In recent years factory automation is popular concern of many Korean manufacturers because of frequent labor's struggle and loss of low cost competitive priority. But there exists bad phenomena that automation is the panacia of all the troublesome problems. From this background we present the useful conceptual framework for the strategic decision making in factory automation in view of manufacturing policy.
At first we review atutomation technology, its strategic implications and the concept of manufacturing policy. Then by linking manufacturing policy with automation strategy, a conceptual model can be developed. This model explains the factors to affect automation strategy. The factors considered are product life cycle, a firm's competitive priority, and role of manufacturing in strategic decision making. Finally implementation problems and evauation criteria of automation strategy are represented.