Abstract
Advanced Manufacturing Technology (AMT) adoption can be complex, costly, and risky. Companies need to assess and evaluate their current conditions with that of AMT requirements to identify the gaps and predict their performance. Such an approach will facilitate companies not only in their investment decisions, but on the actions needed to improve performance. The lack of such an approach prompted this study to develop an Artificial Neural Network (ANN) classification and prediction model that can assist companies especially Small and Medium size Enterprises (SMEs) in evaluating AMT implementation. Data were collected from a survey of 140 SMEs. Using cluster analysis, the companies were classified into three groups based on their performance. Then, a feed-forward NN was developed and trained with back-propagation algorithm. The results showed that the model can classify companies with 72% accuracy rate into the three clusters. This model is suitable to evaluate AMTs implementation outcomes and predict company performance as high, low, or poor in technology adoption.
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Acknowledgments
The research was supported by a grant from the Ministry of Science, Technology, and Innovation (MOSTI) under the 9th Malaysian plan.
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Appendix
Appendix
1. The level of technologies or practices utilized in company |
Stand-alone Technologies |
Computer-aided manufacturing |
Computer-aided design |
Computer-aided engineering |
Computer-aided process planning |
Computerized numerical control |
Programmable logic control |
Pick-and-place robots |
Materials working lasers |
Bar code |
Intermediate technology |
Automated storage/retrieval systems |
Automated material handling systems |
Automated inspection and testing |
Integrated technology |
Flexible manufacturing cells/systems |
Computer-integrated manufacturing |
Electronic data interchange |
Manufacturing resources planning |
Total quality management |
Enterprise resource planning |
2. The extent a company emphasize on these methods for justifying a new technology |
Economic approach |
Payback period (PP) |
Return on investment (ROI) |
Internal rate of return (IRR) |
Net present value (NPV) |
Cost-benefit analysis (CBA) |
Strategic approach |
Analysis of technical importance |
Analysis of business objectives |
Comparison with competitors |
Analytic approach |
Value analysis (VA) |
Risk analysis (RA) |
3. The importance of implementing the following strategies |
Flexibility strategy |
Develop and produce new products |
Provide extensive customer service |
Switch quickly between productions |
Offer customized products |
Cost strategy |
Price basic products below competitors |
Improve operating efficiency |
Reduce operating costs |
Delivery strategy |
Provide fast, on-time deliveries |
Reduce production lead time |
Quality strategy |
Improving product reliability |
Maintain the plant’s reputation |
4. To what extent these practices describe your company culture |
Flexibility oriented |
Company is personal, like an extended family |
Company is dynamic and entrepreneurial |
The head of company is considered to be a sage |
The head of company is considered to be an entrepreneur |
Company is toward loyalty and tradition |
Company is toward commitment to innovation and development |
Company emphasizes human resources |
Company emphasizes growth and acquiring new resources |
Control oriented |
Company is formalized and structured |
The head of company is generally considered to be a coordinator |
Company is production oriented |
The head of company is generally considered to be a producer |
Company has formal rules and policies |
Company emphasis on tasks and goal accomplishment |
Company emphasizes permanence and stability |
Company emphasizes competitive actions and achievement |
5. Company emphasizes on these human resource practices |
Having multi-skilled production workers |
Emphasizing teamwork activities |
Pre-installation training for all project participants |
Training are given to employees during their work life |
Employee participation in all stages of the implementation process |
The presence of technological champion |
Employment security as basic platform for change |
Motivate employees with compensation programs (rewards, bonus,…) |
Worker empowerment |
Management efforts to effect culture change and to support and guide the development process |
6. The extent to which data transactions between the following pairs of processes are accomplished |
Between product design and process planning (i.e. CAD data directly linked to CAPP) |
Between product design and manufacturing (i.e. CAD data directly controlling production equipment such as CNC machines, robots) |
Between product design and production planning (i.e. parts data from CAD linked to MRP software) |
Between process planning and manufacturing (i.e. CAPP schedules control equipment like CNS or FMS) |
Between production planning and manufacturing (i.e. production schedules generated by MRP controlling production equipment) |
Between product design and process planning (i.e. CAD data directly linked to CAPP) |
7. Change of company’s performance after AMT implementation |
Operator autonomy |
Use of work teams |
Worker’s skill level |
Product quality |
Product innovation |
Process flexibility |
Efficiency |
Reliability |
Lead time |
Flow of work |
Communication |
Integration of business activity |
Management control |
Met organizational goals |
Customer satisfaction |
Sales growth |
Market share |
Return on Investment (ROI) |
Return on sales (ROS) |
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Saberi, S., Yusuff, R.M. Neural network application in predicting advanced manufacturing technology implementation performance. Neural Comput & Applic 21, 1191–1204 (2012). https://doi.org/10.1007/s00521-010-0507-0
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DOI: https://doi.org/10.1007/s00521-010-0507-0