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how it improves manufacturing


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how it improves manufacturing

  2. 2. Title : How Information Technology Improves Manufacturing The world of manufacturing has reached a turning point because of the influence and impact of Information Technology (IT) in modern days. Some people refer it as “New Manufacturing Era”. Manufacturing information system today support the production or operation functions of every companies in the world. The production or operation functions are also includes the activities that concerned with the planning and control of the processes used in producing goods and services to the manufacturers in this world. Manufacturers must compete in the global market to be successful today. This trend is going to continue from time to time. At the same time, there were also a lots of improvement in these manufacturing industries all over the world. The manufacturing executives also see their role more broadly as creators of values and wealth in their industries. This manufacturing industries are changing from days to days in order to improve their profits for their own company, employees, and the stock-holder. After a decade of downsizing and restructuring their manufacturing industries, most manufacturers especially American businesses have cut about all the cost they can in their industries. Managers have come to the conclusion that long-term health will depend on growth achieved through the competition in their industries. In order to improve manufacturing, the main key or way is innovation. The companies who excel in innovation can achieve the remarkable of the growths and profits in their industries. Back to the history before, the manufacturing industries consisted of producing a product on an assembly line for customers within the United States. The focus was to build as much as possible in order to achieve economies of scale to the lower costs. Nowadays, assembly line of manufacturing was prevalent. Goods were produced as they headed down the assembly line, such as in automobile production. This is because all the companies have to move quickly to compete with information technology as it takes only days to gain or lose a competitive advantage among the others companies. Computers are at the root of these manufacturing processes. Computer-based-manufacturing information system used several major techniques to support Computer-Integrates Manufacturing (CIM). Computer-Integrates Manufacturing is an overall process that stresses the goals of computer use for factory automation and must includes the following processes. Firstly, simplify or reengineer the production processes, product designs and factory automation. Next, automate production processes and the business function with computers and robots. Then, integrate all production and support process using computers and the telecommunications network. The benefits of
  3. 3. using Computer-Integrates Manufacturing are included in increased efficiency through work simplification and automation. Besides that, improved utilization of production facilities, reduced investment in production inventories using Just-In-Time practices and improved customer service. There are just some of the ways information technology is and will be used in manufacturing process. With the introduction of the Internet and the World Wide Web, all the companies have to access to the global market. The telecommunication industry is providing a way to access the technology. The manufacturing industry will now use information technology (IT) to enhance their competitive edge and more effectively compete in the global market. Nowadays, there are a lots of manufacturing industries that have a great improvement such as automotives manufacturing, chemical manufacturing, engineering manufacturing, medical manufacturing, food manufacturing and many more. The way to improve Information Technology (IT) of automotives factories in manufacturing industries are by using industrial robots to weld car bodies. Computer-aided manufacturing (CAM) are refers to the use of computers to assist with manufacturing processes such as fabrication and assembly. Often, the robots carry out processes in a CAM environment. Nowadays, CAM is used by a variety of industries. The automotive industry is a term that covers a wide range of companies and organisations involved in the design, development, manufacture, marketing, and selling of motor vehicles, towed vehicles, motorcycles and mopeds. It is one of the world's most important economic sectors by revenue. The term automotive industry usually does not include industries dedicated to the maintenance of automobiles following delivery to the end-user, such as repair shops and motor fuel filling stations. Back to the history of automotive industries, the first practical automobile with a petrol engine was built by Karl Benz in 1885 in Mannheim, Germany. Benz was granted a patent for his automobile on 29 January 1886, and began the first production of automobiles in 1888, after Bertha Benz, his wife, had proved with the first long-distance trip in August 1888 (104 km (65 mi) from Mannheim to Pforzheim and back) that the horseless coach was absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial Route commemorates this event. Soon after, in 1889, Gottlieb Daimler and Wilhelm Maybach in Stuttgart designed a vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with an engine. They also are usually credited as inventors of the first motorcycle, the Daimler Reitwagen, in 1885, but Italy's Enrico Bernardi, of the University of Padua, in 1882, patented a
  4. 4. 0.024 horsepower (17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle, making it at least a candidate for the first automobile, and first motorcycle. Bernardi enlarged the tricycle in 1892 to carry two adults. The automotive industry began in the 1890s with hundreds of manufacturers that pioneered the horseless carriage. For many decades, the United States led the world in total automobile production. In 1929 before the Great Depression, the world had 32,028,500 automobiles in use, and the U.S. automobile industry produced over 90% of them. At that time the U.S. had one car per 4.87 persons.[3] After WWII the U.S. produced about 75 percent of world's auto production. In 1980 the U.S. was overtaken by Japan and became world's leader again in 1994. In 2006, Japan narrowly passed the U.S. in production and held this rank until 2009, when China took the top spot with 13.8 million units. By producing 18.4 million units in 2011, China produced more than twice the number of automobiles made by the U.S. in second place with 8.7 million units, while Japan was in third place with 8.4 million units. In this industry, safety is the most important things that should be done in order to produce a good quality of the products. Safety is a state that implies to be protected from any risk, danger, damage or cause of injury. In the automotive industry, safety means that users, operators or manufacturers do not face any risk or danger coming from the motor vehicle or its spare parts. Safety for the automotives themselves implies that there is no risk of damage. Safety in the automotive industry is particularly important and therefore highly regulated. Automobiles and other motor vehicles have to comply with a certain number of norms and regulations, whether local or international, in order to be accepted on the market. The standard ISO 26262 for instance is considered as one of the best practice framework for achieving automotive functional safety. That is, to ensure that motored vehicles meet all requirements for safe manufacturing and operation for end-users. In case of safety issues, danger, product defect or faulty procedure during the manufacturing of the motor vehicle, the maker can request to return either a batch or the entire production run. This procedure is called product recall. Product recalls happen in every industry and can be production-related or stem from the raw material. Product and operation tests and inspections at different stages of the value chain are made to avoid these product recalls by ensuring end-user security and safety and compliance with the automotive industry requirements. However, the automotive industry is still particularly concerned about product recalls which cause considerable financial consequences. Next, the economy also important in every companies in order to increase their profits. Around the world, there were about 806 million cars and light trucks on the road
  5. 5. in 2007, consuming over 260 billion US gallons (980,000,000 m3 ) of gasoline and diesel fuel yearly. The automobile is a primary mode of transportation for many developed economies. The Detroit branch of Boston Consulting Group predicts that, by 2014, one-third of world demand will be in the four BRIC markets (Brazil, Russia, India and China). Other potentially powerful automotive markets are Iran and Indonesia. Emerging auto markets already buy more cars than established markets. According to a J.D. Power study, emerging markets accounted for 51 percent of the global light-vehicle sales in 2010. The study expects this trend to accelerate. In the world of motor vehicle production for many decades, the United States led the world in total automobile production. In 1929 before the Great Depression, the world had 32,028,500 automobiles in use, and the US automobile industry produced over 90% of them. At that time the U.S. had one car per 4.87 persons. After WWII the U.S. issued 3/4 of world's auto production. In 1980 the U.S. was overtaken by Japan and became world's leader again in 1994. In 2006, Japan narrowly passed the U.S. in production and held this rank until 2009, when China took the top spot with 13.8 million units. By producing 18.4 million units in 2011, China produced more than twice the number of automobiles made by the U.S. in second place with 8.7 million units, while Japan was in third place with 8.4 million units. Besides that, it is also common for automobile manufacturers to hold stakes in other automobile manufacturers in order to improves manufacturing industries. These ownerships can be explored under the detail for the individual companies. Notable current relationships include :  Daimler AG holds a 20% stake in Eicher Motors, a 10.0% stake in KAMAZ, a 10% stake in Tesla Motors, a 6.75% stake in Tata Motors and a 3.1% in the Renault-Nissan Alliance.  Dongfeng Motor Corporation is involved in joint ventures with several companies around the world, including: Honda (Japan), Hyundai (South Korea), Nissan (Japan), Nissan Diesel (Sweden), and PSA Peugeot Citroen (France).  Fiat holds a 90% stake in Ferrari and a 61.8% stake in Chrysler.  Ford Motor Company holds a 3% stake in Mazda and a 12.1% share in Aston Martin.  Geely Automobile holds a 23% stake in Manganese Bronze Holdings.  General Motors holds a 7% stake in PSA Peugeot Citroen, Shanghai Automotive Industry Corporation (SAIC) have two joint ventures in Shanghai General Motors and SAIC-GM-
  6. 6. Wuling Automobile. Both also hold an equal 50% stake in General Motors India Private Limited. And General Motors holds a 94% stake in GM Korea and SAIC Group holds a 6% stake.  Hyundai Kia Automotive Group holds a 33.99% stake in Kia Motors,[28] down from the 51% that it acquired in 1998.  MAN SE holds a 17.01% voting stake in Scania.  Porsche Automobil Holding SE has a 50.74% voting stake in Volkswagen Group. The Porsche automotive business is fully owned by the Volkswagen Group.  Renault and Nissan Motors have an alliance( Renault-Nissan Alliance ) involving two global companies linked by cross-shareholding, with Renault holding 44.3% of Nissan shares, and Nissan holding 15% of (non-voting) Renault shares. The alliance holds a 3.1% share in Daimler AG.  Renault holds a 25% stake in AvtoVAZ and 20.5% of the voting stakes in Volvo Group.  Toyota holds a 51% stake in Daihatsu, and 16.5% in Fuji Heavy Industries, parent company of Subaru.  Volkswagen Group holds a 37.73% stake in Scania (68.6% voting rights), and a 53.7% stake in MAN SE (55.9% voting rights). Volkswagen is integrating Scania, MAN and its own truck division into one division.Volkswagen Group has a 19.9% stake in Suzuki, and Suzuki has a 5% stake in Volkswagen.  Paccar inc. has a 19% stake in Tatra. The way to improves automotives industry are : Safety Engineering in automotive industry is the assessment of various crash scenarios and their impact on the vehicle occupants. These are tested against very stringent governmental regulations. Some of these requirements include: Seat belt and air bag functionality, front and side impact testing, and resistance to rollover. Assessments are done with various methods and tools: Computer crash simulation (typically Finite element analysis), crash test dummies, partial system sled and full vehicle crashes. Fuel Economy/Emissions: Fuel economy is the measured fuel efficiency of the vehicle in miles per gallon or litres per 100 kilometers. Emissions testing the measurement of the vehicles emissions: hydrocarbons, nitrogen oxides (NOx), carbon monoxide (CO), carbon dioxide (CO2), and evaporative emissions.
