider both their levels and areas of experience in technology adoption. Such consideration is demonstrated as important in Case Study K through their decision to upgrade to a high-end 3D CAD system. Such development could be viewed as a natural next step in developing technological competence and was in line with the Companys aspirations to increase throughput via increased efficiencies. The associate and Companys own CAD operator initially adapted to the new system with few problems. However, as production requirements became more pressing, the Companys operator slipped back into using the old system due to time constraints preventing the transfer of files to the new system. The Design Manager did not develop strategies for finding time to transfer components and assemblies to the new system. This lack of transfer had serious implications for one of the major aims of the technology implementation. That is, the transfer was vital in making use of the new data management systems, converging the information required for efficient procurement with boat development and build strategies.
The associate, not having access to the previously installed CAD system continued to develop models in the newly implemented system. This meant that as components were being modelled, supporting information could be added and reports for the development of procurement efficiencies could be created. However, there was significant resistance to change from the Companys buyers. Although an investigation into purchasing requirements had been undertaken and much effort exerted in inputting such information into the CAD data management system, the purchasing officers failed to evaluate, further develop or use the system. The purchase of the technology and support had been undertaken without consultation with non-technical staff. In addition, throughout the programme, management did not develop mechanisms to encourage purchasing officers to engage with the new technology and strategies. This lack of encouragement and communication may have influenced the Design Managers lack of concern that the new system was not being taken up by the Companys own CAD operator. C. Consideration of Integrated and Inherent benefits The retrospective investigation indicated that small companies often find technology implementation easier when the output of the new technology has limited impact on further processing or other systems. The new CAD system introduced within Company K had a number of both integrated and inherent benefits. Inherent benefits included efficiencies in modelling (e.g. automated pipework and routing), abilities in presentation output and customisable assembly drawing outputs. The associate developed these aspects of the CAD with little resistance from company personnel. The modelling efficiencies were used to produce new assemblies following an investigation into build
procedures in the workshop; presentation abilities were used to communicate ideas to clients; and, new assembly drawings were issued to the workshop (to positive responses in an internal review). The potential integrated benefits of the system are described above in the integration of supplier information to CAD models for use in purchasing strategies. Developing these integrated benefits for the technology proved to be very difficult. It can be argued that these integrated benefits were where the Company had the potential to make the greatest gains in terms of efficiency. The barriers to the development of such integrated benefits centred on the resistance of non-technical staff to engagement with the system. This was compounded by lack of encouragement from the MD in terms of communicating the personal advantages that such a system could bring to purchasing officers. Such personal advantages could have included reductions in workload and stress. D. Managerial Impact In developing a plan for the improvement of the Companys design function and design communication to manufacturing at the start of the project, the Company indicated a desire to develop the following benefits: Reduce the design cycle Improve design output Improve customer understanding of design potential More efficient boat layout (for below deck systems) Interrogation of fit and design change impact in a virtual environment Improved data to manufacturing operations Development of a component library Efficiency in procurement and storage Increased product throughput The Company developed a specification for the selection of a CAD system that could allow the development of each of these aims. Through this process a system was chosen and two seats installed at the Company. The support offered by the vendors of the system indicated that to achieve the aims stated, the best place to start would be through the development of the component library. This would in future facilitate the use of the system to plan the next complete boat build, and through revisions, meet the aims of: more efficient boat build; interrogation of fit; and, improved data to manufacture. The MD disagreed with the presented strategy, being concerned that the system should be used as soon as possible to produce output for use in manufacture. It is not insignificant that at the time of installation of the 3D CAD, current boat production was running behind schedule and the Company was likely to incur significant penalties and make a loss on the boat due to late delivery. This might explain the MDs reluctance to allocate resources to the development of future efficiencies and to concentrate all efforts on rectifying the current production problems.
The MD had viewed the physical fit-out of boat systems as a series of sequential actions, installed system by system. In investigating the requirements for producing 3D CAD of the boat systems, the associate discovered that in fact much of the system development is necessarily concurrent. This is because certain aspects of systems scheduled for later installation become impossible to fit around previously installed systems. Therefore, it became apparent that it was impossible to get ahead of production in a boat that had already been started. In addition, the associate discovered a number of discrepancies between the design office drawings of boat systems and the manner in which systems were actually fitted. As a result much time had to be spent reconciling manufacturing and design office opinions of how the systems should be implemented. Over a period of six months, the associate developed models and drawing output of all of the below deck systems, roughly completing the systems in line with production. The Company recognised that an accurate record of the boat systems had been developed, providing much more detailed and useful information for production than they had ever had before. However, at this stage it became apparent that the effort would be of little use in future production, as during development of the systems, the MD had updated the design for future boats, so that the systems information was no longer relevant. This level of managerial autonomy may be attributed to a lack of technological knowledge at managerial level. The MD did not appreciate the volume of work involved in developing large, complex assemblies from component models. Whilst few components were updated, had the MD fully understood the strategy, he might have encouraged an investigation into the proposed changes in boat system assembly. This would have aided the Company in achieving another of their strategic aims in interrogating proposed builds in a virtual environment prior to investing workshop time. V. CONCLUSIONS AND FURTHER WORK Case study Company K indicated a perceived importance of previous experience and accessibility of support mechanisms. It was also shown that developing integrated benefits in AMT adoption is more difficult than the development of a technologys inherent capabilities. These finding concur with the results of previous research into small company AMT implementation [16]. Much of the literature on AMT indicates that most companies that invest in technology will eventually make use of the capabilities, even if not in the planned way or in the planned timescales. Therefore, in the fullness of time it may be that Company K will make good use of their investment and start to see some of the planned benefits. Or revisiting the issue of post-rationalisation, in time the company may derive either some of the planned benefits or some other benefits, and label the implementation a success. However, from the point of view of this research, this implementation can be
seen as unsuccessful, as approximately eighteen months after the Companys first exploration into the adoption of new technology, and an investment in the order of 25000, the Company had limited useful output. The investigation into the boat system development undertaken by the CAD operator did produce useful information that could potentially improve future manufacturing. However, the actual drawings produced will only be useful as a proven template for future output. In addition, this output did not represent a significant step change in the capabilities of the old CAD system to the new CAD and could have been produced without further technology investment had such investigations been undertaken previously. The bulk of this paper represents just a single case; however, it does support the findings from a previous investigation into the AMT implementation programmes of ten small Welsh manufacturers. The purpose of this longitudinal case study was to look in more depth at technology adoption in a small company environment to expand on the results of the earlier research. In that aim, this research has highlighted some of the difficulties that exist due to the influence of a non-technical dominant owner/manager. The author proposes to undertake another longitudinal case of manufacturing technology adoption to further examine small company issues. It is hoped that the output of these cases can be used to develop mechanisms to aid small companies in achieving the potential benefits that AMT has to offer. REFERENCES
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APPENDIX C
APPENDIX C2: JOURNAL PAPERS

