THE ECONOMIC BENEFITS OF COMPUTER INTEGRATED MANUFACTURING

Computer Integrated Manufacturing (CIM) has been around since the seventies. It has recently become more widely used in the manufacturing industries, as well as in the service fields. If you are not familiar with the concept of it, Wikipedia and Investopedia define it as a business approach that uses computer systems to connect all aspects of the business. Basically, one computer system runs every aspect of the manufacturing business. If the company is service-based, then a few changes within the program and it has been modified to work.

  1. Production-The United States National Research Council states that when using CIM a company can improve production productivity by forty to seventy percent. When you increase your production, your profits will rise accordingly. Computer controlled production lines do not get tired. They do not get distracted by work or home related stress. Employees that are professionally trained to monitor the system will be required, as well as people that can fix all the automated parts. Higher paying jobs will be created for the local people, raising the local economic impact that it has.
  2. Design Costs- The Council also stated that using a computer integrated system would decrease design costs by fifteen to thirty percent. The design of the products will be completed through the various programs that drive the CIM system. It will be designed quickly and efficiently by using information that has been collected to stay ahead of public demand. Once the design is implemented it will go straight to the production lines, which the system will automatically adjust for the changes.
  3. Lead Time-This is the time that a product, or service, takes from start to finish. The U.S. NRC once again states that using computer integration, such as from solidworks cam,will have positive impacts. The lead time can be reduced from twenty to sixty percent. The lower the lead time, the less wages that need paid, and the more products will be supplied to the consumer. Profit margins go up and expenses go down.

The whole point of being in business is to make money and keep ahead of the public needs. CIM allows that to happen in the basic three ways discussed above. There is obviously more to it than that, but it would take a much longer article than this to explain how it all works. The bottom line is this; CIM systems that are working properly can maximize production while decreasing expenses.

This system can also decrease the amount of downtime because of diagnostic tools that sense a problem before it happens. This is known as being proactive, rather than reactive. CIM applications will also decrease the excess inventory amounts by allowing the system to order only what is needed. Human order is not near as accurate as a computer that can monitor supplies and adjust usage accordingly.

We need to stop for a second and make sure that everyone understands what the economy is, and what affects it. The economy is anything within a nation that creates wealth for it. A huge part of that comes from the manufacturing industry, and the consumers that are hungry for the products, or services. Wikipedia explains it as the system of making and trading things of value. The two areas are connected through the finances of the nation.

CIM systems are great for the economy because it puts more money into the hands of people that want to spend it. Money makes the world go around. The economy of the nation is closely tied to big business and big corporations. This can be seen in every nation across the world.

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