The Transformation of Base Competitiveness in the Manufacturing Industry

ABSTRACT

The existence of factory floor technology has hitherto been regarded as one of the strengths ofJapanese manufacturing. In recent years, however, the rapid shift to offshore production andadvances in information technology have created a situation in which factory floor technologycould either disappear or become less important as a competitiveness factor. In this paper wewill attempt to clarify the current situation through interviews with manufacturers'representatives.

At present the shift to offshore production has not had a significant impact in terms of thedisappearance of factory floor technology within Japan. Even companies that produce a largepercentage of their output offshore still retain the preparatory stages of production, includingproduct prototype development, tool-making and other aspects of mass-production prototypedevelopment, in Japan. Looking to the future, however, it is logical to assume that factory floortechnology will accumulate at the actual points of production, and in this sense there is a realconcern about the possible "hollowing-out" of factory floor technology .

As far as the effects of advances in information technology (IT) are concerned, it is clear thatthe use of CAD / CAM and CALS is starting to take the place of factory floor technology. Atpresent, however, there are still aspects that cannot be replaced by information technology. Evenso, the systemization of production technology through the application of IT is rapidly reducingthe significance of factory floor technology in some areas.

In the future it is possible that advances in information technology will lead to the displacementof many aspects of factory floor technology through systemization and standardization.Moreover, those aspects of know-how that cannot be replaced by information technology arelikely to accumulate at the actual point of production. From the viewpoint of Japanesemanufacturing, this means that there will be a rapid decline in the significance of factory floortechnology as a competitive base. In order to adapt to this situation, Japanese manufacturers willneed to develop element technologies with the potential to become an important source ofcompetitiveness.

Introduction