According to the International Journal of Innovation and Technology Management, Case Studies of Advanced Manufacturing Technology Implementation in Small Companies, is one of the four most accessed articles of 2007, available for free access as a means to showcase the quality of the journal. Over the following pages, the full texts of three journal papers are presented: Case Studies of Advanced Manufacturing Technology Implementation in Small Companies New Product Development within Small and Medium-Sized Enterprises: Analysis Through Technology Management Maps Challenges in Managing the Convergence of Information and Product Design Technology in a Small Company
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International Journal of Innovation and Technology Management Vol. 3, No. 2 (2006) 121 c World Scientic Publishing Company
CASE STUDIES OF ADVANCED MANUFACTURING TECHNOLOGY IMPLEMENTATION IN SMALL COMPANIES
ANDREW T. WALTERS , HUW MILLWARD and ALAN LEWIS National Centre for Product Design & Development Research University of Wales Institute, Cardi, Wales, UK atwalters-pdr@uwic.ac.uk hmillward-pdr@uwic.ac.uk alewis@uwic.ac.uk Received 11 November 2005 Revised 20 December 2005 Accepted 12 January 2006
Issues of Advanced Manufacturing Technology (AMT) implementation have been extensively covered in the literature in regard to large companies; however, exclusive examination of the impact of AMT on small companies remains under researched. This examination of ten case study companies demonstrates the potential benets of AMT use, as each of the companies achieved positive outcomes from AMT. However, the benets achieved did not always meet the companies expectations. Analysis of the experiences of the companies indicates the importance of considering the impact of AMT output on the manufacturing process, the levels of pre-existing AMT experience and the availability of external support mechanisms. Keywords: Advanced manufacturing technology; small companies.
1. Introduction The issue of quality and exibility in manufacturing has become as important a focus as cost reduction in Western companies over the past two decades [De Meyer (1998); Small (1998)]. To aid industries achievement of such a shift in focus, much research has been conducted into the application of advanced manufacturing technology (AMT). The use of AMT presents companies with an opportunity to develop a manufacturing environment where employees obtain increased knowledge and skill [Gardner et al. (1996)]. The importance of developing such an environment is indicated in the UK Governments Manufacturing Strategy which advocates that, In the face of low-cost competition, rms must move up the value added chain and embrace knowledge-intensive, high skilled manufacturing [DTI (2002)]. Much of the published research on AMT is either concerned with large rms that have certain levels of previous experience with technology implementation, or is indiscriminate in company selection for the purpose of achieving generalizable results. Given the resources required to implement AMT, such indiscriminate study may provide results with a bias towards large companies that have more
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opportunity to invest in AMT and therefore more experience of the factors aecting implementation. The impact of AMT implementation on small companies is an under researched area. Of the AMT studies that have been conducted that do consider small companies, many have focused on highlighting the dierences between large and small organizations. Rather than highlighting dierences between large and small companies, this paper will exclusively examine the impact of technology implementation within small companies through analysis of the experiences of ten case-study companies. The objective of this study is to gain an understanding of the issues facing small company managers when implementing a new technology. This paper forms part of a wider research project that aims to further investigate the impact of AMT in small Welsh companies through more in-depth longitudinal study with additional case-study companies and to develop mechanisms to aid small companies in achieving the potential benets that the implementation of AMT has to oer. Small business is especially important to Wales as 71% of all Welsh private sector employment is generated by small and medium sized enterprises (SME), this is in comparison to 57% for the UK as a whole. In addition, SMEs account for 63% of business turnover in Wales (as compared to 54% for the UK) [Federation of Small Businesses in Wales (2003)]. Manufacturing is of particular importance to the Welsh economy as it accounts for around 20% of Welsh employment (just over 200 000 people) and approximately 25% of the Welsh gross domestic product. In 2002, 93% of manufacturing companies in Wales employed fewer than 100 people and 87% employed fewer than 50 people [National Assembly for Wales (2003)]. The results of this research indicate three issues that were of particular importance to the small companies that took part in the study. These issues are: the consideration of inherent and integrated benets of the technology; the consideration of company technological experience; and, the availability of vendor or other support mechanisms. 2. Background During the 1980s, much research was conducted into the newly emerging manufacturing processes and strategies associated with Flexible Manufacturing Systems (FMS), many of which arose as a result of developing microprocessor technologies [Sethi and Sethi (1990)]. The literature focused on manufacturing systems that utilized new technologies at process level to increase manufacturing exibility. During the 1990s, a new strand of the literature evolved to examine further developed manufacturing technologies that impacted production in a broader context. These newer technologies, termed AMT, have the potential to inuence competitive advantage through the use of design, information and control technologies in addition to process technologies [Swamidass and Kotha (1998)]. Browne et al. [1984] dene FMS as an integrated computer controlled complex of automated material handling devices and numerically controlled (NC) machine tools that can simultaneously process medium-sized volumes of a variety of part types. This describes a technology-driven system that provides part exibility and can therefore be utilized as a strategic tool for many manufacturers. Youssef [1992]
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Advanced Manufacturing Technology Implementation in Small Companies
denes AMT as a group of integrated hardware-based and software-based technologies, which if properly implemented, monitored and evaluated, will lead to improving the eciency and eectiveness of the rm in manufacturing a product or providing a service. Common examples of AMT include Computer Aided Design and Manufacture (CAD/CAM), Computerized Numeric Control (CNC) machines, industrial robots, etc. Successful implementation of AMT has been associated with numerous tangible and intangible benets [Kaplan (1986)]. Tangible benets include: inventory savings; reduced oor space; improved return on equity; and, reduced unit costs. Intangible benets include: enhanced competitive advantage; increased exibility; improved speed of response to market uctuations; and, improved product quality and reliability [Small (1999); Sohal et al. (1999)]. The potential benets of AMT are widely reported, however, much of the literature on AMT indicates that companies are often dissatised with the benets that such technological investment has brought to their businesses [Saleh et al. (2001); Chan et al. (2001); Small (1998); Sohal et al. (1999)]. Diculties with the implementation and maintenance of AMT include: communication; commitment; education; investment in support mechanisms; and, lack of previous experience in AMT implementation [Jonsson (2000); Sohal et al. (2001)].
2.1. Planning for AMT Burcher and Lee [2000] found from their survey of 161 UK manufacturing practitioners that, in order of importance, companies invest in AMT to: obtain competitive advantage; obtain nancial benets; counter competitive threat; enhance company image; and, counter skill deciency. The study indicated that most of the AMT implementations were undertaken as a response to market conditions rather than being driven by technological factors. In contrast to the ndings of Burcher and Lee, a survey of 160 US manufacturing companies by Swamidass and Kotha [1998] did not detect any direct connection between AMT use and nancial performance. However, this paper explains that this may be because AMT implementation has the potential to generate indirect nancial benets through the exploitation of new opportunities that arise from increased quality and reductions in lead-times. In a survey of 114 US companies, Small [1998] indicated that the most important objective for the implementation of AMT was improving product quality. High levels of importance were also placed on the technologies ability to reduce unit production costs. The business cultures of both the UK and the US are often accused of being cultures in which managers are under pressure to produce short-term results. Burcher and Lee [2000] argue that such an accusation is unfounded in regards to many of the companies that they surveyed in respect to AMT investment planning. Many companies were found to be employing discounted cash ow (DCF) analysis to justify their investments in the longer-term. However, an earlier publication by Kaplan [1986] indicates a problem with the DCF method when considering AMT implementations due to diculties in attributing nancial value to the intangible benets associated with such investments.
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Diculties in evaluating the qualitative factors of AMT investments led Saleh et al. [2001] to develop a framework for managers to incorporate intangible attributes into the decision process. The research conducted by Saleh et al. found that manufacturing exibility and system cost were of greater importance to managers than the categories of vendor and technical support. 2.2. Operational impact of AMT Lei et al. [1996] note that eective implementation of AMT enables companies to achieve economies of scale and scope simultaneously. That is, according to Lei et al., investment in AMT represents a strategic option, the value of which increases in an environment of competitive and market uncertainties. Further, such economies of scope has the potential to inuence the risk propensities of a company, e.g. in exploiting opportunities provided by a new AMT, a previously risk-averse company may become risk-prone and attempt to challenge another companys position in a related market. Sohal [1996] studied the eects of AMT implementation in seven Australian organizations of varying size (from 30 to nearly 3000 employees). The study concluded that in general the companies achieved the benets that they expected from the AMT and that each of the companies achieved signicant improvements in their overall competitiveness. However, although the benets achieved were signicant, a number of problems were also reported, including: a lack of in-house programming skills; inter-departmental conicts; poor communication between management and the information technology department; implementation of necessary shop-oor discipline; conict between short-term production requirements and long-term goals; and, convincing a Board of Directors to approve the project. One of the benets cited by Sohal was reduction in labor costs; however, Small [1999] warns that justication of AMT implementation based on such a benet may be awed. Following a survey of 116 US manufacturing rms, Small found that the implementation of AMT often resulted in marginal decreases in the number production operators and marginal increases in average labor costs. The paper concluded that although many companies achieved their objective of operator reductions this did not necessarily result in savings in labor costs. In measuring the impact of design-led AMT in small to medium sized companies, Dorrington et al. [2003] found that time, cost and quality factors were all positively inuenced. 2.3. Critical success factors for the implementation of AMT Inmans [1991] research into successful implementation for advanced FMS discovered that the most critical preparatory factor is the denition of a companys manufacturing strategy. In addition, Inman states that it is important for businesses to determine if their industry is suitable for competing on the grounds of exibility. In industries with a high rate of product introduction, the ability to launch new products may be more important than minimizing cost. Following a review of the available literature together with a survey of 92 US companies,
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Udo and Ehie [1996, 1996a] produced a predictive model linking critical success factors to tangible and intangible benets of AMT. Udo and Ehie identied four determinants of AMT implementation success: Triple C factors: Communication, co-ordination and commitment Self-interest factors: Morale, satisfaction, belief in AMT and reward Housekeeping factors: Action plan, eective team, vendor support, cost justication, functions integration and an eective facilitator Literacy factors: Understanding of AMT, understanding of business, training, clear objectives, and expectations of AMT. The results of the study indicated that self-interest factors were the most critical determinant of AMT success. That is, where shop-oor operatives can be encouraged to perceive an investment as a system that can yield personal gains to them the likelihood of the company achieving successful implementation is increased. The next most important aspect identied was literacy factors, which relate to education of the workforce; the results of the study indicate that investment in education of shop-oor operatives is directly related to many of the AMT benets. Udo and Ehie conclude the winning rms will be those that keep pace with the changes by updating their workers knowledge through in-service and external training. A study of 101 US companies conducted by Gupta et al. [1998] found that AMT implementation could have an adverse eect on the commitment of employees. Gupta et al. argue that the implementation of AMT often leads to increased uncertainty in the manufacturing environment, thus making it more threatening to work in. Such ndings add weight to the importance of both the self-interest factors and literacy factors as identied by Udo and Ehie. 2.4. Relationship between size and AMT adoption Swamidass and Kotha [1998] conducted a survey of 160 US manufacturing companies to investigate the relationship between company size and AMT use. The research discovered that AMT usage is generally lower in smaller rms than larger rms. However, Swamidass and Kotha noted an exception to this in the use of product design technologies (PDT), which were used to similar levels in companies of all sizes. Sohal et al. [2001], in their study of AMT implementation in 84 South African companies, found a number of noteworthy dierences between larger and smaller companies. Perhaps unsurprisingly, the study found that larger companies make larger AMT investments. Such a discovery is in line with previous research that has considered the characteristics of companies implementing AMT [Schroder and Sohal (1999)]. However, a related but interesting discovery concerned the dierent risk attitudes of large and small companies. The results of this study indicated that failure to achieve nancial targets and deciencies in relevant managerial skills were less important risks for large companies. Another important dierence between larger and smaller companies was the increased likelihood of larger companies to already employ personnel with the necessary skills to implement and maintain AMTs at the time of implementation. Sohal et al. argue that the major challenges to smaller
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companies are the management of both the nancial resources and skills required for successful implementation. Rangone [1998] argues that many of the frameworks developed for AMT investment decisions have not been developed with small or medium sized enterprises (SME) in mind. Rangone attempts to assess the applicability of major nonconventional AMT appraisal and selection techniques to smaller companies. The techniques assessed in the publication are: modied DCF; strategic approach; and, multi-attribute decision making (MADM). The report concludes that MADM methods can be particularly benecial to smaller companies since they are intuitive, that is, based on a human-like logic. Additionally, MADM techniques do not require specic competence or sophisticated information systems.
3. Method The requirement for the study of AMT related issues in Europe in supported by OMahony and de Boer [2002], who state that, researchers have established that there is a link between technological investment and productivity growth in the US; however, it is yet to be shown if similar investment in technology will yield the same benets for European countries. In addition, the above review has highlighted that little research has been conducted into the impact that the implementation of AMT has on smaller manufacturing companies. The results of the literature review were used to inform the development of a structured interview document for capturing case study data from small Welsh companies that had installed some form of AMT. The interview was structured to examine separately the three areas of: planning for AMT; the operational impact of AMT; and, the critical success factors for AMT implementation and development. The interview presented 28 questions, made up of 14 open questions (to gain an understanding of the AMT issues in the context of the respondents company) and 14 closed questions (to aid comparison and cross analysis of the case study companies). Table 1 presents examples of questions from each of the sections. In European research, it is common to term companies with less than 250 employees as SMEs and businesses with less than 50 employees as small companies. For the purposes of this research, small is a relative term to dierentiate this work from the more common practice of studying AMT in large companies. The authors do not intend the focus of this study to be larger SMEs, and therefore argue that to use the term SME in the title of this research would be misleading. However, it is not the intention of the authors to exclusively study the impact of AMT on companies with less than 50 employees. Therefore, for the purpose of this study the term small shall relate to companies with less than 100 employees. In order to assess the relevance of the structured interview document, an initial data capture exercise was undertaken with two medium-sized Welsh manufacturing companies (130 and 200 employees) with which the authors had built good relations with high-level managers. The advantage to this research in working with these companies was that they both had extensive experience of AMT implementation programs and could interact candidly with the researcher and thus test the validity
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Advanced Manufacturing Technology Implementation in Small Companies Table 1. Sample questions from the case study interviews. Interview section Planning Question What were the anticipated benets of AMT prior to implementation? Rate the relative importance of: countering skill deciency; countering competitive threat; obtaining nancial benet; enhancing company image; and, obtaining competitive advantage Rate your overall satisfaction with the AMT projects in which you have been involved What, if any, new business opportunities were identied following AMT implementation? Rate the relative importance of: consideration of company manufacturing strategy; evaluation of the competitive environment; economic evaluation; involvement of production operators; and, company communication What, if any, measures were taken to encourage operator support of new technological installations? Question type Open Closed
Operational impact
Closed Open Closed
Critical success factors
Open
of the interview questions. The results of these interviews were used to inform further development of the structured interview document for the main body of the research, capturing case study data from a further eight small manufacturing companies. Discussions with the two pilot companies were used to identify those technologies that are generally considered AMT in the current manufacturing environment. As a result of these discussions, for the purposes of this research, AMT shall refer to: Manufacturing technologies that utilize 3D CAD/CAM Manufacturing related electronic information systems (e.g. MRP II) Laser-based manufacturing technologies Vision systems Industrial robots CNC machine tools.
The investigation leading to this paper was based on the observation and analysis of AMT related issues in ten case study companies. An overview of all the case study companies is presented in Table 2. A database of Welsh manufacturers held by the Manufacturing Advisory Service (MAS) Cymru was used to identify potential case-study companies. MAS Cymru is a government funded advisory service that aims to assist manufacturers in operational matters. The database indicated those companies known to have implemented an AMT. The ten case-study companies represent those companies that were identied as having implemented an AMT and agreed to take part in the study. In addition, the resource commitment required to study ten case-study companies in sucient depth tied in well with the time constraints of the wider research program.
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A. T. Walters, H. Millward & A. Lewis Table 2. Overview of case study companies.
Case study company Pilot interviews A B C D E F G H I J
Sector
AMT discussed
No. of employees
Transformer manufacture Automotive Mass transport Tool making Electronic instruments Sub-contract engineering Precision engineering Automotive/Aerospace engineering Mould-making (polystyrene and polypropylene) Production engineering (hydraulic components)
Laser cutter CNC, CAD/CAM, Vision Systems, MRP II, Robotics CNC, CAD/CAM, Phenolics CAD/CAM, CNC, Wire erosion, Spark erosion CAD/CAM, Pick & Place Laser cutter CAD/CAM, Wire erosion CAD/CAM, Vertical turning centre CAD/CAM, High speed machining (HSM) centre CAD, Live tool CNC lathe, Multi-axis vertical turning centre
200 130 47 74 83 22 22 5 13 14
All of the respondents were senior managers that had been involved in technology implementation within their companies. 4. Results Analysis of the case study companies highlighted three important issues for the implementation of AMT in small companies: Consideration of the inherent and integrated benets of the proposed AMT Consideration of company technological experience Availability of vendor or other support mechanisms.
4.1. Consideration of inherent and integrated benets The importance of considering the dierence between the inherent benets that certain technologies can provide, and business benets that are the result of an integrated system was rst brought to the authors attention through an interview with Company A. Inherent benets refer to a match between company requirements and the capabilities of an installed technology. Integrated benets refer to achievable benets as a result of an overall production process that utilizes AMT at some point in that process. The focus of the interview was the implementation of a laser cutter. Table 3 demonstrates Company As anticipated benets from the AMT prior to implementation and the impact of AMT implementation as identied by the interviewee. Inherent outputs from the technology included: increased exibility (the technology has the capability to eciently change from producing one part to another); improved accuracy and quality; increased cutting speed; and, increased variety of
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Advanced Manufacturing Technology Implementation in Small Companies Table 3. The impact of AMT on Company A. Anticipated benets of AMT prior to implementation Increased exibility Increase throughput Improve accuracy and quality Increase variety of parts Create competitive advantage
Positive impacts Increased exibility Improved accuracy and quality Increased variety of parts
Negative impacts Decreased throughput (solved through further investment in technology and labor) Increased labor cost Worsened process integration Unexpected capital expenditure
parts. It may be noted that where the perceived benets of the AMT implementation relate to the inherent capabilities of the chosen machine the result was a positive impact for the Company. As the installed technology creates a component for downstream production, the benet of increased throughput is dependant on the technology improving the eciency of the overall production process. In this case, the use of technology presented a number of problems that aected the eciency of production. Firstly, the development of more complex parts generated a dicultly in planning the most ecient use of the material. This created a bottleneck in the production process, having an adverse eect on throughput times. Secondly, the tolerances of the parts created diculties for downstream (welding) operations, where operational speed was dependant on the wide tolerances and simple geometric shapes that were produced by the CNC punch that was replaced. These issues were resolved through additional capital expenditure in a CAD nesting module, an extra fractional position to operate the CAD and production controls to limit product complexity. Analysis of the positive and negative impacts of AMT on Company A indicates that: Positive impacts were due to the inherent capabilities of the technology. Negative impacts were due to diculties in balancing the new technology with the Companys other manufacturing processes, and insucient investigation into the associated costs of maintaining the AMT. Case study companies E and J provide further evidence of the positive relationship between expected AMT benets and the inherent capabilities of a selected AMT. Company E discussed the implementation of an automated Pick and Place system. Table 4 demonstrates the expected and achieved benets.
Table 4. The impact of AMT on Company E. Anticipated benets of AMT prior to implementation Increased eciency Labor reduction Improved reliability Increased volume throughput Improved quality
Positive impacts Increased eciency Labor reduction Improved reliability Improved quality Increased volume throughput
Negative impacts
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A. T. Walters, H. Millward & A. Lewis Table 5. The impact of AMT on Company J.
Anticipated benets of AMT prior to implementation Increase capabilities Reduce labor component Increase volume throughput
Positive impacts Increased volume production capabilities Reduced labor component Increased competitive advantage (due to increased development and production capabilities) New business
Negative impacts
Each of the perceived benets closely relates to the function of the installed automation, that is, to eciently and reliably place a component. This action completely removes the need for an operator in part of the assembly process. In order to meet the anticipated benets, the technology was required to emulate and supersede the motor and visual skills of a human operator in performing a specic task. There were no further requirements, such as interaction with another technology, and the completed task had no implications towards downstream processing. Company J explained a similar experience with AMT implementation as Company E, in that the processed output had no impact on downstream activities (see Table 5). The interview focused on the Companys latest AMT implementation, a livetool CNC lathe. Two new operators were required to run the new machine, and therefore, the AMT implementation had an impact on labor costs; however, this did not produce a negative impact on the Company as these increased labor costs are part of the overheads of running a new machine that reduces the labor component in production. The output from the CNC lathe was identical to components produced prior to its installation. The companies discussed in this section have demonstrated the impact that the output of a technology can have on achieving the benets anticipated prior to installation. In Company A, it was observed that where requirements from the technology were in line with its inherent capabilities, such benets were easily realized. However, benets involving the AMT as a component in a larger system (the overall manufacturing process) were much more dicult to achieve. Companies E and J were only interested in achieving benets that were inherent capabilities of their selected technologies, as the outputs of these technologies had no further impact on their manufacturing processes. These results suggest that in the case of the inexperienced implementer, the chances of achievement of positive impacts to the business are increased where the output of the new technology has limited impact on further processing. 4.2. Consideration of company technological experience Discussions with the case study companies clearly indicate the importance of considering AMT experience levels during implementation programs. Case study Company B provides an exemplar of how it is important for a company to consider their
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Advanced Manufacturing Technology Implementation in Small Companies Table 6. The impact of AMT on Company B. Anticipated benets of AMT prior to implementation Economic improvement Control improvement Knowledge improvement Quality improvement Consistency improvement
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Positive impacts New business development Improved volume throughput Improved quality Reduced unit costs
Negative impacts Resistance to change Increased labor costs
AMT experience level even when the company is familiar with technology implementation. Company B is very experienced in the implementation of AMT having installed various technologies over the last 10 years. When planning for AMT implementation the Company normally implements nancial modeling techniques based on the quantitative aspects of the technology. However, this was found to be more dicult with the implementation of an MRP II system as most of the anticipated benets were qualitative in nature. It was anticipated that an MRP II system would have positive impacts on product quality, service quality and customer satisfaction leading to improved competitiveness (see Table 6). MRP II is a software based manufacturing management technology designed to aid the eective planning of materials, labor and machines. The interviewee indicated problems with the implementation of this technology during the planning, installation and development stages. The installation and development of the MRP II system was subject to resistance from production operators. As a result of these problems, the desired improvements in process knowledge and control were not achieved. For the majority of AMT installations, the Company indicated high levels of satisfaction; however, the Company indicated that they were very dissatised with the MRP II system. It is interesting to note that the system least in line with the Companys AMT experience (i.e. one potentially providing qualitative benets) should be the system that provides least satisfaction. Case study Company F provides an exemplar of a company adopting AMT for the rst time. The AMT implementation consisted of the installation of CAD/CAM and a laser cutter. Table 7 presents the anticipated benets and impact of AMT implementation in this company.
Table 7. The impact of AMT on Company F. Anticipated benets of AMT prior to implementation Increase prot Improve quality Remain competitive New business New business in new elds
Positive impacts Reduced lead times Improved product costs Improved volume throughput Reduction in customer complaints Improved production exibility Reduction in unit costs New business area
Negative impacts Increased running costs Increased labor costs Reliance on sub-contracting during transition
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Operating costs turned out to be much higher than expected, resulting in the Managing Director (MD) considering using a more traditional punching machine where possible to reduce operating and maintenance costs. In addition, the technology vendor did not meet the Companys expectations in regards to technical support. This resulted in the expenditure of unexpected costs as the Company had to contract out work during substantial periods of machine downtime. In order to resolve this situation, the Company brought in a new member of sta with extensive experience of the relevant technologies. Although this impacted on labor costs, it allowed the Company to develop the AMT more eectively and reduced the requirement for external training, as the new member of sta was able to train other members of the workforce. Following the recruitment of an experienced AMT operator, cost savings that increased prot were made due to previously contracted out work being brought in-house. As the Company became more experienced with their AMT a new business opportunity was identied in developing original products and selling them directly to the end-user. This new business strategy relied on the utilization of the Companys new technologies and soon became the most protable operation within the Company. Over the last 4 years, Company D has invested heavily in technology; however, prior to this the company had very little experience in AMT implementation. Discussions with Company D centered on the implementation of a wire erosion system. The positive and negative impacts on this company are presented in Table 8. This company shares some of the experiences of Company A and Company F in suering negative impacts based on unexpected costs. In addition, their experiences with AMT over the last few years has led the company to support the ideas of selecting an implementation champion from the shop oor and communicating to operators the potential personal benets of AMT use. Company H is the youngest of the case study companies, being operational for only one year at the time of interview. After ve months of trading, the Company invested in a vertical turning centre (VTC). Table 9 presents the impacts of the installation of the VTC to date. The negative impacts that this company suered support the nding that a lack of previous technological implementation experience is an important consideration for AMT investment. In this particular case, the AMT was purchased in response to a new business opportunity. However, although the MD was condent that such new business would be developed, at the time of interview contract negotiations were
Table 8. The impact of AMT on Company D. Anticipated benets of AMT prior to implementation Reduction in labor costs Increase capacity Improve product quality Improve service quality Gain competitive advantage
Positive impacts Reduction of labor costs Increased capacity Improved product quality Improved exibility New business development
Negative impacts High training costs Higher than expected running costs Diculties in benchmarking performance
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Advanced Manufacturing Technology Implementation in Small Companies Table 9. The impact of AMT on Company H. Anticipated benets of AMT prior to implementation Reduced costs (bring in-house contracted out work) More competitive quoting Reduced lead times Improved client communication
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Positive impacts Greater production capabilities Competitive advantage (on price and speed) Production exibility Reduced lead times
Negative impacts AMT development problems Machine reliability issues Unexpected capital expenditure Operator politics
not complete. Therefore, it is unknown to what extent the listed positive impacts will be transformed into nancial benets for the company. For each of the companies covered in this section, inexperience in AMT implementation manifested itself in the negative impacts of resistance to change, unexpected costs or both. Some levels of resistance to change may be an unavoidable condition in a company with no prior experience in AMT implementation, as employees may be prone to be suspicious of new technologies with unproven benets. That half of the companies were required to spend additional monies in order to benet from their investments is indicative of the diculties that these companies had in analyzing the full impact of AMT introduction prior to investment.
4.3. Availability of vendor or other support mechanisms All of the companies that took part in this study placed very high importance on the levels of vendor support available when choosing an AMT. However, other support mechanisms have also been used by the case-study companies. Two of the companies utilized Knowledge Transfer Partnerships (KTP) and one enlisted the help of MAS Cymru. KTP is a government funded scheme aimed at strengthening the competitiveness and wealth creation of the UK by stimulating innovation in industry through structured collaborations with universities. The KTP programs undertaken by the case-study companies were typical in that a recent graduate of a relevant discipline was placed in each company for two years to aid in the development of new expertise. The importance that case-study companies placed on vendor support is not indicative of those companies satisfaction with the vendor support that they received. Two of the companies that placed vendor support as the most important consideration when selecting an AMT were very dissatised with the levels of vendor support that they actually received. Described above is the experience of case study Company F whose MD considered the lack of adequate vendor support to be a contributing factor in the extended downtime of their installed AMT. The second company to indicate dissatisfaction in vendor support was Company I. This Company implemented a High Speed Machining (HSM) Centre; however, following implementation the Company experienced machining performance problems. It was discovered by the Company that these performance and reliability issues were
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A. T. Walters, H. Millward & A. Lewis Table 10. The impact of AMT on Company I.
Anticipated benets of AMT prior to implementation Reduced costs (bring in-house contracted out work) More competitive quoting Reduced lead times Improved client communication New business
Positive impacts Greater production capabilities Competitive advantage (on price and speed) Production exibility Reduced lead times New business
Negative impacts AMT development problems Machine reliability issues Unexpected capital expenditure Operator politics
related to the machines control processor overloading when presented with complex compound curves. This issue was described by the MD as the machine not doing what it said on the tin. Presented in Table 10 is the impact of AMT on Company I. The solution to the control processor problem presented by the vendor was the installation of a post processor, requiring an additional investment; a solution that was unacceptable to the Company at the time of interview. Company I acknowledged their inexperience in AMT implementation and addressed this lack of experience through a KTP program. Despite the barriers that Company I had to overcome in AMT implementation, the management remained committed to the development of AMT. This is due to the opportunities that the use of technology has presented to the company in regard to increased competitive advantage and new business development. Through the implementation of AMT the Company introduced the capability to interrogate and manipulate client CAD data. Prior to the technological introduction, CAD and related work had to be contracted out. Therefore, the new design-led technologies were eective in reducing the Companys costs. However, the Companys inexperience in running sophisticated CAD systems led to diculties in managing the numerous protocols for CAD transfer between systems. These CAD communication diculties presented themselves after the completion of the KTP, that is, when the Company no longer had access to the substantial CAD expertise of the collaborating university. Company C was another company undertaking its rst AMT implementation program and utilizing a KTP. The ambitious development plan of this company included the installation of 3D CAD/CAM facilities, the development of a phenolics molding plant and the installation of 5-axis CNC machining capabilities. The CAD/CAM implementation was undertaken in order to improve communication with clients during the early stages of their design work. The Company perceived that the installation of sophisticated 3D CAD would allow them to safeguard their position as a supplier to their current clients and improve their prospects for winning new contracts (see Table 11). In addition, the Company believed that such technological implementation would allow the company to pursue new markets through the exploitation of their new in-house design facilities. The Company suered political diculties amongst managers over access to the new technology. In addition, there was resistance to change from the shop oor due to suspicion of the impact that such technological implementation would have on the organization. At the time of implementation, it was not explained to
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Advanced Manufacturing Technology Implementation in Small Companies Table 11. The impact of AMT on Company C. Anticipated benets of AMT prior to implementation Improve client communications Improve development times Improve product quality Obtain competitive advantage Enhance company image Access new markets
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Positive impacts Improved speed of development with clients Better design for manufacturing capabilities of client designs Lead-time reduction Improved product quality Obtained competitive advantage Enhanced company image New business development
Negative impacts Resistance to change from operators Resistance to change from middle managers Political diculties with technology integration
pattern-makers that the production of CAD driven patterns was intended to secure additional contracts that would otherwise be unattainable. The strategy was such that this should strengthen the casting division of the company, thereby improving the security of the pattern makers employment. Despite these political disputes, the company was satised with the results of their AMT program, as the technology provided a competitive advantage that led to the development of new business. It is important to note that the casting industry within which Company C operates is generally a traditional manufacturing sector; therefore, the advantages in communication and development abilities of Company C following AMT implementation may have outweighed any negative impacts from their internal political disputes. It is interesting to note that Company G (a company with extensive experience in AMT implementation and signifying very high levels of satisfaction with their recent AMT programs) described similar political problems to Company C in their early attempts to install new technologies. This has led Company G to always ensure that management consensus is reached prior to beginning AMT implementation programs. Table 12 presents the impact of AMT on Company G. The latest AMT to be successfully introduced by Company G was wire erosion for the precision cutting of steel. Discussions with this company centered on their planned implementation of an 8-axis CNC lathe for the production of threadrolled components. The introduction of this technology was reliant on the company realizing a new business opportunity. The MD felt that technology vendors alone
Table 12. The impact of AMT on Company G. Anticipated benets of AMT prior to implementation New business Remain competitive Reduction of labor intensive work
Positive impacts Increased volume throughput Decreased lead times Decreased labor costs Reduced unit costs Increased production exibility Improved product quality
Negative impacts Short-term production conicts
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would be insucient to support this new project. In order to address this lack of support the company enlisted the aid of MAS Cymru. MAS Cymru provided research into the various technology options for producing thread rolled components and aided the development of activity based costing mechanisms to aid the company in producing accurate and competitive quotes. This new supporting administrative resource aided the company in developing a price advantage over an overseas competitor. The companies discussed in this section demonstrate the potential impact of external support for companies that are inexperienced in AMT implementation. Company I demonstrated the negative eects of inadequate vendor support through the selection of an AMT that did not fully meet their needs. Both Company C and Company I indicated the importance of the support of KTP programs to achieving benets from their AMT implementations. Company I, in particular demonstrated how such external support can aid successful implementation of an ambitious AMT program even where there is no previous experience. Company G recognized the value of government-funded support in regard to both the specics of a particular technology and supporting administrative procedures when implementing an AMT in response to a specic business opportunity. 5. Discussion The purpose of this study was to examine the impact of AMT in ten small companies and to contribute to the knowledge of AMT adoption by indicating those issues that are of greatest concern when implementing an AMT within such a company. The method employed in this study consisted of the development of a structured interview based on the results of a survey of the published literature. This structured interview was then further developed through testing with two pilot case study companies. The methodology has been successful in that it provided a mechanism for capturing the experiences of small company managers in a format that allowed cross-case analysis. All of the companies that took part in this study have achieved positive benets as a result of AMT implementation. Of the specic AMT programs that were discussed during interviews with the companies, nine of the programs resulted in positive benets. This demonstrates that AMT can be an important tool for small companies in developing competitive advantages. However, in achieving these benets from their AMT implementations, eight of the ten case-study companies had to overcome signicant barriers. The results imply that the major diculties that small companies face when implementing an AMT are derived from a lack of previous experience in technological introduction. As a result of this relative inexperience, small companies have diculties in developing the required expertise, in analyzing the full nancial implications and in understanding the impact of AMT on the overall manufacturing process. These ndings tie in with the overall analysis presented in this paper, as in addition to the section specically covering consideration of company technological experience, the sections on inherent and integrated benets and support mechanisms are also related to experience with AMT.
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Analysis of the of the case-study companies experiences indicated three important considerations for small companies when implementing AMT: Consideration of the inherent and integrated benets of the proposed AMT Consideration of company technological experience Availability of vendor or other support mechanisms The importance of considering manufacturing strategy is highlighted in the existing literature [Inman (1991); Sohal (1996)]. This paper builds on such considerations in a format that is useful to the small company manager in advocating consideration of the inherent and integrated benets of the proposed AMT. The implication of this nding is that small company managers should consider the impact of the output of an AMT on downstream processing and that inexperienced implementers of technology are more likely to achieve anticipated benets that are linked to the inherent capabilities of a technology. This view is evidenced by Companies E and J, the only companies not to suer any negative impacts as a result of their AMT implementation. These were the only companies whose aim was only to exploit the inherent benets of a technology. AMT installations that aect the wider manufacturing process are more likely to have an overall positive impact if the company has previous AMT experience; however, the exemplar provided by Company B indicates that it is still important for experienced companies to assess where their experience lies. The published literature on AMT has highlighted many diculties that companies may face when implementing and developing AMT, including a lack of previous experience in AMT implementation [Jonsson (2000); Sohal et al. (2001)]. The companies exemplifying inexperience in AMT implementation in this paper suered the negative impacts of either unexpected costs, resistance to change or both. Resistance to change at various levels throughout the workforce is a well documented barrier to successful AMT implementation. Tantoush and Clegg [2001] state that sometimes it is not possible to implement technological change even when it has been deemed necessary. According to Macri et al. [2002] even small organizations, often regarded as naturally inclined to change, suer political barriers to technology implementation. In the case study companies, resistance to change was evident in Companies B, C, F and I. The results of this paper indicate to the authors a separate distinction to that of large and small companies, in the dierences in the needs of the experienced and inexperienced AMT implementer. However, it is reasonable to assume that small companies are more likely to be inexperienced in AMT adoption than large companies. An indicator of the impact of inexperience comes from the nding that seven of the companies placed the availability of vendor support as more important than system cost (the remaining three placed system cost and vendor support as equally important). This is in direct conict of the ndings of Saleh et al. [2001] that the attribute of vendor support is less important than system cost. In addition, it is notable that the case study companies that had more experience in AMT implementation were indicating the use mechanisms to encourage shop oor support, in line with the self interest factors of Udo and Ehie [1996], and the operator
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empowerment advice of Macri et al. [2002]. As noted above, vendor support is considered by the published literature; however, other funded support mechanisms are rarely covered. Three of the case study companies in this study indicated the importance of utilizing government-funded support mechanisms to assist in their AMT implementation. That small companies are using such mechanisms to assist in AMT development may be an important distinction between the body of knowledge on AMT adoption and the factors that inuence AMT implementation success in small companies. The reason that some of the observed companies are using funded support may be cultural, i.e. perhaps there is more access to such support in Wales than in other locations where AMT has been studied. However, another reason may be due to the fact that this study concentrated on small companies that are more likely to be eligible to receive such government-funded support. The authors recognize a limitation in highlighting the potential impact of inexperience in AMT implementation in the case study companies. That is, in a study that only examines small companies it is dicult to quantify what constitutes low levels of experience in comparison to larger companies. Another limitation is due to the qualitative nature of the research gathering exercise. Although the interview used both open and closed questions, the responses were based on the opinions of managers; therefore there is little quantitative support for the ndings of this study. A further limitation presents itself in dening whether or not an AMT implementation has been successful. This paper has presented the results of retrospective case studies, and therefore it is dicult to determine if the expectations of AMT as cited by managers during interviews are really the same as the expectations that existed during the planning stage of an AMT program. 6. Conclusions and Future Work This study contributes to the knowledge of AMT implementation in that it indicates those issues that are of greatest concern to company managers implementing AMT in small companies. Analysis of the results leads to the conclusion that small companies have dierent needs to large companies when implementing technology and must more carefully consider their level of technological experience in order to select an appropriate AMT. A common issue for the case study companies was to underestimate the impact of AMT on the company, leading to the requirement of additional capital expenditure in order to achieve anticipated benets. The experiences of the case study companies has demonstrated that where the output of a technology has limited impact on further processing, the likelihood of a company suering negative impacts as a result of AMT implementation is reduced. The study also highlighted the importance of external support mechanisms to small companies and found that all of the case study companies believed the available level of vendor support to be at least as important a consideration as system cost. Due to the potential inaccuracies of respondent post-rationalization that are inherent in retrospective case-study research, the authors plan to further investigate the issues relating to AMT in small companies through longitudinal case study development. This further research will attempt to capture data on the progress of AMT adoption programs as they develop through structured interviews at distinct
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stages of technology implementation and development. Such research will provide a better understanding of case-study company requirements and aspirations, plans and actions and the relationship between expectations and achievements. The aim of this further research will be to develop mechanisms to aid small companies in achieving the potential benets that the implementation of AMT has to oer.
References
Browne, J., et al. (1984). Classication of exible manufacturing systems. The FMS Magazine, 2, 2: 116117. Burcher, P. and Lee G. (2000). Competitiveness strategies and AMT investment decisions. Integrated Manufacturing Systems, 11, 5: 340347. Chan, F. T. S., et al. (2001). Investment appraisal techniques for AMT. Integrated Manufacturing Systems, 12, 1: 3547. De Meyer, A. (1998). Manufacturing operations in Europe: Where do we go next? European Manag. J. 16, 3: 262271. Department of Trade and Industry (2002). The Governments Manufacturing Strategy, DTI/Pub 5962/2.5k/4/02/NP. Dorrington, P., Lewis, A. and Millward, H. (2003). Assessing the operational impact of implementing advanced engineering design-led technologies within a selection of manufacturing SMEs. Proc. of the 3rd Advanced Engineering Design Conf., Czech Technical University, Prague, Czech Republic, June 2003. Federation of Small Businesses in Wales (2003). Manifesto for the National Assembly elections May 2003: A Winning Wales Complement Document [Online]. http://www.fsb. org.uk/policy/apu/devolved/wales/assets/MANIFenglish.pdf. Gardner, P. H., Chmiel, N. and Wall, T. D. (1996). Implicit knowledge and fault diagnosis in the control of advanced manufacturing technology. Behaviour & Information Technology, 15, 4: 205212. Gupta, A., Prinzinger, J. and Messerschmidt, D. C. (1998). Role of organizational commitment in advanced manufacturing technology and performance relationship. Integrated Manufacturing Systems, 9, 5: 272278. Inman, R. A. (1991) Flexible manufacturing systems: Issues and implementation. Industrial Management, 31, 4: 711. Jonsson, P. (2000). An empirical taxonomy of advanced manufacturing technology. Int. J. of Operations & Production Manag. 20, 12: 14461474. Kaplan, R. S. (1986). Must CIM be justied by faith alone? Harvard Business Review, pp. 8795. Lei, D., Hitt, M. A. and Goldhar, J. D. (1996). Advanced manufacturing technology: Organizational design and strategic exibility. Organization Studies, 17, 3: 501523. Macri, D. M., Tagliaventi, M. R. and Bertolotti, F. (2002). A grounded theory for resistance to change in a small organization. J. of Organizational Change Manag. 15, 3: 292310. National Assembly for Wales (2003). Statswales: Manufacturing Local Units, by Employment Size Band [Online], http://www.statswales.wales.gov.uk/eng/TableViewer/ wdsview/dispview.asp. OMahony, M. and de Boer, W. (2002). Britains Relative Productivity Performance: Updates to 1999. National Institute of Economic and Social Research. Rangone, A. (1998). On the applicability of analytical techniques for the selection of AMTs in small-medium sized rms. Small Business Economics, 10, 3: 293304. Saleh, B., Hacker, M. and Randhawa (2001). Factors in capital decisions involving advanced manufacturing technologies. Int. J. of Operations & Production Manag. 21, 10: 12651288.
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Schroder, R. and Sohal, A. S. (1999). Organizational characteristics associated with AMT adoption: Towards a contingency framework. Int. J. of Operations & Production Manag. 19, 12: 12701291. Sethi, A. K. and Sethi, S. P. (1990). Flexibility in manufacturing: A survey. The Int. J. of Flexible Manufacturing Systems, 2, 4: 289328. Small, M. H. (1999). Assessing manufacturing performance: An advanced manufacturing technology portfolio perspective. Ind. Manag. & Data Systems, 99, 6: 266277. Small, M. H. (1998). Objectives for adopting advanced manufacturing systems: Promise and performance. Ind. Manag. & Data Systems, 98, 3: 129137. Sohal, A. S. (1996). Assessing AMT implementations: An empirical eld study, Technovation, 16, 8: 377383. Sohal, A. S., et al. (1999). Comparing American & British practices in AMT adoption. Benchmarking: An Int. J. 6, 4: 310324. Sohal, A. S., et al. (2001). Adoption of AMT by South African manufacturers. Integrated Manufacturing Systems, 12, 1: 1534. Swmidass, P. M. and Kotha, S. (1998). Explaining manufacturing technology use, rm size and performance using a multidimensional view of technology. J. of Operations Manag. 17, 1: 2337. Tantoush, T. and Clegg, S. (2001). CADCAM integration and the practical politics of technological change. J. of Organizational Change Manag. 14, 1: 927. Udo, G. J. and Ehie, I. C. (1996). Advanced manufacturing technologies: Determinants of implementation success. Int. J. of Operations & Production Manag. 16, 8: 626. Udo, G. J. and Ehie, I. C. (1996a). Critical success factors for advanced manufacturing systems. Computers and Ind. Eng. 31, 12: 9194. Youssef, M. A. (1992). Getting to know advanced manufacturing technologies. Ind. Eng. 24, 2: 4042.