  7. 7. Vehicle Dynamics: Vehicle dynamics is the vehicle's response of the following attributes: ride, handling, steering, braking, comfort and traction. Design of the chassis systems of suspension, steering, braking, structure (frame), wheels and tires, and traction control are highly leveraged by the Vehicle Dynamics engineer to deliver the Vehicle Dynamics qualities desired. NVH Engineering (Noise, Vibration, and Harshness): NVH is the customer's feedback (both tactile (feel) and audible (hear)) from the vehicle. While sound can be interpreted as a rattle, squeal, or hoot; a tactile response can be seat vibration, or a buzz in the steering wheel. This feedback is generated by components either rubbing, vibrating or rotating. NVH response can be classified in various ways: power train NVH, road noise, wind noise, component noise, and squeak and rattle. Note, there are both good and bad NVH qualities. The NVH engineer works to either eliminate bad NVH, or change the “bad NVH” to good (i.e., exhaust tones). Vehicle Electronics: Automotive electronics is an increasingly important aspect of automotive engineering. Modern vehicles employ dozens of electronic systems.[1] These systems are responsible for operational controls such as the throttle, brake and steering controls; as well as many comfort and convenience systems such as the HVAC, infotainment and lighting systems. It would not be possible for automobiles to meet modern safety and fuel economy requirements without electronic controls. Performance: Performance is a measurable and testable value of a vehicles ability to perform in various conditions. Performance can be considered in a wide variety of tasks, but it's generally associated with how quickly a car can accelerate (e.g. standing start 1/4 mile elapsed time, 0-62 mph, etc.), top speed, how short and quickly a car can come to a complete stop from a set speed (e.g. 70-0 mph), how much g-force a car can generate without losing grip, recorded lap times, cornering speed, brake fade, etc. Performance can also reflect the amount of control in inclement weather (snow, ice, rain). Shift Quality: Shift Quality is the driver’s perception of the vehicle to an automatic transmission shift event. This is influenced by the power train (engine, transmission), and the vehicle (driveline, suspension, engine and power train mounts, etc.). Shift feel is both a tactile (feel) and audible (hear) response of the vehicle. Shift Quality is experienced as various events: Transmission shifts are felt as an up shift at acceleration (1-2), or a downshift man
  8. 8. ever in passing (4-2). Shift engagements of the vehicle are also evaluated, as in Park to Reverse, etc. Durability or Corrosion engineering: Durability and Corrosion engineering is the evaluation testing of a vehicle for its useful life. This includes mileage accumulation, severe driving conditions, and corrosive salt baths. Package / Ergonomics Engineering: Package Engineering is a discipline that designs/analyzes the occupant accommodations (seat roominess), ingress/egress to the vehicle, and the driver’s field of vision (gauges and windows). The Package Engineer is also responsible for other areas of the vehicle like the engine compartment, and the component to component placement. Ergonomics is the discipline that assesses the occupant's access to the steering wheel, pedals, and other driver/passenger controls. Climate Control: Climate Control is the customer’s impression of the cabin environment and level of comfort related to the temperature and humidity. From the windshield defrosting, to the heating and cooling capacity, all vehicle seating positions are evaluated to a certain level of comfort. Drivability: Drivability is the vehicle’s response to general driving conditions. Cold starts and stalls, RPM dips, idle response, launch hesitations and stumbles, and performance levels. Cost: The cost of a vehicle program is typically split into the effect on the variable cost of the vehicle, and the up-front tooling and fixed costs associated with developing the vehicle. There are also costs associated with warranty reductions, and marketing. Program timing: To some extent programs are timed with respect to the market, and also to the production schedules of the assembly plants. Any new part in the design must support the development and manufacturing schedule of the model. Assembly Feasibility: It is easy to design a module that is hard to assemble, either resulting in damaged units, or poor tolerances. The skilled product development engineer works with the assembly/manufacturing engineers so that the resulting design is easy and cheap to make and assemble, as well as delivering appropriate functionality and appearance. Quality Management: Quality control is an important factor within the production process, as high quality is needed to meet customer requirements and to avoid expensive recall campaigns. The complexity of components involved in the production process requires a
  9. 9. combination of different tools and techniques for quality control. Therefore, the International Automotive Task Force (IATF), a group of the world’s leading manufacturers and trade organizations, developed the standard ISO/TS 16949. This standard defines the design, development, production, and when relevant, installation and service requirements. Furthermore, it combines the principles of ISO 9001 with aspects of various regional and national automotive standards such as AVSQ (Italy), EAQF (France), VDA6 (Germany) and QS-9000 (USA). In order to further minimize risks related to product failures and liability claims of automotive electric and electronic systems, the quality discipline functional safety according to ISO/IEC 17025 is applied. Since the 1950s, the comprehensive business approach Total Quality Management, TQM, helps to continuously improve the production process of automotive products and components. Some of the companies who have implemented TQM include Ford Motor Company, Motorola and Toyota Motor Company. That is why it is important for the Information Technology (IT) to be used in this industry so that all those vehicles in this modern era can be improved. The use of computers in automotive manufacturing industry are the main sources in order to produce a good quality of vehicles. (Shelly Cashman Series,(2012), Discovering Computers-Fundamentals : Your Interactive Guide to the Digital World, United States.) ( Chemicals are also very important in manufacturing industries. The main driving forces for using e-business in the combined chemical industries differ quite substantially from sub-sector to sub-sector, as the chemical industries are very diverse. Commodity producing companies in the basic chemicals industry, for example, place different hopes in e-business than R&D-intensive pharmaceutical companies do. Overall, four major drivers for e-business in the chemical industries can be identified: • Decreasing processing costs • Speeding up information flows • Improving information about the market
  10. 10. • Extending the market The way to improve Information Technology in chemicals manufacturing are by decreasing the processing costs. Using e-business to decrease the costs related to commercial transactions, e.g. processing and changing orders, and at the same time reducing error rates, is a major driver of e-business in this sector. Due to the usually large number of transactions, even fractional improvements in these processes can aggregate to quite substantial savings. For example, procurement of input materials and the costs associated with this process are an important element in the chemical industries. The basic chemicals industry in particular, relying heavily on commodity inputs and active on rather competitive output markets, has an incentive to advance e-business for this purpose. As this industry is producing commodities with rather thin margins and also uses commodities as input, its major potential to increase profit margins lies in the reduction of internal costs. The basic chemicals industry also provides ideal preconditions for the rapid dissemination of e-commerce. As its outputs are commodities traded under almost perfect competition, all companies have to follow with process improvements once one company has achieved savings from its e-commerce activities. This setting explains the focus on ERP-to-ERP connectivity as one of the aims of e-business activities in the chemical industries. It also explains the existence of e- marketplaces and interconnection hubs, which help to realise this connectivity. Compared to other industries, in the chemical industry the preconditions for realising ERP-to-ERP connectivity and thus fully automatic electronic business are very good. Chemicals are easy to describe and easy to classify. Furthermore, only a few accepted classifications of chemical exist, which increases the probability that companies can settle on a common classification. This is probably one reason why product catalogues either on single websites or on catalogue market places have gained acceptance rather quickly. In other parts of the chemical industry, for example in speciality chemicals, the potential cost savings from electronic order processing are mostly relevant on the procurement side, where direct materials are an important input. On the customer side other e-business activities, e.g. e-collaboration in product design, can reduce costs in product development. Making these processes more efficient and thereby generating cost savings is of special importance in this industry. Secondly, speeding up information flows. Speeding up information flows and thereby accelerating processes is the primary driver in other subsectors, particularly the formulated chemicals industry, among them the pharmaceutical industry. In the pharmaceutical industry, research and development, as well as clinical trials constitute a major part of business
  11. 11. activity. Companies that are able to make the corresponding processes as efficient as possible by speeding up information flows enjoy a longer period of monopoly with their product, and thus higher profits. The Chemical Industries 17 July 2003 In the pharmaceutical industry four areas of e-business are of special importance: • Knowledge management solutions that can help researchers and product developers to find the information they need more quickly, be it scientific information, patent information or information about specific regulations. As R&D depends very much on information flow and information sharing, an improvement of these activities can have a major impact on the bottom line. • The use of Internet and mobile devices in the clinical trial phase can help to speed up the information gathering process. At the same time information transfer errors can be avoided and the trial results can be stored in a way that corresponds to compliance regulation. • Electronic collaboration is another important area of e-business in the R&D-intensive chemical industries. Using appropriate e-business tools, the process of designing drugs or specific chemicals can be speeded up, leading to corresponding cost savings. This driver is not only important in the pharmaceutical industry but also in the speciality chemical industry. The chemicals are often developed by the speciality chemical company in tight collaboration with its customer. • Remote access to the company’s IT systems is of particular importance for pharmaceutical companies, which have large numbers of sales and customer care people, who are typically spending most of their time with customers. Connecting these fieldworkers to the information in the company’s ERP and CRM systems can improve their ability to sell the right products considerably. Wireless devices and connections using mobile phones and PDAs provide means to realise these improvements. "This (the chemical industry) is an industry in transition, defined by its complex global supply chain, multi-organization product-development process, and economic environment where access to information is now rivalling the ownership of physical assets as the source of sustainable competitive advantage.” Rosie Hartman, Computer Sciences Corporation (www- Next, by improving information about the market in the chemical industries. Besides improving the access to scientific, product-related information, the Internet considerably enhances the ability to gather information about the market. As a survey of Italian chemical companies shows, 54% of those companies surveyed use the Internet for
