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High Technology Manufacturing in Low Technology Plants

John E. Ettlie and Joan Penner-Hahn
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John E. Ettlie: Michigan Business School, The University of Michigan, Ann Arbor, Michigan 48109-1234
Joan Penner-Hahn: Michigan Business School, The University of Michigan, Ann Arbor, Michigan 48109-1234

Interfaces, 1993, vol. 23, issue 6, 25-37

Abstract: We performed a two-year case study on the ramp-up of a large flexible assembly system in a Midwestern automotive components plant. The new system was designed to be a creative replication of technology already in operation in the technology supplier's firm and was purchased under a broad corporate alliance agreement as well as a detailed adoption contract. Although the project met its installation schedule, production targets, and direct labor cost savings objectives, the installation of this innovative, partially-tended assembly system raised several issues and questions regarding the optimal part mix schedule, quality standards, and maintenance schedules. We hypothesize that a curvilinear relationship exists between supplier-user satisfaction and flexibility outcomes. Moderate levels of satisfaction appear to maximize the ratio of part families per hour change-over capability of a new flexible system.

Keywords: industries: transportation equipment; inventory/production: policies; replacement (search for similar items in EconPapers)
Date: 1993
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