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the 1980s, both GE and Pratt & Whitney pur- sued a “factory of the future” production tech- nology strategy, centered on skill-displacing capi- tal investment, much of it located in the southern United States. The concept behind this invest- ment was for a high degree of automation and dedicated machinery, including robots, that would eliminate direct production worker time and effort.34 Eventually, however, these firms saw that such a strategy was less than ideal for the short production run, precision work that build- ing engines entailed. As Japanese “lean produc- tion” models have demonstrated, unless produc- tion runs of standardized components are long, it can be difficult to synchronize cycle times and maintain flow production that will result in cost savings. “Batch and queue” production often re- sults from a “factory of the future” type of strate- gy, translating into high inventory costs and ex- pensive rework. Thus, in many instances, multi- purpose low-tech machines capable of quick changeovers and tended by multiskilled workers can be a superior production technology to high- tech, inflexible machines designed to decrease di- rect labor time.35 In the early 1990s, both GE and Pratt & Whitney abandoned the "factory of the future" in favor of "lean" work organization. GE implemented a "kaisen" continuous improvement program and more recently has adopted the six-sigma concept made famous by Motorola, which focuses on low- ering defects and improving efficiency.36 For its part, Pratt & Whitney has focused heavily on re- organizing work along "lean" production princi- ples, relying on cellular manufacturing and im- proved flow lines. Industry-level productivity fig- ures suggest that such moves are paying off, which can mean good things for the industry in the future. Firms have effectively figured out how to do more with less. 16 UMass Donahue InstitutePDF Image | JET ENGINE MANUFACTURING IN NEW ENGLAND
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