The continued prosperity of the US will depend on the utilization of technology advances in the production of goods and services. The use of robots and computer-aided design and manufacturing system throughout the industries of the US will be an increasing factor in the maintenance of industrial leadership in the world. The US steel production was 26% in 1960 and by 1980 steel production was at 14% while in Japan steel productions was 6.5% in 1960 and increased to 15.5% in 1980. Synthetic fiber has maintained productivity increase commensurate with wage increases, however, most labor productive has decreased in relationship too productivity increases. Productivity in coal mining industry declined while wages increase 10%. The difference between productivity and labor costs are the result of inflated prices and reduced international competitiveness. In 1952 to 1980 the output per man-hour tended to decline while labor cost per unit increased. The big factor increasing the CPI was the high cost of energy. Japanese compact car assembly is completed in 14 work hour verses 33 hours for a comparable US car. The average Japanese auto worker produces about 50 cars per year compared to about 25 for the US worker. The average Japanese steel worker produces 421 tons versus 250 tons in the US. The Japanese have achieved a total cost advantage of $1,500 to $2,000 a car by 1980. 1960 to 1973, Japan had the highest productivity ratio between capital investment and productivity. Productivity is influenced by three factors: labor, capital investment, and technology innovation. Investment rates in Japan are 33 percent of GNP and 15% GNP in the US. The US problem is slow adoption of innovation. As firms improve their productivity, they can hope for increased market share, improved worker satisfaction, improved consumer satisfaction and community relations, higher quality of product, reduced pollution, and improved profitability. The US is increasing its investment in put new automation technology to work. Executive were predicting the US would surpass Japan and Germany in the race to automate by 1990. The US has the "know how" in CAD and CAM technology. US companies are moving toward manufacturing enterprises where computer control results in largely integrative computerized facilities. In 1980s, the US estimated 75% of capital good are produced in batches of 1000 pieces or less. CAD/CAM promises to bring automated batch-production of goods in runs of less than 50 units. CAD/CAM ROI estimates are 25% reduction in lead time and 4X increases in productivity. Group technology classifies parts into groups with similar shapes or manufacturing processes, the parts can be manufactured in these families rather than individually. This reduces down time for tooling and set-up, and brings the advantage of long term runs producing relatively small lots. The most advanced equipment is the flexible machining systems (FMS), which contains programmab
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