FACTORY IN A BOX 

Eight years ago the Japanese Industrial Robot Society featured the first public exhibition of Citizen Watch's "factory-in-a-box" (my description). It resembled a rectangular aquarium, about 2.5 feet long, 20 inches high and 18 inches wide. Inside was a factory. It made watches. This automated, robotized "manufacturing plant" produced watches while I watched. That was the obvious result. What was invisible was what this innovation would mean to future manufacturing: creating a "factory" without cost!

North American manufacturers, financiers and others, laughed at these mini-factories. They didn't believe me. In fact, some editors carrying my column at the time wouldn't run it: "You've gone to far with this one, Ogden", was the most diplomatic comment. That's what made me start acquiring the various "toys" that I display on the speaking circuit. I realized that most people didn't believe in any concept until they saw, felt and tested the finished product. That is often too late. It's like seeing a 70-foot high tsunami seconds before it hits.

Citizen Watch has decided to hit. We haven't learned from hearing about the single TDK robot plant in Northern Japan that is now producing 20 percent of the worlds total output of video tape -- we are about to feel the heat of the "factory-in-a-box".

First consider the invisible aspects of the Citizen factory because that is where the real "clout" lies. The "factory" or "factories" required to produce the huge volume of Citizen watches sold throughout the world are flexible in that production can be increased or diminished with a few phone calls or a production-schedule fax to all "factories". Models can be changed just as easily -- at little or no cost to the company. How? These aquarium-sized "factories" are made by or for Citizen and then leased to thousands of Japanese families. A Citizen truck delivers the simple raw materials, cartons and orders and picks up production several times a week.

Families lease or purchase factories on very gentle terms, adjusted as volume increases or decreases. Consequently Citizen Watch firmly controls volume but ends up with production without the considerable cost of operating a factory! Try competing with that, North America!

This allows Citizen to establish multiple-factory output with 95 percent of the production guaranteed no matter what happens: localized power failures, sickness, labor disputes (there won't be any, as leasees are now factory-owning entrepreneurs), and such disasters as a bridge collapse, a typhoon or major transportation breakdown. Nothing can hit a thousand "factories" at the same time. Citizen Watch Company calls the factories CRR/CRS. They consist of a series of precision assembly robots with sophisticated mechanical arms designed to react to minute variations of size, pressure and color. They are controlled by 32-bit central processing units which provide a dexterity previously associated with fine needlepoint work. The robots are tiny but fast. Citizen will now be selling their factories to other electronic manufacturers and auto makers.

Come January, 1992 Citizen will build 20 units a month for world-wide sale. Until then all production will go to purchasers of packaged deals that include their Cynecton assembly line system. A factory spokesman says this small part of their business should bring in three to four billion yen (US$25 to $34 million) worth of business by 1995.

How about a factory-in-a-box for your living room? Better selfemployed than unemployed.

More information: Michio Nakajima, President, Citizen Watch Co. Ltd., 1-1 Nishi-Shinjuku, 2-Chome, Shinju-ku, Tokyo 163. Phone: 03/3342-1234. Fax: 03/3342-1220 (Note: Tokyo phones now have eight digits due to increased quantity of fax numbers).

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