SUPPLEMENT

Computer-Integrated
Manufacturing

F
LEARNING GOALS

After reading this supplement,

you should be able to:

The popular press often writes about the factory of the

future: a fully automated factory that manufactures a wide
variety of products without human intervention. Although

1. Describe several types of

technologies that comprise
computer-integrated
manufacturing.
2. Discuss the advantages of these
different technologies.

some peopleless factories do exist and others will be built,

the major advances being made today occur in manufacturing
operations where computers are being integrated into the
process to help workers create high-quality products.
Computer-integrated manufacturing (CIM) is an umbrella
term for the total integration of product design and engineering, process planning, and manufacturing by means of complex
computer systems. Less comprehensive computerized systems
for production planning, inventory control, or scheduling are
often considered part of CIM. By using these powerful computer systems to integrate all phases of manufacturing, from
initial customer order to final shipment, firms hope to increase
productivity, improve quality, meet customer needs faster, and
offer more flexibility. For example, McDonnell Douglas spent
$10 million to introduce CIM in its Florida factory. The computer systems automatically schedule manufacturing tasks,
keep track of labor, and send instructions to computer screens
at workstations along the assembly line. Eliminating paperwork
led to an increase of 30 percent in worker productivity. Less
than 1 percent of U.S. manufacturing companies have approached full-scale use of CIM, but more than 40 percent are
using one or more elements of CIM technology.

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COMPUTER-INTEGRATED MANUFACTURING

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One study asked managers how much their com- computer-aided manufacturing (4.0), flexible manufacpanies invest in several of the technologies that com- turing systems (2.5), automated materials handling
prise CIM (Boyer, Ward, and Leong, 1996). The study (2.3), and robots (2.1). Another study across all indusfocused on firms in the metal-working industry (i.e., tries found company expectations for future investprimary metal, fabricated metal, machinery, electronic ments to have the same rank ordering of CIM compoequipment, and transportation equipment), in which nents (Kim and Miller, 1990). Thus, CIM is an important
the use of CIM is believed to be most widespread. The aspect of technology in manufacturing, but it is just
study measured investment on a 7-point scale (1 = no one set of tools that helps many manufacturing firms,
investment and 7 = heavy investment). Computer- even those with high wages, remain competitive in the
aided design received the highest average score (5.2), global marketplace. In the following sections, we
followed by numerically controlled machines (4.8), describe these tools and their potential benefits.

> COMPUTER-AIDED DESIGN AND MANUFACTURING <

computer-integrated
manufacturing (CIM)
The total integration of product design
and engineering, process planning, and
manufacturing by means of complex
computer systems.

computer-aided design (CAD)

An electronic system for designing new
parts or products or altering existing
ones, replacing drafting traditionally done
by hand.

computer-aided
manufacturing (CAM)
The component of CIM that deals directly
with manufacturing operations.

Computer-aided design (CAD) is an electronic system for designing new parts or products or
altering existing ones, replacing drafting traditionally done by hand. The heart of CAD is a powerful desktop computer and graphics software that allow a designer to manipulate geometric
shapes. The designer can create drawings and view them from any angle on a display monitor.
The computer can also simulate the reaction of a part to strength and stress tests. Using the
design data stored in the computers memory, manufacturing engineers and other users can
quickly obtain printouts of plans and specifications for a part or product. CAD cuts the cost of
product development and sharply reduces the time to market for new products. It is revolutionizing in-house design departments, from IBM to Rubbermaid and AT&T to Steelcase. CAD
literacy is now a prerequisite for designers, and investments in it are growing rapidly. Many
company budgets for CAD are three times what they were in 1990. The largest sums are going
for software, with Pro-Engineer clearly approaching a national standard in the United States.
Analysts can use CAD to store, retrieve, and classify data about various parts. This information is useful in creating families of parts to be manufactured by the same group of
machines. Computer-aided design saves time by enabling designers to access and modify
old designs quickly, rather than start from scratch.
The component of CIM that deals directly with manufacturing operations is called
computer-aided manufacturing (CAM). CAM systems are used to design production processes and to control machine tools and materials flow through programmable automation.
For example, researchers at the Technology/Clothing Technology Corporation are developing
a concept to enable clothing manufacturers to create custom clothing. The concept involves
using a computer scan of a customers body and a computer-driven machine to cut the fabric
to fit the customer perfectly. Automated custom clothing goes against established apparel
industry procedures, whereby companies cut dozens of layers of cloth at the same time to hold
down labor costs. However, labor costs account for only 11 percent of the cost of the garment
delivered to the customer. Nonvalue-added handling (including inventory costs) after manufacture accounts for 27 percent, which is the cost category that this technology can reduce. It
also has the advantage of fostering customization and speedy delivery as competitive priorities. For example, Levi Strauss is already using similar, although more cumbersome, technology for womens jeans, and its customers are willing to pay a premium.
A CAD/CAM system integrates the design and manufacturing function by translating
final design specifications into detailed machine instructions for manufacturing an item.
CAD/CAM is quicker, less error prone than humans, and eliminates duplication between
engineering and manufacturing. CAD/CAM systems allow engineers to see how the various
parts of a design interact with each other without having to build a prototype. One of the
more recent and stunning examples is the ability of Boeing to design and build its 777 wide-

