This article was downloaded by: [University Aut Ciudad Juarez]

On: 02 April 2013, At: 02:32

Publisher: Taylor & Francis
Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House,
37-41 Mortimer Street, London W1T 3JH, UK

International Journal of Computer Integrated

Manufacturing
Publication details, including instructions for authors and subscription information:
http://www.tandfonline.com/loi/tcim20

Elements of cost-effective CIM

R. LEONARD

Total Technology Centre, UMIST, P. O. Box 88, Manchester, M60 1QD, U.K.
Version of record first published: 03 Apr 2007.

To cite this article: R. LEONARD (1988): Elements of cost-effective CIM, International Journal of Computer Integrated
Manufacturing, 1:1, 13-20
To link to this article: http://dx.doi.org/10.1080/09511928808944339

PLEASE SCROLL DOWN FOR ARTICLE

Full terms and conditions of use: http://www.tandfonline.com/page/terms-and-conditions
This article may be used for research, teaching, and private study purposes. Any substantial or systematic
reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to
anyone is expressly forbidden.
The publisher does not give any warranty express or implied or make any representation that the contents
will be complete or accurate or up to date. The accuracy of any instructions, formulae, and drug doses should
be independently verified with primary sources. The publisher shall not be liable for any loss, actions, claims,
proceedings, demand, or costs or damages whatsoever or howsoever caused arising directly or indirectly in
connection with or arising out of the use of this material.

INT. J. COMPUTER INTEGRATED MANUFACTURING, YOLo I, NO. I, 13-20

Elements of cost-effective ClM

R. LEONARD

Abstract. The paper initially describes the creation of an

investment analysis program whose use enables all the factors

surrounding a CIM or AMT project to be quantified, including

such important 'intangible' aspects as improved manufacturing

flexibility or enhanced product quality. Following an historical

Downloaded by [University Aut Ciudad Juarez] at 02:32 02 April 2013

review of the constituent elements of CfM, and a projection of

these technologies into the near future, CAD, CAM, MRP and
FMS are subsequently discussed in terms of overall system
economics. From this base, it is shown that by analysing each
sub-set of Cf M with respect to its economic impact on a
company, the appropriate level of investment for a specific
situation can be correctly determined, and it becomes possible

to predict how emerging technologies will develop. The paper

concludes by discussing a selection of future research areas
which must he successfully investigated if CI M is to become a

working reality.

1. Introduction

Manufacturing technology has tended to develop by a

process of trial and error, with the emphasis being on unit
cost reduction. In the future, however, major investments
should not be looked at in isolation, but must reflect a
beneficial effect on the whole organization. The objective
should not to be to improve individual departments, nor
install the most up-to-date technology, but rather to
enhance the company's competitive position. This means
providing customers with the products they want, at the
required specification, quality, cost and delivery. For
example, companies normally treat quality as a cost, and
efforts are aimed at reducing rework and warranted
payments. But if the effects that good quality would have
on sales is identified, not only are the financial benefits of
quality investment much greater, but the ways that
quality can be improved will change. A NEDO Report on
'Quality and Value for Money', states that product
quality is the key to improved competitiveness, and that
the customer's perception of quality is wide ranging and
includes delivery, packing, installation, product descriptions, instruction manuals and customer support.
Another example of how manufacturing must suit the
overall company requirements can be seen in organiz-

R. Leonard, Total Technology Centre, UMIST. P. O. Box 88,

Manchester M60 lQD, U.K.

Author:

ations which operate in volatile markets. Here the need is

to respond to rapid changes in sales volume and product
mix, and constantly introduce new products or enhance
existing designs. Some improvement can be obtained bv
installing 'islands of automation', but to achieve the
overall performance that the market demands renders it
necessary to operate the total company under a single
'game plan'.
During the past two decades, the total manufacturing
environment has been subject to a scale of change that is
more radical than has occurred since the Industrial
Revolution. The traditional drawing board has given way
to the intelligent CAD terminal; hard-wired numerical
control (NC), which was originally viewed as a revolutionary new approach to component production, has
rapidly been superceeded by CNC, and now CNC
machines themselves are being replaced by flexible manufacturing systems. Product design, material control, marketing, manufacture and assembly, together with
financial control and spares/servicing, have each been
subject to intensive individual pressures for change as the
computer finds an ever wider application in industry.
Now the point has been reached where these 'departmental revolutions' need to be embraced within a total
company strategy, as industry slowly evolves towards
computer integrated manufacture (CIM).
A great deal has been written regarding CIM, but
much of this past work is speculative, and lacks current
practical significance. This is reflected in the recent
report, 'Integrated Manufacture' (Ingersoll Engineers 1985),
which shows that few companies have achieved any
worthwhile integration, and even the term CIM fails to
find universal acceptance, with six conflicting interpretations being discussed. The report reflects the confusion
throughout industry, where flexible manufacturing systems (FMS), automated assembly (AA) and even robotics
are often included in the definition of CIM. For the
purposes of this paper, the above sub-elements will not be
termed CIM, as they are only advanced aids to manufacture, rather than overall control systems. Yet before true
CIM can eventually emerge in its own right, the technical
and economic viability of each constituent element must
be subject to critical discussion, otherwise it is unlikely
that the overall system will approach a true optimum.

14

R. Leonard

Downloaded by [University Aut Ciudad Juarez] at 02:32 02 April 2013

2. Financial evaluation
In the past, difficulty existed surrounding investments
in advanced manufacturing technology (AMT) because
many benefits, such as improved product quality or
increased company flexibility, were classified as "intangiblc': Thus the need was identified at UMIST for a new
approach to investment appraisal, and techniques were
developed and industrially applied which overcame both
the technical and conceptual problems of appraising
AMT projects. These techniques have now been converted into a commercially available program, called IVAN
(Orgunization Development Ltd), which can run on most
business microcomputers. The work at UMIST is the first
to prove that all the 'intangible' benefits affecting an
investment can be redefined and quantified, and that
these benefits arc actually greater than such traditional
saving-s as direct labour. Many companies now use IVAN
as their standard method of investment appraisal, Primrose and Leonard (1986a), and this fact has strong
implications for the future development of CIM technolog-y. For example, CAD manufacturers use IVAN
within their organizations to help predict the economic
viability of potential technological developments, while
outside their companies, IVAN is used to justify the sales
of major systems.

3. Computer aided design

J. 1 Historical perspective
l ntcractive g-raphics was first used significantly in the
SAG E early warning system during the 1950s; where
operators used light pens to point at targets on CRT
screens. The USAF also funded research during this
period reg-arding how high-precision components for
military aircraft could be reliably machined, and this
resulted in t he APT programming language. At a subsequent meeting at MIT in 1959, the idea was formulated
to extend APT to capture component geometry at the
desig-n stage (Coons 1963) and work began to create
CAD. Sutherland's (1963) PhD thesis described his
SKETCHPAD 2D interactive CAD system, which
coupled the CRT{light pen concepts from SAGE, to a
MIT TX-2 mainframe computer. A bank of pushbuttons
initiated pre-programmed commands to start a line,
begin a circle or edit a previous instruction, thereby
allowing a complete drawing to be built up or modified,
and moving- linkages could be depicted on the screen. In
an introduction to a book, Sutherland later admitted that
CAD researchers in the early years had simply picked

