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Diffusion of cim-technologies and trends in work organization
Structural Change and Economic Dynamics, vol. 2, no. 2, 1991
PRACTITIONERS CORNER
DIFFUSION TRENDS CHRISTOPH
OF CIM-TECHNOLOGIES IN WORK ORGANIZATION KOHLER
AND K L A U S
AND
SCHMIERL
The central aim of this paper is to investigate the direction in which work organization is changing with the utilization and integration of computer integrated manufacturing (CIM) components, and the role played by various external and internal context variables and implementation strategies from company to company. Our question is: "will Tayloristic rationalization strategies continue to dominate in central branches of West German industry, or are new ways of integrating functions and tasks being tested on a broad scale?" The basis for answering these questions is an empirical study entitled "Present developments in the application of computer-integrated systems in manufacturing and administration and resultant problems of work organization" carried out by the Institut f/Jr Sozialwissenschaftliche Forschung (ISF), Munich. ~ A few results of the study will be summarized in this paper.
1. INTRODUCTION (i) T h e utilization o f C I M c o m p o n e n t s a n d t h e i r i n t e g r a t i o n is l i m i t e d at p r e s e n t - - a c c o r d i n g to b r a n c h a n d c o m p a n y s i z e - - y e t p r o m i s e s d y n a m i c g r o w t h a n d extensive d i s s e m i n a t i o n in t h e n e a r f u t u r e . (ii) A s far as the d e v e l o p m e n t o f t h e o r g a n i z a t i o n o f p r o d u c t i o n a n d w o r k in association with C I M a p p l i c a t i o n s is c o n c e r n e d , o u r s a m p l e o f 60 c a p i t a l g o o d s c o m p a n i e s yields t h e f o l l o w i n g result: t h e m a j o r i t y o f c o m p a n i e s is p u r s u i n g Address: Institut fiir Sozialwissenschafliche Forschung E.V., Munich, Germany. 1 The study was undertaken as part of the RKW-Project A 161 and was conducted during the period 1986-1988. During the initial phase (winter 1986/spring 1987) approximately 1300 West German companies participated in a broad-scale survey with standardized questionnaires. The major part of the sample (N = 1096) were companies in the capital goods industry which, besides machine building, also includes the electrotechnical iron, tin and metalware, steel construction, light metal construction, rail vehicle construction, shipbuilding, aerospace, and precision mechanics. The survey focused on the following aspects: structure of sales market and production, degree of utilization of CIM components and their integration, goals and degree of goal achievement, training policy, and impact on the company. Out of the 1096 capital goods companies 60 cases with a relatively high level of CIM applications were selected for more detailed interviews with one or more of the company's experts (generally the head of the data-processing or planning department). They were questioned both about CIM implementation and personnel policy aspects, and about present and future job structures for production areas with a high degree of CIM technology utilization. For more details of the survey findings see Lutz et al. (1987) and Schultz-Wild et al. (1989). (~) Oxford University Press 1991 381
382
C. K O H L E R
AND
K, S C H M I E R L
traditional rationalization strategies serving to maintain or even increase the degree of division of labor (functional and task/skill specialization), while making the greatest possible use of the available potential for automation. A sizeable minority of companies is experimenting with new approaches in certain sectors, while only a small innovative minority has realized alternative work structures throughout an entire company. (iii) A closer analysis of our sample shows that there is a large bundle of factors which have an effect on the development and design of the company rationalization strategies which prevail in given instances. This includes the external conditions of a given company (sales and labor market, for example) as well as in-house structures (product and process complexity, level of automation). (iv) It seems, however, that the different strategies of technological and organizational change cannot be adequately explained by internal and external conditions of the companies. Thus we find quite different strategies applied to solve company problems in cases showing a similar constellation of characteristic factors. There can be no doubt that the implementation strategies and processes involved in utilizing CIM components and achieving their integration play an independent role for the development of CIM applications, and the production and work organization. The following dimensions are important in this context: planning concepts (technology, organization, personnel), planning agents (manufacturing, middle management, top management), planning competence (inhouse, supra-company level), participation (persons and groups affected, representatives of employee interests). (v) Observing the course of rationalization in the individual cases, it becomes evident that concepts of personnel management and their actual practice in the implementation process--such as the participation of the representatives of employee interests, comprehensive training in good time--are indeed of strategic importance. The traditional practice of adhering to a merely reactive and selective adaptation of personnel to altered technological and organizational conditions is certain to result in considerable problems. New technologies, and particularly new work structures, may be doomed to failure if the challenge of providing the personnel affected with comprehensive skills and qualifications is not successfully met and the subsequent personnel problems are left unsolved. First we shall deal with the diffusion trends of CIM technologies in the West German capital goods industry and shall then attempt to answer the question concerning the potential direction in which work organization is likely to develop. We shall conclude by indicating an explanation of the different and divergent modernization strategies found in our sample. 2. D I F F U S I O N T R E N D S OF CIM T E C H N O L O G I E S
The fact is that already in the 1970s there were initial attempts in pioneer companies--with regard to the perspectives offered by CIM--to considerably extend the integration of computer and control systems which had been utilized
COMPUTER INTEGRATED MANUFACTURING
383
until then in a more selective and localised manner. In the early 1980s such projects not only gained increasing significance in engineering science circles, but also in industrial practice. In view of the considerable success being reported on all sides in terms of innovation and rationalization 2 one might wonder whether a company without CIM technologies could survive. Examples of this are the introduction of DNC systems or the integration of individual CNC machines with regard to transport and information to form flexible manufacturing cells and flexible manufacturing systems. 3 However, above all, it is the functional expansion of production planning and control systems (PPC) as well as computer integration processes, starting with the design sector and developing in the direction of work planning and machine control ( C A D - C A M ) , which seem to be playing an increasingly important role. 4 Thus we are presently observing the outlines of a new kind of rationalization process. The design of this rationalization pattern, often termed 'systemic' rationalization (Altmann e t a l . , 1986), encompasses individual manufacturing machine shops and departments and tends to extend to the company as a whole. In view of the significance which these new company innovations and rationalization patterns are deemed to hold for economic and industrial development, it is surprising how little is actually known about the ways in which the companies are approaching computer integration, at what speed this is being accomplished, and what effects are arising for design and constellation of production jobs and work organization. The results of our survey in the Federal Republic of Germany provide some information on the following aspects: the present diffusion of computer systems used in manufacturing processes and related services such as planning, control and monitoring; the extent to which various company functions have been integrated by computers; and the speed of diffusion processes in this field of innovation. The following statements are based on approximately 1100 questionnaires filled out by West German companies in the capital goods industry. All-in-all, the use of modern, computer-based technology is not as widespread as one might assume with regard to the on-going discussion among technical and engineering science experts or the information provided by hard- and software manufacturers, e.g. at trade fairs (Fig. 1).
(i) While most companies utilize computers in one form or another, they are only particularly widespread--more than 7 0 % - - i n administrative areas (such as financial and general accounting and pay-roll accounting), i.e. 2 Compare, for example, the illustrative descriptions of successful cases of computer-based industrial automation in Jorissen et al. (1986). 3 Especially with regard to the dynamics of the increasing application of flexible manufacturing systems and cells compare Fix-Sterz et al. (1987). For a more detailed account of the possibilities and effects of this line of technology on employment policies, compare Schultz-Wildet al. (1986). 4 Refer to AWF (1985) for an attempt to clarify the abbreviations and terminology dealing with computer technology.