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INDUSTRIAL ROBOTS

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F.3

body airframe without any prototype work at all. The first physical version was the actual
plane that test pilots flew in 1994. Boeings engineers used Dassault Systemes software
called CATIA, short for Computer Assisted Three-Dimensional Interactive Analysis. This
French company is one of the most prominent of dozens of software suppliers. Another
example is the K2 Corporation, the largest U.S. manufacturer of Alpine skis, which must continually redesign its products to meet changing customer needs. It produces about 20 different models in 12 different lengths. Its CAD and CAM workstations allow designers to convert
the numerical descriptions for a new ski shape into drawings and tooling designs and to create machining instructions that can be used directly by the milling machines.

> NUMERICALLY CONTROLLED MACHINES <

Numerically controlled (NC) machines are large machine tools programmed to produce
small- to medium-sized batches of intricate parts. Following a preprogrammed sequence of
instructions, NC machines drill, turn, bore, or mill many different parts in various sizes and
shapes. The technology was developed in the early 1950s at the Massachusetts Institute of
Technology to find more efficient methods of manufacturing jet aircraft for the U.S. Air Force.
Currently, NC machines are the most commonly used form of flexible (programmable)
automation. Early models received their instructions from a punched tape or card. Computerized numerically controlled (CNC) machines are usually stand-alone pieces of equipment,
each controlled by its own microcomputer. Since the early 1980s, Japanese industry has spent
twice as much money as North American or European industry on factory equipment, more
than half of which went for CNC machines. NC and CNC machines rank just after CAD in
terms of the most popular CIM technologies.

numerically controlled (NC)

machines
Large machine tools programmed to
produce small- to medium-sized batches
of intricate parts.
computerized numerically
controlled (CNC) machines
Stand-alone pieces of equipment, each
controlled by its own microcomputer.

> INDUSTRIAL ROBOTS <

Robots are more glamorous than NC workhorses. The first industrial robot joined the GM
production line in 1961. Industrial robots are versatile, computer-controlled machines programmed to perform various tasks. These steel-collar workers operate independently of
human control. Most are stationary and mounted on the floor, with an arm that can reach
into difficult locations. Figure F.1 shows the six standard movements of a robots arm. Not all
robots have every movement.
The robots hand, sometimes called an end effector or tool, actually does the work. The
hand (not shown) can be changed to perform different tasks, including materials handling,
spot welding, spray painting, assembly, and inspection and testing. Second-generation

industrial robots
Versatile, computer-controlled machines
programmed to perform various tasks.

FIGURE F.1

Elbow
extension

Robot and Its Standard Movements

Source: Voss, Chris. Managing New
Manufacturing Technologies. OMA
Monograph 1 (September 1986).
Reprinted by permission.

