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LITERATURE REVIEW
2.1 Introduction
In this chapter, facts and finds of some research subjects by the work of experts and
practitioners that will support the research question are defined and explained.
Apparently, this chapter divided into five sections, there are definition of AMT,
classification of AMT, types of technology, manufacturing capability and the previous
study.
There are many researchers have defined AMT in different perspective. There is no
exact definition or perspective on AMT. Therefore, Industry Canada (2002), defined
AMT as a key enabler to help manufacturers meet the productivity, quality and cost
reduction demands of competitive global markets. On the other hand, Sun (2000),
defined AMT as computer-aided technologies used in manufacturing companies.
According to Teng & Seetharaman (2003), AMT involves new manufacturing
techniques and machines combined with information technology, microelectronics and
new organizational practices in the manufacturing process. In general, AMT is defined
AMT have been classified into many different types of classification by many
researchers which are relevant for this study. Therefore, the Table 2.1 provided with
those different types of AMT classification.
Classification
Description
Types of Technology
Kotha,
(1991)
Product design
technology
(PDT)
Process
technologies
(PT)
Logistics/
Planning
technologies
(LPT)
Information
exchange
technologies
(IET)
Author
Classification
Description
Types of Technology
Kotha &
Swamidass,
(2000)
Information
exchange and
planning
technology
(IEPT)
Assist in information
exchange and production
planning and control
Product design
technology
(PDT)
Correspond to product
design dimension
High-volume
automation
technology
(HVAT)
Low-volume
flexible
automation
technology
(LVFAT)
NC/CNC machines,
programmable controllers,
CAD/CAM and FMC/FMS
Direct AMT
Indirect AMT
Administrative
AMT
Dangayah
&
Deshmukh
(2003)
Small,
(2007)
Stand-Alone
Systems
Intermediate
Systems
Integrated
Systems
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From the relevant types of classification of AMT, it can be concluded that the
concept of AMT depends on various contexts and situation. However, the similarities for
all these classification types of AMT are that the identification of the types of
technologies which are used to develop assessment models for AMT.
For the purpose of this study, the classification from Kotha & Swamidass (2000),
is chosen as the model. The reason for choosing this classification is because this is the
updated classification of Kothas and completed among others classification. The chosen
AMT classification has four dimensions such as Information exchange and planning
technology (IEPT), product design technology (PDT), high-volume automation
technology (HVAT) and low-volume flexible automation technology (LVFAT).
According to Kotha & Swamidass (2000), there are many types of technology included
in the classification of AMT. The following are the types and explanation of those
technologies.
Network is interconnection of computers. Small networks are often called Local Area
Network (LAN). LAN is a network allowing east access to other computers and it is
physically limited distance that is about less than 2KM (Pavani et al., 2012). LAN
divided into two categories, there are:
LAN for factory use denotes the network employed to exchange information between
different points on the factory floor.
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LAN technology for technical data is imploded to exchange technical data. This data
exchange will occur within design and engineering departments.
This technology includes computers that perhaps dedicated to control. But for other
functions these computers are capable of being reprogrammed. It excludes computers
imbedded within machines, or computers used solely for data acquisition or monitors.
This systems use computers and computer modules for controlling the entire
manufacturing system from order entry through scheduling, inventory control, finance,
accounting, accounts payable and so on.
CAD and CAE use computers for drawing and designing parts or products and for
analysis and testing of designed parts or products. Park et al., (2003), states that CAD
and CAE have the ability of integration. But, many of this is often stand-alone systems
that are not intended for integration use. Engineering designers and analysts tend to use
CAD for design and other CAE for analysis (Sun et al., 2007).
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This technology denotes the use of computers for inspecting incoming materials. Part
and product inspection is evolving to be an important module of integrated
manufacturing. Therefore, it is help to control production and achieve the desired quality
rather than a means of rejection at the end (Fiona et al., 2009).
This use sophisticated robots that can handle tasks such as wilding or painting on an
assembly line. Here trajectory control is available. According, Pires et al., (2009), these
robots are usually provided with a teaching pendant and PC-based offline programming
interface connected to its controller. Thus, the programming robots process usually
unintuitive and time-consuming.
Pick and place robots a simple robot, with 1, 2, or 3 degrees of freedom, which transfers
items from place to place by means of point-to-point moves. Little or no trajectory
control is available. Huang et al., (2007), state that in order to achieve high productivity,
it is desirable for pick-and-place robots to follow a specified geometric path that gives
the minimum time motion.
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Programmable controllers are solid state industrial control device that has programmable
memory for storage of instructions, which performs functions equivalent to a relay panel
or wired solid state logic control system.
