By L. Alcorta

This e-book examines the level of, and causes for, the diffusion of versatile automation (FA) at worldwide point after which turns to the neighborhood and company point, bringing jointly in-depth experiences of sixty-two agencies in Brazil, India, Mexico, Thailand, Turkey and Venezuela. learn specializes in the impression of computer-numerically-controlled computer instruments on scale and scope by means of exploring adjustments in lot sizes and product style (product scale and scope), overall plant output (plant scale) and overall company output (firm scale). limitations to constructing FA-based operations are mentioned, as are elements that could have an effect on a call to find in a constructing kingdom. The contributed experiences display a comparatively gradual diffusion of FA in constructing international locations and it's verified that whereas FA almost certainly raises scope, it additionally calls for that plant output be elevated with a view to continue potency. Alcorta concludes that the site in constructing international locations will most likely in simple terms be manageable for big household companies, multinationals trying to relocate easy yet labour in depth meeting strategies and companies in international locations with major household markets. This paintings is exclusive in addressing the size and scope matters in constructing nations and within the wealth of knowledge concerning desktop instruments which it offers. the knowledge supplied within the appendix contains legitimate United international locations facts, formerly unpublished. it will be of use for all study into tendencies within the use of desktop instruments.

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Extra resources for Flexible Automation in Developing Countries: The Impact on Scale and Scope and the Implications for Location of Production (Unu Intech Studies in New Technology and Development, 6)

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Economies of scale are said to exist if total cost rises proportionately less than does output, while diseconomies of scale arise when total cost rises proportionately more than does output; and optimal scale occurs at the point where any increase in output no longer reduces but raises unit costs. The main sources of scale economies are specialization, indivisibilities and dimensional effects (Morroni 1992; Rosseger 1986; Scherer and Ross 1990). Specialization sources can be further subdivided into static and dynamic sources.

Sources of flexibility are, first, the degree of divisibility of fixed plant which reduces the costs of producing at suboptimal levels; and second, the capacity to transform fixed into variable costs. Morroni (1992), who builds heavily on Stigler’s contribution, adds that the main sources of flexibility include the capacity to change the number of workers or the number of working hours per worker (numerical flexibility), the ability to adjust workers’ skills within the firm (functional flexibility), the potential to hire or lease equipment or keep old equipment for catering for short term upsurges in demand, the possibility of keeping inventories for compensating for variations in demand, and the capacity to employ subcontractors.

Static specialization gains arise out of larger output and had already been identified by Adam Smith in his discussions of division of labour and work specialization. In a nutshell, increasing scale allows the separation of tasks and workers to do their individual jobs rapidly and precisely and with the appropriate skill content, while avoiding the expense of time and effort associated with moving from one task to another. They allow also the use of more efficient purpose-specific machinery and mechanized production processes and an improved production organization.

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