384 C. KOHLER AND K. SCHMIERL I. Office and Administration Financial/ General Accounting Pay-roll Accounting Cost / PerformanceAccounting Purchasing Sales Materials and Logistics Management Word Processing I1. Production Related Services Product Development/ Design (CAD) Work Planning/ Programming (CAP) Production Planning and Control (PPC) Production Data Acquisition (PDA) Quality Assurance (CAQ) III. Shop Floor Manufacturing Systems CNC-Machine Tools Other CNC-Machines DNC-Operation of Several Machines FlexibleManufacturing Cells (FMC) FlexibleManufacturing Systems (FMS)
3 ]
[~ realizedby 1986/87
IV. Transport / Assembly / Parts Handling
Planned by 1986/87
Material Handling / Industrial Robots Automated Storage a. RetrievalSystems (ASRS) Material Flow Systems (FTS for example) AssemblySystems
l I
I
I
I
I
I
I
I
I
1%
10 20 30 40 50 60 70 80 90 100
FIG. 1. Utilization rates of computer based technologies--1986-87 realized or planned-West German capital goods industry (N = 1096).
fields in which computer systems have been developed and available on the market for a long time. (ii) While CNC machine tools and other numerically controlled machines are fairly widespread (in about half of all companies and in approximately two-thirds of the mechanical engineering companies), the percentage of companies which have installed the more modern and complex machine
COMPUTER INTEGRATED MANUFACTURING 385 and control systems, namely flexible manufacturing cells (FMC), flexible manufacturing systems (FMS) or DNC systems, is less than 4%. (iii) Other CIM components, such as industrial robots/automatic material handling systems (8.6%), computer based assembly systems (5.1%), storage (4.8%) and material flow systems (0.7%) still have rather low diffusion rates (in the sense of the application of at least one system per company).
Less than one-fifth of the companies currently use computers in areas which can be termed collectively as production related services and/or company functions such as planning, control, and monitoring, which in many cases are regarded as being the key functions of future CIM structures. A total of 15-17% of all companies employ PPC 5, CAP 6, and CAD 7 systems, while PDA 8 systems are utilized in 10% of the companies and only 8% use computer-aided quality assurance (CAQ). At present, however, the application of computers and CIM components is increasing considerably in certain administrative areas as well as in productionrelated services: according to the planning intentions of the companies, diffusion rates in areas such as design, work planning, manufacturing scheduling, etc., will approximately double by 1988/90, which means that about one-third of the companies will soon be fulfilling these functions with the help of computers. With regard to all functions, computer applications are more widespread in large companies than in small ones. This implies that relatively larger numbers of employees are potentially affected by these new technologies than would be indicated by the company diffusion rates. However, an increasing number of medium- and even small-size companies are becoming engaged in the introduction of relevant new technologies (such as PPC systems). Viewed from this perspective, there will be a considerable increase in the utilization of computer technology starting with large companies, and extending through the medium size companies right down to small size companies. Thus, for example, there is a remarkably high rate of medium-size companies (with 100-500 employees) planning to venture into computer-based work planning/programming (CAP, Fig. 2) or production planning and control (PPC, Fig. 3) during the period between 1988 and 1990. Computer integration, in the sense of on-line connections between various functional areas of a given company, is just beginning to spread. By 1986/87 only 9% of the companies had established at least one integration line between different functions. An increased pace of development is also to be expected in this area: regarding the planning activities, more than one fifth (23%) of the 5 Computer aided production planning and control systems, also termed manufacturingrequirements planning(MRP). 6 Computeraided work planningand programming. 7 Computeraided design (and engineering). s Computerizedproductiondata acquisition.
386
C. K O H L E R
AND
K. S C H M I E R L
10090~ I ~ Fr 80 --~1 I I
PlannedbY1986/87. . . . . . . Realizedby1986/87
7O 6O
5O 4O 3O 2O 10
1-19
20-49
50-99
100-199 200-499 500-9991000+
Companysize FIG. 2. Computer utilization rates in work planning/programming (CAP)--West German capital goods industry (N = 1096). companies are engaged in establishing computer integration. Efforts are concentrating on the integration lines of CAP-PPC, CAD-PPC and PPC-CAM (see Fig. 4). These survey findings indicate clearly--for the entire capital goods industry as well as for mechanical engineering--that, while the process of factory automation being discussed under the term CIM is still in its infancy, there are changes in progress in precisely those areas which the labor policy debates on 'new production concepts' (Kern and Schumann, 1984), (re-)qualification of industrial work, etc., are presently focusing on. 3. T R E N D S IN WORK O R G A N I Z A T I O N
Changes in work organization should not be seen deterministically as being directly precipitated by technological developments. First of all, technological systems are always compatible with various different work organization patterns. Secondly, impulses for change may emanate not only from technology itself, but also from sales and the labor market or from changes in intra-company or inter-company power structures. Thus we are not dealing with 'the' effects of 'the' integration of computers, but with changes in connection with the utilization of CIM technology.
COMPUTER
INTEGRATED
MANUFACTURING
387
1 O0 _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 80 7O 60 50 4O 3O 2O 10 0 1-19
20-49
50-99
100-199 200-499 500-999 1000+
Company size FIG. 3. Computer utilization rates in production planning and control (PPC)---West German capital goods industry (N = 1096).
The basis of work organization is the distribution of tasks to jobs or--in other words--the division of labor. Here we can distinguish between a functional and a task (skill) dimension. The functional division of labor includes the differentiation of job functions such as quality control, maintenance, tool presetting, production planning and control, programming, etc., into independent organizational units. The division of labor according to tasks (skills) refers--both in the horizontal and the vertical dimension--to the extent to which the work is divided up within the organizational units. A strong horizontal division of labor generally also involves a strong vertical division of labor (hierarchy). Skill requirements for jobs are directly linked to the complexity of the demands of a job. This complexity is in turn dependent upon the way in which the division of labor is organized according to functions and tasks. We surmise that during the postwar period, German industry has been dominated by the Tayloristic rationalization strategies. These are characterized by the progressive elimination of human work through automation, coupled with an increasing division of labor in terms of functional and task specialization. This rationalization strategy did not assert itself equally in all branches of industry. In the field of machine building, for instance, complex products, small batch sizes, and complicated production sequences, coupled with constantly changing market requirements in terms of company flexibility and quality, built barriers to an
388
C. K O H L E R
AND
K. S C H M I E R L
Computeraidea devela~O dl~nent desicln (CAD)
1,7 (lo,6)
1,5 (5,1) I
computeraided production planning and corKrol (PPS)
__) (9,3 2,1 / ~J
/
"~
2,7 (8,9)
2,7 (8,1)
t
systems aloeo in manuracturin.cl and/or assembly (CAM)
Com puteraloeQ
work planning ano/or. pr ra.m_.mmg
3,3 (7,5)
0,9 (3,7)
1,2 (4,6)
Computeraided quality assurance (CAQ)
1,5 (4,7)
_l
3,9 (lo,8) FIG. 4. Computer integration--in 1986/87 realized or planned--West German capital goods industry (N = 1096). The figures refer to the number of companies (in %) with computer integration between two functional areas, independent of whatever other integration lines may exist; the percentages of companies planning such integration is stated in brackets.
extreme separation of conception and execution. Nevertheless, even in this industry, the last 40 years can be described as a process of progressive standardization and specialization of functions and skills. There is no doubt that Tayloristic concepts and strategies dominated technological and organizational change. For a detailed empirical survey of such a differentiated and complex aspect of companies as work organization, written questionnaires are totally inadequate. We shall therefore base our findings on short case studies, focusing particularly on manufacturing departments with a high rate of computer utilization among the 60 capital goods companies investigated. The main points of reference were the development of division of labor according to functions and skills, on the one hand, and the concepts for rationalization put forward by the managers interviewed, on the other. Following the trends in the division of labor and the dominant rationalization strategies, we can distinguish three types of companies. (i) Conservative companies seek to stabilize or indeed extend existing division of labor according to functions and skills. In this sense Tayloristic rationalization strategies predominate.