  12. 12. obtaining information about potential suppliers. It is therefore only reasonable that almost 70% also offered detailed information about their products or services on their website (Federchimica, 2001). A number of industry-wide Internet services exist in this sector, i.e. portals and related websites that are devoted to the chemical and plastics industry. A first group, industry information services, are sites with information about the industry, chemicals, chemical processes, legislation and similar issues. They speed up the flow of information within the industry and thereby improve the knowledge within chemical companies. A second group, sourcing sites, provide information or services that are of use in a pre- transaction state. They are more closely related to e-commerce, as they provide information about suppliers, their products and prices. These sites make the matching process in the market more efficient and can therefore increase competition in those areas of the combined chemical industries where lack of product and pricing information is responsible for a higher price level. Particularly in basic chemicals, which are well suited for being traded on exchanges, Internet platforms provide up-to date information about the current prices of these commodities. Buyers can use the information from the platforms to renegotiate their current contracts or let the prices be connected in some way to the spot prices on exchanges. The most important result of this additional information is a greater market transparency. It benefits mostly the buyer of products, making this driver more asymmetric than the previous two. The Chemical Industries July 2003 18. Then, by extending the market of chemical industry. Being able to extend one’s market is one of the outcomes hoped for from e- business. One has to distinguish two aspects, though: indirect and direct effects. The indirect effects are based on the cost savings and process improvements a company can achieve by conducting e-business. As the company does so, its competitiveness improves, and it will win contracts more easily and thereby extend its market. The direct effects are based on the idea that on the Internet and on electronic marketplaces the company can be found more easily and thereby conduct business with new partners, which were previously unaware of its existence. The presence on the Internet and activities on e-marketplaces enables less well known companies to reach a larger number of potential clients and to make their products and services known to the world. As will be shown in section 2.3.4 below, many of the companies surveyed by the e-Business W@tch were able to increase their number of customers and enlarge their sales area by selling online on the Internet. The importance of e-business in chemical industry are the chemical industry is often perceived as one of the forerunners in e- business. Preconditions in the chemical industries for B2B e-commerce are often considered
  13. 13. as exceptionally good this was the case particularly in the early days of the e-business boom. For example, in a study published in 2000, Forrester Research identified the chemical industry as one of the biggest factors in the B2B ecommerce development, and expected it to be the third largest Internet market behind electronics/high tech and the automotive industry in 20034. They estimated that 35% of sales by chemical firms would be conducted online by 20025. Other studies and the media paint a similar picture of an industry that quickly adopts e-business.6 Results of the e-Business W@tch survey, however, paint a different picture at first sight: survey results depicted in figure 2-1, for example, show that only 8% of the enterprises in the combined chemical industries of the EU-5 say that e-business constitutes a significant part of the way their company operates today. This is clearly below the average of 14% over all 7 sectors surveyed. Even more surprising is that almost half of the chemical enterprises do not ascribe any role to e-business. Data presented in the following chapters of this report, e.g. on the use of e-market places or online purchasing and online selling also show that the level of e-business activities in the combined chemical industries is more or less in line with other sectors rather than being exceptionally high. Two explanations for these different views on the importance of e-business for the chemical industries exist. Firstly, “the chemical industries” is not always defined in the same way. Often, the pharmaceutical industry (NACE 24.4) is not included in market surveys and analyses but discussed as a different industry. In addition, the plastic and rubber product industry (NACE 25) is frequently not explicitly included, as it is in this survey. Secondly, many studies, press articles and best practice examples focus very much on e-business activities by large, globally active chemical companies. These constitute the major customer group of e-business software providers as well as consultants and are therefore primarily addressed in the respective reports and studies. However, while global giants account for a large share in turnover and employment in this sector, they only make up a fraction of the number of enterprises. The improvement of e-business in the role of Information Technology (IT) to accelerate globalisation of chemical industries are as has been set out in the first chapter of this report. With new markets such as Asia developing further, globalisation of the chemical industries will increase further. This development is accelerated by e-business. As the Internet increases transparency and the awareness of potential competitors, customers or suppliers, the probability that a company in a different country is the optimal party with which to conduct business, rises. E-business standards that are international right from the start, like the Chem e-Standards, facilitate international electronic data exchange. Since enterprises can exchange
  14. 14. data internationally without the need to adapt their IT systems to foreign conventions, the barriers to international trade are lower than they would otherwise be. The same effect is seen on international Internet trading platforms as they allow a company connected to the hub to exchange data with all other companies also connected, irrespective of their location. A few years ago, the assessment of the implications of ICT usage for enterprises was focused on ecommerce, i.e. on buying and selling over the Internet. The acknowledge of changing role of e-business in every companies were said to be able to decrease their costs for inputs by finding cheaper suppliers and to extend their markets by finding new customers in previously uncovered markets. As the e-Business W@tch survey results have shown, however, companies in the chemical industries see the most positive impact of buying online in improved internal processes. This applies especially to small companies. These results are in accordance with anecdotal evidence about the early e-business motivations of many large companies that aimed to streamline processes and decrease process costs. This shift in enterprises’ motivation for e-business is due to considerable experience gained from early Internet and e-business projects. It thus reflects a better understanding of the potential benefits of e-business than enterprises had a few years ago. This change has to be acknowledged by policy. The Chemical Industries July 2003 44 makers. They have to make sure that their policy measures are in accordance with the benefits from e-business as they are seen now and not as they were perceived a few years ago. In the very dynamic area of e- business, policy measures constantly have to be adapted to the changing environment. This also has consequences for the gathering of data for e-business indicators, which should reflect the change of focus from pure e-commerce to a more holistic e-business approach, focusing on internal business processes. On the ICT infrastructure side, the prerequisites for using e- business can be considered as rather good in the combined chemical industries. Due to the comparatively high importance of large companies – particularly in NACE 24 – a large number of employees in the sector work in companies that are equipped with an above average IT infrastructure. This assessment holds true for all 5 surveyed countries. 97% of all employees in the sector work in companies that have Internet access, compared to an average of 87% in all sectors. An above average share of employees also works in companies that use e-mail, the World Wide Web, and have an intra- or extranet implemented. Significant differences can be observed between company size classes, however. Large enterprises are clearly better equipped than small ones. For example, only 69% of small companies use the WWW while 94% of the medium-sized and 97% of the large companies do. Large gaps can
  15. 15. also be observed in the use of intra- and extranets. While the stronger use of the Internet, the WWW and email clearly puts large companies at a better starting position for e-business, intra- and extranets often are simply less applicable in small companies. For instance many smaller companies do not have an internal network of connected computers that they consider to be an intranet. The physical IT infrastructure in the chemical industries is above average as well. More than 80% of employees in the sector work in companies that have a LAN (local area network), and almost half of all employees work in companies with a WAN (wide area network). Both numbers are significantly higher than on average over all sectors in the EU-5. This is again due to the high share of large companies in the chemical industries. For small companies with a small number of computers the implementation of a LAN is often not necessary or does not make economic sense. The same is true for the implementation of WANs, which primarily connect different offices of regionally spread companies. Chemical manufacturing also support the Information Technology (IT) skills developments. Almost 90% of the employees in the sector work in companies that offer at least some support of IT and networking skills development. This is above the average in other sectors, which underlines the importance of general IT in the chemical industries. However, the high level of IT support in the chemical industries is again determined by the strong dominance of large companies, which offer a considerably better support of IT skills development than small companies.This difference between large and small companies is further aggravated if the form of IT skills development support is considered (see figure 2-3). In small and medium- sized companies, the usage of working time for learning activities is by far the most important form of support. More effective formal training schemes, either in-house or by third parties, are offered only to a relatively small percentage of employees in the small company segment. Other than that, the impact of online selling on companies in chemical industries in this world are very important. Selling online generally has positive impacts for most of the companies in the combined chemical industries. About half of all enterprises in the sector report very or fairly positive impacts on the volume of sales, the number of customers, the sales area, the quality of customer service and the efficiency of internal business processes. However, in most categories, the assessment is less positive than on cross-industry average. Only the impacts on internal business processes and on the costs of logistics and inventory are judged more positively by the chemical industries than on average. In addition, there is a significant share of companies in the chemical industries for which sell-side ecommerce has brought about negative impacts. A certain polarisation can be