problems that were capable of solution, rather than those

that really needed solving.
The task ofevolving CAD into a practical tool was now
taken up by industry, and in 1964, IBM and General
Motors announced a system which could photograph
existing drawings, digitise/edit the image, and produce a
firm copy (Hargreaves et al. 1964). A program for describing surfaces, and then generating NC tapes for 2D milling
was devised by the Lockheed-Georgia Corporation
(Chasen 1965), and this became the CADAM system now
leased by IBM. Meanwhile, MIT were researching a
general purpose CAD system that utilized the database
techniques of Ross and Rodrigues (1963), and Sutherland
was developing the fast transformation and windowing
methods which have now become an important part of
standard CAD display.
In response to Intels requirement for CAD to design
LSI silicon chips, Calma entered the industry in 1968,
and they were soon followed by Intergraph, Computervision and Applicon. In the U.K., the CAD Centre at
Cambridge generated a host of able researchers, some of
whom left to form Cambridge Industrial Systems (CIS),
who subsequently devised the MEDUSA software package. CAD companies now took advantage of the reasonably powerful and yet inexpensive time sharing
minicomputers, such as the PDP 7 from DEC, and soon
CAD systems were sold as a package which included the
computer, its software, peripherals, support and maintenance. Yet these systems proved to be inflexible, and it
became clear that user development tools, such as macro
programming languages, were needed for CAD to gain
wider acceptance.
Large time shared CAD systems have now evolved
from 20 draughting to 3D wire frame models, and with
the introduction of the 32 bit virtual memory minicomputer, vendors can further expand their software. User
defined aids provide 3D solid modelling that is colour
shaded for visualization, finite element mesh generation,
kinematic analysis and parametric design, while software
for tasks such as sheet metal nesting or robot programming are available. But shared systems suffer from poor
response during peak use, and can fall below Wright's
(1983) half second maximum. The development of 32 bit
workstations offers the software of a mini-based system
yet with a single user response time, however, transforming a single workstation into a network is not just a case of
plugging in more terminals. A typical 2D CAD drawing
contains 60 Kb of data, so a network of users, each
passing data between stations, creates a major traffic
problem. Notwithstanding this, once a workstation can
be bought for the price of a draughtsmans annual salary,
and with the reliability of current time shared-systems,
such workstations are likely to become the standard CAD
interface.

Elements of cost-effective ClM

Downloaded by [University Aut Ciudad Juarez] at 02:32 02 April 2013

3.2 The future

Most CAD vendors now specify raster screens, and

with 3D modelling finding increasing application, terminals which store vectors locally are becoming more
common. At the high performance end, real time animation of shaded models will expand display intelligence,
custom-chip design will decrease processing time and
enhanced memory capacity will increase screen resolution. Foundyller (1984) suggests that by 1990, a terminal will consist of a 600 x 1200 mm flat 2048 x 4096 pixel
colour screen, with a 100 Mb display memory and multiple windows for display control. He further summizes
that standard features will include programmable function keys, on-line access to colour electrostatic plotters,
and dedicated processors with 100 Gb.
The retrieval of drawings, NC tape files and jigs can be
an overwhelming task, therefore as CAD becomes part of
CIM, databases will grow in importance and an automated coding system is an important need for the future.
A single database, feeding many users, would create an
unacceptable response delay. Thus a hierarchical
approach is favoured, with local disc storage at each
workstation and a central database at a higher level.
Brentano (1984) concludes that all levels in the hierarchy
will have to grow to embrace this increase in communication and data base workload, and that the design of
such systems will be fraught with difficulties.

3.3 Financial appraisal

Companies normally justify CAD in terms of drawing

office (DO) savings, and Senker (1983) showed that of 34
UK companies, 25 had exclusively projected labour
savings to justify the CAD investment, five had not
carried out any financial analysis, while the remainder
gave no reason for their purchase decision. Estimates of
productivity improvements from CAD range from 2: I to
4: I, thereby implying that at least half the draughtsmen
will not be needed once a system becomes operational.
The chances of CAD getting an enthusiastic welcome
under these circumstances are low, and the full potential
of a system is unlikely to be achieved. Yet the cost of
running the DO is typically less than I % of the cost of
sales, so if CAD can increase sales even slightly, the extra
profit will exceed any savings which might be expected
from the DO.
A low cost option opened up for CAD vendors in the
late 1970s, with the advent of the microprocessor. Yet
despite their sustained growth, Palframan (1984) points
out that current micro-based CAD systems are restricted
to single users, they cannot share data with other computers, they lack any practical means of achieving

15

genuine integration, and once a database outgrows the

microcomputer, it may not be possible to transfer this to a
larger machine. Companies who have installed CAD,
acknowledge that major gains COme from faster quotations and better parts lists, while other benefits stem
from component standardization, and the speed that new
products can be introduced. It therefore follows that if the
major financial benefits of CAD come from factors such as
quotations and parts lists, the emphasis when selecting a
system must be on data processing capability, rather than
draughting efficiency. Thus large minicomputer based
systems, with data processing facilities, become easier to
justify than micro-based alternatives, Primrose and
Leonard (1986b).