Biography Andrew T. Walters graduated with a degree in Industrial Design in 2000 and soon afterward joined the National Centre for Product Design & Development Research (PDR) on a project that investigated the barriers to product development in SMEs. PDR has provided Andrew with the opportunity to develop his research interests in design and manufacturing technology management in small companies through their Manufacturing Advisory Service and Knowledge Transfer Partnership programs. In 2003 Andrew began part-time PhD study on the impact of advanced manufacturing technologies on small companies. Huw Millward is a Senior Research Ocer at The National Centre for Product Design & Development Research (PDR). His research interests include design-led technologies, rapid product development techniques, and innovation management within SMEs. These areas have been applied to a range of knowledge transfer projects. He supervises a number of these projects; they typically implement an advanced design resource within a traditional manufacturing company to enhance new product development activities. He holds a BA in Engineering Science and a DPhil in Medical Engineering from Oxford University. He has over 12 years industrial experience of engineering projects, with partnerships with FTSE-100 multinationals, high-tech university spin-outs and small family-owned companies.
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Alan Lewis is the Director of the National Centre for Product Design & Development Research (PDR). He was one of the founders of PDR and has worked with many companies in a variety of industry sectors helping them to improve their product development processes. He has a particular knowledge of the SME sector of the economy and has published extensively on product development within this sector. His current research interests include product design management and international approaches to the provision of design support mechanisms. He has published over sixty papers in these areas and in related elds.
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International Journal of Innovation and Technology Management Vol. 3, No. 3 (2006) 120 c World Scientic Publishing Company
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NEW PRODUCT DEVELOPMENT WITHIN SMALL AND MEDIUM-SIZED ENTERPRISES: ANALYSIS THROUGH TECHNOLOGY MANAGEMENT MAPS
HUW MILLWARD , CHRIS BYRNE, ANDREW WALTERS and ALAN LEWIS
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The National Centre for Product Design & Development Research (PDR) University of Wales Institute Cardi (UWIC) Western Avenue, Cardi CF5 2YB, UK hmillward-pdr@uwic.ac.uk Received 26 January 2006 Revised 10 May 2006 Accepted 15 July 2006 Technology management maps have been developed to evaluate new product development (NPD) within small and medium-sized enterprises (SMEs). These maps provide a graphical footprint of a company in terms of knowledge, resources, quality, and innovation & change. A series of 15 case-study companies highlight that the shape and extent of the technology management maps correlate well with the overall impact of the NPD activities. Implementation of an eective NPD process is the main distinguishing factor between the best- and worst-performing companies. The inherent benets of designled technology are also encapsulated, specically in the areas of resource savings and improved product quality. Keywords: Technology management map; new product development; small and mediumsized enterprises.
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1. Introduction Small and medium-sized enterprises (SMEs) represent a key element in national economies around the world. They are an essential source of jobs, create a responsive environment for innovation, and are a crucial part of the supplier network that supports the larger multi-national organisations. In the enlarged European Union, some 23 million SMEs provide approximately 75 million jobs and represent 99% of all enterprises. SMEs within the manufacturing sector operate in a tough global market, and overseas competition is particularly pronounced in the area of lowmargin, high-volume products. UK government strategy advocates that traditional manufacturing companies move up the value-added chain in order to generate a clear competitive advantage. New product development (NPD) represents a viable route for SMEs to harness their innovative ideas, and they are generally in a prime position to identify new product opportunities due to their close working relationships with customers, suppliers and competitors. The development and introduction of new products can provide a platform for long-term nancial success, but NPD is a risky and costly undertaking. Ettlie and Subramaniam [2004] show that only
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companies with a structured approach to innovation are likely to succeed. Furthermore, Rich [2004] has shown that good use of design correlates consistently with above-average company performance. Therefore implementing technology to facilitate and enhance design and development activities is a viable option for SMEs to improve their competitiveness and prot growth, when compared to standard contract-manufacturing opportunities. Technology that is capable of driving the NPD process covers a broad range of tools and techniques, and classications include advanced manufacturing technology [Youssef (1992)] and design-led technologies [Dorrington et al. (2003)]. In the context of NPD, typical examples of enabling technology include Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) software. Research within established sectors, such as automotive and aerospace, has shown that these technologies can generate a range of positive benets: improved product quality and reliability, reduced development lead-times, reduced project costs and improved returns on investment, increased product exibility, improved speed of response to market opportunities, and enhanced competitive advantage [Droge et al. (2000); Millson et al. (1992); Tantoush and Clegg (2001)]. However, successful product development and realization lies not only in the implementation of appropriate technologies but also on managerial and organizational strategies. This is especially true for SMEs, where technology implementation cannot be viewed in isolation due to their idiosyncratic management culture. Small family-run rms do not necessarily have the discipline, knowledge or vision to harness the implicit benets of the technology that drives NPD activities. Technology management within SMEs is an under-researched area. In order to provide insight into this area it is therefore necessary to identify the subtle interactions between an SMEs management strategy and the outcomes (both tangible and intangible) from technology implementation. The aim of this paper is to develop a new graphical technique that eciently maps out technology management within SMEs, and to apply the output from this analysis to identify those technology management factors that contribute to the successful development and realization of new products. The research is based on case-study material generated from partnerships between The National Centre for Product Design & Development Research (PDR) and a wide range of SMEs. PDR is based at the University of Wales Institute Cardi (UWIC). PDR has a longterm commitment to collaboration with SME partners, and this paper examines the performance of 15 such companies that have undergone some form of strategic change through technology implementation and NPD activities. The research methodology generates technology management maps whose shape and extent correlate reasonably well with the overall impact of the NPD activities. The results highlight the importance of implementing an eective NPD process within an SME, and the inherent benets of design-led technology in terms of resource savings and increased product quality. 2. Previous Research
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This literature review will evaluate NPD practices and the technology management factors that drive NPD, particularly in the SME setting. There is a wide range of
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publications devoted to identifying success factors for NPD, and some of the leading studies that have set the foundation for work within this broad interdisciplinary eld are Cooper and Kleinschmidt [1995], Brown and Eisenhardt [1995] and Grin [1997]. Typical success factors range from early research to establish the voice of the customer, through to cross-functional project teams with well-dened go or kill decision points in the development process. This latter point is at the heart of the work of the stage-gate development process [Cooper (1999)]. This multistage process, employing tough decision points (or gates) to control the transition between stages, has been adopted by many leading companies. Renements to the general stage-gate process include adding a discovery stage to the fuzzy front end in order to harness fundamental research more eectively [Cooper et al. (2002)]. In more recent work, Cooper [2005] has employed an extensive innovation study to identity the four main factors that drive NPD performance. They are: (a) (b) (c) (d) A clear product innovation and technology strategy; Resource commitment and solid portfolio management; An eective and exible idea-to-launch stage-gate process; The right culture to foster innovation, team working and NPD leadership.
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However, one of the main ndings from the study is that there is no one key to success in NPD there is no one single driver to positive performance. This point is also made by Gordon et al. [1995] who state that ongoing development success depends heavily on the total organizations ability to continually do all things right, rather than doing some things right on an ad hoc, irregular basis. It is therefore not surprising that failure rates for new products are high. Balbontin et al. [1999] report that UK companies launch only 15% of their intended new products, whilst US companies launch more than 50%. This is attributed to US companies being more focused, choosing fewer products to develop, and the fact that US managers are more condent in the ability of tools and techniques to aid NPD activities. The majority of NPD literature focuses on the activities of large, well-established companies; the literature on design and development within SMEs is more limited. A notable study of six UK SMEs by Woodcock et al. [2000] highlights that SMEs typically avoid formal procedures, fail to undertake eective market/competitor analysis, do not collect adequate data, and engage manufacturing personnel too late in the development process. The most worrying factor identied was the lack of determination to bring about change, and this was attributed to the SME managers over-optimistic view of their own performance. An ancillary study by Freel [2000] examines the barriers to product innovation in a sample of small UK-based manufacturing companies. The study shows that SME managers put too much emphasis on technology issues at the expense of eective product marketing, and internal skills need improving through sta development and/or engaging external NPD agencies. In a study of four very small companies, Brown et al. [1996] highlights the issue of trust. The authors found that these companies acknowledge their lack of resources, but the SMEs need to overcome the prevalent do-it-yourself attitude, and trust the guidance provided by experienced design and development consultants.
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An important research study that has linked technology management with NPD is Scott [2000]. The study focuses on unresolved technology management problems, and the top ve ranked issues that relate to NPD are: (a) (b) (c) (d) (e) Strategic planning for technology products; New product project selection; Organizational learning about technology; Technology core competencies; Cycle time reduction.
The study also lists factors that have been highlighted by other researchers in this eld: creating a conducive culture, technology diusion within the company, and manufacturing involvement in NPD. There would appear to be a clear synergy between NPD and manufacturing. An extensive survey of medium-sized and large manufacturing companies by Laugen et al. [2003] has shown that implementing eective NPD practices leads to an improvement in manufacturing performance, specically with regard to reduced manufacturing lead times, increased customisation and improved quality. Their study shows that the best performing companies put signicant eort into accelerating the NPD process, and take a holistic view on the use of best practice techniques, such as Six Sigma and Just-In-Time strategies. This exible approach to manufacturing strategy is mirrored in a study of six SMEs by Barnes [2002]. He indicates that a rigid, top-down strategy is inappropriate for SMEs in practice, and a broader understanding is required of the deliberate and emergent actions that arise as a consequence of the powerful individuals, culture and politics within small manufacturing companies. Hewitt-Dundas [2004] has shown that the implementation of advanced manufacturing technology within small rms can also facilitate a coherent new product innovation strategy, provided that the appropriate managerial and organizational framework is established. Therefore SMEs face a familiar set of challenges when considering new technology: the nancial resources and management skills required for successful implementation [Sohal et al. (2001)], and overcoming resistance to change at various levels within the workforce [Macri et al. (2002)]. An extensive survey of European SMEs [EC (2003)] showed that competence development (i.e. upgrading in-house skills base) was a key part of the general business strategy for half of the companies surveyed. Competence development within SMEs was shown to have a positive eect on competitiveness and productivity, but the main obstacles for engaging in these activities (especially for the smallest companies) include short-term business pressures, negative attitude to change and limited contact with relevant sources of expertise. A study of UK-based SMEs by Cox [2005] reinforces these points, and shows that the main barriers to innovation within small companies are: (a) A limited understanding of how creativity and design can be used to business advantage; (b) A lack of condence that the time, cost and disruption of product innovation activities will provide an appropriate return on investment; (c) A lack of design and development knowledge, or where to turn for help.
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The mechanisms to promote and support design activities within SMEs are evolving and maturing [Cawood et al. (2004)], but a barrier to success is the lack of design management professionals operating within the SME sector. In this context, the SMEs managerial culture is an important consideration. A review of small business activity in the UK by Beaver and Prince [2004] has shown that the stereotypical owner/manager is a key player. These individuals strive for autonomy and independence, and their managerial style is classed as autocratic, egocentric, impulsive and often unpredictable. When these characteristics are translated into the complex NPD environment, they inhibit joined-up thinking and present a signicant obstacle to integrating design activities within an overall business strategy [Filson and Lewis (2000)]. Borja de Mozota [2003] points out that the culture within small, exible, family-owned organisations, with horizontal structures and rapid decision making, can be an asset for NPD success. The diculty of harnessing these underlying advantages has been referred to as the paradox of the SME by Friedman [2004]. He highlights the scenario whereby a typical SME can move swiftly into a new eld in order to grasp an emerging opportunity but lacks the budget, sta and technology to take the risk of investing in the NPD process. 3. Methodology
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PDR have employed the Knowledge Transfer Partnership (KTP) model as an eective mechanism for partnership and collaboration with a wide range of SMEs. KTP is a government-backed knowledge and technology transfer programme that has been in operation in the UK for approximately 30 years. The aim of the KTP scheme is to strengthen the competitiveness and wealth creation of the UK by stimulating innovation in industry through structured collaborations with leading universities. KTP programmes are aimed primarily at helping SMEs take advantage of the expertise available in academia, and a breakdown of recent KTP programmes [DTI (2003)] shows that NPD in SMEs is a dominant element in the broad KTP portfolio, providing a rich resource for empirical data. A typical PDR-based KTP programme is a two-year partnership with a traditional small manufacturing company, which aims to implement tools and techniques to enhance in-house NPD activities. Each individual KTP programme is congured to address the key elements central to the successful development of a specic company. The two-year project provides employment for a well-qualied graduate KTP Associate for the duration of the programme. In line with other researchers [Lipscomb and McEwan (2001)], PDR has found that the KTP model is an ideal vehicle through which to analyze NPD activities, and the associated technology and managerial interfaces within small companies. The well-dened management and structure of the KTP process promotes a detailed analysis of the company from the university partners perspective. The KTP Associate is assigned two PDR-based supervisors and at least one supervisor from the company. The PDR supervisors spend between a half and one day per week at the company, working on the project and closely supporting the KTP Associate. Regular contact with the company fosters a level of trust and co-operation that generates an in-depth understanding of the subtle issues and challenges inherent
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in any small company. These collaborations are characterised by a commitment to eective project management through mandatory meetings: monthly technical meetings and quarterly strategic-review meetings. The documentation arising from these structured meetings (technical reports, presentation material, etc.), in parallel with weekly informal meetings, results in a comprehensive portfolio of case-study material. This research study has selected a series of anonymous KTP-based case studies to illustrate the impact of NPD activities and the management of the associated technology. The selection criteria for the case-study companies were as follows: (a) Small to medium-sized company between ve and 150 employees having successfully completed a KTP programme with PDR; (b) Renement of its in-house design capability and implementation of technology to enhance NPD activities. PDR have successfully completed 22 KTP programmes since 1995, and 15 of the programmes conformed to the selection criteria. A series of structured interviews was conducted with the cohort of PDR-based KTP supervisors from these 15 programmes in order to document their subjective assessment of each collaboration. A pair of supervisors, who had a close working involvement with the management of the technology within the respective KTP company, was selected for each interview. They were asked to provide a joint answer to questions, and thereby form a consensus. The aim was to record two factors: (1) the overall impact of the NPD activities on the company in terms of a ranking score, and (2) a map of technology management within each company. A questionnaire was designed to measure technology management in line with a number of issues highlighted in the published literature. In order to provide a concise technology management footprint, four generic factors were identied that could be applied to both management aspirations and technology impact. They are: (1) knowledge, (2) resources, (3) quality, and (4) innovation & change. Worst possible case and best possible case scenarios were developed for each of these four factors across the management and technology assessments, and this led to a series of Visual Analogue Scales (VAS) forming the basis to the questionnaire design. VAS are continuous scales that provide a true ratio score, and have been used in a similar study to provide quantitative data on NPD impacts [Millward et al. (2004)]. It should be noted that the interviewees had a sound understanding of the VAS scoring methodology. The methodology attempts to decouple the management and technology drivers for NPD, and an example of the management assessment VAS sheet that was used in each interview is given in Table 1. The lower bound mark on each VAS represents a score of 0.0 and the upper bound mark represents the maximum score of 1.0. These two points have been annotated on each scale with guidance notes to highlight the extremes (i.e. the worst possible case and best possible case). The interviewees were asked to mark each of the four scales with a single vertical line, and thereby provide a score between 0.0 and 1.0 in each of the four areas that make up the management assessment for the KTP company. The interviewees
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Table 1. Management assessment questionnaire VAS sheet. Each of the four VAS generate a score between 0.0 (worst possible scenario) and 1.0 (best possible scenario).
KNOWLEDGE (understanding prior to KTP)
No reliable understanding of the market, the competitors or IPR issues. No experience of technology implementation. No understanding of the potential for the technology, and the wider impact across the company (staff & costs).
In-depth knowledge of the market, competitors and IPR issues. Understanding the wider potential and implications of the technology. Previous experience of successful technology implementation. Strategic long-term vision coupled with knowledge transfer activities.
RESOURCES (finance, staff & time)
No project management/planning. No defined budget. No additional staff support. Unrealistic development times.
Effective project planning, adequately resourced in terms of costs, staff and time. Support from all company disciplines, with the appropriate staff skills and experience. Contingency planning.
QUALITY (procedures and communications)
Failure to write and maintain any procedures. Ineffective internal and external communications. Poor record of staff training and development.
ISO quality procedures used to drive continuous improvement and create a quality culture. Measure customer satisfaction. Employ quality manager/consultants and invest in staff training and development.
INNOVATION & CHANGE (risk management)
Change actively blocked by management. Narrow management vision, not fully communicated to staff. Mundane projects, avoiding any risk.
Willingness to invest in highly innovative projects and manage the risks. Understanding of all the product development stages needed to achieve successful product launch. Shared management vision, harnessing the creativity of staff and driving change throughout the company.
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were asked to reference this assessment back to a time point within the rst three months of the programme. By placing the four scales on the same sheet, the interviewee is forced to score knowledge, resources, quality and innovation & change in relation to one another. The technology assessment VAS sheet follows a similar format and is shown in Table 2, the four scales now representing the technology impact as an outcome of the collaborative project. The time point for this assessment was within the last three months of the programme. Each interview therefore
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Table 2. Technology assessment questionnaire VAS sheet. Each of the four VAS generate a score between 0.0 (worst possible scenario) and 1.0 (best possible scenario).
KNOWLEDGE (development through the KTP)
Poor skill base and failure to acknowledge deficiencies in the skill base. Lack of understanding to fully exploit technology. Poor compatibility with existing systems due to limited understanding.
Fully-trained and proactive skill base throughout the company (continual professional development of employees). Employees are positive and supportive to new technology developments and applications. In-depth knowledge of the technology, capabilities and benefits.
RESOURCES (project costs and lead times)
Poor implementation of technology leading to reduced productivity: increased costs and labour overheads, longer lead times, increased rework and maintenance requirements. Poor return on investment.
Optimized use of technology to maximise productivity: reduced costs and labour overheads, shorter lead times, lower maintenance requirements. Highly profitable return on investment.
QUALITY (product and procedures)
Reduction in product quality: limited repeatability, poor tolerance control and an increase in customer complaints. Technology provides no flexibility and no added functionality to the product range.
Increase in product quality: improved repeatability, high tolerance control, extended product life, and high customer satisfaction. Technology provides flexibility (customisation) and extra functionality to the product range. Quality awards, prizes and industry recognition.
INNOVATION & CHANGE (technology driven change)
Resistance to technical change, and failure to respond to customers demand for change. Technology isolated and failure to realise technological benefits.
Continual exploitation and development of the technology to maximise benefits. Catalyst for product and market diversification. Competitive market advantage. New industry-leading processes and products. Proactive and supportive to customers technical demands.
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produced four VAS scores for management within the SME, and four VAS scores for technology impact on the SME. These two sets of four data points can then be grouped on a four-axis radar diagram in order to provide a graphical technology management map for each specic KTP company. In addition, general comments on the commercial and nancial impact of each KTP programme were noted during each interview, together with the longer-term strategic challenges for the companies.
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4. Technology Management Maps Following the interview phase, the cohort of KTP supervisors were assembled and asked to provide a rank score of each collaborative project to reect the overall success of the NPD programme and positive impact on the company. An overview of each case-study company is presented in Table 3, together with their rank score. Further discussions with the KTP supervisors showed that the 15 case-study companies could be divided into three impact groups. The companies ranked 1st to 6th can be categorised as high impact, companies ranked 7th to 11th as medium impact, and companies ranked 12th to 15th as low impact. Although these are subjective group-based assessments, the impact category gives a frame of reference for overall performance, and can be used to group the output from the management and technology VAS scores. The six company projects rated as high impact have their technology management maps grouped together in Fig. 1. It can be seen that the basis of this graphical
Table 3. Summary of the case-study companies. Company A Description A specialist-polymer manufacturing company, employs 47 sta, and was established in 1987. The KTP programme implemented a knowledge-based CAD/CAM facility. Their new technology provided them with a unique quality advantage over their competitors, but it was kept in isolation and not disseminated throughout the company. A packaging company with a sta of 26, and was established in 1995. The aim of the KTP programme was to oer customers an intelligent CAD-based design resource. The new technology was ideal for the company, but weak management and a regressive workforce minimised any long-term benets. A domestic-goods company, with a sta of 65, and established in 1979. The KTP programme implemented a complete NPD environment utilising advanced 3D CAD. No resource was made available for market research, the new technology was mis-used, and structured NPD was actively blocked. An automotive business, with a sta of 140, and was established in 1963. The KTP programme developed a bespoke CAD-based design facility and a design management system. Best practice NPD procedures were implemented, communications improved, development times reduced, and a new product launched. A manufacturer of innovative leisure and sports products, with a sta of 25, and was established in 2001. The KTP programme developed and launched a new consumer product. The new design and manufacturing technology drove company expansion, however, the CAD technology was not linked to manufacturing. A manufacturer for the chemical processing industry, employs 22 sta, and was established in 1992. The KTP programme developed an innovative new product. CAD, rapid prototyping and test systems progressed their new product but nancial barriers and a total lack of design documentation halted the project. A composite-moulding company, employs 58 sta, and was established in 1991. The KTP programme created an advanced CAD design facility and a quality-manufacturing environment. The new technology drove a number of new products, but resource limitations slowed eective product development. Rank 10th
11th
15th
6th
8th
13th
9th
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Company H
Description A commercial small-vessel boatyard, employs 23 sta, and was established in 1995. The KTP programme selected and implemented a new specialist design facility and received a top government award. This initiated signicant company expansion and the new design resource changed the company culture into a design-led business. A security equipment manufacturer, employs 32 sta and was established in 1985. The KTP programme initiated the design and development of a new mobile product through CAD and reverse engineering. However, a fatal aw killed the project and there was no design process in place to re-focus design activities. A specialist packaging company, with 12 sta and was established in 1992. The KTP programme developed a bespoke design and quotation system. The programme transformed the company from intensive manual operations to a fully-automated process. The CAD technology was fully integrated with costing and scheduling. A medical device manufacturer, employs 36 sta, and was established in 1990. The KTP programme established a design-for-manufacture facility to develop new products. 3D CAD and rapid prototyping fully dened a new product concept, but the company had no appreciation of the costs and timescales needed for eective NPD. The company manufactures specialised laboratory equipment, employs 15 sta, and was established in 1997. The KTP programme integrated a bespoke design infrastructure through CAD technology and simulation software. The new techniques improved product performance and US exports helped drive an improvement in prots. A playground equipment manufacturer, employs 11 sta, and was established in 1986. The KTP programme implemented advanced designfor-manufacture systems to improve lead times and communications. The programme received a top government award, and transformed the company from a struggling operation into a technology-driven business. A street lighting manufacturer, employs 19 sta, and was established in 1996. The KTP programme implemented an advanced design facility that was integrated with manufacturing. The sophisticated new technology provided a clear competitive advantage, and turnover doubled each year of the two-year collaboration. A component manufacturer for agricultural and construction vehicles, employs 25 sta, and was established in 1990. The KTP programme introduced an advanced CAD and design management system. The programme launched a number of new products, and the new development processes controlled all design and production requirements.
Rank 2nd
14th
5th
12th
7th
1st
4th
3rd
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technique are the four VAS measures arranged in an orthogonal grid. Under this arrangement both the management assessment and technology impact scores are marked on each axis, the scores are joined with a solid line, and the two resulting quadrilaterals overlap on the same grid. The knowledge scores are marked on the positive y-axis, the resources scores on the positive x-axis, the quality scores on the negative y-axis, and the innovation & change scores on the negative x-axis. This provides a two-dimensional array from (1.0, 1.0) to (1.0, 1.0) with the origin at (0.0, 0.0). The technology management maps for the medium and low impact categories are shown in Figs. 2 and 3, respectively.
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Knowledge 1 Company N: 1st Company H: 2nd
Knowledge 1
Innovation &Change
Resources
Innovation &Change
Resources
Quality Knowledge 1 Company Q: 3rd Company P: 4th
Quality Knowledge 1
Innovation &Change
Resources
Innovation &Change
Resources
Quality Knowledge 1 Company K: 5th Company D: 6th
Quality Knowledge 1
Innovation & Change
Resources
Innovation &Change
Resources
Quality
Quality
Fig. 1. Technology management maps for the six high impact company collaborations. The solid dark line represents the management assessment and the white line the technology assessment.
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The technology management maps provide a graphical representation of the interaction between management and technology within the SME companies. The form of the graphical maps allows further quantitative measures to be derived, specically: (a) the area of each management/technology quadrilateral, and (b) the centroid of each management/technology quadrilateral. This data has been extracted from the technology management maps, and the mean values for each impact category are given in Table 4. It should be noted that a perfect score of 1.0 for each VAS assessment would give a square of area 2.0 (no dimensions), with its centroid at (0.0, 0.0). The mean values show that the technology maps are larger in area than the management maps across all three categories, and the larger areas are clearly associated with the high impact category. The centroid results show that the maps are located approximately at the origin for the high and low impact categories. However, the mean centroid for the medium impact category moves from the knowledge/innovation & change quadrant (top left) for
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Company M: 7th
Company E: 8th
Innovation & Change
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1
Quality
Knowledge
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Company G: 9th
Company A: 10th
Innovation & Change
Resources
Innovation &Change
Resources
Quality
Quality Knowledge
1
Company B: 11th
Innovation & Change
Resources
Quality
Fig. 2. Technology management maps for the ve medium impact company collaborations. The solid dark line represents the management assessment and the white line the technology assessment.
the management assessment to the resources/quality quadrant (bottom right) for the technology assessment.
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5. Discussion The methodology initiated in this paper has been able to map some of the interrelating factors that drive technology management within SMEs, and present these in a concise graphical form. Four general factors (knowledge, resources, quality, innovation & change) have been applied to both management aspirations and technology impact, and the results indicate that they adequately cover the pertinent issues. The interview technique employed in this study has been reliant on an indepth knowledge of the collaborating company, and an ability to translate subjective assessments into a VAS score. Each pair of interviewees was involved in a number of KTP company assessments, and this helped to add some form of reference datum when attempting to compare one companys performance with another. The range and distribution of VAS scores have shown that the lower and upper bounds of each
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Company L: 12th
Company F: 13th
Innovation & Change
Resources
Innovation &Change
Resources
Quality
Knowledge
1
Quality Knowledge
1
Company J: 14th
Company C: 15th
Innovation & Change
Resources
Innovation & Change
Resources
Quality
Quality
Fig. 3. Technology management maps for the four low impact company collaborations. The solid dark line represents the management assessment and the white line the technology assessment.
Table 4. Summary of the technology management maps in terms of mean values for area and centroid across the three impact categories. Management map Impact High Medium Low Area 1.26 0.41 0.26 Centroid (0.03, 0.00) (0.09, 0.05) (0.02, 0.03) Technology map Area 1.40 0.46 0.31 Centroid (0.00, 0.04) (0.06, 0.11) (0.00, 0.02)
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scale were appropriately labelled, i.e. there was no obvious bunching of VAS scores. The VAS-based questionnaire would therefore appear to be a direct method for capturing the technology management footprint in the form of a radar diagram. Previous research by Cooper [2005] has also grouped four dominant NPD factors (most notably resource commitment and innovative culture) at the apex of a twodimensional grid. This has been labelled an Innovation Diamond, and this paper builds on this technique by recording quantitative results on each of the four axes. The sets of results show that there is reasonably good agreement between the shape and extent of the technology management maps, and the high, medium or low impact category. The KTP programmes that were rated as having a high impact on the companies NPD performance can be classied as having a quasi-symmetric, full area technology management map (Fig. 1). The data in Table 4 emphasizes the enhanced areas of the high impact technology management maps, and the balance of factors centres these maps close to the origin. It should not be surprising that
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the companies with in-depth product knowledge, full resource support, commitment to quality and a vision to innovate and implement change should undertake the most successful NPD activities. The common link between these high impact programmes is that each company put a high priority on implementing an appropriate NPD process to coordinate the design technology activities. Previous research has shown that the implementation of stage-gate NPD processes is best practice across most of industry, and these case studies emphasise that some form of NPD process is a pre-requisite for integrating technology management with NPD activities. With an NPD process dened and implemented, the design and development activities did not pose signicant challenges to these best performing companies. Company Ns use of real-time systems immediately captured the voice of the customer, which simplied market research and customer requirements. Company H could respond rapidly to customer demands, and the integration of design and manufacturing functions meant that production problems were virtually eliminated. Design-led technology can enhance specic design and development tasks (concept design through to product validation), but an NPD process would also appear to be necessary in order to coordinate downstream activities (e.g. fuzzy front-end denition, market research, detailed business case) and upstream activities (e.g. transfer to manufacturing, market launch, post-launch review). Product development in the absence of any eective NPD process is characterised by the low impact company collaborations in Fig. 3. The low impact category shows two companies with adequate technology management maps (Companies L and J) and two companies with minimal-area technology management maps (Companies F and C). None of these companies implemented an NPD process, and none of the four companies launched any new products as a result of the KTP collaboration. In the worst case, Company C actively blocked a stage-gate process because they believed it stied creativity. In this environment the product development barriers were clearly visible, in that the four companies handled product ideas in an unstructured manner, were unwilling to undertake market research, avoided design verication and undermined eective manufacturing. It should be noted that in these four family-run companies the owner/manager, acting in the role of managing director, had a clearly detrimental inuence on product development. Their domineering personalities led them to make a disproportionately high number of key design decisions even though they had no knowledge of successful product development. In addition, the companies were operating in resource-constrained environments, such that issues relating to time and costs were put ahead of other key factors, such as quality. Senior managements ineectual hands-on approach to design, coupled with the twin obsessions of time and costs, produced situations in which NPD proceeded in a highly constrained manner. Hence this setting was rather unreceptive to the idea of a structured NPD process. The technology management maps provide an indication of company performance before and after technology implementation because the management VAS scores were referenced to a point early in the two-year programme, and the technology VAS scores were referenced to the latter stages of each programme. The three mean values for the technology map areas (Table 4) show an increase compared to
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the corresponding management map values, which is in line with previous ndings that technology can bring inherent benets to NPD activities [Tantoush and Clegg (2001)]. The inherent benets of technology are further emphasised if we review the interesting shapes of the technology management maps in Fig. 2. There is a lack of a common pattern amongst these medium impact companies, therefore each collaborative programme requires individual attention. Company G had the vision to implement change, and this is reected in the high management scores, but a severe economic downturn in the core business meant that it was impossible for the new design-led technology to initiate any signicant changes. However, for the four other companies in this category, we can see that the design-led technologies had a clear eect. The management maps vary considerably, but the technology maps demonstrate a signicant impact, particularly with regard to resources and quality. The technology management maps for Companies M and A can be characterised as weighted towards knowledge and innovation for management but weighted towards resources and quality for the technology. In both these companies the management were astute enough to grasp new opportunities and implement the technology to realise these opportunities. Company Ms new product totally out-performed anything on the market, and Company As new mouldings set a new standard for quality and consistency. These successes were not developed further because there were discontinuities in their respective NPD processes. Company M isolated research and development from manufacturing, such that production limitations were never properly addressed. Company A abandoned their product design aspirations and attempted to de-skill in order to focus all their eorts into manufacturing. The technology management maps for Companies E and B show restricted management footprints but clear progression in terms of the technology. Company E demonstrates the largest change in footprint area from management to technology, and this is attributed to quality new products driving diversication through the company. However, in this case the immature management could not bridge the gap between design aspirations and appropriate manufacturing systems. The technology management in Company B produced a situation that saved the company (their main competitors folded), and the improvements in product quality generated tangible customer delight. However, the management and workforce still could not fully appreciate the benets of the technology and actively blocked any further development, such that progress was reversed. The companies in this medium impact category highlight the issue that management skills and aspirations might be severely limited but appropriate technology management can still have a signicant impact in terms of reduced project costs, shorter lead times and improved product quality. This partially explains why the centroid of these technology management maps show a shift from the knowledge/innovation & change quadrant to the resources/quality quadrant. The three impact categories were derived through a subjective assessment of NPD performance and benecial company impact. Two of the smallest companies (11 and 12 employees for Company N and K, respectively) were grouped in the high impact category. In this context, it would appear that design-led technology can have its largest impact in small, agile companies that can rapidly adapt their
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resources in line with the commercial benets of new technology. Interestingly, the largest and oldest company (Company D) was also in the high impact category, showing that having the resources for and the experience of NPD activities can also be valuable. The companies in the medium impact category range from 15 to 58 employees, but the two youngest companies (Company E established in 2001, and Company M established in 1997) appear in this category. This may further indicate that companies need to have some exposure to the ups and downs of NPD before they can learn the lessons and truly succeed. There is no distinct size or age pattern for the four companies in the low impact category: the employee numbers range from 22 to 65, and the companies were established between 1979 and 1992. In reviewing the methodology and results from this research, one of the main limitations of the study is the subjective nature of the VAS assessments made from the perspective of academic partners. A more complete measure of a companys NPD performance would have included more quantitative metrics, such as changes in turnover, prot and lead times. However, in the context of SMEs, this data either does not exist or cannot be related directly to NPD activities [Woodcock et al. (2000)]. The VAS scores were used to bridge this gap between true quantitative data and the qualitative nature of interviewees comments. Scott [2000] highlights that industry practitioners rate NPD factors differently than academics. Therefore adding company managers to the interviewee cohort would have provided an alternative insight into NPD performance, but this would not necessarily complement the unbiased, consensus-driven set of assessments that was expected from the university-based interviewees. It should also be acknowledged that the use of KTP-based companies might bias the study towards innovation-intensive SMEs. The research has addressed companies (such as Companies A, B and L) who have gained commercial benets from technology implementation, but they cannot be classed as highly innovative companies. The problem is gaining access to companies who can be described as non-innovators. We can assume that this small-sample study of NPD activity in SMEs will underestimate any dierences between innovation-intensive companies and genuine non-innovators. The technology management map methodology has been developed as a result of collaborations between PDR and various SME partners; the next logical step would be to deploy the methodology for SME managers to use. In the context of a university/company partnership, training in the use of technology management maps could be provided by the academic partner during the rst two months of a project. The main work required would be clear denition and agreement on the measures for knowledge, resources, quality and innovation & change within a specic SME company. Once this is complete, it would be relatively straightforward for individual managers to map out their target requirements, and the technology management maps could be re-evaluated at key milestones over the duration of a project. It is hoped that practitioners would use these maps throughout a project as a convenient tool to guide the management of NPD and the successful exploitation of technology to drive NPD activities.
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6. Conclusions and Future Research This paper has shown that a case-study methodology employing technology management maps is an appropriate research technique for evaluating NPD activities within SMEs. Subjective assessments of the relative success of the collaborative projects allowed 15 companies to be ranked according to their NPD performance, and this led to three overall impact categories: high, medium and low impact. The technology management maps provide separate assessments of management and technology across four common factors: knowledge, resources, quality and innovation & change. The graphical shape and extent of the technology management maps show reasonably good agreement with their respective impact category, with particularly good correlation for the high impact grouping. The clear distinguishing element that separates the high impact companies from the low impact companies is that the best performing companies initiated and maintained an eective NPD process to complement and support the implementation of new technology. It would appear that an eective NPD process (e.g. stage-gate review) can channel product innovation and provide project autonomy within the context of an SME to overcome the main product development barriers. An SMEs managerial culture can have a detrimental impact on NPD, but the technology management maps decouple management aspirations from technology impact, and the results support the nding that technology brings inherent positive benets in driving NPD activities. Inherent technology benets are particularly evident in the medium impact category. The technology management maps in this category demonstrate that management aspirations may be weighted towards knowledge and an innovative culture, but technology implementation drives particular improvements in the areas of project resources and product quality. The methodology developed in this paper has applied technology management maps to collaborative programmes that have been completed. The key factors that are associated with successful NPD activities within SMEs have been identied, therefore future research should employ technology management maps as a precursor to future collaborative projects. Longitudinal research studies with SMEs could engage with key company personnel and promote company participation in mapping out the management and technology VAS assessments. A number of longitudinal studies would provide a series of technology management maps at known time-points within the NPD process, and this will allow researchers to evaluate the sensitivity and robustness of technology management maps. References
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Biography Huw Millward is a senior research ocer at The National Centre for Product Design & Development Research (PDR). His research interests include design-led technologies, rapid product development techniques, and innovation management within SMEs. These areas have been applied to a range of knowledge transfer projects. He supervises a number of these projects; they typically implement an advanced design resource within a traditional manufacturing company to enhance new product development activities. He holds a BA in Engineering Science and a DPhil in Medical Engineering from Oxford University. He has over 12 years industrial experience of engineering projects, with partnerships with FTSE-100 multinationals, high-tech university spin-outs and small family-owned companies. Chris Byrne is a technical director of The National Centre for Product Design & Development Research (PDR). He is a chartered mechanical engineer with several years experience in senior engineering positions within the steel and automotive industries, involved mainly in product design, development, validation and manufacturing activities. Since joining PDR in 2003, he has held supervisory positions on several SME-based, design and development KTP programmes throughout the UK. Andrew Walters graduated in Industrial Design in 2000 and soon afterward joined the National Centre for Product Design & Development Research (PDR) on a project that investigated the barriers to product development in SMEs. PDR has provided Andrew with the opportunity to develop his research interests in design and manufacturing technology management in small companies through their Manufacturing Advisory Service and Knowledge Transfer Partnership programs. In 2003 Andrew began part-time PhD study on the impact of advanced manufacturing technologies on small companies.
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Alan Lewis is a director of the National Centre for Product Design & Development Research (PDR). He was one of the founders of PDR and has worked with many companies in a variety of industry sectors helping them to improve their product development processes. He has a particular knowledge of the SME sector of the economy and has published extensively on product development within this sector. His current research interests include product design management and international approaches to the provision of design support mechanisms. He has published over sixty papers in these areas and in related elds.
Challenges in managing the convergence of information and product design technology in a small company
Andrew T. Walters & Huw Millward
National Centre for Product Design & Development Research (PDR) University of Wales Institute, Cardiff (UWIC) Western Ave, Cardiff, CF5 2YB, UK E-mail: atwalters-pdr@uwic.ac.uk
Abstract: In a manufacturing environment, product development technologies have the potential to be a central tool in the organisation of administrative and manufacturing tasks. Such integration of technology and information presents a strategic avenue for creating efficiencies in the development of highly complex products. This paper examines the implementation of a sophisticated computer aided design (CAD) package in a small company. The strategic aim was to bring components into the CAD environment, supporting each component with procurement information. The intention was that this would lead to: reduced design cycle times through the development of parts libraries; improved efficiencies in planning; and, reduced manufacturing cycle times. In a small commercial environment such strategic development presents a challenging task. Keywords: Advanced Manufacturing Technology, Product Development, Small Companies Biographical notes: Andrew Walters graduated in Industrial Design in 2000 and soon afterward joined the National Centre for Product Design and Development Research (PDR) on a project that investigated the barriers to product development in SMEs. PDR has provided Andrew with the opportunity to develop his interest in applied research that has positive impacts for industry through their Manufacturing Advisory Service and Knowledge Transfer Partnership programs. In 2003 Andrew began part-time PhD study on the impact of advanced manufacturing technologies on small companies. Dr Huw Millward is a Senior Research Officer at PDR. His research interests include design-led technologies, rapid product development techniques, and innovation management. These areas have been applied to a range of knowledge transfer projects, typically implementing an advanced design resource within manufacturing companies. He holds a BA in Engineering Science and a DPhil in Medical Engineering from Oxford University. He has over 12 years industrial experience, with partnerships with FTSE-100 multinationals, high-tech university spin-outs and small family-owned companies.
1 Introduction
This paper documents the implementation of a high-end 3D computer aided design (CAD) system in a small company that builds luxury vehicles. The case study at the core of this paper represents around eighteen months of regular contact between the author and the Company, during which time the Company planned for, purchased and installed the technology discussed. The purpose of this longitudinal case study is to support and expand upon the results of ten retrospective case studies on the impact of Advanced Manufacturing Technology (AMT) on small Welsh companies (Walters et al., 2006). Much of the published research on AMT is either concerned with large firms that have certain levels of previous experience with technology implementation, or is indiscriminate in company selection for the purpose of achieving generalisable results (Burcher & Lee, 2000; Saleh et al., 2001; Sohal et al., 1999). Given the resources required to implement AMT, such indiscriminate study may
provide results with a bias towards large companies that have more opportunity to invest in AMT and therefore more experience of the factors affecting implementation. The impact of AMT implementation on small companies is an under-researched area. The objective of the wider research programme is to gain an understanding of the issues facing small company managers when implementing a new technology. Small business is especially important to Wales as 71% of all Welsh private sector employment is generated by small and medium-sized enterprises (SMEs). In addition, SMEs account for 63% of business turnover in Wales (Federation of Small Businesses, 2003). Manufacturing is of particular importance to the Welsh economy as it accounts for around 20% of Welsh employment (just over 200000 people) and approximately 25% of the Welsh gross domestic product. In 2002, 93% of manufacturing companies in Wales employed fewer than 100 people and 87% employed fewer than 50 people (National Assembly for Wales, 2003).
2 Background 2.1 Technological Change

