High technology manufacturing in low technology plants

The authors 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. The authors 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.