Book reviews Management of Advanced Manufactur- ing Technology: Strategy, Organization and Innovation Donald Gerwin and Harvey Kolodny John Wiley and Sons, New York (1992) 394pp £52.00 ISBN 0-471~63574-X

This book represents a distinctive con- tribution to the literature in the field of advanced manufacturing technology management. There are two particular strengths. Firstly, it truly considers the management and organizational issues, unlike many books of a similar title which regard technology management very much from a technical perspective. Secondly, it should appeal to practi- tioners and academics alike: it provides insight to many of the concerns and problems facing contemporary organiza- tions, but has been based on thorough empirical research investigation. But what precisely does the book contain? Let's now consider its contents section by section.

The book comprises three parts: Strategy, Organization and Innovation. Part 1 gives insight to the strategic aspects of technology management, and considers thc issues of flexibility, justification, performance measurement and, most interestingly, strategy and design as an evolutionary process. What is particularly pleasing about this section is that it is written in an analytical style, and does not simply seek to prescribe simplistic approaches to the reader. Compare this with the 'how to do it' format of many books of its type. It views strategy formulation as both a proactive and an evolutionary proce- dure, where feedback through time is seen as an essential element of the process.

Part II considers the organizational issues in the development of manu- facturing systems. It does this in three stages: first, by considering structures and organizational design, then by addressing organizational processes and work design, and finally, the impact of AMT at the level of the individual is evaluated with specific reference to the broader deskilling/reskilling debate in the labour management literature. For a book of this type I found this approach refreshing: so many writers consider AMT as a collection of technical projects which arc prone to run into organiza- tional difficulties. This reflects the technical determinist attitude of many

writers. Gerwin and Kolodny, I feel, take a more social scicncc orientated view that technology should be seen as organizational change in its own right, thus consider the organizational issues up front rather than these only being considered as and when projects run into difficulty.

The final section, Part lII, is a useful addition to the growing body of literature on innovation theory, but once more is presented in a way that makes it accessible to practising managers. It also stresss the importance of the implc- mentation process: so often writers fail to recognize this stage as a major determinant of success or failure: competent implemcntation often turns bright ideas and inventive designs into operational innovations.

This well presented book accom- plishes what it sets out to do: to assist companies in the design and manage- ment of AMT systems whilst, simul- taneously, being an excellent reference

for academic faculty and students. This is not an easy thing to do, and many texts have fallen between these two stools: trying to satisfy the interests of these two, sometimes diverse, reader- ships whilst ending up pleasing neither. I see thc book being most useful for two groups: senior technology managers in industry with an interest in linking corporate strategies with system design activities and operation; and postgradu- ate students on technology management courses. The price will render it infeasible for widespread adoption as a course text, but it is a useful supple- mentary reader to courses on manu- facturing systems design. Overall, the authors and publishers are to be congratulated on the publication which will, I feel, be widely cited in debates into AMT management into the future.

Paul Forrester Lecturer in Production Management

Keele University, UK

The Value of Advanced Manufacturing Technology: How to Assess the Worth of Computers in Industry J. S. Busby Butterworth-Heinemann Oxford (1992) 223 pp £35.00 ISBN 0 7506 0476 X

Manufacturing industry has now moved to the point where even the smallest of companies tend to employ at least some elements of advanced manufacturing technology. Among the most widespread arc CAD/CAM and MRP II. Newer technologies such as expert systems are also finding wider applicability. To im- plement these technologies requires a substantial commitment from a company in terms of both manpower and financial resources, and because of the unique nature of AMT, the opportunities to 'get it wrong' are many. To accurately appraise the relative value of a rangc of potential AMT investments, a compre- hensive and realistic cost/benefit analysis is essential. A poor investment appraisal will result in two possible outcomes. First, the wrong form of technology may be implemented in which case thc expected benefits will not accrue and the investment will be deemed a failure. Second. a poor appraisal can result in a potentially valuable investment being rcjccted because the true benefits have not been identified. This being the case,

a book which attempts to define the true value of AMT is always welcome.

This is just such a book. It identifies the vital issues which must be considered by all companies faced with making these difficult investment decisions. Rather than proposing that a single investment methodology is appropriate in all situations, the book identifies and describes a wide range of investment techniques, both formal and informal, and highlights the advantages and dis- advantages of each. Net present value (NPV), which today is a favoured ap- praisal technique, is comprehensively evaluated in terms of its applicability to AMT investment, and particular ex- amples are used to illustrate its limita- tions. Thus the reader becomes equipped with the necessary knowledge to select the investment technique which is most appropriate to their individual circum- stances.

