 The decision to adopt new technology--Effects on organizational sizeMartin K Starr and Alan J Biloski Omega, 1984, vol. 12, issue 4, 353-361 Abstract: FMS is new technology with many considerations that differ from those familiarly applied to job shop, flow shop and automated flow shop work configurations. A major obstacle to using FMS is that little is known about how to co-ordinate flexible work and transfer activities to obtain a relatively constant flow of marketable output. In the past year, articles on FMS have appeared with increasing frequency. Their emphasis highlights the reduction in variable production costs that FMS promises. This paper describes a different approach, namely, to uncover the effects of FMS technology on optimal organizational size. To achieve this end, we must consider factors other than variable production cost savings. This enlarges the scope of the decision model required to evaluate FMS configurations. The investigation proceeds along two diverse, but complementary paths. One is based on a theoretical model, using non-linear breakeven analysis. The second employs empirical data obtained from industrial users. The theoretical model indicates that FMS requires a larger total output than the system it replaces. Empirical results tend to confirm this finding. In addition, FMS alters other managerial considerations, including appropriate marketing strategies. Date: 1984 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jomega:v:12:y:1984:i:4:p:353-361 Ordering information: This journal article can be ordered from Access Statistics for this article Omega is currently edited by B. Lev More articles in Omega from Elsevier |
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