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Strategic aspects of flexible production technologies

Author: Röller, Lars-Hendrik ; Tombak, MihkelINSEAD Area: Economics and Political Science ; Technology and Operations Management Series: Working Paper ; 89/58/EP/TM Publisher: Fontainebleau : INSEAD, 1989.Language: EnglishDescription: 19 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: In this paper the innovative manufacturing technologies known as "Flexible Manufacturing Systems" are examined. A description of these systems is given and then a simple strategic model of the decision process to invest in either FMS or in more traditional, product-dedicated equipment is developed. This model illustrates the importance of such market factors as product differentiation and difference in cost and market size in the decision process. Several extensions of the model are then discussed to include the effects of competition and market growth on technology choice. Empirical evidence is shown to correspond with the theory
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In this paper the innovative manufacturing technologies known as "Flexible Manufacturing Systems" are examined. A description of these systems is given and then a simple strategic model of the decision process to invest in either FMS or in more traditional, product-dedicated equipment is developed. This model illustrates the importance of such market factors as product differentiation and difference in cost and market size in the decision process. Several extensions of the model are then discussed to include the effects of competition and market growth on technology choice. Empirical evidence is shown to correspond with the theory

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