  16. 16. observed: positive impacts for a majority of companies but negative impacts for a not negligible share of others. This polarisation is specific to the chemical and plastics sector. A particularly high share of companies feels negative impacts of selling online on the volume of sales and on the number of customers. The presence on the Internet has enabled many less known companies to reach a larger number of potential clients and to make their products and services known to the world. By contrast, other companies seem to have lost market shares through stronger competition and higher market transparency resulting from enhanced information on prices, new products, patents, etc. over the Internet. It is important that the role of Information Technology (IT) to improve the chemical manufacturing. (rise/archives/e-business- watch/studies/sectors/chemical_generic/documents/chemical_2003.pdf) Information Technology (IT) had give a big improvement in today life. One of the improvement that can clearly be seen is in manufacturing. Manufacturing is the production of goods for use or sale using labor and machines, tools, chemical and biological processing, or formulation. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as aircraft, household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users – the "consumers". Manufacturing takes turns under all types of economic systems. In a free market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy. In mixed market economies, manufacturing occurs under some degree of government regulation. Modern manufacturing includes all intermediate processes required for the production and integration of a product's components. Some industries, such as semiconductor and steel manufacturers use the term fabrication instead. The manufacturing sector is closely connected with engineering and industrial design. Examples of major manufacturers in North America include General Motors Corporation, General Electric, and Pfizer. Examples in Europe include Volkswagen Group, Siemens, and Michelin. Examples in Asia include Toyota, Samsung, and Bridgestone. Computer based control systems can be combined with manufacturing technology, such as robots, machine tools, automated guided vehicles, to
  17. 17. improve manufacturing operations. In this role, the computer can assist integrating these technologies into a lean and efficient factory capable of competing in world markets. Organizations such as Allen-Bradley, black and Decker, and Boeing have used information technology and factory automation to improve manufacturing operations. This combination of information technology and factory automation is often called computer- integrated manufacturing. Computer- integrated manufacturing (CIM) blends development in manufacturing with information technology to achieve competitive advantage. When properly organized, CIM offers the opportunity to automate design, manufacturing and production planning and control. Each component is described briefly here: Engineering design through Computer aided design (CAD) allows an organization to make high quality specialized designs rapidly. The design can be tailored to meet individual customer needs.Flexibility manufacturing systems (FMSs) can quickly produce a variety of high quality product efficiently. An (FMSs) also allow an organization to produce high specialized designs.Computer based production planning and control systems allow an organization to cope with the complexity of managing facilities that produce a wide variety of specialized products without losing efficiency.When properly combined, these components can yield synergetic results. An organization can have more flexible and integrated operations, be better equipped to mange complex operations, and exercise better controls then can a company that operates without CIM. To merge these components into one coordinated whole, staff from the information systems functions needs to integrate engineering, manufacturing, and business databases into a cross functional decision support system. Once accomplished, the flexibility to respond to customer demands with low cost, high quality specialized products becomes a powerful competitive advantage. The role of computer and information technology in service operations: Service by its definition does not have a physical dimension. However many organization classified as a service providers, actually produced both goods and services. These hybrid operations include restaurants which both sell food (a good) and prepare it (a service), department store which sells products as well as the retailing service, and shops that sell parts and offer repair services.Mellon bank is using and expert system to successfully battle credit card fraud, which is a multi billion dollar problems in the united stats alone. The computer based expert system examine 1.2 million account each day for many factors, such as an unusual number of transactions, charging large accounts, changing patterns of expenditure. The system usually
  18. 18. indicated about hundreds cases that requires more investigation. Mellon paid about $ I million for the software and predicted it will pay for itself in six months.Merck and co, one of the largest drug companies in the world, decided to completely revamp itself its benefits system. To on roll over fifteen thousand salaried employees the old fashioned way using printed forms would have required Merck to double its person- net stuff. The company spends dollar 1 million to write computer software’s and install two dozen machines to enroll itself its employees. Enrollment took just 5 weeks and not 1 person was aided to the personal staff. Merck is using similar system to allow employees to adjust with holding allowances their investment plan without speaking to anyone in payroll. Merck‘s software prevents employees from selecting options for which they are not eligible or from making obviously wrong decisions. In its earliest form, manufacturing was usually carried out by a single skilled artisan with assistants. Training was by apprenticeship. In much of the pre-industrial world the guild system protected the privileges and trade secrets of urban artisans.Before the Industrial Revolution, most manufacturing occurred in rural areas, where household-based manufacturing served as a supplemental subsistence strategy to agriculture (and continues to do so in places). Entrepreneurs organized a number of manufacturing households into a single enterprise through the putting-out system.Toll manufacturing is an arrangement whereby a first firm with specialized equipment processes raw materials or semi-finished goods for a second firm. Manufacturing process management (MPM) is a collection of technologies and methods used to define how products are to be manufactured. MPM differs from ERP/MRP which is used to plan the ordering of materials and other resources, set manufacturing schedules, and compile cost data.A cornerstone of MPM is the central repository for the integration of all these tools and activities aids in the exploration of alternative production line scenarios; making assembly lines more efficient with the aim of reduced lead time to product launch, shorter product times and reduced work in progress (WIP) inventories as well as allowing rapid response to product or product changes The history of manufacturing engineering can be traced to factories in the mid 19th century USA and 18th century UK. Although large home production sites and workshops were established in ancient China, ancient Rome and the Middle East, the Venice Arsenal provides
  19. 19. one of the first examples of a factory in the modern sense of the word. Founded in 1104 in the Republic of Venice several hundred years before the Industrial Revolution, this factory mass- produced ships on assembly lines using manufactured parts. The Venice Arsenal apparently produced nearly one ship every day and, at its height, employed 16,000 people.Many historians regard Matthew Boulton's Soho Manufactory (established in 1761 in Birmingham) as the first modern factory. Similar claims can be made for John Lombe's silk mill in Derby (1721), or Richard Arkwright's Cromford Mill (1771). The Cromford Mill was purpose-built to accommodate the equipment it held and to take the material through the various manufacturing processes.Ford assembly line, 1913.One historian, Murno Gladst, contends that the first factory was in Potosí. The Potosi factory took advantage of the abundant silver that was mined nearby and processed silver ingot slugs into coins. British colonies in the 19th century built factories simply as buildings where a large number of workers gathered to perform hand labor, usually in textile production. This proved more efficient for the administration and distribution of materials to individual workers than earlier methods of manufacturing, such as cottage industries or the putting-out system. Cotton mills used inventions such as the steam engine and the power loom to pioneer the industrial factories of the 19th century, where precision machine tools and replaceable parts allowed greater efficiency and less waste. This experience formed the basis for the later studies of manufacturing engineering. Between 1820 and 1850, non-mechanized factories supplanted traditional artisan shops as the predominant form of manufacturing institution. Henry Ford further revolutionized the factory concept and thus manufacturing engineering in the early 20th century with the innovation of mass production. Highly specialized workers situated alongside a series of rolling ramps would build up a product such as (in Ford's case) an automobile. This concept dramatically decreased production costs for virtually all manufactured goods and brought about the age of consumerism. Modern manufacturing engineering studies include all intermediate processes required for the production and integration of a product's components. Some industries, such as semiconductor and steel manufacturers use the term "fabrication" for these processes. KUKA industrial robots being used at a bakery for food production. Automation is used in different processes of manufacturing such as machining and welding. Automated manufacturing refers to the application of automation to produce goods in a
  20. 20. factory. The main advantages of automated manufacturing for the manufacturing process are realized with effective implementation of automation and include: higher consistency and quality, reduction of lead times, simplification of production, reduced handling, improved work flow, and improved worker morale. Robotics is the application of mechatronics and automation to create robots, which are often used in manufacturing to perform tasks that are dangerous, unpleasant, or repetitive. These robots may be of any shape and size, but all are preprogrammed and interact physically with the world. To create a robot, an engineer typically employs kinematics (to determine the robot's range of motion) and mechanics (to determine the stresses within the robot). Robots are used extensively in manufacturing engineering. Robots allow businesses to save money on labor, perform tasks that are either too dangerous or too precise for humans to perform economically, and to ensure better quality. Many companies employ assembly lines of robots, and some factories are so robotized that they can run by themselves. Outside the factory, robots have been employed in bomb disposal, space exploration, and many other fields. Robots are also sold for various residential applications. Many manufacturing companies, especially those in industrialized nations, have begun to incorporate computer-aided engineering (CAE) programs into their existing design and analysis processes, including 2D and 3D solid modeling computer-aided design (CAD). This method has many benefits, including easier and more exhaustive visualization of products, the ability to create virtual assemblies of parts, and ease of use in designing mating interfaces and tolerances. Other CAE programs commonly used by product manufacturers include product life cycle management (PLM) tools and analysis tools used to perform complex simulations. Analysis tools may be used to predict product response to expected loads, including fatigue life and manufacturability. These tools include finite element analysis (FEA), computational fluid dynamics (CFD), and computer-aided manufacturing (CAM). Using CAE programs, a mechanical design team can quickly and cheaply iterate the design process to develop a product that better meets cost, performance, and other constraints. No physical prototype need be created until the design nears completion, allowing hundreds or thousands of designs to be evaluated, instead of relatively few. In addition, CAE analysis programs can model complicated physical phenomena which cannot be solved by hand, such
