Abstract
In order to retain a certain level of production
in Norway, suppliers to the Norwegian maritime industry
need to lower their production costs. Automation is generally
an effective way of achieving this in standardized
high-volume, low variety production. However, manufacturing
companies in the Norwegian maritime industry
typically supply capital-intensive, advanced and customized
products in low volumes. In this engineer-to-order
production situation, manual labor is traditionally preferred
over automation. Nonetheless, such companies increasingly
automate parts of their production. This paper presents
a case of a supplier that has chosen to automate its
welding operations, the implications and determinants of
this decision.
in Norway, suppliers to the Norwegian maritime industry
need to lower their production costs. Automation is generally
an effective way of achieving this in standardized
high-volume, low variety production. However, manufacturing
companies in the Norwegian maritime industry
typically supply capital-intensive, advanced and customized
products in low volumes. In this engineer-to-order
production situation, manual labor is traditionally preferred
over automation. Nonetheless, such companies increasingly
automate parts of their production. This paper presents
a case of a supplier that has chosen to automate its
welding operations, the implications and determinants of
this decision.