The published literature on technological change within manufacturing companies has indicated that the drivers of such change include: to obtain competitive advantage; to obtain financial benefit; to counter competitive threat; and, to improve product quality (Burcher & Lee, 2000, Youssef, 1992). However, when examining three UK automotive component suppliers, Lee et al. (2000) found that the drivers for change in these organisations was pressures imposed by their customers, i.e. major vehicle manufacturers. The authors note that smaller companies face numerous barriers to technological change including: negative attitudes and perceptions of the effects of change; resource constraints; and, a lack of interaction with external expertise to facilitate technology implementation. However, the authors also advocate the importance of innovation and high-skilled manufacturing stating that: Most of the resources within a company are accessible by competitors (e.g. capital, raw materials, standard technologies), therefore competitive advantage derives from the knowledge and abilities of the workforce. In order to aid analysis of the efforts of their case-study companies attempts to become more competitive during a period of technological change, Lee et al. developed eight characteristics of organisational learning. These characteristics were based on those developed by Weaver (1994, cited in Lee et al. (2000)): Shared mental models: Encouraging a shared vision of the organisation Learning values: Encouraging individual and group interaction to create new organisational learning Experimentation and innovation: Mechanisms to tap creativity from employees Legitimate politics: Encouraging employees to pursue their own goals and interests where these can be aligned to the needs of the business Learning from the past: Monitoring and evaluating results to guide future decision making Synthesising perspectives: Encouraging employees to be responsive to alternative perspectives Commitment to professional development: Encouraging employees to develop their knowledge and skills Participative information search: Analysis of the business environment to enhance company planning Following evaluation of the performance of the case-study companies against these characteristics, Lee et al. suggest that SMEs have a tendency to focus on those areas of organisational change that present least challenge in implementation. The authors suggest that these changes centre on improvements in face-to-face communication between managers and workers, an aspect of organisational change that is easier for the smaller firm to maintain than it is for the larger company. Sherer et al. (2003) examined the importance of investment in organisational change management in aiding the successful implementation of a new technology. The authors argue that many companies fail to place enough emphasis on the changes that employees must make to the way that they work in order to successfully utilise a new technology. The study focussed on a single multi-national companys perspective, however, the particular technological implementation examined was a
corporate-wide system upgrade. The authors concluded that the investment that the company had made in managing the change had a significant impact in improving client satisfaction and reducing resistance from the workforce.
2.2 Operator empowerment