  21. 21. as visco elasticity, complex contact between mating parts, or non-Newtonian flows. Just as manufacturing engineering is linked with other disciplines, such as mechatronics, multidisciplinary design optimization (MDO) is also being used with other CAE programs to automate and improve the iterative design process. MDO tools wrap around existing CAE processes, allowing product evaluation to continue even after the analyst goes home for the day. They also utilize sophisticated optimization algorithms to more intelligently explore possible designs, often finding better, innovative solutions to difficult multidisciplinary design problems. Automation is the use of machines, control systems and information technologies to optimize productivity in the production of goods and delivery of services. The correct incentive for applying automation is to increase productivity, and/or quality beyond that possible with current human labor levels so as to realize economies of scale, and/or realize predictable quality levels. In the scope of industrialisation, automation is a step beyond mechanization. Whereas mechanization provides human operators with machinery to assist them with the muscular requirements of work, automation greatly decreases the need for human sensory and mental requirements while increasing load capacity, speed, and repeatability. Automation plays an increasingly important role in the world economy and in daily experience. Automation has had a notable impact in a wide range of industries beyond manufacturing (where it began). Once-ubiquitous telephone operators have been replaced largely by automated telephone switchboards and answering machines. Medical processes such as primary screening in electrocardiography or radiography and laboratory analysis of human genes, sera, cells, and tissues are carried out at much greater speed and accuracy by automated systems. Automated teller machines have reduced the need for bank visits to obtain cash and carry out transactions. In general, automation has been responsible for the shift in the world economy from industrial jobs to service jobs in the 20th and 21st centuries. The term automation, inspired by the earlier word automatic (coming from automaton), was not widely used before 1947, when General Motors established the automation department. At that time automation technologies were electrical, mechanical, hydraulic and pneumatic. Between 1957 and 1964 factory output nearly doubled while the number of blue collar workers started to decline. Computer-integrated manufacturing (CIM) is the manufacturing approach of using computers
  22. 22. to control the entire production process. This integration allows individual processes to exchange information with each other and initiate actions. Through the integration of computers, manufacturing can be faster and less error-prone, although the main advantage is the ability to create automated manufacturing processes. Typically CIM relies on closed-loop control processes, based on real-time input from sensors. It is also known as flexible design and manufacturing. The term "computer-integrated manufacturing" is both a method of manufacturing and the name of a computer-automated system in which individual engineering, production, marketing, and support functions of a manufacturing enterprise are organized. In a CIM system functional areas such as design, analysis, planning, purchasing, cost accounting, inventory control, and distribution are linked through the computer with factory floor functions such as materials handling and management, providing direct control and monitoring of all the operations. As a method of manufacturing, three components distinguish CIM from other manufacturing methodologies that means for data storage, retrieval, manipulation and presentation, mechanisms for sensing state and modifying processes, algorithms for uniting the data processing component with the sensor/modification component.CIM is an example of the implementation of information and communication technologies (ICTs) in manufacturing. CIM implies that there are at least two computers exchanging information, e.g. the controller of an arm robot and a micro-controller of a CNC machine. Some factors involved when considering a CIM implementation are the production volume, the experience of the company or personnel to make the integration, the level of the integration into the product itself and the integration of the production processes. CIM is most useful where a high level of ICT is used in the company or facility, such as CAD/CAM systems, the availability of process planning and its data. (L.Goldman, R.L Nagel and K.Priess, Agile Competitor And Virtual Organization-Strategies For Enrichment The Customer, Ran Nostrand Rienhold, 1995) (Martin Christhoper, Logistics And Supply Chain Management) (
  23. 23. Medical robots have a potential to fundamentally change surgery and interventional medicine. Exploits the complementary strengths of humans and computer-based technology. The robots may be thought of as information-driven surgical tools. Enable human surgeons to treat individual patients with greater safety, improved efficacy, and reduced morbidity than would otherwise be possible. The consistency and information infrastructure associated with medical robotic and computer-assisted surgery systems have the potential to make computer- integrated surgery as important to health care as computer-integrated manufacturing is to industrial production. Medical robotics is ultimately an application-driven research field. Development of medical robotic systems requires significant innovation and can lead to very real, fundamental advances in technology. Medical robots must provide measurable and significant advantages if they are to be widely accepted and deployed. These advantages are often difficult to measure, can take an extended period to assess, and may be of varying importance to different groups. Can significantly improve surgeons’ technical capability to perform procedures by exploiting the complementary strengths of humans and robots. Medical robots can be constructed to be more precise and geometrically accurate than an unaided human. They can operate in hostile radiological environments and can provide great dexterity for minimally invasive procedures inside the patient’s body. These capabilities can both enhance the ability of an average surgeon to perform procedures that only a few exceptionally gifted surgeons can perform unassisted. Also makes it possible to perform interventions that would otherwise be completely infeasible. Promote surgical safety both by improving a surgeon’s technical performance and by means of active assists such as no-fly zones or virtual fixtures. Integration of medical robots within the information infrastructure of a larger CIS system can provide the surgeon with significantly improved monitoring and online decision supports, thus further improving safety. Promote consistency while capturing detailed online information for every procedure. Flight data recorder model where entire procedure is archived for training/learning. Surgical CAD/CAM: process of computer-assisted planning, registration, execution, monitoring, and assessment. Exploits the geomertic accuracy of the robot. Computer Integration of multiple data sources: X-Ray, CT,. MRI, Ultrasound. Goal is not to replace the surgeon, but to improve his/her ability to treat the patient. Think of robot as a surgical assistant. Manipulate surgical instruments under the direct control of the surgeon, usually through a teleoperator interface. Can extend human capabilities: tremor removal,
  24. 24. superhuman precision, ability to reach remote interior areas, remote access to patient. Example: daVinci robot, Intuitive Surgical. Patient specific data can be used during procedure. Register pre-op patient data (CT, MRI etc) to in-vivo patient during procedure. Use patient data constraints to improve safety and accuracy. Important: provide required assistance without increasing burden on surgeon. Medical image segmentation and image fusion to construct and update patient-specific anatomic models. Biomechanical modeling for analyzing and predicting tissue deformations and functional factors affecting surgical planning, control, and rehabilitation. Optimization methods for treatment planning and interactive control of systems. Methods for registering the virtual reality of images and computational models to the physical reality of an actual patient. Methods for characterizing treatment plans and individual task steps such as suturing, needle insertion, or limb manipulation for purposes of planning, monitoring, control, and intelligent assistance. Real- time data fusion for such purposes as updating models from intraoperative images. Methods for human–machine communication, including real-time visualization of data models, natural language understanding, gesture recognition, etc. Methods for characterizing uncertainties in data, models, and systems and for using this information in developing robust planning and control methods. Display from a typical surgical navigation system, here the Medtronic Stealth Station. the JHU image overlay system] uses a mirror to align the virtual image of a cross-sectional image with the corresponding physical position in the patient’s body. Sensory substitution display of surgical force information onto daVinci surgical robot video. Over lay of laparoscopic ultrasound on tot he daVinci surgical robot video monitor. Exploiting technology to transcend human limitations in treating patients. improving the safety, consistency, and overall quality of interventions. improving the efficiency and cost- effectiveness of care. improving training through the use of simulators, quantitative data capture and skill assessment methods, and the capture and playback of clinical cases. promoting more effective use of information at all levels, both in treating individual patients and in improving treatment processes. ( In the 11 years since the Food and Drug Administration (FDA) approved the first robotic surgical system for conducting abdominal and pelvic surgeries, its use has skyrocketed. The da Vinci Surgical System is now used to perform as many as 4 out of 5
