Manufacturing companies are undergoing many organizational and management changes globally, including those in Libya. There has been an enormous change in the manufacturing environment over the last three decades. Production in manufacturing companies has been facilitated by computers (Lucas and Baroudi, 1994), computer incorporated systems and robotics. These automatic systems enable manufacturing companies to produce products which were previously considered impossible to produce but which are now being manufactured. The adoption of technology increases competition globally and has allowed the manufacturers of the Far East to compete with the western markets in automobile production and electronics. The new manufacturing environment allows manufacturing organizations to produce competitive products with the help of computer-aided machines according to the increased demands of the customers. Although the manufacturing environment has been improving continuously it was the era of the industrial revolution that brought about rapid changes (Hoque et al., 2001). Companies adopted basic costing methods in the medieval era; later some organizations improved their costing methods according to the technologies and techniques available, but the evolution of the manufacturing environment continued to prosper. Late in the 20th century the use of advanced manufacturing techniques was introduced Karshenas and Stoneman, (1993). The Advanced Manufacturing Techniques (AMT) involved the use of computer integrated manufacturing and flexible manufacturing systems which enlarged the quantity of the products made and also resulted in the reduction of the man power requirement in the production phase. The quality of products increased to a remarkable extent by the use of AMT and almost all manufacturing organizations
adopted these methods of production alongside traditional costing techniques (Deruntz and Turner, 2003).
2.3 Importance and Benefits of Advanced Manufacturing Technologies (AMT)
Manufacturing companies nowadays are aided by automatic techniques of manufacturing which are known as advanced manufacturing technology; this reduces the set-up time, enhances flexibility and improves quality (Choe, 2004). It provides cost effectiveness by reducing faults in the product and assuring the quality of every piece.
Huang and Liu (2005) emphasized the importance of the use of information technology in industry by stating that advanced manufacturing techniques have provided a new horizon for the manufacturing industries by providing a flexible response to the market requirements. Beede and Young (1998) have stated that, with the help of AMT, organizations have gained the ability to test new products without additional resources and possibly with only a minimal additional cost and thus they can react to market requirements (Idris and et al., 2008). Not only are the market requirements met but the quality also improves. The integrated use of designing tools, computer administration and robotics’ manufacturing guarantees the quality of a product. The amount of scrap-waste is reduced by early diagnosis which is performed on site, in place of waste products being found after the inspection of the end products by managers.
Manufacturing using advanced technology is also considered safer as it reduces human interaction with huge manufacturing machines which reduces injuries and accidents.
A computer-aided machine occupies relatively less space than conventional systems do, so this decreases the inventory level thus reducing the floor space (Grǖnberg, 2004).
Numerical control machines (NC), computer aided design (CAD), computer aided manufacturing (CAM), flexible manufacturing systems (FMS) and computer integrated manufacturing (CIM) are some of the advanced manufacturing technologies commonly used nowadays.
2.3.1 Numerical Control Machines
Numerical control machines can be programmed to accomplish manufacturing tasks whereby, in the past, the set-up or the instructions were previously stored using punch cards. The numeric control machines in use nowadays store these instructions and set-up in computers which are called Computerized Numeric Machines. These machines are designed to automatically perform functions with flexibility in order to produce products in a repetitive manner. The machine is set- up for a function just once, thus reducing the set-up time, and does the same function repeatedly without the need of an attendant, reducing the need of manpower. The perfectly repeated actions guarantee the quality of the product. 2.3.2 Computer Aided Design/Computer Aided Manufacturing (CAD/CAM) CAD and CAM work together from the process of designing to the process of manufacturing. CAD assists the product designers in designing a product and in consulting with a production engineer for the approval of the design. Instead of designing manually and then assessing the cost, CAD helps the designers to evaluate the cost and design without physically designing the product (Harris, 1996). Through CAD the product can be viewed from different angles and then simplified by reducing the number of parts. Product engineers can evaluate the cost of the production and, if they believe the design is not appropriate, they can ask the designer to simplify or redesign it. CAM incorporates numerically controlled machines, robots and flexible manufacturing systems used for the automated manufacturing of products. Robots perform repetitive tasks unattended with perfection to assure the quality of the product.
2.3.3 Flexible Manufacturing Systems (FMS)
Flexible manufacturing systems are flexible systems able to produce a product series with the help of semi-independent workstations connected to a computer network. They also comprise machines which can automatically handle materials.
FMS can produce individual parts in different quantities, so any customer demand in variation can be met. The automated handling reduces manpower and thus reduces cost. FMS, by producing a product series, facilitates product mix and the manufactured product can be varied with a variation of the demand (Adler, 1988). The key advantages of the system are guaranteed quality and the low requirement for space and inventory (Attaran, 1986).
2.3.4 Computer Integrated Manufacturing (CIM)
The manufacturing environment has been completely automated with the help of CIM; it integrates different types of automated manufacturing technologies and enhances the automatic production of the products. CIM completely eliminates the need for human labour by the use of computerized machinery and robots. Libyan organizations, especially within the cement industry, have improved their functions and processes by implementing advanced manufacturing technologies. Use of advanced manufacturing technology requires an advanced accounting system for the evaluation of the cost of the product.