In fact, typical characteristics of the ETO production situation, like technical complexity, customization, short product life cycles and variable demand are examples of situations in which manual labor traditionally has been preferred over automation. Most of the traditional literature on automation concentrates on high-volume, low-variety production, claiming that automation is highly suitable for standardized processes and products more effectively. In order to retain a certain level of production in Norway, Norwegian suppliers to the maritime industry need to lower their production costs without lowering the quality of their products.Īutomation is generally considered to be an effective way of achieving cost reductions in terms of reduced labor costs, decreased production cycle times and increased quality. Intensification of the global competition, with an ever-increasing cost pressure, forces many western manufacturing companies to move operations to low-cost countries. ETO has many competitive advantages, but is also costly due to the highly complex and labor intensive activities carried out in this type of production. The production situation may be characterized as engineer-to-order (ETO). These companies typically supply capital-intensive, advanced and customized products in low volumes in fulfillment of customer orders. Particularly, suppliers in the maritime industry are experiencing a shift in their main markets to the East. In recent years, small and medium sized companies in the region have increased their focus on export towards the global market. ![]() ![]() Norway, and especially the Mid-Norway region, has a strong and important tradition as an industrial actor.
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