In developing and implementing this approach it is imperative to recognize that the system consists of three major phases that are inextricably interwoven into the final whole. The three phases consist of processing, handling, and control as shown in figure 3. The diagram also suggests the evolution of automation technology, which is toward a greater integration of the three basic phases.

For the study and development of the most profitable areas it is desirable to recognize the need for reorganizing in order to breach traditional internal barriers. A manufacturing engineering team can do wonders, properly organized and backed by authority from the top.

Training programs will be needed. Not only is it desirable to realize the need for training on the operating level but a program to insure continual upgrading of engineering personnel is also desirable.

The final area of key importance is research and development. Today's crying need is not so much for product R. & D., but for manufacturing R. & D. A program, however modest, can insure readiness for whatever changes take place in the future. The necessity for profit maintenance under conditions of rapid technological change dictate continuous study and development of improved methods and processes.

Cost reduction and profit improvement will largely be a mirage unless there is a central philosophy to keep all efforts on target and in proper balanced relationship.

SALES POLICY

One area of the general policy that must be integrated into the entire automation program concerns sales. It is desirable to capitalize on the opportunities available and sell quality, uniformity, accuracy, repeatability, and reliability. Along with these assets come better forecasting and quicker deliveries. It may be necessary to educate customers regarding new capabilities as well. In addition, sales policy must include the all-important admonition, "know your markets." Along with gaining competitiveness and cost control, a real advantage can be obtained in ability to deliver products as prescribed. Under a properly developed sales policy there is opportunity for scientifically programed scheduling of products to match market demands. Through use of a suitable integrated data system and computer the requirements of the market can be most efficiently matched by careful analysis of optimum lot size for manufacturing, warehousing, or storage costs, and delivery conditions. The entire sales and manufacturing activity can be put on a current rather than historical basis so that unit costs are minimized and profits are maximized.

FINANCE POLICY

A great part of the general accomplishment in reducing manufacturing costs is influenced directly by the financial policy that prevails. Although it often appears remote, the major objective is to maintain a profit margin in face of rising or generally high costs. A

Administrative and order data processing

Raw materials handling and processing

Product or component manufacturing

Inspection and quality control

Assembling or combining and mixing

Performance testing and standards

Packaging and boxing

Warehousing and storing

Shipping and distributing.

FIGURE 2.-MANAGEMENT IS FACED WITH NO SIMPLE PROBLEM IN FURTHERING THE ADVANCEMENT OF DISTINCT FUNCTIONAL AREAS WHILE COMBINING THE ACTIVITIES INTO A SMOOTHLY WORKING SYSTEM

reactionary financial policy can prove to be the biggest barrier to realization of such ends.

First, it is of major importance to note that detailed manufacturing costs are involved. To ascertain the most profitable approach, all detailed cost elements must be evaluated. Accounting methods may require change. Machine-hours rather than man-hours may be critical. The clue is "it pays to know."

But the major question today is do you really know where the payoff will be? The answer is you don't know and can't know unless a thorough feasibility study is made covering all phases of the manufacturing system to pinpoint the steps to take, where, and in what sequence. Financial policy must include such a stipulation and provide the means by which it can be done.

Financial policy includes recognition of the return on investment made possible by the contribution from manufacturing research and engineering effort. Finally, it is in this area that the company must enforce the policy on acquisition of new capital equipment. Important factors are highlighted in figure 4. Equipment blindly purchased from the lowest bidder does not necessarily result in the optimum payback. Best answers can be had only from competent firms that can work cooperatively with the buyer's engineers. Full knowledge of the problem is necessary to attain the expected profit potential.

PRODUCT DESIGN POLICY

Under an effective automation program, management has need to recognize that product design assumes a different role. It is possible to get by without a well-developed product design policy with conventional production methods. Where automation technology is to be applied it is imperative that products be "designed for production." Unless product design is tailored to be compatible with the production scheme, there may be no significant rewards from efforts in designing new products or in improving production facilities.

Coordination of product design efforts with manufacturing engineering is now a recognized necessity. Freedom from the restrictions of the usually limited number of known methods can effect amazing advances in quality, efficiency, and profitability.

Authorities in the field agree that success of any manufacturer in maintaining or establishing a sound financial position in the competitive marketplace is based only partly on the design and development of new products. Of equal importance, success depends also on the ability and efficiency of the manufacturing organization in producing the product to meet quality, volume, and cost standards that enhance the marketability of the product.

Basically, the product design engineer is called upon to create a desired product, using his ability to comprehend its end use and the conditions under which it must operate. His job is to plan, develop, assemble, and test one or more models or units meeting the desired product attributes. Process or manufacturing engineers will determine the necessary kinds and design of production facilities to manufacture the desired product advantageously.

Probably the most potent factor in the rapid evolution of the manufacturing engineering function is the rise of automation in productive systems. Conventional approach to manufacturing had always per

mitted considerable flexibility and considerable correction of poorly planned operations without incurring extremely excessive costs. Machines could be rearranged, production steps added, process cycles readjusted, or personnel added or removed. Today's more complex production systems and automated lines have proved, conclusively, this practice is no longer either satisfactory or economical in most areas of industry.

Bringing the basic elements of automation technology together in the correct manner and balance requires engineers who thoroughly understand the principles involved and who have a wide knowledge of materials and the methods suitable for processing them. This group must analyze the design or character of the product, know what is expected of it, and sense whether the product is practical to manufacture with a known method or whether one can be evolved to do the job.

MANUFACTURING ENGINEERING POLICY

Today, as never before, it is necessary to "tool up the team" to carry on profitable manufacturing operations. Manufacturing in the era of automation is no longer an art; it is fast becoming an engineering technology of broad, sweeping proportions. Truly, it can be said that the planning and devising of manufacturing operations have left the ranks of the shopman, the apprentice, the machinist, and millwright. To carry on competitive manufacture today requires an engineered approach, with full recognition that fundamental manufacturing problems are basic to all industries and eminently satisfactory solutions already exist for many problems encountered; it takes broad knowledge and engineering acumen to achieve practical success.

In manufacturing, the product produced is always a compromise between acceptable quality and acceptable cost. The seldom-reached goal is always one of maximum attainable quality for minimum possible cost. When the manufacturing engineering function is adequately recognized and properly implemented to fulfill its key part in the manufacturing cycle, amazing results are obtainable in terms of product quality and manufacturing economy.

In every instance, the well-engineered production system amortizes the investment in engineering time and creates added profits. The problem of manufacturing economics arises regardless of whether a new product is to be manufactured at a specific price, an existing process improved, or manufacturing costs reduced to meet competition. What are the right steps to be taken? Should more automatic operation be considered? How much automation will be economical and how sophisticated should the systems and processes be to produce the product? What are the right steps processwise? How do you get there with the right answers or processes in the shortest period of time and with an adequate return for the dollars invested to get there? Manufacturing engineering has evolved as the basic function to supply the answers to these types of questions. And, as industry becomes more diverse and products more complex, fulfilling this function calls for bringing into play the know-how from all facets of industrial enterprise. Tomorrow's effective solutions will result from crossbreeding of ideas from many areas.