  25. 25. radical prostatectomies in the United States. The robotic system is also increasingly being used to treat other cancers, including gynecologic and head and neck cancers. According to da Vinci's manufacturer, Intuitive Surgical, Inc., more than 1,000 of the robotic systems are in hospitals across the country. Several recent studies suggest that the ascendance of robotic prostatectomy has had numerous consequences, including a mass migration of prostate cancer patients to hospitals with robotic systems and an overall increase in the number of prostatectomies performed each year. The latter trend has raised some concern because it coincides with a period during which prostate cancer incidence has declined slightly. How robotic prostatectomy proliferated so quickly, and what it means for patients and the health care system, is still a matter of study and debate. But the shift appears to have altered the surgical treatment of prostate cancer permanently, observed urologic surgeon Dr. Hugh Lavery of the Mount Sinai Medical Center in New York. "I think that traditional open and laparoscopic prostatectomies have faded," Dr. Lavery said. The available data indicate that patients and surgeons "are pushing for the robots," he added, "and they're getting them." Type "robotic surgery prostate cancer" into an Internet search engine, and the results will typically include glowing testimonials from patients who were treated with robotic surgery and videos of da Vinci's surgical instruments roaming about the peritoneal cavity suturing, cutting through tissue, removing fat. In these videos, the surgeon is on the other side of the room, head buried in a console, and hands at the robot's controls, maneuvering the instruments with the aid of a camera that offers a crisp, 3-dimensional image of the surgical field. (Read more about how the robotic system works.) The Internet videos are just one component of the extensive marketing campaign behind da Vinci by individual hospitals and the system's manufacturer. A study of 400 hospital websites, published online in May, found that 37 percent of the sites featured robotic surgery on the homepage, 61 percent used stock text provided by the robot's manufacturer, and nearly one in three sites had claims that robotic procedures led to improved cancer control. of 400 hospital websites, published online in May, found that 37 percent of the sites featured robotic surgery on the homepage, 61 percent used stock text provided by the robot's manufacturer, and nearly one in three sites had claims that robotic procedures led to improved cancer control. "The tendency is to associate better technology with better care," explained the study's lead investigator, Dr. Marty Makary of the Johns Hopkins University School of Medicine Dr. Makary said he performs most operations, including complex pancreas surgery, laparoscopically because he believes the
  26. 26. robot does not offer sufficient tactile feedback and takes more operative time. Traditional laparoscopy, however, is now rarely used for prostatectomies because the procedure is considered technically demanding, according to several researchers. One estimate put the number of laparoscopic prostatectomies each year in the United States at less than 1 percent of the total. Patients often arrive for an office visit knowing that they want a prostatectomy performed with the robot, said Dr. William Lowrance, a urologic oncologist at the Huntsman Cancer Institute at the University of Utah. "It may be based on something they saw on the Internet or because of a friend or relative who had a good experience" with robotic surgery, he explained. Approximately 70 percent of the prostatectomies he performs are done with da Vinci. Patient-to-patient referrals and the fact that the robotic procedure is minimally invasive have been two key drivers of the robot's popularity, said Dr. Ash Tewari, director of the Prostate Cancer Institute at New York-Presbyterian Hospital/Weill Cornell Medical Center, who performs nearly 600 robotic prostatectomies a year. Several studies have documented that there can be a fairly steep learning curve before surgeons achieve proficiency with the robot. But according to Dr. Warner K. Huh, a gynecologic oncologist and surgeon at the University of Alabama Birmingham Comprehensive Cancer Center, the robot makes it easier to perform many minimally invasive procedures. "For many surgeons, they feel they can do a minimally invasive procedure more effectively and safely robotically, and I think that's a big reason that it's taken off," Dr. Huh said. The growth of robotic surgery is more than just a marketing phenomenon, agreed Dr. Tewari. "It has been supported with a lot of good science," he continued. "We want to make this field better and beyond the hype of robotics." Based on studies to date, there seems to be agreement that robotic surgery is comparable to traditional laparoscopic surgery in terms of blood loss and is superior to open surgery in terms of blood loss and length of hospital stay. Recovery time may also be shorter following robotic surgery than open surgery. But for the big three outcomes—cancer control, urinary control, and sexual function—there is still no clear answer as to whether one approach is superior to another, Dr. Lowrance noted. A large, randomized clinical trial comparing any of the approaches seems out of the realm of possibility at this point. At Weill Cornell, Dr. Tewari has approval to conduct a trial comparing robotic prostatectomy with open surgery. But the trial never got off the ground because there are not enough patients willing to be randomly assigned to surgery without the robot, he said. A randomized trial may not even be that informative. "Many open surgeons
  27. 27. have excellent outcomes, which may be hard to improve upon," said Dr. Lavery. "I think that if you have an expert surgeon doing either procedure, you're likely to have an excellent outcome." The remarkably swift proliferation of the da Vinci system in surgery suites across the United States appears to have had population-wide effects. In a study Dr. Lavery presented at the American Urological Association annual meeting in March, he showed that, from 1997 to 2004, the number of prostatectomies performed in the United States was fairly stable, around 60,000 per year. From 2005 to 2008, however—what Dr. Lavery and his colleagues called the first true years of the "robotic era"—the number of prostatectomies and robotic procedures spiked. The number of prostatectomies rose to roughly 88,000 in 2008, and the number of robotic procedures jumped from approximately 9,000 in 2004 to 58,000 in 2008. Two other recent analyses that looked at smaller geographic regions—New York, New Jersey, and Pennsylvania in one study and Wisconsin in the other—yielded similar results. But they also showed something else: Hospitals that acquired robots saw a significant increase in the number of radical prostatectomies they performed. At the same time, the number of procedures at hospitals that did not acquire a robot fell. "The overall result has been a sudden, population-wide, technology-driven centralization of procedures that is without precedent," wrote Dr. Karyn Stitzenberg of the University of North Carolina Division of Surgical Oncology and her colleagues, who conducted the study in New York, New Jersey, and Pennsylvania. Whether the rise in the number of procedures has meant that patients who might have been strong candidates for a different treatment, including active surveillance, instead opted for surgery is "speculative," Dr. Lowrance said "My own feeling is that radical prostatectomy rates in general have probably peaked and are on their way down," he said, in part because of the increased emphasis on active surveillance in men with localized, low-risk prostate cancer. Another uncertain aspect centers on whether there has been any economic fallout from the increased use of this fairly expensive technology. Hospitals are not paid more for procedures using the robot, despite the fact that its use carries significant extra costs. The robot itself runs anywhere from $1.2 million to $1.7 million (and many hospitals have several), a required annual maintenance contract is approximately $150,000, and about $2,000 in disposable equipment is required each time the robot is used. Studies have suggested that using the robot
  28. 28. may add as much as $4,800 to the cost of each surgery. Shorter hospital stays and less need for blood transfusions may offset some of these costs, however. In fact, data from a study that Dr. Lowrance and his colleagues have in press indicate that, after adjusting for various factors and excluding the fixed cost of the robot, the cost of robotic prostatectomy and the medical care needed for the ensuing year is comparable to the cost of open surgery and the ensuing year of care in a group of Medicare patients. Although no other surgical robots have been approved by the FDA, at least two companies are developing similar robotic systems that could, eventually, compete with da Vinci, Dr. Lavery noted, which could reduce costs further. The dramatic centralization of robotic prostatectomy procedures could be a double- edged sword, Dr. Stitzenberg and her colleagues concluded. A multitude of studies have demonstrated that higher volume is linked to better outcomes, suggesting that having fewer centers performing prostatectomies could improve the overall quality of care. But centralization also raises the specter that access to care could be impaired, particularly in rural areas where market forces could limit the availability of surgeons who can perform the procedure. The rapid growth of robotic prostatectomy is a proxy for the larger debate about the role of technology in medicine, Dr. Lowrance believes. For example, intensity-modulated radiation therapy and proton-beam therapy—which cost tens of thousands of dollars more than robotic surgery—are also gaining popularity as treatments for localized prostate cancer, even though neither has been shown to produce better outcomes than standard radiation therapy. "The big question is: How do we balance the uptake of new technology and its cost with the additional [clinical] value it may provide?" he continued. "It's hard to do those types of studies, but we have to continue to ask whether [a new technology] is always worthwhile. The meteoric growth of robotic surgery to treat prostate cancer over the past decade has been mirrored by a similar growth in the treatment of gynecologic cancers, such as cervical and endometrial cancer. (Robotic surgery for gynecologic cancers typically involve a hysterectomy, which may be accompanied by lymph node dissection.) Minimally invasive surgery with traditional laparoscopy has been a common treatment for gynecologic cancers for two decades, said Dr. Warner Huh of the University of Alabama Birmingham Comprehensive Cancer Center. But many surgeons have switched to the robotic procedure. In particular, the robotic procedure has given surgeons an important new option for treating obese women, Dr. Huh said. Traditional laparoscopy often cannot be performed on obese women, so before robotic surgery these patients typically had to have open surgery. "An open
  29. 29. surgery in these patients is extremely difficult to do," he said. "Some of these women had horrific complications related to their incision. "Obesity rates in Alabama are among the highest in the nation, so robotic surgery has provided an important new clinical option for many women in the state. The average hospital stay following open surgery in obese patients was 4 to 5 days, he said. Now, with the robotic procedure, the average stay is often 24 hours or less. Complication rates have dropped from anywhere between 5 to 10 percent with open surgery to 1 to 2 percent with robotic surgery. "It's completely changed how we manage these diseases in morbidly obese women," Dr. Huh said. A technology revolution is fast replacing human beings with machines in virtually every sector and industry in the global economy. Already, millions of workers have been permanently eliminated from the economic process, and whole work categories and job assignments have shrunk, been restructured, or disappeared. Global unemployment has now reached its highest level since the great depression of the 1930s. More than 800 million human beings are now unemployed or underemployed in the world. That figure is likely to rise sharply between now and the turn of the century as millions of new entrants into the work force find themselves without jobs. Corporate leaders and mainstream economists tell us that the rising unemployment figures represent short-term "adjustments" to powerful market-driven forces that are speeding the global economy in a new direction. They hold out the promise of an exciting new world of high-tech automated production, booming global commerce, and unprecedented material abundance. Millions of working people remain sceptical. In the United States, Fortune magazine found that corporations are eliminating more than 2 million jobs annually. While some new jobs are being created in the US economy, they are in the low-paying sectors and are usually temporary. This pattern is occurring throughout the industrialised world. Even developing nations are facing increasing technological unemployment as transnational companies build state-of-the-art high-tech production facilities, letting go millions of cheap labourers who can no longer compete with the cost efficiency, quality control, and speed of delivery achieved by automated manufacturing. With current surveys showing that less than five percent of companies around the world have even begun the transition to the new machine culture, massive unemployment of a kind never before experienced seems all but inevitable in the coming decades. Reflecting on the
