Factor automation: the Japanese experience

The authors report the findings of a research study that investigates the practical experience of Japanese industries in the implementation of factory automation (FA). Eighteen well-known Japanese companies were considered in the study, including NEC, Mitsubishi, Nissan, Mazda, and Nippon Steel. It was found that very few Japanese companies were concerned about the potential negative impact of FA on short-term profit. The payback period method is by far the most popular financial justification technique used by Japanese companies to evaluate FA investments. FA system design and vendor selection were typically conducted by company employees, not outside consultants. Most surveyed companies spent two years or less to complete a typical automation project. System design and software development were identified as the two most time-consuming tasks in an FA project. Reduced labor costs, improved quality, and increased flexibility were the three apparent benefits of FA. Exorbitant cost, increased need for technical expertise, and lack of adequate software were identified as the most serious difficulties which Japanese companies have experienced