COMPUTER INTEGRATED MANUFACTURING 389 (ii) Experimenting companies operate similarly to their conservative opposites with Tayloristic rationalization principles. However, in partial areas of production they are prepared to experiment with alternative structures with regard to task specialization and, to some degree, functional specialization. (iii) Innovative companies all deviate from the Tayloristic rationalization paradigm in central areas of their production and work organization.
3.1. Conservative Companies At least half of the 60 cases investigated can be classified as the conservative type of company. In these companies existing, highly differentiated and centralized administrative structures are maintained or indeed further consolidated; this is accompanied by a high degree of division of labor according to functions and skills as reflected in the separation of planning, controlling and production work and in the large degree of specialization among manufacturing personnel. These forms of work and production organization also influence the selection and utilization of CIM components. Centralistic CIM structures back up the more or less marked degree of division of labor and partially even reinforce it. In our sample, conservative rationalization strategies were to be found, for example, in machine building companies with small and medium sized batch production. One enterprise in this category produces relatively complex program products with a large number of variants and adaptations tailored to specific customer requirements (1400 employees). The firm has been expanding steadily for many years and utilizes a broad spectrum of CIM components. One of the company's plants was studied more closely. It manufactures cylindrical and rectangular moulded parts in line production. Flexible manufacturing systems are utilized almost throughout; even transport between the systems is to a large degree automated. Process control and shop floor scheduling are handled by a highly differentiated and centrally coordinated computer hierarchy. The NC programs for controlling the machines are compiled in the office and transmitted to the machines via DNC. Production and work organization were based on a high degree of division of labor, although the company can rely on a well-trained body of skilled workers. Thus, not only planning and control, but also maintenance, machine tool presetting, etc., are all carried out only by specialized departments. There is a marked degree of division of labor within these flexible systems. Semi-skilled workers handle the mounting of parts. Specialized skilled workers are responsible for the pallet fixtures and for setting individual machines. Spare men serve to bridge personnel gaps. A next step in automation will probably do away with the mounters' jobs. There is no discussion of reintegrating the highly differentiated tasks or for introducing forms of group work. 3.2. Experimenting Companies Traditional methods of differentiation, specialization, and control also play a predominant role in at least another third of the companies with experimental
390 C. KOHLER AND K. SCHMIERL rationalization strategies. By contrast with the conservative type of company, this group of companies tends to experiment with principles of production and work organization which constitute a break with traditional Tayloristic procedures However, the search for alternatives is limited to individual departments or lines of technology. Experimenting companies usually start the changes of production and work organization in manufacturing areas with special requirements; for instance, on the shop floor where either extreme precision or speed and fast reactions are required of manpower. These experiments are frequently so successful that they are gradually extended to other parts of the manufacturing process. An example of the experimenting group is a machine building company with 700 employees in which complex program products are manufactured by a skilled workforce in small batches with variations to fit customers' specific requirements. Frequent, rapid changes in market requirements force this company to attempt to reduce throughput times and to meet narrow deadlines. For this purpose decentralized shop-floor control centers (Leitst~inde) are to be equipped with interactive terminals so that the schedule supervisors can call up sales orders and assign them to the machine operators themselves. In order to increase flexibility in several areas of production (e.g. in CNC tin processing, in assembly and in a flexible manufacturing cell), a start has been made to restructure work organization towards semi-autonomous groups. These groups are given the opportunity to schedule their work independently within a certain time frame. Furthermore intra-company just-in-time concepts are being tested for conferring planning authority and the responsibility for meeting deadlines upon individual teams. Quality circles are also planned for the near future. In other areas within the company, however, there is a tendency towards centralizing areas of authority: here the PPC system stipulates detailed sequences of production orders for the shop-floor. 3.3. Innovative Companies The remaining 10% are companies of the innovative type. These are companies which not only experiment with alternative forms of work organization in individual departments, areas or functions, but which are restructuring the entire manufacturing operations towards non-Tayloristic, integral, and skill enhancing forms of work. As a rule this means that production work is upvalued in terms of skill levels as a consequence of a (re-)integration of planning functions which were in the past performed by the technical offices. Furthermore, it involves the utilization of shop-floor and skilled worker-oriented CIM technologies like those which are already being offered in the area of CNC programming or interactive scheduling. Examples of these kinds of reorganization measures can be found particularly in cases where planning and decision making powers have been decentralized to production departments. In this respect, companies with generalized structures of 'manufacturing islands' (sometimes discussed as the 'factory within the factory') are exemplary. Here intra-company organizational changes, such as the transition
COMPUTER INTEGRATED MANUFACTURING 391 to 'group technology' are combined with experiments in work organization towards skilled group work. An overall reduction in division of labor according to functions and skills was also found in companies with classical job shop and line production. The impulse for such 'radical' changes stems from often dramatic crises in a corporation due, among other things, to excessive overheads. A typical case is an electronics company, manufacturer of special highperformance semiconductors and complex components, occupying a market niche, where some years ago the economic situation was so disastrous that without comprehensive changes there was no hope of fundamental improvement. The manufacturing process in this company with 600 employees is characterized by two different sections: the manufacture of chips in a continuous production process is highly automated; subsequently, the chips are integrated into the corresponding components in an assembly line with a large amount of manual labor. There are two reasons why the company cannot achieve a high degree of automation in its assembly process; on the one hand, the automation technology necessary is at present too expensive and uneconomical and is likely to remain so in the foreseeable future; on the other, it is frequently necessary to be able to attend adequately to subsequent customers' specifications. In order to be able to fulfill such market requirements, the firm, whose basis is a labor system which might best be characterized as semi-skilled production, relies mainly on the human potential for flexibility. In accordance with this philosophy, the company pursues a clear training and restructuring policy whereby the--mainly unskilled female--assembly workers are given systematic training with a view to establishing a workforce with a homogeneous degree of skills. The female workers are thus given the opportunity and the necessary degree of skill for-a relatively free hand in the allocation of tasks among themselves. They should also be able to fulfill other tasks on their own which previously had been removed to other departments, such as the preparation of measuring systems, transport jobs, quality control, and maintenance work. In order not to jeopardize this policy and the scope for autonomous action it has facilitated, the PPC system contains no rigid scheduling module. Analogously, the PDA system asks only for aggregated and non-personal data. These are sufficient for scheduling purposes; they are not needed for setting wages since all workers are employed on a timework rate. A similar case is that of a machine building company with 550 employees. Prior to the reorganization of manufacturing it suffered a critical state of instability due to an 'unfavorable cost situation within its own manufacturing department' and almost went into bankruptcy. Under the guidance of a charismatic and dominant managing director, production of complex program products for road construction, manufactured in small batches, was fundamentally reorganized with the purpose of reintegrating conception and execution and achieving a flexible utilization of manpower. Due to high overheads, the production planning departments and technical offices wee reduced and some of their functions shifted to the shop floor. By 'pulling out the plug from one day to the next' the