  30. 30. significance of the transition taking place, the distinguished Nobel laureate economist Wasilly Leontief warned that with the introduction of increasingly sophisticated computers, "The role of humans as the most important factor of production is bound to diminish in the same way that the role of horses in agricultural production was first diminished and then eliminated by the introduction of tractors." In all three key employment sectors - agriculture, manufacturing, and services, machines are quickly replacing human labour and promise an economy of near automated production by the mid-decades of the twenty-first century are : 1. No More Farmers The high-technology revolution is not normally associated with farming. Yet some of the most impressive advances in automation are occurring in agriculture. New breakthroughs in the information and life sciences threaten to end much of outdoor farming by the middle decades of the coming century. The technological changes in the production of food are leading to a world without farmers, with untold consequences for the 2.4 million people who still rely on the land for their survival. The mechanical, biological, and chemical revolutions in American agriculture over the past 100 years put millions of farm labourers out of work, transforming the country from a largely agricultural society to an urban, industrial nation. In 1850, 60 percent of the working population was employed in agriculture. Today, less than 2.7 percent of the workforce is engaged directly in farming. There are more than 9 million persons living under the poverty line in depressed rural areas across the United States - all casualties of the great strides in farm technology that have made the United States the number-one food producer in the world and made American agriculture the envy of every nation.Although the farm population is less than 3 million, it sustains a food industry employing more than 20 million. In our highly industrialised urban culture, most people would be surprised to learn that the food and fibre industry is the single largest industry in the United States. More than 20 percent of the GNP and 22 percent of the workforce is dependent on crops grown on America's agricultural lands and animals raised on feedlots and in factory farms. The decline in the number of farms is likely to accelerate in the coming years with advances in agricultural software and robotics that will lead to higher yields and fewer workers. A new generation of sophisticated computer-driven robots may soon replace many of the remaining
  31. 31. tasks on the land, potentially transforming the modern farm into an automated outdoor factory. Israel's farmers are already well along the way to advanced robot farming. Concerned over the potential security risks involved in employing Palestinian migrant labour, the Israelis turned to the Institute for Agricultural Engineering for help in developing mechanical farm labourers. In a growing number of kibbutzes it is not unusual to see self-guided machines travelling on tracks laid out between rows of plants, spraying pesticides on crops. The Israelis are also experimenting with a Robotic Melon Picker (ROMPER) that uses special sensors to determine whether a crop is ripe to pick. The introduction of ROMPER and other automated machinery will dramatically affect the economic prospects of the more than 30,000 Palestinians employed during harvesting season. In the United States, Purdue University scientists say they expect to see ROMPER in use "in every Indiana county by the end of the decade." Similar robots are being developed with artificial intelligence to plough and seed fields, feed dairy cows, even shear live sheep. Researchers predict that the fully automated factory farm is less than 20 years away.New gene-splicing technologies, which change the way plants and animals are produced, are greatly increasing the output of animals and plants and threatening the livelihood of thousands of farmers. To eliminate the cost of insecticides and the labour required to monitor and spray crops, scientists are engineering pest-resistant genes directly into the biological codes of plants. Some of these transgenic plants can produce a continuous supply of the specific toxins to kill invading insects. Genetic engineering is also being used to increase productivity and reduce labour requirements in animal husbandry. Bovine Growth Hormone (BGH) is a naturally occurring hormone that stimulates the production of milk in cows. Scientists have successfully isolated the key growth-stimulating gene and cloned industrial portions in the laboratory. The genetically engineered growth hormone is then injected back into the cow, forcing the animal to produce between 10 and 20 percent more milk. A study conducted several years ago predicted that within three years of the introduction of BGH into the marketplace, upwards of one-third of all remaining US dairy farmers may be forced out of business because of overproduction, falling prices, and dwindling consumer demand. Scientists have succeeded in producing genetically engineered pigs that are 30 percent more efficient and brought to market seven weeks earlier than normal pigs. A faster production schedule will mean less labour is required to produce a pound of flesh. In 1993 researchers at
  32. 32. the University of Wisconsin announced a successful attempt to increase the productivity of brooding hens by deleting the gene that codes for the protein prolactin. The new genetically engineered hens no longer sit on their eggs as much. They do, however, produce more eggs. The coming together of the computer revolution and the biotechnology revolution into a single technological complex foreshadows a new era of food production - one divorced from land, climate and changing seasons, long the conditioning agents of agricultural output. In the coming half century, traditional agriculture is likely to wane, a victim of technological forces that are fast replacing outdoor farming with manipulation of molecules in the laboratory. Chemical companies are already investing heavily in indoor tissue-culture production in the hope of removing farming from the soil by the early decades of the twenty-first century. Recently, two US-based biotechnology firms announced they had successfully produced vanilla from plant-cell cultures in the laboratory. Vanilla is the most popular flavour in America. One third of all the ice cream sold in the United States is vanilla. Vanilla, however, is expensive to produce because it has to be hand-pollinated and requires special attention in the harvesting and curing process. Now, the new gene-splicing technologies allow researchers to produce commercial volumes of vanilla in laboratory vats, eliminating the bean, the plant, the soil, the cultivation, the harvest - and the farmer. While natural vanilla sells on the world market for $1,200 a pound, Escagenetics, a California biotechnology company, says it can sell its genetically engineered version for less than $25 per pound. Over 98 percent of the world's vanilla crop is grown in the small island countries of Madagascar, Reunion, and Comoros. For these tiny islands in the Indian Ocean, the indoor farming of vanilla is likely to mean economic catastrophe. The export of vanilla beans accounts for more than 10 percent of the total export earnings of Madagascar. In Comoros, vanilla represents two thirds of the country's export earnings. According to the Rural Advancement Fund International, more than 100,000 farmers in the three vanilla-producing countries are expected to lose their livelihood over the next several decades. Vanilla is only the beginning. The global market for food flavours is hovering near $3 billion as is expected to grow at a rate of 30 percent or more a year. According to a Dutch study, upwards of 10 million sugar farmers in the third world may face a loss of livelihood as laboratory-produced sweeteners begin invading the world markets in the next several years. In addition, scientists have successfully grown orange and lemon vesicles from tissue culture,
  33. 33. and some industry analysts believe that the day is not far off when orange juice will be grown in vats, eliminating the need for planting orange groves. Martin H. Rogoff and Stephen L. Rawlins, biologists and former reseach administrators with the Department of Agriculture, envision a food-production system in which fields would be planted only with biomass perennial crops. Using enzymes, the crops would be harvested and converted to sugar solution. The solution would then be piped to urban factories and used as a nutrient source to produce larger quantities of pulp from tissue cultures. The pulp would then be reconstituted and fabricated into different shapes and textures to mimic the traditional forms associated with soil "grown" crops. Rawlins says that the new factories would be highly automated and require few workers. The era of whole-commodities food production is likely to decline in the decades ahead as chemical, pharmaceutical, and biotech companies are able to increasingly substitute tissue- culture production, significantly lowering the price of food products on world markets. The economic impact on farmers could be catastrophic. Many third-world nations rely on the same of one or two key export crops. Tissue-culture substitution could mean the near collapse of national economies, unprecedented employment, and default on international loans, which in turn could lead to the destabilisation of commercial banking and to bank failures in first- world nations. Hundreds of millions of farmers across the globe face the prospect of permanent elimination from the economic process. Their marginalisation could lead to social upheaval on a global scale and the reorganisation of social and political life along radically new lines in the coming century. 2. No More Factory Workers The spectre of the world's farmers being made redundant and irrelevant by the computer and biotechnology revolutions is deeply troubling. Even more unsettling, the manufacturing and service sectors, which have traditionally absorbed displaced rural workers, are undergoing their own technological revolution, shedding millions of jobs to make room for reengineered, highly automated work environments. Transnational corporations are entering a new era of fast communications, lean-production practices, and "just-in-time" marketing and distribution operations relying increasingly on a new generation of robotic