Adler and Borys (1996) state that efficient manufacturing requires certain levels of formalisation of processes and procedures. However, they also note that bureaucracy often has a negative impact on innovation and change within companies. In their study of organisational bureaucracy, the authors identified two types of formalisation, coercive and enabling. The authors advocate an enabling approach when implementing an AMT that requires increased skill levels on the part of the operator. Such an approach requires the company to allow more discretion in the ways in which people work, with procedures that empower users of technology. This provides an environment in which operators interact more creatively within the organisation. The study therefore suggests that with this type of formalisation there is reduced risk of inhibiting organisational change. The literature on AMT has often advocated the importance of operator empowerment to successful implementation (Adler & Borys, 1996; Macri et al., 2002; Tantoush & Clegg, 2001; Udo & Ehie, 1996). Macri et al. (2002), state that it is important that proposed changes within an organisation are understood to be both desirable and necessary by shop-floor operators. Should this not be the case, the authors warn that production operators may engage in acts of sabotage towards new systems and procedures. Udo and Ehie (1996) identified four determinants of AMT implementation success: Triple C factors: Communication, co-ordination and commitment Self-interest factors: Employee morale, satisfaction, belief in AMT, appropriate reward Housekeeping factors: Action plan, effective team, vendor support, cost justification, functions integration, effective facilitator Literacy factors: Understanding of AMT, understanding of firm business, training, clear goals and objectives, expectations of AMT Each of these factors was shown to significantly affect AMT implementation success measured through AMT benefits. However, results of the study indicated that self-interest factors were the most critical determinant of AMT success. The implication of this result is such that where shop-floor operatives can be encouraged to perceive a technological investment as a system that can yield personal gains to them, the likelihood of the company achieving successful implementation is increased. Literacy factors relate to education of the workforce; the results of the study indicate that investment in education of shop-floor operatives is directly related to many of the AMT benefits. In developing a framework to assess change management success, Taskinen and Smeds (1999) undertook research to ascertain the state of the art in measuring change-management projects. This research took the form of interviews with the managing directors of three global consulting companies. Each of the consulting companies highlighted the importance of measuring the willingness to change of personnel. Such findings add weight to the importance of both the self-interest factors and literacy factors as identified by Udo and Ehie. The findings of Lee et al. (2000) are also in keeping with the theme of operator empowerment and enabling formalisation. The authors state that it is important to encourage legitimate politics within the company and suggest the dispersal of power and authority throughout the organisation, providing autonomy of departments in addressing their own objectives.
2.3 Internal politics