Yaw
Shoulder
swivel

Roll
Pitch
Arm sweep

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robots equipped with sensors that simulate touch and sight have spawned new applications.
For example, robots can wash windows, pick fruit from trees, mix chemicals in laboratories,
and handle radioactive materials.
The initial cost of a robot depends on its size and function. Other potential costs include
modifying both product and process to accommodate the robot, preparing the worksite,
installing and debugging the robot, and retraining and relocating workers. Benefits from
robot installation include less waste materials, more consistent quality, and labor savings.
Robots are the drudges of the workforce, performing highly repetitive tasks without tiring,
taking a lunch break, or complaining.
By the late 1980s, there were more than 20,000 robots in North America, 28,000 in Europe,
and 80,000 in Japan. The conversion of U.S. industry to robots has fallen short of expectations:
Less than 30 percent of manufacturers have even moderate experience with robots. One possible
reason is that U.S. employers have not faced a labor shortage, whereas in Japan a limited supply
of workers led the government to subsidize robots. Cincinnati Milacron, the last big U.S. robot
maker, recently left the robot business and returned to making basic machine tools. Robotics is
but one of many possible technologies that can be used to gain a competitive advantage.

> AUTOMATED MATERIALS HANDLING <

materials handling
The processes of moving, packaging, and
storing a product.

In both manufacturing and service industries, the choice of how, when, and by whom materials
are handled is an important technological decision. Materials handling covers the processes of
moving, packaging, and storing a product. Moving, handling, and storing materials cost time
and money but add no value to the product. Therefore, operations managers are always looking
for ways to reduce costs by automating the flow of materials to and from an operation.
Whether materials handling automation is justifiable depends on the process. When the
process experiences low volumes and must provide a high degree of customization, job
paths vary and there is little repeatability in materials handling. Such variability means that
workers must move materials and equipment in open-top containers, carts, or lift trucks.
However, when the process experiences high volumes, line flows, and high repeatability,
handling can be automated. In addition, other types of flexible automation are now available
for processes that fall between these two extremes. Lets look at two such technologies: automated guided vehicles and automated storage and retrieval systems.

AGVS
automated guided
vehicle (AGV)
A small, driverless, battery-driven truck
that moves materials between
operations, following instructions from
either an onboard or a central computer.

An automated guided vehicle (AGV) is a small, driverless, battery-driven truck that moves
materials between operations, following instructions from either an onboard or a central
computer. Most older models follow a cable installed below the floor, but the newest generation follows optical paths and can go anywhere with aisle space and a relatively smooth floor.
The AGVs ability to route around problems such as production bottlenecks and transportation blockages helps production avoid expensive, unpredictable shutdowns. Furthermore, AGVs enable operations managers to deliver parts as they are needed, thus reducing
stockpiles of expensive inventories throughout the plant. The automotive industry now uses
AGVs in some plants as mobile assembly stands, primarily for heavy loads. Workers prefer
them to inflexible conveyors because the AGVs do not leave until the workers have done the
job correctly at their own pace. NCR Corporation installed a $100,000 AGV system in one of its
electronics fabrication facilities. Machines run along a 3,000-foot guidepath at 1.5 miles per
hour, ferrying parts between the stockroom, assembly stations, and the automated storage
and retrieval system.

AS/RS
automated storage and
retrieval system (AS/RS)
A computer-controlled method of storing
and retrieving materials and tools using
racks, bins, and stackers.

An automated storage and retrieval system (AS/RS) is a computer-controlled method of

storing and retrieving materials and tools using racks, bins, and stackers. With support from
AGVs, an AS/RS can receive and deliver materials without the aid of human hands. For
example, IBMs new distribution center in Mechanicsburg, Pennsylvania, ships 105,000
spare computer parts and related publications each daya staggering volumeusing an
AS/RS and 13 AGVs. Computer control assigns newly arrived materials to one of 37,240 storage locations. If optical sensors confirm that the materials will fit, the automated system
moves them along to the proper location. Production at this highly automated facility has
increased 20 percent, and accuracy of filled orders has reached 99.8 percent.

