Reexamining the Benefits of Information Systems in Japanese Manufacturing Companies

It is quite reasonable to presuppose that information systems provide various benefits to manufacturers. But we don’t have much evidence on the benefits especially in Japanese manufacturing. In this paper we investigated the hypotheses presented by Matsui and Sato [6] [7] concerning the effects of information technologies and information systems upon manufacturing benefits with slightly different analytical approach and samples. We introduced more precise measure for implementation of information technologies and information systems, and divided the sample consisting of forty-six Japanese manufacturing companies into two sub-sample, world-class and random. The result of our analysis endorsed some of the propositions proved by Matsui and Sato [7], and provided new evidence to the hypotheses that utilization of statistical process control software improves product quality, implementation of computer-based production equipment control increases product-mix flexibility, and utilization of database for quality information and an increase in the percentage of external units electronically linked with the plant improve customer service. It also suggested additional hypotheses. Further, we discovered different relationships of information systems implementation with manufacturing benefits between world-class and randomly sampled companies

An Empirical Analysis on the Benefits of Production Information Sysem for Japanese Manufacturing Companies

We empirically analyzed the linkage from computer-based information technologies utilized for production activities to the perceived benefits of production information systems, further to the competitive performance of each manufacturing plant, after presenting our research framework and a series of hypotheses. A database used for the analysis includes forty-six manufacturing plants located in Japan from three industries (machinery, electrical & electronics, and automobile). Information technologies we took up include computer aided design (CAD), computer aided engineering (CAE), computer aided processes planning (CAPP), local area networks (LAN) linking design and engineering stations, computer or direct numerical control (CNC/DNC), flexible manufacturing systems (FMS), automated retrieval and storage, material requirement planning (MRP), just-in-time (JIT) software, simulation tools, statistical process control (SPC) software, database for quality information, and electronic data interchange (EDI) linkages among others. The benefits of production information systems were measured in terms of manufacturing cost reduction, decrease in inventories, quality improvement, lead time reduction, increase in flexibility to changing product mix and production volume, new product introduction time reduction and so on. We found that there were several information technologies which did not necessarily show the hypothesized effects, and there were considerable unexpected or secondary effects upon the benefits of production information systems. Furthermore, some important benefits of production information systems, particularly manufacturing cost reduction and increase in flexibility, didn’t lead to the improvement in the corresponding competitive performance indexes