ABSTRACT
Most advanced manufacturing technology (AMT) projects fail to live up to expectations. As a result, scholarly and managerial publications are increasingly addressing the factors that determine success or failure in AMT implementation. A risk profile of an AMT project reflects four possible sources of risk: market, strategy, technology, and organization. The market risks associated with AMT implementation are demonstrated by the case of a major electronics manufacturer. Technology risk arises from the failure to choose, design, and implement a manufacturing technology consistent with a company's basis of competitive advantage. Risk management strategies are not necessarily oriented toward the reduction of risk. Rather, they are oriented toward giving the AMT manager tools for successfully managing a project given its risk profile. The higher the organization risk, the more important but difficult it is to develop support for the AMT project among individuals and groups that will affect or be affected by the technology.