392 c. KOHLER AND K. SCHMIERL centralized and deterministic PPC system was dispensed with, since, according to our interview partners' statements, it had never adequately reflected company reality. Functions such as NC programming, tool presetting, servicing, quality control, and planning jobs, which had previously been removed from the shop-floor, were reintegrated into the production departments. In the future, an interactive graphic programming system will aid shop floor personnel by transferring geometric data from the CAD system. Restructuring led to a reduction in the division of labor. The more repetitive auxiliary functions such as deburring and transport were integrated into the scope of the machine operators' duties. The same is true for programming, presetting of tools, minor repairs, etc. The workers were given such broad training that within a very short time they could be transferred and deployed in many areas of production and even in assembly operations. Parallel to this, production underwent a modernization process with CNC machine tools, machining centres and flexible manufacturing cells, a CNCcontrolled punching machine and welding robots with teach-in programming. As a result, 90% of production capacity was achieved by means of CNC-controlled machines. The PPC system utilized is basically a pure information and support system without automatic algorithms for shop-floor scheduling. 4. CONTEXT CONDITIONS AND IMPLEMENTATION PROCESSES AS mentioned at the beginning of this study, we also intended to evaluate the factors which were responsible for the fact that companies follow either a conservative, an experimenting or an innovative rationalization strategy. A more detailed analysis of the companies shows that a large and complex bundle of factors influence the development and design of the respective companies' dominant rationalization strategy. 9 These include, among other things, the companies' external context conditions as well as intra-company structures. 4.1. Context Conditions
In the short term, the following contextual variables show an impact on the company's process of rationalization: (i) The branch with a certain type of product structure and production complexity. (ii) Developments on the product market (shift toward greater product diversity and shorter delivery times; the corporation's profit situation). (iii) The labor supply on the internal and external labor markets. (iv) The level of automation. (v) The size of the company. 9 For a detailed description of the congruence between the single factors and the companies' rationalization strategy see Schultz-Wildet al., (1989).
COMPUTER INTEGRATED MANUFACTURING 393 (vi) The company's headquarters.
dependence
on
large
customers
or
corporation
4.2. Implementation Structures and Processes These conditions and factors should be seen as individual impulses, urging in one direction or another, but which can also be contravened by other sets of circumstances. The crucial point is that the different strategies found in conservative, experimenting and innovative companies cannot be satisfactorily explained by the internal and external conditions alone. In the cases of comparable constellations of characteristics, one frequently finds entirely different solutions for problematic situations within companies. Undoubtedly, implementation structures and processes in the utilization of CIM components and their integration play an important and, indeed, quite an autonomous role in determining the direction of the company's rationalization strategy and thus also in the development of production and work organization. Most significant are the following dimensions: (i) Planning concepts (predominance of technology or organization, centralistic or decentralistic technology, predominant management goals). (ii) Planning agents (project team members, manufacturing, middle management, top management). (iii) Planning competence (in-house, inter-company, computer system manufacturers). (iv) Participation (rank and file, representatives of employee interests). In general we may conclude that, deterministically, neither the implemented technology nor 'objective' internal or external contingency factors are able to explain the shown process of rationalization. Consequently social, economic and technical analysis of the ways in which a certain technology is implemented in a particular company has to pay attention to social intra-company factors such as internal power relations and management innovation policies.
REFERENCES
ALTMANN,N., DEISS, M., D6HL, V. and SAUER, D. (1986). 'Ein Neuer Rationalisierungstyp"--Neue Anforderungen an die Industriesoziologie', Soziale Welt, 37, 191-206. AWF (Ausschu8 ffir Wirtschaftliche Fertigung E.V.) (1985). 'Integrierter EDV-Einsatz in der Produktion~CIM (Computer Integrated Manufacturing)', Begriffe, Definitionen, Funktionszuordnungen, Eschborn. BEHR, M. VON and HIRSCH-KREINSEN,H. (1987). 'Qualifizierte Produktionsarbeit und CAD/CAMIntegration, Erste Befunde und Hypothesen', VDI-Z, 129, 18-23. FIX-STERZ, J., LAY, G., SCHULTZ-WILD,R. and WENGEL, J. (1987). Flexible Manufacturing Systems and Cells in the Scope of New Production Systems in Germany. FAST Occasional Paper No. 135. EEC, Brussels. HIRSCH-KREINSEN, H. (1986). 'Technische Entwicklungslinien und ihre Konsequenzen ffir die Arbeitsgestaltung', in H. Hirsch-Kreinsen and R. Schultz-Wild (eds), Rechnernerintegrierte Produktion--Zur Entwicklung yon Technik und Arbeit in der Metallindustrie. Campus Verlag, Frankfurt/Miinchen.
394 C. K O H L E R A N D K. S C H M I E R L -
and SCHULTZ-WILD, R. (1990). 'Implementation Processes of New Technologies. Managerial Objectives and Interests', Automatica, 25, 429-433. KERN, H. and SCHUMANN, M. (1984). Das Ende der Arbeitsteilung? Rationalisierung in der industriellen Produktion. Beck Verlag, Miinchen. ISF MONCHEN(eds) (1988). 'Arbeitsorganisation bei rechnerintegrierter Produktion--Zur Einfiihrung neuer Techniken in der Metallindustrie', KfK-PFT 137, Karlsruhe. JORISSEN, H. D. and K.~MPFER, S. and SCHULTE, H. J. (1986). Die neue Fabrik. Chance und Risiko Industrieller Automatisierung. VDI-Verlag, Diisseldorf. LUTZ, B., NUBER, Ch. and SCHULTZ-WILD,R. (1987). 'Das grol3e Probieren. Serie "Fabrik der Zukunft", Teil 6', Bild der Wissenschaft, 9, 111-115. MANSKE, F. (1987). 'Alternative Strategies of Production Planning and Control (PPC)', in P. Brbdner (ed.), Strategic Options for "New Production Systems"--CH1M : Computer and Human Integrated Manufacturing. FAST Occasional Paper No. 150. EEC, Brussels. SCHULTZ-WILD,R. (1988). 'Transformation Conditions of Future Factory Structures: Technology, Organization, Education and Vocational Training', CIMS (Computer-Integrated Manufacturing Systems), 1, 82-88. , ASENDORF, I., BEHR, M. YON, KOHLER, Ch, LUTZ, B. and NUBER, Ch. (1986). Flexible Fertigung und Industriearbeit--Die Einfiihrung eines flexiblen Fertigungssystems in einem Maschinenbaubetrieb. Campus-Verlag, Frankfurt/Miinchen. , NUBER, Ch., REHBERO, F. and SCHMIERL, K. (1989). An der Schwelle zu CIM. Verbreitung, Strategien und Auswirkungen, RKW Verlag und Verlag TI~IV Rheinland, Esehborn/K61n. SPUR, G. (1986). 'CIM--Die informationstechnische Herausforderung an die Produktionstechnik', Zeitschrift fiir industrielle Fertigung, 76, 5-18. WARNECKE, H. J. (1985). 'Von Taylor zur Fertigungsteehnik von morgen', Zeitschrift fiir industrielle Fertigung, 75, 669-674. -
PRACTITIONERS CORNER
DIFFUSION TRENDS CHRISTOPH
OF CIM-TECHNOLOGIES IN WORK ORGANIZATION KOHLER
AND K L A U S
AND
SCHMIERL
The central aim of this paper is to investigate the direction in which work organization is changing with the utilization and integration of computer integrated manufacturing (CIM) components, and the role played by various external and internal context variables and implementation strategies from company to company. Our question is: "will Tayloristic rationalization strategies continue to dominate in central branches of West German industry, or are new ways of integrating functions and tasks being tested on a broad scale?" The basis for answering these questions is an empirical study entitled "Present developments in the application of computer-integrated systems in manufacturing and administration and resultant problems of work organization" carried out by the Institut f/Jr Sozialwissenschaftliche Forschung (ISF), Munich. ~ A few results of the study will be summarized in this paper.
