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Neural network application in predicting advanced manufacturing technology implementation performance

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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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Correspondence to Rosnah Mohd. Yusuff.

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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