3.4 CAD/CAM
Although it appears attractive to extend CAD to
incorporate CNC tape preparation, the costs can be
considerably higher than the alternative of buying a
dedicated CNC tape system. Thus the benefits must be
compared with the costs of the additional terminals and
computer power needed to avoid degrading the response
time, and the reduced machine tool productivity that will
result if the post-processor does not fully exploit the CNC
machine. In the final analysis, the savings from linking
CAD/CAM depend upon the application. A company
manufacturing complex components that are subject to
frequent design changes, will obtain major benefits from
reduced throughput times, together with avoiding the
need for component geometry to be inputted into multiple
computer systems. But these savings will be small for
most companies, resulting in the statement that
CAD/CAM must show significant improvements before
it becomes a better investment than CAD plus a
dedicated CAM system.

4. Manufacturing systems
Numerical control (NC) was first demonstrated by
Parsons to the US Air Force in 1948, subsequently
MIT developed a control system for a milling machine,
and later the APT part programming language. Early
NC systems incorporated a punched paper tape, a reader
and a machine tool controller, and these elements are still
in evidence today, although recent developments mean
that some features can be truncated or enhanced. Since
the early days, computers have been added to the
machine tool, leading to the emergence of computer
numerical control (CNC). Groover and Zimmers (1984)
identify seven generations of controller hardware.

J. T.

R. Leonard

16

Downloaded by [University Aut Ciudad Juarez] at 02:32 02 April 2013

I.
2.
3.
4.
5.
6.
7.

Vacuum tubes
Electromechanical relays
Discrete semiconductors
Integrated circuits
Direct numerical control
Computer numerical control
Microprocessors and microcomputers

circa
circa
circa
circa
circa
circa
circa

1952
1955
1960
1965
1968
1970
1975

Concurrent with the development of NC during the

1960s/70s, a new approach to manufacturing organization began to gain ground, namely group technology
(GT). GT is based on the principle that groups of
components display certain family features with respect to
size, shape and machining characteristics. Therefore, if
these parts can be produced within dedicated cells, they
can be machined efficiently, and not be subject to the
circuitous flow paths that traditionally occur within
machine shops. After considerable early promise, it was
subsequently found that GT was not a panacea for all
manufacturing situations, and indeed severe limitations
exist with respect to cell balancing, caused by fluctuations
in the company product mix (Rathmill and Leonard
1977). Much of the GT research was sound, however,
and many of the principles then derived (Thornley 1971)
have subsequently found application within CAD (classifcation and coding) and flexible manufacturing (family
machining and standardized tooling).
Another development during this period was the
emergence of robotics as a practical technology, and this
was actively pioneered by Engleberger in the USA, and
by Heginbotham in the U.K. Robots have greatly progressed since the early' pick and place' prototypes gained
acceptance on the shop floor, and now robots are
employed worldwide on a diverse variety of tasks. Yet
even today, there is considerable disagreement on how to
table the investment case for robot purchase. Engleberger
(1980) states that' Robots are machines which can replace
people, therefore the prime issue in justifying a robot is
labour displacement'. Ayres and Miller (1983) confirm
this approach when they say 'only labour savings are
quantifiable and arguments about improving quality or
increasing flexibility carry little weight with accountants'.
It is even suggested thai the method to justify a robot is to
calculate an 'equivalent wage' and if this is less than a
human wage, the robot is 'hired'. The research at
U M [ST has resulted in an extensive list of costsjbenefits
for robots, Primrose and Leonard (1984a) and this concludes that the major gains relate to lower material costs,
reduced stocks and increased flexibility/sales.

4. J Flexible manufacturing
Early systems. In the late 1960s, Cincinnati developed a
FMS called 'Variable Mission'. While in the UK, Molins

devised 'System 24', but a complete system was never

actually built and the constituent machine tools were later
sold off separately. A number of famous showcase FMS
were created worldwide around 1980, yet these have not
proved typical of current FMS and should be regarded as
prototypes. The 600 Group's SCAMP (Six hundred
Computer Aided Manufacturing Project) was the result
of a Department of Industry invitation to devise a system
aimed at automating small batch production. The system
was based on lathes and robots, and it was estimated that
parts produced on SCAMP were three times more expensive than from conventional machines. The project took
seven years to complete, it cost 3m, and included nine
machine tools.
Yamazaki's machine tool factory at Minakamo in
Japan is far larger than SCAMP, with 43 machines, 17
robots and six automated guided vehicles (AGVs). The
aim was to take the concept of unmanned operation to
seemingly its ultimate limit. Visitors to the factory are
spoken to by a computer receptionist, and then taken on
an unmanned tour of the plant in an AGV, with commentary in their own language! These early systems were
created with little regard for financial justification, but
current FMS are now built on 'turnkey principles', and
are usually purchased from one key supplier. In a detailed
survey of seven systems in 1982, Ingersoll Engineers
(1982) found that the average investment was $12.5m,
and 10 machines were included in each system. Since that
survey, many more firms have invested in FMS, and
according to the manufacturer, Fitz Werner, the number
of machines per system has dropped to four.