1. INTRODUCTION (i) T h e utilization o f C I M c o m p o n e n t s a n d t h e i r i n t e g r a t i o n is l i m i t e d at p r e s e n t - - a c c o r d i n g to b r a n c h a n d c o m p a n y s i z e - - y e t p r o m i s e s d y n a m i c g r o w t h a n d extensive d i s s e m i n a t i o n in t h e n e a r f u t u r e . (ii) A s far as the d e v e l o p m e n t o f t h e o r g a n i z a t i o n o f p r o d u c t i o n a n d w o r k in association with C I M a p p l i c a t i o n s is c o n c e r n e d , o u r s a m p l e o f 60 c a p i t a l g o o d s c o m p a n i e s yields t h e f o l l o w i n g result: t h e m a j o r i t y o f c o m p a n i e s is p u r s u i n g Address: Institut fiir Sozialwissenschafliche Forschung E.V., Munich, Germany. 1 The study was undertaken as part of the RKW-Project A 161 and was conducted during the period 1986-1988. During the initial phase (winter 1986/spring 1987) approximately 1300 West German companies participated in a broad-scale survey with standardized questionnaires. The major part of the sample (N = 1096) were companies in the capital goods industry which, besides machine building, also includes the electrotechnical iron, tin and metalware, steel construction, light metal construction, rail vehicle construction, shipbuilding, aerospace, and precision mechanics. The survey focused on the following aspects: structure of sales market and production, degree of utilization of CIM components and their integration, goals and degree of goal achievement, training policy, and impact on the company. Out of the 1096 capital goods companies 60 cases with a relatively high level of CIM applications were selected for more detailed interviews with one or more of the company's experts (generally the head of the data-processing or planning department). They were questioned both about CIM implementation and personnel policy aspects, and about present and future job structures for production areas with a high degree of CIM technology utilization. For more details of the survey findings see Lutz et al. (1987) and Schultz-Wild et al. (1989). (~) Oxford University Press 1991 381
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C. K O H L E R
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K, S C H M I E R L
traditional rationalization strategies serving to maintain or even increase the degree of division of labor (functional and task/skill specialization), while making the greatest possible use of the available potential for automation. A sizeable minority of companies is experimenting with new approaches in certain sectors, while only a small innovative minority has realized alternative work structures throughout an entire company. (iii) A closer analysis of our sample shows that there is a large bundle of factors which have an effect on the development and design of the company rationalization strategies which prevail in given instances. This includes the external conditions of a given company (sales and labor market, for example) as well as in-house structures (product and process complexity, level of automation). (iv) It seems, however, that the different strategies of technological and organizational change cannot be adequately explained by internal and external conditions of the companies. Thus we find quite different strategies applied to solve company problems in cases showing a similar constellation of characteristic factors. There can be no doubt that the implementation strategies and processes involved in utilizing CIM components and achieving their integration play an independent role for the development of CIM applications, and the production and work organization. The following dimensions are important in this context: planning concepts (technology, organization, personnel), planning agents (manufacturing, middle management, top management), planning competence (inhouse, supra-company level), participation (persons and groups affected, representatives of employee interests). (v) Observing the course of rationalization in the individual cases, it becomes evident that concepts of personnel management and their actual practice in the implementation process--such as the participation of the representatives of employee interests, comprehensive training in good time--are indeed of strategic importance. The traditional practice of adhering to a merely reactive and selective adaptation of personnel to altered technological and organizational conditions is certain to result in considerable problems. New technologies, and particularly new work structures, may be doomed to failure if the challenge of providing the personnel affected with comprehensive skills and qualifications is not successfully met and the subsequent personnel problems are left unsolved. First we shall deal with the diffusion trends of CIM technologies in the West German capital goods industry and shall then attempt to answer the question concerning the potential direction in which work organization is likely to develop. We shall conclude by indicating an explanation of the different and divergent modernization strategies found in our sample. 2. D I F F U S I O N T R E N D S OF CIM T E C H N O L O G I E S
The fact is that already in the 1970s there were initial attempts in pioneer companies--with regard to the perspectives offered by CIM--to considerably extend the integration of computer and control systems which had been utilized
COMPUTER INTEGRATED MANUFACTURING
383
until then in a more selective and localised manner. In the early 1980s such projects not only gained increasing significance in engineering science circles, but also in industrial practice. In view of the considerable success being reported on all sides in terms of innovation and rationalization 2 one might wonder whether a company without CIM technologies could survive. Examples of this are the introduction of DNC systems or the integration of individual CNC machines with regard to transport and information to form flexible manufacturing cells and flexible manufacturing systems. 3 However, above all, it is the functional expansion of production planning and control systems (PPC) as well as computer integration processes, starting with the design sector and developing in the direction of work planning and machine control ( C A D - C A M ) , which seem to be playing an increasingly important role. 4 Thus we are presently observing the outlines of a new kind of rationalization process. The design of this rationalization pattern, often termed 'systemic' rationalization (Altmann e t a l . , 1986), encompasses individual manufacturing machine shops and departments and tends to extend to the company as a whole. In view of the significance which these new company innovations and rationalization patterns are deemed to hold for economic and industrial development, it is surprising how little is actually known about the ways in which the companies are approaching computer integration, at what speed this is being accomplished, and what effects are arising for design and constellation of production jobs and work organization. The results of our survey in the Federal Republic of Germany provide some information on the following aspects: the present diffusion of computer systems used in manufacturing processes and related services such as planning, control and monitoring; the extent to which various company functions have been integrated by computers; and the speed of diffusion processes in this field of innovation. The following statements are based on approximately 1100 questionnaires filled out by West German companies in the capital goods industry. All-in-all, the use of modern, computer-based technology is not as widespread as one might assume with regard to the on-going discussion among technical and engineering science experts or the information provided by hard- and software manufacturers, e.g. at trade fairs (Fig. 1).
(i) While most companies utilize computers in one form or another, they are only particularly widespread--more than 7 0 % - - i n administrative areas (such as financial and general accounting and pay-roll accounting), i.e. 2 Compare, for example, the illustrative descriptions of successful cases of computer-based industrial automation in Jorissen et al. (1986). 3 Especially with regard to the dynamics of the increasing application of flexible manufacturing systems and cells compare Fix-Sterz et al. (1987). For a more detailed account of the possibilities and effects of this line of technology on employment policies, compare Schultz-Wildet al. (1986). 4 Refer to AWF (1985) for an attempt to clarify the abbreviations and terminology dealing with computer technology.
