Case Study: EM Engineering Company's Process Computerization and Factory Automation EM Engineering Company Limited has been a very successful tool maker in the Pearl River Delta (PRD) since the early 1990's after its relocation from Hong Kong (HK) to Dongguan (DG). It is a reputed tool maker which specializes in making lies and fixtures, moulds and dies, and miscellaneous tools and parts for PRD factories' production lines. The rapid industrialization of PRD in the last three decades has led to great expansion of EM's business and operations. From the early 2000s, to cope with increasing business and more stringent technical requirements from customers, EM has gradually advanced its technological capability from the traditional machine tools to the computer numerical controlled (CNC) machining centres. The old craftsmen type machinists who came with EM's relocation to the DG plant from the old HK factory have been retrained or replaced. However, because of the general availability of skilled machine operators of the early decades, previous EM management has not felt the need to adopt greater level of automation and computerization. The advanced CNCs in the EM factory in DG have essentially been operated as standalone machines. The production process and its management have not advanced in the same degree with the technology. PRD's industrial and economic development has moved into a new era. Speed of fulfilling customer orders is becoming just as important as technological capability. The new younger generation of EM management has decided to embrace the idea of company-wide process computerization and factory automation. The management board has given the responsibility of this massive undertaking with an estimated budget of RMB100 million over the next two to three years to the Factory Manager. Assuming that you are the Factory Manager of the EM Engineering Company Limited during this time of imminent change This is clearly a very important undertaking. As the Plant Manager, you must ensure that the change would be introduced smoothly and not adversely affect any on going operations. You would obviously like to devote as much time as possible to the job, but you also have the responsibility of running the entire factory. You think you have at least three possible approaches : (a) You can form a Task Force and handle it as its leader; (b) You can assign one of your experienced and knowledgeable functional managers to lead and coordinate as the Project Leader of this undertaking. He/she reports directly to you and has the delegated authority to recruit other members of staff into the project team or solicit their support as needed; or (c) You can engage the service of a computerization and automation specialist from the suppliers of your advanced manufacturing systems to handle the project for a fee. Questions: Discuss the pros and cons of the three listed approaches. (15 marks) A2 Which of the three approaches would you adopt and why? (10 marks) A3 Explain how you would ensure that the chosen approach in Question A2 above would be successful (10 marks) A4 if the project was just a machining centre replacement costing about RMB$0.5 million, would your answer be different, why? (5 marks) A1