According to Taskinen and Smeds (1999) there is a shift from the requirement of the effective management of operations to the efficient and effective management of change. The study suggests that the identification of resistance to change within an organisation is an important aspect of successful change implementation. The literature regarding organisational learning and operator empowerment present these issues as tools designed to impact upon an organisations internal politics in such a way as to create an environment that is conductive to change. The existence of political barriers to change within organisations has been noted many times in the published literature. Tantoush and Clegg (2001) assert that although many firms adopt AMT for profit-motivated reasons they fail to achieve such benefits because they are unable to manage the politics of the technology and its impact upon organisational design. According to Macri et al. (2002), even small organisations, often regarded as naturally inclined to change, suffer political barriers to technology implementation. Although, as
noted above, it is the position of Lee et al. (2000) that when small companies are determined to implement change, communication is an area in which they out-perform larger companies. However, a contradictory example is provided by Jones (2003) in a case-study paper examining the management style within a small company. In this paper the author notes that, the MD expressed little interest in developing the workforce and was more concerned to investigate opportunities for outsourcing existing activities or investing in new machinery. Whilst this particular publication is concerned only with a single organisation, the autocratic nature of the company studied shares some parallels to the casestudy company that is the focus of this paper.
3 METHOD
The method for the wider research programme is based on the analysis of case studies of manufacturers that have adopted some form of AMT. These case studies were gathered in two stages. An initial round of retrospective case studies was generated through interviews with company managers. Following consideration of the results of that first stage, time was spent monitoring the implementation of AMT in two further cases. This two stage approach to data gathering is based on a methodology presented by Voss et al. (2002). Voss et al. warn that retrospective data may be subject to post-rationalisation by the case-study respondent. That is, the respondent may interpret previous events using knowledge that was not available at the time. To counter this risk, a second stage of longitudinal research is undertaken to test models and gain more in-depth knowledge from fewer companies. Table 1 presents an overview of companies interviewed in the retrospective stage and the AMT discussed. Table 1. Overview of case study companies
Case study company A B C D E F G H I J Sector Transformer manufacture Automotive Mass transport Tool making Electronic instruments Sub-contract engineering Precision engineering Automotive/Aerospace engineering Mould-making (polystyrene and polypropylene) Production engineering (hydraulic components) AMT discussed Laser cutter CNC, CAD/CAM, Vision Systems, MRP II, Robotics CNC, CAD/CAM, Phenolics CAD/CAM, CNC, Wire erosion, Spark erosion CAD/CAM, Pick & Place Laser cutter CAD/CAM, Wire erosion CAD/CAM, Vertical turning centre CAD/CAM, High speed machining (HSM) centre CAD, Live tool CNC lathe, Multi-axis vertical turning centre No. of employees 200 130 47 74 83 22 22 5 13 14
The results of the retrospective stage indicated three important issues for the implementation of AMT in small companies: consideration of the inherent and integrated benefits of the proposed AMT; consideration of company technological experience; and, availability of vendor or other support mechanisms (Walters et al., 2006). Inherent benefits refer to a match between company requirements and the capabilities of an installed technology. Integrated benefits refer to achievable benefits as a result of an overall production process that utilises AMT at some point in that process. The implication of this finding is that small-company managers should consider the impact of the output of an AMT on downstream processing and that inexperienced implementers of technology are more likely to achieve anticipated benefits that are linked to the inherent capabilities of a technology. Figure 1 demonstrates how the output of a technology might impact on the overall production process. In the first image, the AMT replaces a process, but the output of the AMT is identical to the output of the replaced process. Therefore, the advantages to the company only come from the improved performance of Variable 1 over Variable 2. In the second diagram, the company is using AMT as part of a process to create a new or improved output. However, if this is achieved due to the output of the AMT being different to the output of Process 1, then there is the possibility that the impact on Process 2 is such that Variable 4 does not present an advantage over Variable 3.
Fig.1. Utilising Inherent and Integrated Benefits of AMT The following case study presented in this paper documents the first of the longitudinal studies. It is hoped that these longitudinal studies will overcome some of issues associated with respondent postrationalisation that are inherent in retrospective case-study research. The case study is evaluated to determine potential further support for the findings of the retrospective stage. In addition, the researchers involved in the Case Study developed a Management Assessment Questionnaire (see the Appendix for the complete questionnaire). This Assessment Questionnaire investigated management competencies in the areas of Knowledge, Resources, Quality and Innovation. Within each of these areas a number of sub-issues were also examined (see table 2). Table 2. Topics and sub-issues considered in assessment of the Case-Study Company
Area Knowledge Sub-issues Market and competitors IPR Experience of technology implementation Strategic vision Project planning Support infrastructure Finance Staff Procedures and accreditations Customer satisfaction Use of quality managers or consultants Staff training and development Innovation risk propensity NPD processes Change management Shared strategic vision
Resources
Quality
In developing a document to further explore the above sub-issues, it became apparent that some of the topics were made up of another level of sub-issues. For example, in investigating Knowledges subissue of Market and Competitors, there are questions to be answered in terms of: market presence; the level of awareness of competitor activities; and, the activities undertaken to gather market and customer intelligence. Similarly, in investigating the Resources sub-issue relating to Staff, questions naturally occur relating to: the effectiveness of current staff; staff expertise; and labour implications for company growth. Each of the questions in the document presents multiple choice answers, with each of
the answers providing a score. Generally, the score increases as answers indicate more in-depth knowledge of the area of enquiry.
4 CASE STUDY COMPANY K

