Manufacturing technology audit: is your plant's technology adequate?
by R. Balachandra
International Journal of Vehicle Design (IJVD), Vol. 16, No. 4/5, 1995

Abstract: US manufacturing was on the decline in the 1970s and 1980s, and has not been competitive except in a few industries. A major factor contributing to this situation is thought to be the employment by firms of inappropriate or inefficient manufacturing technology. According to a report by the US President's Commission on Industrial Competitiveness, the US ranked twelfth in sophistication of production technologies in the 1980s. Firms need to constantly update their manufacturing technology (MT) to remain globally competitive. To determine whether there is a need for updating a plant's technology to make it globally or locally competitive, one needs to determine the plant's current technological level in relation to competition and the environment. A manufacturing audit helps in such determination. Two measures are used in the manufacturing audit - Technology Need and Technology Gap. This paper presents a framework to determine these two measures for a manufacturing firm. An analysis of the levels of these measures can suggest actions to maintain and upgrade a firm's technological level to suit a competitive environment. The paper describes the analysis and shows its application in an actual situation.

Online publication date: Wed, 28-May-2014

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