Use CAD/CAM output for controlling machines used in manufacture of the part or
product. According Ping-Yi et al., (2001), CAD/CAM is capable of handling geometric
information for a product throughout its life cycle. CAD/CAM ensure the design
consistency during the process of product design, engineering analysis, engineering
simulation, up to product manufacturing and make information be directly transmitted
among computers (Hui-Fen et al., 2002).
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Manufacturing capabilities is defined as activities that a firm can do better than its
competitors (Hayes & Pisano, 1996).Whereas it is, to enable a manufacturing company
sustaining a superior performance position in the capability relative to competitors
(Mclvor, 2008). Organizations increasingly become skilled in manufacturing products
and services which enhance the existing knowledge regarding technologies, procedures,
processes and market inputs through manufacturing capabilities (Benner & Tushman,
2003). Manufacturing capability also enhances both internal and external technological
learning (Mukerji et al., 2010). Manufacturing capabilities are generally categorized in
terms of cost, delivery, flexibility and quality (Hallgren & Olhager, 2006). These
categories explained in detail in the following section.
2.5.1 Cost
According Dangayah & Deshmukh (2003), cost is manufacturings strategic counterpart
to price as a competitive weapon in the marketplace. The task of the manufacturing
function is to provide low cost product, to support the business and the low cost is a
well-established manufacturing capability (Dangayah et al., 2006).
2.5.2 Delivery
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its divided into two dimensions such as dependable delivery(all ordered products should
be produced and delivered in time and in ordered quantities) and delivery speed
(Dangayah et al., 2006). For delivery, some of the performance measures are the number
of changes in time periods, performance delivery and machine availability (Yurdakul,
2002).
2.5.3 Flexibility
2.5.4 Quality
Quality is a variable associated with a firms ability to provide superior products
(Dangayah & Deshmukh, 2003).Quality refers to increased uniformity, consistency in
product and easiness in product testing (Ariss et al., 2000). Moreover, quality is a
variable associated with a firms ability to provide superior products (Dangayah et al,
2006). According Garvin (1993), quality refers to all physical aspects of the process and
product or service delivered. He suggested a list of dimension of quality: performance,
features, reliability, conformance, durability, serviceability, aesthetics and perceived
quality.
Therefore, due to time limitation the researcher for this research specifically
choosing quality to be the main criteria and proceed the study into quality performance.
Moreover, the reason for choosing quality performance specifically; because, according
Edly et al., (2007), it is been always a major discussion issues for the need to improve
quality performance due to competitive pressure in manufacturing companies. So that,
each manufacturing companies must be able to identify the current quality performance
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in order to achieve the higher competitiveness level. The indicators for quality
performance are product/service quality, productivity, cost of scrap and rework, delivery
lead-time of purchased materials, and delivery lead-time of finished products to
customers (Kaynak, 2003).
Kotha & Swamidass (2000), state that one of the AMT dimension; IEPT empirically
combines the Information Exchange Technology (IET) and Process Technology (PT).
Therefore, several studies have been done from the economics viewpoint, finds that
information exchange technology provide higher exchange quality, lower coordination
costs, reduced inventory costs and enhanced strategic and operational benefit
(Mukhopadhyay et al., 2002). At the same time, process technology seen as a long-term
choice for the company. This being an important criterion for these improved product
quality, faster delivery of customer orders and reduced production cost (Idris et al.,
2008).
Product design technology (PDT) is corresponding to product design dimension
(Kotha & Swamidass, 2000). Therefore, computer-aided design (CAD) is used to design
or redesign production tools. The manufacturing layout for a new product may evaluate
using CAD. With built-in computer aided engineering (CAE) capabilities, engineers can
examine and test a CAD design-product, tool and layout from a structural and
engineering viewpoint (Chong et al., 2006). CAD provide higher engineering
productivity, better design quality and fewer mistakes in automated operations (Smith,
2004). Applying CAD also leads to shorter design cycle time, reduces cost and order-todelivery lead time (Chong et al., 2006).
High-volume automation technology (HVAT) is extremely useful and necessary
in high-volume manufacturing of discrete products (Kotha & Swamidass, 2000).
Therefore, technologies such as computer-aided quality control and robotics provide a
better quality of production and fasten the production process; while reduce the cycle
time in a company (Lewis et al., 2002).
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2.7 Conclusion
This chapter has outlined and reviewed the literature reviews that are available to
researcher applicable the context of this study. Therefore this study will be focusing on
Advanced Manufacturing Technology (AMT) and quality performance in Malaysian
manufacturing companies to investigate the relationship between AMT and quality
performance.