  34. 34. workers. Much of the human workforce is being left behind and will likely never cross over into the new high-tech global economy. From the very beginning of the Industrial Revolution, machines and inanimate forms of energy were used to boost production and reduce the amount of labour required to make a product. Today, the new information and communication technologies are making possible far more sophisticated continuous-process manufacturing. Some of the most dramatic breakthroughs in reengineering and technology displacement are occurring in the automotive industry. The world's largest manufacturing activity, auto manufacturers produce more than 50 million new vehicles each year. The automobile and its related industrial enterprises are responsible for generating one out of every 12 manufacturing jobs in the United States and are serviced by more than 50,000 satellite suppliers.Industry experts predict that by the end of the current decade, Japanese-owned factories will be able to produce a finished automobile in less than eight hours. The shortening of production time means fewer workers are required on the line. Kenichi Ohmae, a leading Japanese management consultant, notes that Japan's nine automakers produce more than 12 million cars a year, with fewer than 600,000 workers. Detroit automakers employ more than 2.5 million workers to produce the same number of vehicles.Following Japan's lead, US automakers are beginning to reengineer their own operations in the hope of increasing productivity, reducing labour rolls, and improving on their product share and profit margin. In 1993 General Motors president John F. Smith Jr. announced plans to implement changes in production practices that could eliminate as many as 90,000 auto jobs, or one third of its workforce, by the late 1990s. These new cuts come on top of the 250,000 jobs GM had already eliminated since 1978. Other global automakers are also reengineering their operations and eliminating thousands of workers. By 1995 industry analysts predict that German automakers could eliminate as many as one in seven jobs. This in a country where 10 percent of the workforce is either in the automotive industry or services it. As the new generation of "smart" robots, armed with greater intelligence and flexibility, make their way to the market, automakers are far more likely to substitute them for workers because they are most cost effective. It is estimated each robot replaces four jobs in the economy, and if in constant use twenty-four hours a day, will pay for itself in just over one year. In 1991 according to the International Federation of Robotics, the world's robot population stood at 630,000. That number is expected to rise dramatically in the coming
  35. 35. decades as thinking machines become far more intelligent, versatile, and flexible.The steel industry's fortunes are so closely related to those of the automobile industry that it is not surprising to see the same sweeping changes in organisation and production taking place in the steel business. By the 1890s the United States was the leader in steel production. Today, that competitive edge has been seriously eroded, in large part because of the failure of US companies to keep up with Japanese steel manufacturers, which have transformed steelmaking to a highly automated continuous operation. Nippon Steel's new $400 million cold rolling mill near Gary, Indiana - a joint venture with Inland Steel - is run by a small team of technicians and has reduced the production time from 12 days to one hour. The increasing automation of steel production has left thousands of blue collar workers jobless. In 1980 United States Steel, the largest integrated steel company in the United States, employed 120,000 workers. By 1990 it was producing roughly the same output, using only 20,000. These numbers are projected to fall even more dramatically in the next 10 to 20 years as new, even more advanced, computerised operations are introduced into the manufacturing process. The new, highly automated manufacturing methods are being combined with radical restructuring of the management hierarchy to bring steelmaking into the area of lean production. Japanese companies, with joint ventures in the United States, have reengineered traditional plant operations, restructured management hierarchies and slashed job classifications to improve efficiency. According to the International Labour Organisation, finished steel output from 1974 to 1989 dropped by only 6 percent in the Organisation for Economic Cooperation and Development (OECD) countries while employment fell by more than 50 percent. More than one million jobs were lost in the steel industry in OECD nations during this fifteen year period. "In up to 90 percent of the cases," said the ILO, "the basic explanation for the reduction in employment is therefore not changes in the level of output but improvement in productivity." [van Liemt, Gijsbert. Industry on the Move; "Labor- Management Bargaining in 1992," Monthly Labor Review.] Other industries that use steel to make products are also undergoing a fundamental overhaul, reflecting the new emphasis on lean-production practices. Between 1979 and 1990, employment in the metalworking-machinery industry declined by an average annual rate of 1.7 percent. The Bureau of Labour Studies predicts an overall loss of an additional 14,000
  36. 36. workers by the year 2005. For operators, fabricators, and labourers the decline in employment is expected to be even higher, reaching 14 percent between now and the first decade of the coming century. In industry after industry, companies are replacing human labour with machinery, and in the process changing the nature of industrial production. One of the industries most affected by reengineering and the new information-based technologies is rubber. Since the 1980s, tire companies around the world have been restructuring their operations by introducing work teams, flattening the organisational hierarchy, reducing job classifications, instituting job retraining programmes and investing in new equipment to automate the production processes. Less than five years after the Japanese owned Bridgestone acquired a Firestone facility in La Vergne, Tennessee, the production increased from 16,400 to 82,175 tires per month with blemishes declined by 86 percent. Goodyear claims a similar success story. Goodyear earned a record $352 million in 1992 with sales of $11.8 billion. The company is producing 30 percent more tires than in 1988 with 24,000 fewer employees. The Bridgestone and Goodyear experience is being duplicated in other tire plants around the world. The mining industries, like agriculture, have been undergoing a steady process of technology displacement since 1925, when 588,000 men, nearly 1.3 percent of the nation's entire workforce, mined 520 million tons of coal. In1982 fewer than 208,000 men and women produced more than 774 million tons of coal. With the use of advanced computer technology, faster excavation and transportation equipment, improved blasting technologies, and new processing methods, mining companies have been able to increase output at an average annual rate of 3 percent since 1970. The Bureau of Labour Statistics forecasts a yearly decline in employment of 1.8 percent through the year 2005. By the first decade of the coming century, fewer than 113,200 people - a labour force 24 percent smaller than present - will produce all of the coal to meet both domestic and overseas demand. Not surprisingly, some of the most significant strides in reengineering and automation have occurred in the electronics industry. General Electric, a world leader in electronic manufacturing, has reduced worldwide employment from 400,000 in 1981 to less than 230,000 in 1993, while tripling its sales. In the household appliance industry, new labour and time-saving technologies are eliminating jobs at every stage of the production process. By the
  37. 37. year 2005, a mere 93,500 workers - fewer than half the number employed in 1973 - will be producing the nation's total output of home appliances. In recent years, even the labour-intensive textile industry has begun to catch up with other manufacturing industries by introducing lean-production practices and advanced computer automation systems. The goal is to introduce flexible manufacturing and just-in-time delivery so that orders can be "tailor-made" to individual consumer demand. The new technologies are beginning to make garment manufacturing in the industrial nations cost competitive with firms operating in low-wage countries. As more and more of the manufacturing process bends toward reengineering and automation, even third-world exporters, like China and India, will be forced to shift from current labour-intensive manufacturing processes to cheaper and faster methods of mechanised production. In virtually every major manufacturing activity, human labour is being steadily replaced by machines. Today, millions of working men and women around the world find themselves trapped between economic eras and increasingly marginalised by the introduction of new laboursaving technology. By the mid-decades of the coming century, the blue collar worker will have passed from history, a casualty of the relentless march toward ever greater technological efficiency. 3. The Last Service Worker `While the industrial worker is being phased out of the economic process, many economists and elected officials continue to hold out hope that the service sector and white collar work will be able to absorb the millions of unemployed labourers in search of work. Their hopes are likely to be dashed. Automation and reengineering are already replacing human labour across a wide swath of service related fields. The new "thinking machines" are capable of performing many of the mental tasks now performed by human beings, and at greater speeds. In February 1994, The Wall Street Journal ran a front page story warning that a historic shift was occurring in the service sector, with growing numbers of workers being permanently replaced by the new information technologies.. According to the Journal, "Much of the huge US service sector seems to be on the verge of an upheaval similar to that which hit farming and manuafcturing, where employment plunged for years while production increased
  38. 38. steadily... Technological advances are now so rapid that companies can shed far more workers than they need to hire to implement the technology or support expanding sales." ["Retooling Lives: Technological Gains are Cutting Costs and Jobs in Services." Wall Street Journal, February 24, 1994.] (file:///C:/Users/TOSHIBA/Desktop/ilman%20medicine/page4.htm) Based on the point and description that we have states , it can be conclude that Information Technology(IT) is really important in manufacturing. The information technology (IT) includes the chemical manufacturing, medicine and surgery manufacturing, food manufacturing and such more. The information technology (IT) gives us many benefits in our life such as for the technology surgery. It can produce the surgery machine that can have a good quality and save many life. In chemical manufacturing, IT had helps the scientist to improved their business through e-business. This way had helps many people nowadays to learn more about chemical. In the other hand, IT also helps the scientist to do more researching to improve the human lifestyle. in addition to that, IT also can improved manufacturing of food such to invite many machine that can improved the quality and quantity of food. So, it had been prove that IT have help to much in manufacturing. Without IT, we believe that the manufacturing cannot improve as we see today. Although we know, some people does not very like to the improvement of IT, but, we should realise that IT had produce something useful to us and all human being. It proves the IT is most important in manufacturing and human daily life.
  39. 39. REFERENCES   Shelly Cashman Series,(2012), Discovering Computers-Fundamentals : Your Interactive Guide to the Digital World, United States, page 27.  (rise/archives/e-business- watch/studies/sectors/chemical_generic/documents/chemical_2003.pdf)  L.Goldman, R.L Nagel and K.Priess, Agile Competitor And Virtual Organization- Strategies For Enrichment The Customer, Ran Nostrand Rienhold, 1995  Martin Christhoper, Logistics And Supply Chain Management    file:///C:/Users/TOSHIBA/Desktop/ilman%20medicine/page4.htm