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FLEXIBLE MANUFACTURING SYSTEM

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F.5

> FLEXIBLE MANUFACTURING SYSTEM <

A flexible manufacturing system (FMS) is a configuration of computer-controlled, semiindependent workstations where materials are automatically handled and machine loaded.
An FMS is a type of flexible automation system that builds on the programmable automation
of NC and CNC machines. Programs and tooling setups can be changed with almost no loss
of production time for moving from production of one product to the next. Such systems
require a large initial investment ($5 to $20 million) but little direct labor to operate. An FMS
system has three key components:
1. several computer-controlled workstations, such as CNC machines or robots, that perform a series of operations
2. a computer-controlled transport system for moving materials and parts from one
machine to another and in and out of the system
3. loading and unloading stations
Workers bring raw materials for a part family to the loading points, where the FMS takes
over. Computer-controlled transporters deliver the materials to various workstations where
they pass through a specific sequence of operations unique to each part. The route is determined by the central computer. The goal of using FMS systems is to synchronize activities
and maximize the systems utilization. Because automation makes it possible to switch tools
quickly, setup times for machines are short. This flexibility often allows one machine to perform an operation when another is down for maintenance and avoids bottlenecks by routing
parts to another machine when one is busy.
Figure F.2 shows the layout of a typical FMS, which produces turning and machining
centers.1 Specific characteristics of this FMS include the following:

The computer control room (right) houses the main computer, which controls the
transporter and sequence of operations.

Three CNC machines, each with its own microprocessor, control the details of the
machining process.

Two AGVs, which travel around a 200-foot-long oval track, move materials on pallets to
and from the CNCs. When the AGVs batteries run low, the central computer directs
them to certain spots on the track for recharging.

Tool
changer

Tool
changer

Tool
changer

AS/RS

FIGURE F.2

CNC 1

CNC 2

Out In

Out In

Out In

Computer control

Raw material storage

(floor space)

AGV 1

CNC 3
Indexing
tables

AGV 2
Raw material storage
(roller conveyor)

L/U

L/U

Temporary storage areas

(33 pallet spaces)

Load/unload stations

A Flexible Manufacturing System

Source: Courtesy of Vincent Mabert. Reprinted by permission.

1We are indebted to Vincent Mabert for much of the information about this FMS, including Figure F.2.

flexible manufacturing
system (FMS)
A configuration of computer-controlled,
semi-independent workstations where
materials are automatically handled and
machine loaded.

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COMPUTER-INTEGRATED MANUFACTURING

flexible manufacturing cell

(FMC)
A scaled-down version of FMS that
consists of one or a very small group of
NC machines that may or may not be
linked to a materials handling
mechanism.

<

Indexing tables lie between each CNC and the track. Inbound pallets from an AGV are
automatically transferred to the right side of the table, and out-bound pallets holding
finished parts are transferred to the left side for pickup.

A tool changer located behind each CNC loads and unloads tool magazines. Each magazine holds an assortment of tools. A machine automatically selects tools for the next
specific operation. Changing from one tool to another takes only 2 minutes.

Two load and unload stations are manually loaded by workers; loading takes 10 to
20 minutes.

An automatic AS/RS (upper right) stores finished parts. The AGV transfers parts on its pallet to an indexing table, which then transfers them to the AS/RS. The process is reversed
when parts are needed for assembly into finished products elsewhere in the plant.

This particular system fits processes involving medium-level variety (5 to 100 parts) and
volume (annual production rates of 40 to 2,000 units per part). The system can simultaneously handle small batches of many products. In addition, an FMS can be used a second way:
At any given time, an FMS can produce low-variety, high-volume products in much the same
way that fixed manufacturing systems do. However, when these products reach the end of
their life cycles, the FMS can be reprogrammed to accommodate a different product. This
flexibility makes FMS very appealing, especially to operations where life cycles are short.
Since the first FMS was introduced in the mid-1960s, the number installed worldwide
has grown to almost 500, with about half of them either in Japan or the United States and the
other half in Europe. A much more popular version of flexible automation is the flexible
manufacturing cell (FMC), which is a scaled-down version of FMS that consists of one or a
very small group of NC machines that may or may not be linked to a materials handling
mechanism. The FMC doesnt have a materials handling system controlled by a computer,
which moves parts to the appropriate machines, as does the more sophisticated FMS.