384 C. KOHLER AND K. SCHMIERL I. Office and Administration Financial/ General Accounting Pay-roll Accounting Cost / PerformanceAccounting Purchasing Sales Materials and Logistics Management Word Processing I1. Production Related Services Product Development/ Design (CAD) Work Planning/ Programming (CAP) Production Planning and Control (PPC) Production Data Acquisition (PDA) Quality Assurance (CAQ) III. Shop Floor Manufacturing Systems CNC-Machine Tools Other CNC-Machines DNC-Operation of Several Machines FlexibleManufacturing Cells (FMC) FlexibleManufacturing Systems (FMS)
3 ]
[~ realizedby 1986/87
IV. Transport / Assembly / Parts Handling
Planned by 1986/87
Material Handling / Industrial Robots Automated Storage a. RetrievalSystems (ASRS) Material Flow Systems (FTS for example) AssemblySystems
l I
I
I
I
I
I
I
I
I
1%
10 20 30 40 50 60 70 80 90 100
FIG. 1. Utilization rates of computer based technologies--1986-87 realized or planned-West German capital goods industry (N = 1096).
fields in which computer systems have been developed and available on the market for a long time. (ii) While CNC machine tools and other numerically controlled machines are fairly widespread (in about half of all companies and in approximately two-thirds of the mechanical engineering companies), the percentage of companies which have installed the more modern and complex machine
COMPUTER INTEGRATED MANUFACTURING 385 and control systems, namely flexible manufacturing cells (FMC), flexible manufacturing systems (FMS) or DNC systems, is less than 4%. (iii) Other CIM components, such as industrial robots/automatic material handling systems (8.6%), computer based assembly systems (5.1%), storage (4.8%) and material flow systems (0.7%) still have rather low diffusion rates (in the sense of the application of at least one system per company).
Less than one-fifth of the companies currently use computers in areas which can be termed collectively as production related services and/or company functions such as planning, control, and monitoring, which in many cases are regarded as being the key functions of future CIM structures. A total of 15-17% of all companies employ PPC 5, CAP 6, and CAD 7 systems, while PDA 8 systems are utilized in 10% of the companies and only 8% use computer-aided quality assurance (CAQ). At present, however, the application of computers and CIM components is increasing considerably in certain administrative areas as well as in productionrelated services: according to the planning intentions of the companies, diffusion rates in areas such as design, work planning, manufacturing scheduling, etc., will approximately double by 1988/90, which means that about one-third of the companies will soon be fulfilling these functions with the help of computers. With regard to all functions, computer applications are more widespread in large companies than in small ones. This implies that relatively larger numbers of employees are potentially affected by these new technologies than would be indicated by the company diffusion rates. However, an increasing number of medium- and even small-size companies are becoming engaged in the introduction of relevant new technologies (such as PPC systems). Viewed from this perspective, there will be a considerable increase in the utilization of computer technology starting with large companies, and extending through the medium size companies right down to small size companies. Thus, for example, there is a remarkably high rate of medium-size companies (with 100-500 employees) planning to venture into computer-based work planning/programming (CAP, Fig. 2) or production planning and control (PPC, Fig. 3) during the period between 1988 and 1990. Computer integration, in the sense of on-line connections between various functional areas of a given company, is just beginning to spread. By 1986/87 only 9% of the companies had established at least one integration line between different functions. An increased pace of development is also to be expected in this area: regarding the planning activities, more than one fifth (23%) of the 5 Computer aided production planning and control systems, also termed manufacturingrequirements planning(MRP). 6 Computeraided work planningand programming. 7 Computeraided design (and engineering). s Computerizedproductiondata acquisition.
386
C. K O H L E R
AND
K. S C H M I E R L
10090~ I ~ Fr 80 --~1 I I
PlannedbY1986/87. . . . . . . Realizedby1986/87
7O 6O
5O 4O 3O 2O 10
1-19
20-49
50-99
100-199 200-499 500-9991000+
Companysize FIG. 2. Computer utilization rates in work planning/programming (CAP)--West German capital goods industry (N = 1096). companies are engaged in establishing computer integration. Efforts are concentrating on the integration lines of CAP-PPC, CAD-PPC and PPC-CAM (see Fig. 4). These survey findings indicate clearly--for the entire capital goods industry as well as for mechanical engineering--that, while the process of factory automation being discussed under the term CIM is still in its infancy, there are changes in progress in precisely those areas which the labor policy debates on 'new production concepts' (Kern and Schumann, 1984), (re-)qualification of industrial work, etc., are presently focusing on. 3. T R E N D S IN WORK O R G A N I Z A T I O N
Changes in work organization should not be seen deterministically as being directly precipitated by technological developments. First of all, technological systems are always compatible with various different work organization patterns. Secondly, impulses for change may emanate not only from technology itself, but also from sales and the labor market or from changes in intra-company or inter-company power structures. Thus we are not dealing with 'the' effects of 'the' integration of computers, but with changes in connection with the utilization of CIM technology.
COMPUTER
INTEGRATED
MANUFACTURING
387
1 O0 _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 80 7O 60 50 4O 3O 2O 10 0 1-19
20-49
50-99
100-199 200-499 500-999 1000+
Company size FIG. 3. Computer utilization rates in production planning and control (PPC)---West German capital goods industry (N = 1096).
The basis of work organization is the distribution of tasks to jobs or--in other words--the division of labor. Here we can distinguish between a functional and a task (skill) dimension. The functional division of labor includes the differentiation of job functions such as quality control, maintenance, tool presetting, production planning and control, programming, etc., into independent organizational units. The division of labor according to tasks (skills) refers--both in the horizontal and the vertical dimension--to the extent to which the work is divided up within the organizational units. A strong horizontal division of labor generally also involves a strong vertical division of labor (hierarchy). Skill requirements for jobs are directly linked to the complexity of the demands of a job. This complexity is in turn dependent upon the way in which the division of labor is organized according to functions and tasks. We surmise that during the postwar period, German industry has been dominated by the Tayloristic rationalization strategies. These are characterized by the progressive elimination of human work through automation, coupled with an increasing division of labor in terms of functional and task specialization. This rationalization strategy did not assert itself equally in all branches of industry. In the field of machine building, for instance, complex products, small batch sizes, and complicated production sequences, coupled with constantly changing market requirements in terms of company flexibility and quality, built barriers to an
388
C. K O H L E R
AND
K. S C H M I E R L
Computeraidea devela~O dl~nent desicln (CAD)
1,7 (lo,6)
1,5 (5,1) I
computeraided production planning and corKrol (PPS)
__) (9,3 2,1 / ~J
/
"~
2,7 (8,9)
2,7 (8,1)
t
systems aloeo in manuracturin.cl and/or assembly (CAM)
Com puteraloeQ
work planning ano/or. pr ra.m_.mmg
3,3 (7,5)
0,9 (3,7)
1,2 (4,6)
Computeraided quality assurance (CAQ)
1,5 (4,7)
_l
3,9 (lo,8) FIG. 4. Computer integration--in 1986/87 realized or planned--West German capital goods industry (N = 1096). The figures refer to the number of companies (in %) with computer integration between two functional areas, independent of whatever other integration lines may exist; the percentages of companies planning such integration is stated in brackets.
extreme separation of conception and execution. Nevertheless, even in this industry, the last 40 years can be described as a process of progressive standardization and specialization of functions and skills. There is no doubt that Tayloristic concepts and strategies dominated technological and organizational change. For a detailed empirical survey of such a differentiated and complex aspect of companies as work organization, written questionnaires are totally inadequate. We shall therefore base our findings on short case studies, focusing particularly on manufacturing departments with a high rate of computer utilization among the 60 capital goods companies investigated. The main points of reference were the development of division of labor according to functions and skills, on the one hand, and the concepts for rationalization put forward by the managers interviewed, on the other. Following the trends in the division of labor and the dominant rationalization strategies, we can distinguish three types of companies. (i) Conservative companies seek to stabilize or indeed extend existing division of labor according to functions and skills. In this sense Tayloristic rationalization strategies predominate.