Company K is a luxury vehicle manufacturer that has been in operation for over 40 years. The company employs 60 people and has an annual turnover of approximately 2.5 million. These vehicles are built to the bespoke specifications of customers and sell for between 500000 an 1m each. The high-level craftsmanship aesthetic using natural materials, as opposed to the new materials used by many of the companys competitors, provides a unique selling point. In the summer of 2005, the Company approached a university department to explore the possibility of a structured collaboration to improve design and production efficiency. The owner/managing director (MD) of the Company explained that he wished to grow his company further, the main aim being to increase the Companys product throughput. At the time of the meeting, the Company had a throughput of 3.5 4 units per year. The Company hoped that by working with the university a plan could be developed for increasing throughput through a combination of efficiencies and technology use in design, design to manufacture and production operations. The university department developed a two year programme using a government funding mechanism. This programme involved placing a researcher (Researcher 1) within the Company for the duration of the project. In addition, the programme was supported by supervisor based at the university (Researcher 2).
4.1 AMT Implementation

The developed project plan was based on the development of an in-house design resource for the concept generation, specification and visualisation of potential purchases. In addition, new design procedures to speed up the development of each product would be created. The plan acknowledged the importance of the retention of the Companys values whilst allowing the Company to take advantage of new design technologies and methodologies. The purpose of such new procedures was to accelerate their existing process from client specification to final production. It was perceived that this would involve implementing an advanced 3D CAD system which would enable the company to: Transfer 2D drawings across into 3D CAD as required Communicate effectively with external design engineers Conduct a knowledge capture exercise regarding the design of new products Provide full specification to clients of their required design Produce photo-realistic visuals and 3D virtual models to include the interior layouts to allow client walkthroughs Improve the overall image of the company It was intended that the installation of 3D CAD would provide an opportunity for the Company to introduce design led development and manufacture. Design activities can operate concurrently to CAD development improving the efficiency of development projects. Such efficiencies can be developed through a number of factors. Concept development in a 3D environment facilitates communication of design possibilities to clients through the use of high quality realistic visuals and interactive industrial animations. CAD driven communication at this early stage of development can have a positive impact on lead times as approved concepts often require less processing to enter detail design and manufacture. In addition, the potential for the development of a library of CAD components can allow a company to present design possibilities to prospective clients in real time. This aids the potential customer in realising the design options available. Further, communication with clients and potential customers in the CAD environment brings the initial stages of development closer to downstream processing; in addition to the inherent efficiencies that such CAD use presents, this style of development opens up the possibilities for intelligent manufacture through technologies such as computer aided manufacture (CAM) and manufacturing resource planning (MRPII) links and improved communication with external design engineers and other subcontractors. At the start of the programme, Researcher 1 undertook an investigation into the development operations of the Company (see figure 2). It was felt that this information would be important in setting up the most appropriate procedures for the Company; understanding whom such new procedures would have greatest impact on; and, whose influence and support would be required for such implementation to be successful. The investigation into the interactions within the Company indicated that for each new
vehicle a customer specification was developed and used to inform purchasing (materials and components) and the build plan; 3D CAD was developed to produce output for CNC processing for sheet parts and sub-contract manufactured parts; and, 2D drawings were issued to the workshop for engine systems installation and interior fit out. These procedures used various systems, including 3D CAD, 2D CAD and paper based systems to identify all component and material requirements from the two different CAD systems. It was agreed that integrating these systems would provide improved efficiencies at this front-end of development work. High-end 3D CAD programs often include part-management systems to automatically produce bills of materials. This was identified as likely to produce a great time saving to the Company, as not only could required part reports be generated without manual interrogation of drawings, but purchasing could be planned in line with the current stage of development, reducing individual order costs and making better use of the Companys limited storage facilities. In order to develop such systems and procedures, a number of tasks were identified: Source a CAD system or systems that could meet the client facing requirements identified and provide active component management Assess the accuracy of existing 2D drawings Update drawings and re-model in a 3D environment Model the 1000+ third party components Transfer old 3D models to the new system Encourage other operators to use the new system when specifying new components Develop a virtual library linking supplier information to component models Develop new reporting procedures to instigate procurement Encourage and train non-technical staff to use the new procedures
Fig.2. Development activities within Company K A specification document that described in detail what the Company hoped to achieve through any new technological investment was created. This was distributed to a number of vendors who were then invited to present software solutions to the Company. As a result of this exercise one company stood
out as having a solution very much in line with the Companys needs and also in line with future aspirations in terms of CAM communication to multi-axis machining. Although this was the Companys preferred solution, the cost of the system was a barrier to investment (two seats of the software was initially priced at 17000). Through negotiation with the vendor a significant reduction in cost was achieved, bringing the cost of two seats of the software to 8000; this discounted price was reliant on the Company agreeing to act as a reference site for the vendor. Given that the Company was able to access 3600 of Government funding for purchasing technology, this new price was now affordable. The installed CAD solution was supplied with a comprehensive support package of on-site training and a telephone helpline to aid in overcoming unforeseen problems. In addition, due to the way the procurement exercise had been executed, the vendors had a good knowledge of the aims of the Company regarding their technological investment. The advice of the vendors was that the first task should be modelling of components and development of the library of parts. Although this time consuming task would bring little immediate commercial reward, this was seen to be the best way to develop the strategy towards the future aims of the Company. The argument presented by the vendors was that this would allow the procurement and planning aspects of the strategy to be ready for future builds. The view of the MD was that following implementation and the significant investment made, the technology should have an impact on current production as soon as possible. Therefore the MDs preferred plan was to defer creation of the component library and start to transfer and update the engine systems. The MD believed that it should be possible for the CAD operators to model components and create assembly models of the systems already installed in the current build and to then get ahead of production. This would ensure that further installation could be informed by the new CAD output. According to the MD, this would lead to a reduction in the lead-time on the current build, as a significant number of the installed systems would be supported by drawings with increased accuracy and improved detail. In practice the MDs plan did not reap the anticipated rewards. On investigating practices in the workshop and comparing against existing drawings, Researcher 1 discovered numerous discrepancies. This significantly impacted on the time required to transfer 2D drawings into the 3D environment, as modelling and assembly setup was relying on gathering physical measurements from production. This presented a difficulty in getting ahead of production as the MD had desired, as the drawings had been shown not to present an accurate enough representation of the actual build. Further difficulties occurred as system production was found not to be linear. The MDs plan for system installation saw each successive engine system being installed on completion of the previous system. In practice this did not happen, systems were installed concurrently to avoid fitting problems. Despite these barriers being communicated to the MD, the MD remained insistent that system drawings must be created for workshop use before addressing the design strategy for the next build. The MD argued that as components were being modelled for the existing systems, then those components would be available for the development of the next build and would form the foundation for the development of a parts library in line with the original strategy. Accurate assembly models and drawing outputs of the engine systems materialised at approximately the same time as the installations of such systems were completed, some six months after initial installation of the new CAD facility. Therefore, no positive impact in terms of lead-times for production was achieved. During this time the MD had worked independently on the design of the systems for the next build, and had made significant changes to the layout. As a result of these changes, the assemblies created over the previous six months had little value except in the potential for re-use of the modelled component parts.
4.2 Management Competencies

An analysis of the combined responses of the researchers involved in this Case was used to assess the impact the Management Knowledge; Company Resources; Quality Procedures; and, Innovation and Change. 4.2.1 Management Knowledge It was observed that the Company actively markets itself through exhibiting at one of the industrys top annual exhibitions. This marketing strategy has served the Company well and provided sales in line with the Companys capacity. The Company is aware of their main competitors and has shown some evidence of in-depth knowledge of competitor activity. Within the remits of the knowledge assessment,
knowledge of market and competitors is where the company performs best. However, this performance is based on the personal knowledge of the MD rather than strategic market research and systematic competitor analysis. The Companys main interaction with IPR is through production of a design licensed from an external design engineer. The Company generates very little of its own IPR; however, it does produce written agreements with sub-contractors regarding the ownership of component design. However, such efforts have not been developed with professional legal advice and so design ownership remains ambiguous. 3D CAD was installed at the Company in 2003. In evaluating the success of this AMT implementation, Researcher 1 gave a score of four (out of five). The reason for this score was that the Company had used the CAD to achieve much of what they intended. Researcher 2 gave a score of three. This was due to his opinion that although there had been successful use of 3D CAD, the Company had failed to utilise the capabilities of the system to its full potential. Much of the system fitting plans remained in 2D format. At the beginning of the programme, such reliance on 2D plans and the lack of integration of 3D CAD throughout the development process was attributed to a lack of resources to undertake the necessary developments. However, throughout the programme the actions of the MD indicated that he wished the additional resource provided by Researcher 1 to concentrate primarily on the further development of 2D output, despite agreeing to the benefits of further developing the use of a 3D environment and new integrated development and procurement systems. Any strategic vision for the future development of the Company resides with the MD. Discussions with the MD during the longitudinal observation indicated a belief in continued development of the quality of his products. This quality is manifested in the use of high quality natural materials crafted and installed by highly capable tradesmen. However, this vision is not formally communicated to others within the Company. Discussions with personnel at various levels within the Company indicated a culture of working within an autocratic regime, where staff made efforts to meet the individual requirements of current work rather than towards a common higher goal. 4.2.2 Company Resources As indicated by figure 1, the Company operates to its own set of development and manufacturing procedures. Using these procedures, the Company has continually operated profitably and maintained high quality standards. However, the MD has communicated that he wishes to grow the Company further. The current procedures were set-up for operating labour intensive, craft-based manufacture. Once at capacity with this strategy, the Company were able to introduce further efficiency through the installation of more sophisticated CAD. This strategy allowed further growth through the introduction of a new product variant. However, with the new product in production, the Company soon reached capacity again. With no room for further expansion of the labour force, any further growth would need to be accommodated through re-development of Company procedures. It was this necessity that prompted involvement with the university. Observation of the Company did not provide an impression of a culture that is receptive to staff development through further training; especially, training that takes place off-site during working hours. In meetings the MD expressed a belief that time spent on training represented un-productive periods. In addition, on the few occasions staff did attend off-site training, suspicion was demonstrated by Company colleagues. It was common for colleagues to refer to such training time as time off or holidays, demonstrating that such practice was unusual. It was observed that the recent introduction of a new product had impacted on the manufacturing efficiency of the Company, resulting in a reduction in profitability. The fact that the Company remained profitable, together with a willingness to re-invest in product development and the strategic use of government grant aid, resulted in both Researchers rating the Company highly in terms of financial resources. The production of products within the Company usually requires the use of paid overtime. This indicated to Researcher 2 that there were inadequate labour resources within the Company to produce products on-time. However, Researcher 1 offered an alternative observation that the use of overtime was in response to late design changes. Experience within the Company indicated that customers were allowed to instigate design changes at virtually any point in the development process. This continued customer interaction was seen as a selling point of the Company, that is, the Company would be continually responsive to the desires of the customer in developing a bespoke product. Following such customer instigated changes, any additional costs in terms of new materials or components would be added to the development bill; however, the Company were seen to be reluctant to change the agreed delivery dates despite the impact such changes may have on the manufacture time. During the time of
the observation, this design change impact on delivery schedules was seen to impact on the profitability of the Company. In addition, such overrunning of the production schedule impacts on the start date of subsequent products, increasing the pressure on the Company to speed up development and use additional expensive labour overtime. 4.2.3 Quality Procedures The Companys approach to quality procedures is based on regular meetings between the MD and company managers. These meetings focus on day-to-day management of sections and progress towards completion of current production requirements. It is at these meetings that production requirements are explained, informing the Companys administration officers of which production specifications to refer to in order to plan procurement. The MD viewed this process as an example of the team ethos within the Company, and an example of good practice for stimulating inter-department communication. Although such contact does represent regular cross-company communication, the scope of the meetings is limited. The meetings do not focus on Company development nor represent a forum for communicating or stimulating innovative ideas. 4.2.4 Innovation and Change The profile of innovation indicated by the management assessment responses demonstrate that all innovative developments are instigated by the MD. Although the Company utilises a range of design technologies, there is no structured R&D department or NPD process within the Company. One of the aims of the collaboration was to develop such a function; however, in operation, the MD was reluctant to let such development proceed. The MD loaded Researcher 1 with individual design tasks, which effectively prevented the investigation of strategic process development. The reasons for presenting such barriers to the development of new processes is difficult to determine; however, it is probably important to note that the Company had developed successfully to its current position on the basis of developments to customer needs as perceived by the MD. Therefore, it is easy to imagine a reluctance to change from a formula that has brought the Company such success. Conversely, it is equally important to note that further growth for the Company was proving difficult due to capacity limitations, and therefore further growth was dependant on strategic change. Despite such barriers to further innovative developments, Researcher 1 believed that the Company developed products more frequently than direct competitors.
4.3 Analysis from previous results