4.2 Financial appraisal

Flexible modules. At the single machine level, FMMs
consist of units based on CNC technology but which can
run independently of an operator. They thus provide an
alternative to CNC and, like CNC, do not normally
influence the way a factory is operated. Because FMMs
are currently based on CNC designs, the benefits of
machining efficiency (i.e. improved metal removal rates,
tool positioning and combining operations) can be
achieved at the lower cost of CNC. An FMM can work
independently of the operator, however, and thereby
achieve an improvement in utilization. When activity
diagrams are considered for the machine and the
operator, the maximum utilization is achieved when the
diagrams are unconnected. The fact that an FMM costs
around 50% more than the equivalent CNC, is thus offset
by the FMM doing the work of 1.5 CNC machines,
Primrose and Leonard (1984b).
Flexible systems.

An FMS comprises a number of FMMs,

Elements of cosl-effective elM

Downloaded by [University Aut Ciudad Juarez] at 02:32 02 April 2013

integrated with a management control computer and a

workpiece}tooling transport system. Because of load balancing difficulties, and losses caused by breakdowns, the
output of an FMS will be less than that of the same
number of FMMs when operated as individual machines,
yet the capital cost of a FMS may be 50% more than that
of separate FMMs. The main benefit of an FMS derives
from the ability to schedule work as if the FMS was a
transfer line, thereby gaining the advantages of reliable
delivery times, reduced levels of finished stock and the
capacity to introduce new products speedily. Thus while
FM is justified at the single module level in terms of
production savings, full systems must be viewed in a
company-wide context.

5. Manufacturing controls

Buffa (1980) stated that the .modern era of production

control started in the 1950s with the use of computers in
industry. Many of the operations research (OR) techniques developed during the Second World War were
applied to manufacturing practices, and this resulted in a
proliferation of methods for ordering/batching components, work scheduling and forecasting. Pritchard and
Eagle (1965) extended Wilson's basic order point model
to produce complex calculations of statistical order points
and economic batch quantities. Yet because such techniques were based on marginal costs and historic usage,
they inevitably produced mismatched sets of components
for assembly. Similarly, considerable research was
applied to the m machines/ n jobs scheduling problem,
with a view to maximizing the output of direct production
resources (Cheng 1985) but these routines were based on
finite loading algorithms, and could not encompass realistic values of nand m, thus they were applied in isolation
from the total company objectives, Plossl and Wight
(1973).
Although a proliferation of OR techniques continued
to emerge, an integrated approach to production control
only became possible during the late 1960s. Plossl and
Wight (1967) recognized the interrelationship of management decisions and they concluded that individual
system elements could only be optimized within a
framework that incorporated the total production control
system. Orlicky's dependent demand principle (1975),
was first perceived as a superior ordering technique, but it
rapidly evolved into a 'total company system', now
known collectively as MRP. Material requirements planning (MRP) and manufacturing resources planning
(MRPII) are different in scale, but can be similarly
treated for financial evaluation, thus the term MRP will