COMPUTER INTEGRATED MANUFACTURING 389 (ii) Experimenting companies operate similarly to their conservative opposites with Tayloristic rationalization principles. However, in partial areas of production they are prepared to experiment with alternative structures with regard to task specialization and, to some degree, functional specialization. (iii) Innovative companies all deviate from the Tayloristic rationalization paradigm in central areas of their production and work organization.
3.1. Conservative Companies At least half of the 60 cases investigated can be classified as the conservative type of company. In these companies existing, highly differentiated and centralized administrative structures are maintained or indeed further consolidated; this is accompanied by a high degree of division of labor according to functions and skills as reflected in the separation of planning, controlling and production work and in the large degree of specialization among manufacturing personnel. These forms of work and production organization also influence the selection and utilization of CIM components. Centralistic CIM structures back up the more or less marked degree of division of labor and partially even reinforce it. In our sample, conservative rationalization strategies were to be found, for example, in machine building companies with small and medium sized batch production. One enterprise in this category produces relatively complex program products with a large number of variants and adaptations tailored to specific customer requirements (1400 employees). The firm has been expanding steadily for many years and utilizes a broad spectrum of CIM components. One of the company's plants was studied more closely. It manufactures cylindrical and rectangular moulded parts in line production. Flexible manufacturing systems are utilized almost throughout; even transport between the systems is to a large degree automated. Process control and shop floor scheduling are handled by a highly differentiated and centrally coordinated computer hierarchy. The NC programs for controlling the machines are compiled in the office and transmitted to the machines via DNC. Production and work organization were based on a high degree of division of labor, although the company can rely on a well-trained body of skilled workers. Thus, not only planning and control, but also maintenance, machine tool presetting, etc., are all carried out only by specialized departments. There is a marked degree of division of labor within these flexible systems. Semi-skilled workers handle the mounting of parts. Specialized skilled workers are responsible for the pallet fixtures and for setting individual machines. Spare men serve to bridge personnel gaps. A next step in automation will probably do away with the mounters' jobs. There is no discussion of reintegrating the highly differentiated tasks or for introducing forms of group work. 3.2. Experimenting Companies Traditional methods of differentiation, specialization, and control also play a predominant role in at least another third of the companies with experimental
390 C. KOHLER AND K. SCHMIERL rationalization strategies. By contrast with the conservative type of company, this group of companies tends to experiment with principles of production and work organization which constitute a break with traditional Tayloristic procedures However, the search for alternatives is limited to individual departments or lines of technology. Experimenting companies usually start the changes of production and work organization in manufacturing areas with special requirements; for instance, on the shop floor where either extreme precision or speed and fast reactions are required of manpower. These experiments are frequently so successful that they are gradually extended to other parts of the manufacturing process. An example of the experimenting group is a machine building company with 700 employees in which complex program products are manufactured by a skilled workforce in small batches with variations to fit customers' specific requirements. Frequent, rapid changes in market requirements force this company to attempt to reduce throughput times and to meet narrow deadlines. For this purpose decentralized shop-floor control centers (Leitst~inde) are to be equipped with interactive terminals so that the schedule supervisors can call up sales orders and assign them to the machine operators themselves. In order to increase flexibility in several areas of production (e.g. in CNC tin processing, in assembly and in a flexible manufacturing cell), a start has been made to restructure work organization towards semi-autonomous groups. These groups are given the opportunity to schedule their work independently within a certain time frame. Furthermore intra-company just-in-time concepts are being tested for conferring planning authority and the responsibility for meeting deadlines upon individual teams. Quality circles are also planned for the near future. In other areas within the company, however, there is a tendency towards centralizing areas of authority: here the PPC system stipulates detailed sequences of production orders for the shop-floor. 3.3. Innovative Companies The remaining 10% are companies of the innovative type. These are companies which not only experiment with alternative forms of work organization in individual departments, areas or functions, but which are restructuring the entire manufacturing operations towards non-Tayloristic, integral, and skill enhancing forms of work. As a rule this means that production work is upvalued in terms of skill levels as a consequence of a (re-)integration of planning functions which were in the past performed by the technical offices. Furthermore, it involves the utilization of shop-floor and skilled worker-oriented CIM technologies like those which are already being offered in the area of CNC programming or interactive scheduling. Examples of these kinds of reorganization measures can be found particularly in cases where planning and decision making powers have been decentralized to production departments. In this respect, companies with generalized structures of 'manufacturing islands' (sometimes discussed as the 'factory within the factory') are exemplary. Here intra-company organizational changes, such as the transition
COMPUTER INTEGRATED MANUFACTURING 391 to 'group technology' are combined with experiments in work organization towards skilled group work. An overall reduction in division of labor according to functions and skills was also found in companies with classical job shop and line production. The impulse for such 'radical' changes stems from often dramatic crises in a corporation due, among other things, to excessive overheads. A typical case is an electronics company, manufacturer of special highperformance semiconductors and complex components, occupying a market niche, where some years ago the economic situation was so disastrous that without comprehensive changes there was no hope of fundamental improvement. The manufacturing process in this company with 600 employees is characterized by two different sections: the manufacture of chips in a continuous production process is highly automated; subsequently, the chips are integrated into the corresponding components in an assembly line with a large amount of manual labor. There are two reasons why the company cannot achieve a high degree of automation in its assembly process; on the one hand, the automation technology necessary is at present too expensive and uneconomical and is likely to remain so in the foreseeable future; on the other, it is frequently necessary to be able to attend adequately to subsequent customers' specifications. In order to be able to fulfill such market requirements, the firm, whose basis is a labor system which might best be characterized as semi-skilled production, relies mainly on the human potential for flexibility. In accordance with this philosophy, the company pursues a clear training and restructuring policy whereby the--mainly unskilled female--assembly workers are given systematic training with a view to establishing a workforce with a homogeneous degree of skills. The female workers are thus given the opportunity and the necessary degree of skill for-a relatively free hand in the allocation of tasks among themselves. They should also be able to fulfill other tasks on their own which previously had been removed to other departments, such as the preparation of measuring systems, transport jobs, quality control, and maintenance work. In order not to jeopardize this policy and the scope for autonomous action it has facilitated, the PPC system contains no rigid scheduling module. Analogously, the PDA system asks only for aggregated and non-personal data. These are sufficient for scheduling purposes; they are not needed for setting wages since all workers are employed on a timework rate. A similar case is that of a machine building company with 550 employees. Prior to the reorganization of manufacturing it suffered a critical state of instability due to an 'unfavorable cost situation within its own manufacturing department' and almost went into bankruptcy. Under the guidance of a charismatic and dominant managing director, production of complex program products for road construction, manufactured in small batches, was fundamentally reorganized with the purpose of reintegrating conception and execution and achieving a flexible utilization of manpower. Due to high overheads, the production planning departments and technical offices wee reduced and some of their functions shifted to the shop floor. By 'pulling out the plug from one day to the next' the
392 c. KOHLER AND K. SCHMIERL centralized and deterministic PPC system was dispensed with, since, according to our interview partners' statements, it had never adequately reflected company reality. Functions such as NC programming, tool presetting, servicing, quality control, and planning jobs, which had previously been removed from the shop-floor, were reintegrated into the production departments. In the future, an interactive graphic programming system will aid shop floor personnel by transferring geometric data from the CAD system. Restructuring led to a reduction in the division of labor. The more repetitive auxiliary functions such as deburring and transport were integrated into the scope of the machine operators' duties. The same is true for programming, presetting of tools, minor repairs, etc. The workers were given such broad training that within a very short time they could be transferred and deployed in many areas of production and even in assembly operations. Parallel to this, production underwent a modernization process with CNC machine tools, machining centres and flexible manufacturing cells, a CNCcontrolled punching machine and welding robots with teach-in programming. As a result, 90% of production capacity was achieved by means of CNC-controlled machines. The PPC system utilized is basically a pure information and support system without automatic algorithms for shop-floor scheduling. 4. CONTEXT CONDITIONS AND IMPLEMENTATION PROCESSES AS mentioned at the beginning of this study, we also intended to evaluate the factors which were responsible for the fact that companies follow either a conservative, an experimenting or an innovative rationalization strategy. A more detailed analysis of the companies shows that a large and complex bundle of factors influence the development and design of the respective companies' dominant rationalization strategy. 9 These include, among other things, the companies' external context conditions as well as intra-company structures. 4.1. Context Conditions
In the short term, the following contextual variables show an impact on the company's process of rationalization: (i) The branch with a certain type of product structure and production complexity. (ii) Developments on the product market (shift toward greater product diversity and shorter delivery times; the corporation's profit situation). (iii) The labor supply on the internal and external labor markets. (iv) The level of automation. (v) The size of the company. 9 For a detailed description of the congruence between the single factors and the companies' rationalization strategy see Schultz-Wildet al., (1989).
