The Effects of Ict on the Manufacturing Transnational Corporation

This paper is concerned with the development of information and communication technology (ICT) since the 1970s and its effect on the manufacturing transnational corporation (MTNC) in four key areas: management control, design, manufacturing process, and the office. Management control is examined in two areas: the coordination and monitoring of functions. ICT assists in both the improvement of policy decisions and in added flexibility and negotiating power. The design area relates the usage of CAD/CAM to the collaboration on design work. The manufacturing process reviews the introduction of Numerical Control (NC) machines, robotics, flexible manufacturing systems (FMS), and ComputerIntegrated Manufacturing (CIM) thereby leading to the unmanned factory using an FMS linked with the electronic office and other information systems. The effects of ICT on the office environment, considered the area most affected, include personnel losses and the introduction of the knowledge worker. The conclusion is that the primary effects of electronic-based technology in the factory and office are associated with rationalization and efficiency rather than expansion.