In order to compete favorably in the world markets, it is essential for a company to have an efficient and flexible manufacturing system, capable of producing quality products with low costs and reacting quickly to the changes in consumer demand. Factory automation (FA) (a very popular term in Japan and virtually synonymous with computer integrated manufacturing (CIM)) has been recognized as a promising approach for companies to become more competitive. Currently, the United States may still lead the world in developing automation technologies; however, Japan has been more successful in implementing them. If factory automation holds the key to the revival of American industrial competitiveness, why has there been a lack of actual implementation? To answer this question, it is beneficial to explore the approaches that Japanese companies have employed to implement factory automation. The main objective of this paper is to report the findings of a research study that investigates the practical experience that Japanese industries have accumulated concerning the implementation of factory automation. © 1990 IEEE