The book identifies the main features of AMT which distinguish it from non computer-based technologies, namely the ability to store, manipulate and utilize information, and it shows how this unique ability should be incorpor- ated into the investment appraisal process.

The book's distinctive characteristic is the idcntification and description of novel fcaturcs which influence the in-

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Book reviews vestment appraisal proccss. I found the description of the 'portfolio effect' and how it can be used to minimize risk of uncertainty to bc of particular interest. The identification and calculation of risk factors in general is an important feature of the book. One chapter is dedicated to understanding the risks involved in implementing AMT.

A further feature introduced here is a schcme for benefit classification. This scheme is very useful as it enables general benefits, such as ' improved commercial characteristics', to be de- composed in much more specific terms. When this process is complete it is possible to analyse which elements of AMT are most appropriate to achieve the required specific benefit. The applic- ability of the technique is re-enforced with general examples.

In terms of readability, I found that to absorb the most important fcatures of the book a second and third reading was required. Occasionally, the dia- grams and extensive mathematical for-

mulae used to illustrate certain points served to distract rather than enhance the clarity of the text. As the book is aimed specifically at practising managers and technologists, this featurc could prove to be a disadvantage.

On the whole, the book is a thorough review of current investment appraisal techniques as applied to AMT. Existing theory is described and some novel ideas are introduced which even seasoned managers and academics will find stimulating and relevant. The book would have had a greater value had it included a discussion of the financial appraisal of CIM. Despite this short- coming, the book makes a valuable contribution to the body of knowledge in an area which is of considerable concern to industrial management. Thus it should find a ready readership amongst practising managers as well as in academic circles.

David Tucker UMIST, UK

Artificial Intelligence Applications in Manufacturing A. F. Family, Dana S. Nau and Stefen H. Kim (eds) A A A I Press (1992) 455 pp £35.95 ISBN 0 262 56066 6

Since 1956, when AI cmerged~ it has gone through peaks and troughs. Pre- dictions made about its impact on human society were optimistic; AI was proved far more difficult than originally ex- pected, and real world problems much more complex than expected. In its first 15 years, the pioneering work in AI did not have a major impact on other fields. However, a great deal was learnt about what really had to be done to make AI successful. Since the 1970s, the situation has changed. Progress has becn made: new knowledge representation tech- niques appeared, search techniques began to mature, expert systems were built. Interaction with other fields such as medicine and electronics took place. AI researchers began to exploit its

applications. Experiencing the pressure from the marketplace, being driven to do as much as possible so as to achieve a competitive positioning in markets, manufacturing reasonably expects help from AI. It can - and should - do much for manufacturing, as the complexity of those problems generated by the devel- opment ofmanufacturingisideallysuited for the application of AI.

This book presents readers with a state-of-the-art of AI applications in manufacturing. It shows that although the field is still in its infancy, its future should be a splendid one.

The book presents a number of inter- esting R&D projects in the field, reported at several workshops held at the IJCAI-89 and AAAI-90 conferences. It is divided into three parts: Part I deals with the application of AI in design and planning; Part II examines AI applica- tions in scheduling and control; and Part 1II looks at the use of AI in manufacturing integration. These are some of the most interesting and promis-

ing areas where the impact of AI is becoming apparant. Established sys- tems, AI tools and techniques described in the book which have bccn imple- mented and tested (or arc being tested in real manufacturing environmcnts) show that AI offers the appropriate sets of tools for solving complex cnginecring problems with a characteristic of requir- ing symbolic manipulation and reason- ing, instead of only routine number processing. They demonstrate the poten- tial benefits that applying AI could give to a company in making cffcctivc and efficient utilization of resources.

Integration is a notablc feature of the book: a third of the chapters are devoted to manufacturing integration. Other chapters also touch on the problem. The coverage is quite wide: integration of C A D and CAM; integra- tion of people and computer systems in large, geographically-dispersed manu- facturing enterprises; integration of distributed heterogcnous functions of a manufacturing enterprise; integration through quality,.to name a fcw. Integra- tion is important. For example, the connection between CAD and CAM is an essential requirement for an intel- ligent manufacturing system, and the research work implies that AI applica- tion is becoming increasingly mature. The book also touches on some central problems of AI application, such as representing knowledge, machine learning, reasoning, and the methodo- logy of coping with uncertainty.

With the emphasis bcing placed on application, the book does not deal with theory very deeply, so the chapters (usually) provide background and relcv- ant knowledge, thus the book is not difficult to read. It would bc a suitable reference for both graduate and senior undergraduate students specializing in manufacturing and AI applications. It could also bc helpful for engineers and researchers interested in thc develop- ment of manufacturing, AI and its application.

Luo Feilu Changsha Institute o f Technology

PRC

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