Advanced manufacturing technology implementation: an examination of organisational factors

Abstract

Amid increased competition associated with globalisation, the South African manufacturing sector has come under increased pressure in recent times, with an associated decline in competitiveness. There has been a strong drive by organisations to invest in innovations in the form of Advanced Manufacturing Technologies (AMTs) in an effort to improve their technological status and performance. While investment in AMTs often has a positive impact on performance, numerous accounts of the AMT not meeting expected benefits have been reported. Inability to effectively extract intended benefits from the AMT is often a result of the complex nature of the process, which requires technological considerations and a strategic approach. The objective of this research was to identify the critical organisational factors that impact AMT implementation and establish the relative importance of the factors to provide a guide to managers implementing AMTs to prepare their organisations for the new technology and extract the intended benefits. The research took the form of a quantitative study guided by a self-developed survey and was carried out on manufacturing organisations operating in South Africa. The survey put forward a set of four critical factors that impact AMT implementation, each defined by a proposed set of sub-factors that were validated as accurate definitions in the research. The research established the importance of the proposed factors in contributing to effective AMT implementation, with top management ability and training and education ranked highest, followed by organisational ability a level below and incentives and rewards occupying the lowest level of importance. The importance of these factors was validated through a correlation established between AMT implementation success and the degree to which the organisational factors are evident within an organisation. Organisational readiness of manufacturing companies in South Africa to effectively implement AMTs was also assessed. AMT Considerations related to the size of the organisation and the type of AMT being implemented are also presented along with a summary of key benefits targeted from AMT implementations. Findings were used to develop a model that presents a guide to highlight areas that need attention within an organisation to assist in the allocation of resources during AMT implementations.