17

subsequently be used for both systems. MRP is essentially an arithmetic process which takes in three data
inputs; the master production schedule (MPS), bills of
materials (BOM), and inventory records (IR) to
determine both current and future item requirements,
and is described concisely by New (1973).
MRP continued to evolve as enhancements were made
to routines. So that by the mid-1970s, it was realized that
planning priorities and component scheduling could not
be achieved unless valid operating schedules were communicated to both suppliers and the machine shops.
Schedules had to be derived from the plans formulated by
sales, marketing, manufacturing, design, finance and
purchasing, and needed to reflect the resources required
to achieve them. Vollman et al. (1984) correctly stated
the principles of master production scheduling and capacity requirements planning (CRP), while recent developments promote the merging of the manufacturing and
financial operating systems, to provide a company 'game
plan'. Here the aim is to control the company by
simulating the effects of the business plan on the total
resources (Wight 1981).
MRP has been increasingly adopted by Western
Industry, but it has not always proved successful, partly
because of the difficulties of implementation, management commitment and the need to educate employees
(Knipp 1984). Furthermore, because the capacity planning routines are based on infinite loading procedures,
they cannot plan priorities and capacity simultaneously.
To correct these deficiencies, an innovative technique has
recently emerged, known as optimized production technology (OPT), and this adopts a two stage approach for
generating schedules. An infinite loading routine
identifies critical (bottleneck) work centres, then OPT
finite loading is used to develop feasible schedules for
these critical resources, whereas other work centres are
loaded to infinite capacity. Commercial secrecy surrounds the proprietary software used for these tasks, and
although this might prove a barrier to OPT's widespread
acceptance, jacobs (1984) concludes that the OPT concepts are relevant to many companies, and can be applied
without using OPT software.
The challenge to Western markets from japan has lead
to a detailed scrutiny of japanese manufacturing practices, and just-in-time (JIT) production, incorporating
total quality control (TQC) has been adopted in both the
USA and Europe since the mid-1980s. Recently there has
been sustained debate as to whether com panies should
adopt MRP or JIT. It now appears that certain prerequisites exist for the introduction of jlT (Goddard
1983) and these essentially relate to repetitive manufacturing environments. Conversely, MRP has been shown
to have a broad range of application, and it is this breadth
of appeal that is likely to ultimately prove conclusive.

R. Leonard

18

Economic appraisal

Downloaded by [University Aut Ciudad Juarez] at 02:32 02 April 2013

MRP is not normally perceived as an investment

decision, with Boxx (1978) suggesting that top management often accept MRP as being 'inevitable'; while Hall
and Holden (1973) similarly report that MRP is usually
perceived as a 'justifiable act of faith'. This attitude can
result in a lack of adequate facilities for MRP implementation, or the absence of measurable objectives. The work
at UMIST (Hoey el al. 1985) has shown that data systems
can be treated like any other capital project, with costs
and benefits being identified prior to the DCF return
being calculated. The benefits of MRP fall within four
broad categories:
I.
2.
3.
4.

reduced paperwork and improved control systems

reduced disruption of production
controlled stock levels, and
shorter and more reliable lead times.

The first two benefits relate to productivity and production costs, and it is these that are normally considered
when MRP is seen purely as a production control system.
When quantifying the benefits, however, improving the
sales performance and reducing the level of finished stock
usually outweigh any direct production savings, and it is
in these areas that MRP offers the greatest returns. Thus
as research moves towards computer integrated manufacture (CIM), MRP is likely to assume its rightful role as
the hub of the enterprise (Fox 1984)

6. Computer integrated manufacturing and integration

Linking

Two or more modules are linked when data transfer is

possible from a specific module to subsequent modules.
This usually involves the transmission of data in some
neutral format (ASCII code), and software is needed to
convert the data in the sending module, and then to
re-convert this information in the receiving module. Such
a link may enable the transmission of parts lists, in a
predetermined format from CAD to MRP, when the
computers involved are individually incompatible. Or a
designer might access the CAM module tool files to avoid
creating a need for special tooling, but this requires the
designer to understand the conceptual and technical
needs of the planning department and they, in turn, must
appreciate the disciplines of the design process. Integration is a much broader concept than linking, since
two-way communication is required between modules.
Companies will not pursue integration for its own sake,
rather they arc forced along this path by increasing
competition. Yet while the path to integration may be

