TY - JOUR
T1 - Keeping pace with change
T2 - International competition in printed circuit board assembly
AU - Mody, Ashoka
AU - Suri, Rajan
AU - Tatikonda, Mohan
N1 - Funding Information:
An earlier version of this paper was circulated as Mody et al. (1991c). The research was financed by the World Bank's Research Administration Department, to which we are all grateful. Numerous colleagues have supported this work and we would like especially to thank Nancy Barry, Carl Dahlman, Jerry Sanders, Sandra Salmans and Masami Shimizu. We are especially grateful to two very thoughtful referee comments and we hope they will recognize the influence of their recommendations. Elinor Berg provided extensive editorial assistance.
PY - 1995
Y1 - 1995
N2 - The Organizational and technological basis of production does not stand still, even in apparently 'mature' industries. Printed circuit board assembly has long been regarded as best conducted with well-known techniques in low-wage economies. That has steadily changed, based not only on innovations specific to the industry but more importantly on incremental but continuing generic progress in manufacturing and design processes. Generic innovations encompas increased automation, but the key developments have been the organizational changes associated with 'just-in-time'(JIT) manufacturing and the recent extensions of JIT-type principles to the design process. Through interviews in six countries and drawing on relevant technical expertise and literature, we develop factory models that simulated production in different settings and demonstrate the significant production cost savings that accrue through the adoption of these innovations. Gains accrue through reduced scrap and inventories, and through better time management of the firm's assets. I As such gains reach their limits, product redefinition becomes an important strategy. It follows that the ability to keep pace with ongoing innovations is a much more powerful determinant of competitiveness than cost advantage due to low wages. Especially in less developed countries, firms will need to undertake substantial investments in human capabilities, including the capacity to tap international knowledge flows on a continuing basis.
AB - The Organizational and technological basis of production does not stand still, even in apparently 'mature' industries. Printed circuit board assembly has long been regarded as best conducted with well-known techniques in low-wage economies. That has steadily changed, based not only on innovations specific to the industry but more importantly on incremental but continuing generic progress in manufacturing and design processes. Generic innovations encompas increased automation, but the key developments have been the organizational changes associated with 'just-in-time'(JIT) manufacturing and the recent extensions of JIT-type principles to the design process. Through interviews in six countries and drawing on relevant technical expertise and literature, we develop factory models that simulated production in different settings and demonstrate the significant production cost savings that accrue through the adoption of these innovations. Gains accrue through reduced scrap and inventories, and through better time management of the firm's assets. I As such gains reach their limits, product redefinition becomes an important strategy. It follows that the ability to keep pace with ongoing innovations is a much more powerful determinant of competitiveness than cost advantage due to low wages. Especially in less developed countries, firms will need to undertake substantial investments in human capabilities, including the capacity to tap international knowledge flows on a continuing basis.
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U2 - 10.1093/icc/4.3.583
DO - 10.1093/icc/4.3.583
M3 - Article
AN - SCOPUS:0000811361
SN - 0960-6491
VL - 4
SP - 583
EP - 613
JO - Industrial and Corporate Change
JF - Industrial and Corporate Change
IS - 3
ER -