This case study enhances the knowledge gained from the retrospective cases in that further analysis can be made regarding: the impact of support mechanisms; consideration of previous experience; and, the inherent and integrated benefits of the installed technology. In addition, insight is gained into the impact of influential individuals and management style on the success of technology adoption. 4.3.1 Support Mechanisms The results of the retrospective stage indicated that companies placed high importance on the availability of vendor and other support mechanisms. The same high importance can be seen from the longitudinal case study, in that the Company used university support and government funding to aid selection, purchase and implementation of the CAD system. In addition, in negotiations with the vendor, the Company was keen to establish telephone support and training for relevant members of staff. Although this research concurs with previous results regarding the perceived importance of support, it is more difficult to establish the influence of such support on the impact of technology adoption within the Company. The support sought and obtained by the Company can be placed in two categories, namely, financial and expertise. Financial support contributed to the purchase of CAD and expertise (60% of the costs of the university collaboration were paid for by the UK government). The expertise support identified the most suitable technology based on communicated aspirations; helped to negotiate a lower cost for the purchased technology; and, provided a labour resource to implement the CAD. Researcher 1 investigated production requirements; developed CAD models and assemblies; and, updated production drawings. Table 2 demonstrates the financial contributions towards the technology adoption programme.
Table 3. Investment in technology adoption and support Company investment in technology and expertise Government support towards technology and knowledge transfer 25000 33000
The CAD installed during the case study period did not represent the Companys first experience with 3D CAD. A less sophisticated 3D CAD system had been previously installed in the Company. However, the previous CAD system did not have data management systems or photo-realistic rendering and animation. In addition, the previous CAD had limited options for expandability. Despite having had 3D CAD for a number of years, it was the support mechanisms that provided the investigation into manufacturing requirements and facilitated updating systems to make better use of CAD. 4.3.2 Consideration of Previous Experience Another finding from the retrospective cases was that companies should consider both their levels and areas of experience in technology adoption. Such consideration is demonstrated as important in Case Study K through their decision to upgrade to a high-end 3D CAD system. Such development could be viewed as a natural next step in developing technological competence and was in line with the Companys aspirations to increase throughput via increased efficiencies. Researcher 1 and the Companys own CAD operator initially adapted to the new system with little problems. However, as production requirements became more pressing, the Companys operator slipped back into using the old system due to time constraints preventing the transfer of files to the new system. The Companys Design Manager did not develop strategies for finding time to transfer components and assemblies to the new system. This lack of transfer had serious implications for one of the major aims of the technology implementation. That is, the transfer was vital in making use of the new data management systems, converging the information required for efficient procurement with product development and build strategies. Researcher 1, not having access to the previously installed CAD system continued to develop models in the newly implemented system. This meant that as components were being modelled, supporting information could be added and reports for the development of procurement efficiencies could be created. However, there was significant resistance to change from the Companys administration officers. Although an investigation into purchasing requirements had been undertaken and much effort exerted in inputting such information into the CAD data management system, the purchasing officers failed to evaluate, further develop or use the system. The purchase of the technology and support had been undertaken without consultation with non-technical staff. In addition, throughout the programme management did not develop mechanisms to encourage administration officers to engage with the new technology and strategies. This lack of encouragement and communication may have influenced the Design Managers lack of concern that the new system was not being taken up by the Companys own CAD operator. 4.3.3 Consideration of Integrated and Inherent benefits The retrospective investigation indicated that small companies often find technology implementation easier when the output of the new technology has limited impact on further processing or other systems. The new CAD system introduced within Company K had a number of both integrated and inherent benefits. Inherent benefits included efficiencies in modelling (e.g. automated pipework and routing), abilities in presentation output and customisable assembly drawing outputs. Researcher 1 developed these aspects of the CAD with little resistance from company personnel. The modelling efficiencies were used to produce new assemblies following an investigation into build procedures in the workshop; presentation abilities were used to communicate ideas to clients; and, new assembly drawings were issued to the workshop (to positive responses in an internal review). The potential integrated benefits of the system are described above in the integration of supplier information to CAD models for use in purchasing strategies. Developing these integrated benefits for the technology proved to be very difficult. It can be argued that these integrated benefits were where the Company had the potential to make the greatest gains in terms of efficiency. The barriers to the development of such integrated benefits centred on the resistance of non-technical staff to engagement with the system. This
was compounded by lack of encouragement from the MD in terms of communicating the personal advantages that such a system could bring to administration officers. 4.3.4 Managerial Impact In developing a plan for the improvement of the Companys design function and design communication to manufacturing at the start of the project, the Company indicated a desire to develop the following benefits: Reduce the design cycle Improve customer understanding of design potential Interrogation of design change impact Improved data to manufacturing operations Development of a component library Increased product throughput The support offered by the vendors of the CAD system indicated that to achieve the aims stated, the best place to start would be through the development of the component library. This would in future facilitate the use of the system to plan the next product. The MD disagreed with the presented strategy, being concerned that the system should be used as soon as possible to produce output for use in manufacture. It is not insignificant that at the time of installation of the 3D CAD, current production was running behind schedule and the Company was likely to incur significant penalties due to late delivery. This might explain the MDs reluctance to allocate resources to the development of future efficiencies and to concentrate all efforts on rectifying the current production problems. The MD had viewed the physical fit-out of engine systems as a series of sequential actions, installed system by system. In investigating the requirements for producing 3D CAD of the systems, Researcher 1 discovered that in fact much of the system development is necessarily concurrent. This is because certain aspects of systems scheduled for later installation become impossible to fit around previously installed systems. Therefore, it became apparent that it was impossible to get ahead of production in a vehicle that had already been started. In addition, Researcher 1 discovered a number of discrepancies between the design office drawings of systems and the manner in which systems were actually fitted. As a result much time had to be spent reconciling manufacturing and design office opinions of how the systems should be implemented. Over a period of six months, Researcher 1 developed models and drawing output of all of the systems, roughly completing the systems in line with production. The Company recognised that an accurate record of the systems had been developed, providing much more detailed and useful information for production than they had ever had before. However, at this stage it became apparent that the effort would be of little use in future production, as during development of the systems, the MD had updated the design for future vehicles, so that the systems information was no longer relevant. This level of managerial autonomy may be attributed to a lack of technological knowledge at managerial level. The MD did not appreciate the volume of work involved in developing large, complex assemblies from component models. Whilst few components were updated, had the MD fully understood the strategy, he might have encouraged an investigation into the proposed changes in system assembly. This would have aided the Company in achieving another of their strategic aims in interrogating proposed builds in a virtual environment prior to investing workshop time.
5 Case Conclusions
Case-study Company K indicated a perceived importance of previous experience and accessibility of support mechanisms. It was also shown that developing integrated benefits in AMT adoption is more difficult than the development of a technologys inherent capabilities. These finding concur with the results of the retrospective research stage. Much of the literature on AMT demonstrates that most companies that invest in technology will eventually make use of the capabilities, even if not in the planned way or in the planned timescales. Therefore, in the fullness of time it may be that Company K will make good use of their investment and start to see some of the planned benefits. Or revisiting the issue of post-rationalisation, in time the Company may derive either some of the planned benefits or some other benefits, and label the implementation a success. However, from the point of view of this research, this implementation can be seen as unsuccessful, as approximately eighteen months after the Companys first exploration into
the adoption of new technology, and a Company investment in the order of 25000, the Company had limited useful output. The investigation into engine system development undertaken by the Researcher 1 did produce useful information that could potentially improve future manufacturing. However, the actual drawings produced will only be useful as a proven template for future output. In addition, this output did not represent a significant step change in the capabilities of the old CAD system to the new CAD and could have been produced without further technology investment had such investigations been undertaken previously.
References
Adler P.S. and Borys B. (1996) Two types of bureaucracy: enabling and coercive, Administrative Science Quarterly, Vol. 41, No. 1, pp. 61-89. Burcher P.G. and Lee G.L. (2000) Competitiveness strategies and AMT investment decisions, Integrated Manufacturing Systems, Vol. 11, Vo. 5, pp. 340-347. Federation of Small Businesses in Wales (2003) Manifesto for the National Assembly elections May 2003: A Winning Wales Complement Document, [Online] http://www.fsb.org.uk/policy/apu/devolved/wales/assets/MANIFenglish.pdf Jones O. (2003) The persistence of autocratic management in small firms: TCS and organisational change, Int. J. of Entrepreneurial Behaviour & Research, Vol. 9 No. 6, pp. 245-267. Lee G., Bennett D. and Oakes I. (2000) Technological and organisational change in small to medium sized manufacturing companies: A learning organisation perspective, Int. J. of Operations & Production Mgmt., Vol. 20, No. 5, 549-572. Macri D.M., Tagliaventi M.R. and Bertolotti F. (2002) A grounded theory for resistance to change in a small organisation, J. of Organizational Change Mgmt., Vol. 15, No. 3, pp. 292-310. Millward H., Byrne C., Walters A.T. and Lewis A. (2006) New Product Development within Small and Medium-Sized Enterprises: Analysis through Technology Management Maps, Int. J. of Innovation and Technology Mgmt., Vol. 3, No. 3, pp. 283-302. National Assembly for Wales (2003) Statswales: Manufacturing local units, by employment size band [Online] http://www.statswales.wales.gov.uk/eng/TableViewer/wdsview/dispview.asp Saleh B., Hacker M. and Randhawa S. (2001) Factors in capital decisions involving advanced manufacturing technologies, Int. J. of Operations & Production Mgmt., Vol. 21, No. 10, pp. 1265-1288. Sherer S.A., Kohli R. and Baron A (2003) Complementary investment in change management and IT investment payoff, Information Systems Frontiers, Vol. 5, No. 3, pp. 321-333. Sohal A.S., Burcher P.G., Millen R. and Lee G. (1999) Comparing American and British practices in AMT adoption, Benchmarking: An International Journal, Vol. 6, No. 4, pp. 310-324. Tantoush T. and Clegg S.; (2001) CADCAM integration and the practical politics of technological change, J. of Organizational Change Mgmt., Vol. 14, No. 1. Taskinen T. and Smeds R. (1999) Measuring change project management in manufacturing, Int. J. of Operations & Production Mgmt., Vol. 19, No. 11, pp. 1168-1187. Udo G.J. and Ehie I.C. (1996) Advanced manufacturing technologies: Determinants of implementation success, Int. J. of Operations & Production Mgmt., Vol. 16, No. 8, pp. 6-26. Voss C., Tsikriktsis N. and Frohlich M (2002) Case research in operations management, Int. J. of Operations & Production Mgmt., Vol. 22, No. 2, pp. 195-219. Walters A.T., Millward H. and Lewis A. (2006) Case Studies of Advanced Manufacturing Technology Implementation in Small Companies, Int. J. of Innovation and Technology Mgmt., Vol. 3, No. 2, pp. 149-169. Youssef M.A. (1992) Getting to know Advanced Manufacturing Technologies, Industrial Engineering, Vol. 24, No. 2, pp. 40-42.
Appendix
The following pages demonstrate the questions presented in the Management Assessment Questionnaire.
Knowledge Market and Competitors 1. Visiting Trade Shows (select most appropriate) Dont go Sometimes go Regularly attend key events Sometimes exhibit Usually exhibit 0 1 2 3 4 2. Competitors (select most appropriate) Cannot Aware of some Aware of key Aware of key In depth knowledge of identify competitors competitors competitors and their competitors, their USP and competitors market share relevant market share 0 1 2 3 4 3. Market / Customer Intelligence (select ALL that apply) Y N Formally surveys customers on company perception? 1 0 Follows up lost sales to see if they purchased from a competitor? 2 0 Records and analyses enquiry to sales ratio? 3 0 Knowledge IPR 1. IPR strategy (select most appropriate) No coherent Aware of Some use of IPR to Generate income from Strategic use of IPR, planning IPR strategy some IPR protect the IPR or uses licensed IPR licensing developments and methods company IPR to reduce use of licensed IPR to cut cost or development costs maintain market position 0 1 2 3 4 2. In new product development, is the use of IPR routinely considered? (select most appropriate) No 0 Yes, to protect ideas 1 Yes, and further income generation from IPR is considered 2 3. Is published IPR used as a reference source? (select most appropriate) No 0 Yes, sometimes 1 Yes, routinely 2 Knowledge Experience of Technology Implementation 1. Has the company installed any of the following: Y/N Number of years in place 3D CAD CAM Multi-axis machining MRP II Laser based technologies (cutters, RP, etc) Automation (robots, pick & place, etc) Vision Systems Max points:5 Max points: 25 2. On the scale, rate the success of previous technology implementation programmes? Business improvements Resistance to use leading to leading to increased 1 2 3 4 5 technology abandonment efficiency or revenue creation 3. What methods are used for assessing technology implementation requirements? (select most appropriate) No formal Advice from Generate a Advice from Use of Discounted Cash Flow, Multimethod vendors requirements impartial consultants attribute Decision Making or other to specification quantify potential investment benefit 0 1 2 3 4 Knowledge - Strategic Vision 1. Company vision and mission (select most appropriate) Has no defined Has an official Has an official Has an official mission Has an official mission mission / mission statement mission statement statement or vision that is statement or vision that is vision or vision that the or vision that is communicated throughout displayed for all to see statement MD is working communicated at management towards director level 0 1 2 3 4
2. Steps are taken to encourage buy-in to the vision in the organisation; (select most appropriate) At director level At management level At supervisor level At technician level To all staff 1 2 3 4 3. How often is progress / achievement of the vision reviewed? (select most appropriate) Never < Annually Annually Monthly Weekly 0 1 2 3 Resources Project Planning
1. What project planning software is used (not just available, but actively used? (select most appropriate) No software Spreadsheet Dedicated project Integrated project planning and MRPII Add-on planning software accountancy 0 1 2 3 4 2. Training who has access to training through the company? (Select ALL that apply) Production workers Supervisors Technical Staff Managers Directors 1 1 1 1 1 3. Procedures (Select ALL that apply) Company Performance Formalised procedures Supply chain Accredited procedures developed measuring implemented (e.g. 6 sigma, management developed (e.g. ISO manufacturing techniques continuous improvement, lean procedures 9001) procedures employed manufacturing implemented 1 1 1 1 1 4. Accuracy of delivery dates Y N Is conformance to delivery schedules analysed? 1 0 Is delivery data used to improve future delivery estimation? 1 0 Following late delivery, are efforts made to find and address production planning? 1 0 What percentages of orders are delivered on time? 90-100% 75-90% 50-75% 25-50% <25% 5 4 3 2 1 Resources Support Infrastructure 1. Training requests (select most appropriate) Training requirements Staff encouraged to Training requirements Scheduled / Scheduled / identified by make training identified by Annual review of Annual review supervisors requests to their supervisors in training for key of training for independently supervisors consultation with staff staff all staff 1 2 3 4 5 2. Communication of training outcomes (select most appropriate) No analysis or Effectiveness of training Trainee encouraged to Formal communication dissemination of reviewed on completion disseminate acquired routes to disseminate knowledge knowledge to peers on knowledge following following training completion training 0 1 2 3 3. Does the company use any of the following? (select ALL that apply) Access to government sponsored Contracted systems support Dedicated in-house systems support (grants, programmes, etc) maintenance agreements support 1 2 3 Resources Finance 1. Is the company profitable? 0 No Yes 1 2. Does the company reinvest in product/service development? (select most appropriate) Rarely 1 Yes, when opportunities arise 2 Yes, continuous development 3 3. Does the company regularly use part-funded grants for technology or development programmes? (select most appropriate) No, not investigated 0 No, not eligible 1 Yes, as required 2 Always investigated to aid developments 3
Resources Staff 1. Does labour resource effect timely product delivery? (select most appropriate) 0 Yes, products usually late due to inadequate labour resource Yes, products often late due to inadequate labour resource 1 Yes, products cannot be produced on time without overtime 2 No, there is a good balance between commitments and labour 3 No, adequate labour resource means products always on time (or late for other reasons) 4 2. Does the company have people with the expertise to deal with day to day activities (systems e.g. IT facilities)? (select most appropriate) Company systems are supported externally (services purchased when required) 1 Company systems are supported externally (maintenance agreements) 2 Company has some internal system expertise (with external support) 3 Company has broad internal system expertise 4 3. Does the company have people with the expertise to deal with day to day activities (production)? (select most appropriate) Sub-contractors supply >50% production expertise 1 Sub-contractors supply <50% production expertise 2 Sub-contractors supply some expertise (any level, but as part of a core competencies strategy) 3 Company has a wide range of relevant expertise 4 4. Is the company able to access additional expertise to meet growth expectations (staff)? (select most appropriate) Difficulty in recruiting suitably qualified staff 1 Easily available labour pool for potential recruitment 2 5. Is the company able to access external expertise to meet growth expectations? (select most appropriate) Difficulty in finding suitable external expertise 1 Expertise available, but cost prohibitive 2 Expertise available to purchase 3 Partnerships setup with relevant expertise 4 Quality 1. Are there quality monitoring procedures? No 0 Yes 1 2. Have quality accreditations been implemented? No 0 Yes 1 3. Are there written company procedures? No 0 Yes 1 4. Is a continuous improvement programme operated? No 0 Yes 1 5. Is there a quality manager or are consultants used to evaluate quality? (select most appropriate) No Use consultants Employ a quality manager Use both consultants and a quality manager 0 1 2 3 6. Are there formal channels for internal communication? (select most appropriate) No, communication Departmental meetings Inter-departmental meetings Inter-departmental meetings with is each individuals represented by department representation at various levels responsibility heads 1 2 3 4 7. Are there effective external communications? (select most appropriate) Communicate with Use suppliers as a source of Active supplier Wide range of external contact for suppliers knowledge for development partnerships to aid marketing and developmental company development activities 1 2 3 4 8. What percentage of staff has undergone some form of professional training via the company? (select most appropriate) None Key staff (e.g. <10%) Training benefit considered on a case by All staff encouraged to request case basis (all staff able to request appropriate training (part of training) company strategy) 0 1 2 3
Innovation and Change 1. Change initiation (select most appropriate) Driven entirely Change Certain individuals Routes for from autocratic encouraged tasked with communicating change management through key identifying potential requirements to employees improvements management 1 2 3 4 2. Research and development (select most appropriate) No R&D facility R&D team put Person responsible Regular R&D team together when new for R&D whose role (run in parallel to projects approved is to find new other company roles) opportunities
All employees considered in managing change 5 Dedicated R&D department
0 1 2 3 4 3. Risk propensity (select most appropriate) Product Product Product development Product development in Product development development to development in in response to market response to market to lead market update products response to request request competitors 1 2 3 4 5 4. Rate of development (relevant to industry and size); (select most appropriate) Less than direct Less than industry average More than direct competitors More than industry average competitors 1 2 3 4 5. Structured development process (select most appropriate) No structured Development Development Development follows Company investigates development follows follows interstructured and proven development best-practice for process autocratic indepartment indevelopment process development programmes house created house created process process 0 1 2 3 4 6. Allowing staff to instigate and develop change (select most appropriate) Resistance to all High High resistance Resistance to Change Change managed forms of resistance to to process technological managed through best-practice change, at all all forms of developments implementation through (e.g. operator levels change at management empowerment; operator level support change champion) 0 1 2 3 4 5 7. Encouragement of creativity (select most appropriate) Changes initiated Changes initiated Creativity encouraged Creativity and changes from top-level only at department head through upward encouraged for consideration level management filtering from all levels 1 2 3 4

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THE IMPACT OF ADVANCED MANUFACTURING TECHNOLOGY ON SMALL WELSH COMPANIES

within the discipline of Design

Andrew T. Walters BA (Hons) Industrial Design

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

Candidate Mr. Andrew Walters Date

Supervisors Dr. Huw Millward Date

Prof. Robert Brown

Dr. Povl Larsen

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

Chapter Two: Literature Review

Chapter Three: Methodology Development

Chapter Four: Stage One Case-Studies

Chapter Five: Individual Case-Study Analysis

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

Chapter Six: Cross Case-Study Analysis

Chapter Seven: Stage Two Methodology Development

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

105 105 113 121 121

Chapter Eight: Stage Two Case-Study K

Chapter Nine: Stage Two Case-Study L

Chapter Ten: Discussion

Chapter Eleven: Conclusions

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

Chapter Twelve: Critical Reflection

196 202 260 289

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

2. RESEARCH AIMS AND OBJECTIVES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

2. A SURVEY OF THE PUBLISHED WORKS ON FMS

Table 2.1. Measurements of different flexibility types (Browne et al., 1984)

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

Flexibility Material Handling Program Market

Table 2.2. Additional flexibility types identified by Sethi and Sethi

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

Purpose To recognise and prioritise the required improvements in flexibility

To relate the potential benefit of acquiring each flexibility type

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

3. A SURVEY OF PREVIOUSLY PUBLISHED LITERATURE ON AMT

PLANNING FOR AMT

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

OPERATIONAL IMPACT OF AMT

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

CRITICAL SUCCESS FACTORS FOR THE IMPLEMENTATION OF AMT

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

RELATIONSHIP BETWEEN SIZE AND AMT ADOPTION

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

COMPARING AMT IMPACT IN DIFFERENT COUNTRIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES

PARTICULAR BARRIERS FOR SMALL COMPANIES

THE IMPACT OF AMT ON SMALL WELSH COMPANIES