different for each enterprise, it will follow the evolutionary process of linking existing modules. For systems to
ultimately behave in the way required for CIM, however,
two-way communication must exist between company
computers, and this is strongly affected by the availability
of sophisticated data transmission networks and advanced
control systems, both of which are just emerging.
ISO is developing the Open System Interconnection
model (OSI 1981), but this has only recently been
supported by computer manufacturers, and IBM
announced its co-operation as late as 1985. The OSI
model outlines seven layers of protocols to organize
transmission and resource sharing between computers. A
hierarchal structure allows each layer to be served by the
layer below and serve the layer above. Local area networks, such as Ethernet, are the nearest standard, and yet
Ethernet itself is restricted to the bottom two layers of the
OSI model, and although the seven layers have been
defined, most of the standards have not been agreed.
Yet the author contends that it will not be technical
constraints that ultimately limits the widespread application ofCIM, but rather a lack of human resources. In this
paper it has been argued that 'quality' should be regarded
as a precious company asset, but no asset will match that
of the highly trained technical manager, who has a flair
for effectively applying advanced technology. These
people are already at a premium, the universities and
industry have yet to devise effective ways to educate and
train such people, and the advance of technology is daily
accelerating! In the future there will be no substitute for
having a CIM literate workforce in a company, for CAD,
CAM and FMS are no more that expensive toys without
the people necessary to fully utilize their inherent capabilities. Properly educate, train and integrate people,
then CIM will become a reality.
Although it will be a long time before true integration
becomes widespread, existing technology can be adapted
to obtain the major financial benefits that would result
from an integrated factory. A company using CAD to
produce quotations, can automatically generate a parts
list, and this can be transmitted in ASCII code to an
MRPII system (even if the computers are incompatible),
where the list is converted into shop floor documentation.
The MRPII system can then transmit instructions to an
automated storage and material handling system, controlled by another incompatible computer, to transport
materials to the manufacturing workstations, which may
operate under their own control systems but with the
work sequencing being directed by commands from
MRPII. What is really being transmitted by such a
system is management control information, and the
benefits which result from organizational improvements
enhance the overall competitive position of the entire
company.

Elements

of cost-effectiue elM

Downloaded by [University Aut Ciudad Juarez] at 02:32 02 April 2013

7. Conclusions
Research into the economics of CAD systems at
UMIST has shown that when the 'intangible' benefits are
correctly included in an investment appraisal, not only is
CAD a more attractive investment than was previously
believed but the main financial advantages are external to
the drawing office. In the same way, when FMS and
MRP are viewed in the context of fmancial viability, the
prime gains are in areas not directly related to the
technology itself, but to the company's ability to compete
in the market place. This suggests that major benefits will
accrue when integration becomes technically and economically feasible, but in the intervening years, companies are advised to examine the merits of providing
working links between modules. Significant time is spent
converting customer orders into manufacturing instructions, therefore the ability to quote a reduced delivery
time is a major selling advantage, and sustained attempts
should be made to truncate the order period.

Acknowledgments
The author would like to thank the SERC for funding
his current FMS research, all his past and present
students for contributing to the programme, and to
Judith Prendergast for her dedication to the preparation
of this manuscript.

References

19

GODDARD, W. E., 1983 Kanban vs MRPll-Which is best for

you? EPICS Control, August/September.
GROOVER, M. P., and ZIMMERS, E. W., 1984, 'CADCAM:
Computer Aided Design & Manufacture (Prentice Hall International).
HALL, P. E., and HOLDEN, G. K., 1973, Computerguide 9:
production control (Manchester: National Computing Centre).
HARGREAVES et 01., 1964, Image processing hardware for a
man-machine graphical communication system. AFlPS Fat!
Joint Computer Conference, No. 26, PI. 1, pp. 363-386.
HOEY, j., PRIMROSE, P. L., and LEONARD, R., 1985, The
application of investment appraisal to aid the evaluation of
MRP systems. Proceedings of I. Mech. E., 199B, 241-245.
INGERSOLL ENGINEERS, 1982, The FMS Report, (IFS Publica-

tions Ltd.).
INGERSOLL ENGINEERS, 1985, Integrated Manufacture (IFS (Publications) Ltd.).
ISO, 1981, Open System Interconnection Model ISO/TC97!SC26/DP7498 (Ianuary).
ORGANISATION DEVELOPMENT LTD IV AN: investment analysis computer programme. Sales literature (Organisation

Development Limited, Altringham, Cheshire, U. K.).