> DISCUSSION QUESTIONS <

1. Through widespread use of robots, an automobile manufacturer improved its global competitiveness and economic success. Much of the savings resulted from reducing its workforce from 138,000 to 72,000. There was a
human cost of displaced workers, however, and displaced
employees had a difficult time finding new jobs. Was the
automation decision defensible on ethical grounds? What
steps can a firm take to be a responsible and ethical
employer when cutbacks are necessary?
2. The central problem of Americas economic future is that
the nation is not moving quickly enough out of high-volume,
standardized production. The extraordinary success of the
half-century of the management era has left the United
States a legacy of economic inflexibility. Thus, our institutional heritage now imperils our future.

This quote from Robert Reich, an economist appointed

Secretary of Labor by President Clinton, suggests that U.S.
managers were not moving rapidly enough away from
high-volume mass production. If so, into what type of
production or other type of business should they have
been moving? Keep in mind that the U.S. economy was
already dominated by services and that people could not
all sell one another insurance. What is the relationship
between high-volume standardized production and economic inflexibility? What characterized the corporate
investment decisions of the 1980s? Were those investments generally guided by a desire to increase economic
flexibility?

> SELECTED REFERENCES <

Adler, P. S. Managing Flexible Automation. California Management Review, vol. 30, no. 3 (1988), pp. 3456.

omy. Journal of Operations Management, vol. 14 (1996),

pp. 297313.

Ayers, Robert U., and Duane C. Butcher. The Flexible Factory

Revisited. American Scientist, vol. 81 (SeptemberOctober
1993), pp. 448459.

Cohen, Morris A., and Uday M. Apte. Manufacturing Automation. Chicago: Irwin, 1997.

Boyer, Kenneth K., Peter T. Ward, and G. Keong Leong. Approaches to the Factory of the Future: An Empirical Taxon-

Foston, A., C. Smith, and T. Au. Fundamentals of Computer

Integrated Manufacturing. Englewood Cliffs, NJ: Prentice
Hall, 1991.

>

Gerwin, Donald. Dos and Donts of Computerized Manufacturing. Harvard Business Review (MarchApril 1982),
pp. 107116.
Gold, Bela. CAM Sets New Rules for Production. Harvard
Business Review (NovemberDecember 1982), pp. 8894.
Groover, Mikell P., and E. W. Zimmers, Jr. CAD/CAM: ComputerAided Design and Manufacturing. Englewood Cliffs, NJ:
Prentice Hall, 1984.
Holusha, John. Can Computers Guarantee Perfectly Fitted
Clothes? Cyber Times (February 19, 1996).

SELECTED REFERENCES

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F.7

Nemetz, P. L., and L. W. Fry. Flexible Manufacturing Organizations: Implications for Strategy Formulation and Organization Design. Academy of Management Review, vol. 13, no. 4
(1988), pp. 627638.
Noori, Hamid. Managing the Dynamics of New Technology:
Issues in Manufacturing Management. Englewood Cliffs, NJ:
Prentice Hall, 1990.
Rosenthal, Stephen. Progress Toward the Factory of the Future. Journal of Operations Management, vol. 4, no. 3 (1984),
pp. 203229.

Jaikumar, Jay. The Boundaries of Business: The Impact of

Technology. Harvard Business Review (SeptemberOctober
1991), pp. 100101.

Stecke, Kathryn E., and James J. Solberg. Loading and Control

Policies for a Flexible Manufacturing System. International
Journal of Production Research, vol. 19, no. 5 (1981),
pp. 481490.

Kim, Jay S., and Jeffrey G. Miller. The Manufacturing Futures

Factbook: 1990 U.S. Manufacturing Futures Survey. Boston
University, 1990.

Venkatesan, Ravi. Cummins Engine Flexes Its Factory. Harvard

Business Review, vol. 68 (MarchApril 1990), pp. 120127.

Melnyk, S. A., and R. Narasimhan. Computer Integrated Manufacturing: Guidelines and Applications from Industrial Leaders. Homewood, Ill.: Business OneIrwin, 1992.