COMPUTER INTEGRATED MANUFACTURING 393 (vi) The company's headquarters.
dependence
on
large
customers
or
corporation
4.2. Implementation Structures and Processes These conditions and factors should be seen as individual impulses, urging in one direction or another, but which can also be contravened by other sets of circumstances. The crucial point is that the different strategies found in conservative, experimenting and innovative companies cannot be satisfactorily explained by the internal and external conditions alone. In the cases of comparable constellations of characteristics, one frequently finds entirely different solutions for problematic situations within companies. Undoubtedly, implementation structures and processes in the utilization of CIM components and their integration play an important and, indeed, quite an autonomous role in determining the direction of the company's rationalization strategy and thus also in the development of production and work organization. Most significant are the following dimensions: (i) Planning concepts (predominance of technology or organization, centralistic or decentralistic technology, predominant management goals). (ii) Planning agents (project team members, manufacturing, middle management, top management). (iii) Planning competence (in-house, inter-company, computer system manufacturers). (iv) Participation (rank and file, representatives of employee interests). In general we may conclude that, deterministically, neither the implemented technology nor 'objective' internal or external contingency factors are able to explain the shown process of rationalization. Consequently social, economic and technical analysis of the ways in which a certain technology is implemented in a particular company has to pay attention to social intra-company factors such as internal power relations and management innovation policies.
REFERENCES
ALTMANN,N., DEISS, M., D6HL, V. and SAUER, D. (1986). 'Ein Neuer Rationalisierungstyp"--Neue Anforderungen an die Industriesoziologie', Soziale Welt, 37, 191-206. AWF (Ausschu8 ffir Wirtschaftliche Fertigung E.V.) (1985). 'Integrierter EDV-Einsatz in der Produktion~CIM (Computer Integrated Manufacturing)', Begriffe, Definitionen, Funktionszuordnungen, Eschborn. BEHR, M. VON and HIRSCH-KREINSEN,H. (1987). 'Qualifizierte Produktionsarbeit und CAD/CAMIntegration, Erste Befunde und Hypothesen', VDI-Z, 129, 18-23. FIX-STERZ, J., LAY, G., SCHULTZ-WILD,R. and WENGEL, J. (1987). Flexible Manufacturing Systems and Cells in the Scope of New Production Systems in Germany. FAST Occasional Paper No. 135. EEC, Brussels. HIRSCH-KREINSEN, H. (1986). 'Technische Entwicklungslinien und ihre Konsequenzen ffir die Arbeitsgestaltung', in H. Hirsch-Kreinsen and R. Schultz-Wild (eds), Rechnernerintegrierte Produktion--Zur Entwicklung yon Technik und Arbeit in der Metallindustrie. Campus Verlag, Frankfurt/Miinchen.
394 C. K O H L E R A N D K. S C H M I E R L -
and SCHULTZ-WILD, R. (1990). 'Implementation Processes of New Technologies. Managerial Objectives and Interests', Automatica, 25, 429-433. KERN, H. and SCHUMANN, M. (1984). Das Ende der Arbeitsteilung? Rationalisierung in der industriellen Produktion. Beck Verlag, Miinchen. ISF MONCHEN(eds) (1988). 'Arbeitsorganisation bei rechnerintegrierter Produktion--Zur Einfiihrung neuer Techniken in der Metallindustrie', KfK-PFT 137, Karlsruhe. JORISSEN, H. D. and K.~MPFER, S. and SCHULTE, H. J. (1986). Die neue Fabrik. Chance und Risiko Industrieller Automatisierung. VDI-Verlag, Diisseldorf. LUTZ, B., NUBER, Ch. and SCHULTZ-WILD,R. (1987). 'Das grol3e Probieren. Serie "Fabrik der Zukunft", Teil 6', Bild der Wissenschaft, 9, 111-115. MANSKE, F. (1987). 'Alternative Strategies of Production Planning and Control (PPC)', in P. Brbdner (ed.), Strategic Options for "New Production Systems"--CH1M : Computer and Human Integrated Manufacturing. FAST Occasional Paper No. 150. EEC, Brussels. SCHULTZ-WILD,R. (1988). 'Transformation Conditions of Future Factory Structures: Technology, Organization, Education and Vocational Training', CIMS (Computer-Integrated Manufacturing Systems), 1, 82-88. , ASENDORF, I., BEHR, M. YON, KOHLER, Ch, LUTZ, B. and NUBER, Ch. (1986). Flexible Fertigung und Industriearbeit--Die Einfiihrung eines flexiblen Fertigungssystems in einem Maschinenbaubetrieb. Campus-Verlag, Frankfurt/Miinchen. , NUBER, Ch., REHBERO, F. and SCHMIERL, K. (1989). An der Schwelle zu CIM. Verbreitung, Strategien und Auswirkungen, RKW Verlag und Verlag TI~IV Rheinland, Esehborn/K61n. SPUR, G. (1986). 'CIM--Die informationstechnische Herausforderung an die Produktionstechnik', Zeitschrift fiir industrielle Fertigung, 76, 5-18. WARNECKE, H. J. (1985). 'Von Taylor zur Fertigungsteehnik von morgen', Zeitschrift fiir industrielle Fertigung, 75, 669-674. -