JAGOBS, F. R., 1984 OPT uncovered: Many production planning and scheduling concepts can be applied with or without
the software. Industrial Engineering, 16, No.1 O.
KNIPP, j. A. G., 1984, Why MRP systems fail: traps to avoid.
Production and Inventory Management, Third Quarter, p. 48.
NEW, C., 1973, Requirements planning (Gower Press).
ORLICKY, j. A., 1975, Malerial requirementsplanning-the new way
of life in production and inventory management (McGraw Hill).
PALFRAMAN, D., 1984, Micro CAD. CADCAM International,
june, 29-21.
PLOSSL, G. W., and WIGHT, O. W., 1967, Production and
inventory control principles and techniques (Prentice Hall)
pp. 8-12.
PLOSSL, G. W., and WIGHT, O. W., 1973, Capacity planning and control. Production and Inventory Management, 14,
No.3.
PRIMROSE, P. L., and LEONARD, R. 1984a, Incorporating the
'intangible' benefits of robots within a comprehensive finan-

AYRES, R. V., and MLLLER, S. M., 1983, Robotics applications

and social implications (Springfield, Illinois: Bollinger Pub.
Co.,).
Boxx , D. B., 1978, How to convince management to invest in
MRP. Production and Inventory Management, 20 49-62.
BRENTANO, L., 1984, Distributed CAD/CAM myth and
reality? IEEE Computer Graphics and Applications, 18-22.
BUFFA, E. S., 1980, Modern production/operations management, 6th
edition (Wiley) Chap. 1.
CHASEN, S., 1965, The introduction of man-computer graphics
into the aero-space industry. AFIPS Fat! Joint Computer Con[ermce, PI. 1, pp. 883-892.
CHENG, T. C. E., 1985, Analysis of job flow-time in ajob shop.
Journal of Operational Research Society, 36, No. 63.
COONS, S. A., 1963, An outline of the requirements for a CAD
system. 1963 SpringJoint Computer Conference, AFlPS Con! Proc.
Vol, 23, Detroit, Michigan, USA, pp. 299-304.
ENGELBERGER, j. R., 1980, Robotics in practice (New York:
American Management Association).

FOUNDYLLER, C. M., 1984, CAD/CAM systems in transition.

Machine Design, March, 199-203.
Fox, K. A., 1984, MRPll providing a natural hub for computer integrated manufacturing systems. Industrial Engineering, 16, No. 10.

cial evaluation. I. Mech. E. Con]. 'Robotics Research 1984',

pp.115-120.
PRIMROSE, P. L., and LEONARD, R., 1984b, The financial
evaluation of flexible manufacturing modules. Proc. 1st Int.
Machine Tool Conf., (IFS Publications Ltd) pp. 61-71.
PRIMROSE, P. L., and LEONARD, R., 1986a, The financial
evaluation and economic application of advanced manufacturing technology. Proceedings I. Mech. E., 200B, 27-31.

PRIMROSE, P. L., and LEONARD, R., 1986b, Selection and

evaluation of cost effective CAD systems. Proc. of CAD 86
Con]., pp. 42-49.
PRITCHARD, j. W., and EAGLE, R. H., 1965, Modern inventory
management (john Wiley).
RATHMILL, K. B., and LEONARD, R., 1977, The fundamental
limitations of cellular manufacture. Proc. 4th Int. Con!
on Production Research (London: Taylor & Francis)
pp. 523-546.
Ross, D., and RODRIQUES, j., 1963, Theoretical foundations
for a CAD system. AFIPS Spring Joint Computer Conference,
No. 23, p. 305-322.
SENKER, P., 1983, Some problems in justifying CAD/CAM.
Proc. 2nd European Conference on Automated Manufacture (IFS
Conferences) pp. 59-66.
SUTHERLAND, I. E., 1963, SKETCHPAD, a man-machine

20

Elements of cost-effective ClM

Downloaded by [University Aut Ciudad Juarez] at 02:32 02 April 2013

graphic communication system. 1963 Spring Joint Computer

ConfmnCt, AFIPS. Con] Proc., Vol, 23, Detroit, Michigan,
USA, PI'. 326-346.
THORNLEY, R. H., 1971, Group Technology-a complete
manufacturing system. Inaugural Lecture,-University of
Aston, UK, October.
VOLLMAN, T. I~., BERRY, W. L., and WHYBARK, D. C., 1984.

ManuJacturing ptanning and control systems (Dow-Jones Irwin)

1'1'.121-125.
WtGHT, O. W., 1981 'MRPl1: Untocking America's production
potential (Oliver Wight Ltd. Publications Inc.)
WRIGHT, J., 1983, A picture is worth millions of words.
Engineering Computers, May, 10-12.