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The paper highlights some Australian businesses where CAD‐CAM has ramifications for the quality of goods produced. Since this technology constitutes the core of flexible automation, it eliminates direct human involvement with certain aspects of product and process design, and production. Therefore, the outcomes are more predictable. Reviews are presented of the various dimensions of quality and the potential benefits of CAD‐CAM. There is also some discussion of TQM and the tendency to focus on shopfloor (consistent) conformance to given product specifications, in contrast to recent attempts to emphasise design,because it offers more scope for gaining competitive advantage. The empirical evidence indicates that CAD‐CAM has indeed had a greater impact on preproduction activities, and toolmaking in particular, than on factory operations. Also, styling is very significant in the context of quality enhancement. The ability to machine to closer dimensional tolerances may have been somewhat oversold in this respect, unless the definition covers raising productivity through “getting it right first time”.

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