Fundamentals of Management, 8th ed

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Thermostat

tests air

(sensor)

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F I G U R E 1 5 . 2

A Simple Automatic Control Mechanism

All automation includes feedback, information, sensors, and a control mechanism.

A simple thermostat is an example of automation. Another example is Benetton’s

distribution center in Italy. Orders are received, items pulled from stock and

packaged for shipment, and invoices prepared and transmitted, with no human

intervention.

computer-assisted

manufacturing

A technology that

relies on computers

to design or

manufacture

products

Chapter 15: Managing Operations, Quality, and Productivity

4 6 7

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Flexible manufacturing systems (FMSs) usually have robotic work units or worksta-

tions, assembly lines, and robotic carts or some other form of computer-controlled trans-

port system to move material as needed from one part of the system to another. Ford

Motor Company used FMSs to transform a factory producing nothing but low-cost

compact cars into a plant capable of making a variety of pickup trucks and SUVs.

Using traditional methods, the plant would have been closed, its workers laid off, and

the facility virtually rebuilt from the ground up. But by using FMSs, Ford was able to

keep the plant open and running continuously, while new equipment was being installed

and its workers were being retrained in small groups. Ford continues to be a pioneer in

FMS as it adjusts plant capabilities to produce pickups, SUVs, or small hybrids,

depending on fluctuations in market demand and supply.

These systems are not without disadvantages, however. For example, because they

represent fundamental change, they also generate resistance. In addition, because of

their tremendous complexity, CAD systems are not always reliable. CIM systems are so

expensive that they raise the breakeven point for firms using them. This means that the

firm must operate at high levels of production and sales to be able to afford the systems.