MANUFACTURING COMPANIES ARE STRUGGLING TO BE COMPETITIVE. DEMANDS ARE BEING MADE FOR IMPROVED PRODUCT QUALITY, MORE FLEXIBILITY, FASTER TURN-AROUND, AND ADVANCED TECHNOLOGY PRODUCTS. AT THE SAME TIME, COMPANIES ARE LOSING EXPERT TALENT AT A RATE WHICH EXCEEDS REPLACEMENT. TO SATISFY THE REQUIREMENTS FOR INCREASED TECHNICAL UNDERSTANDING, AND TO COPE WITH THE SHORTAGE OF TRAINED PERSONNEL, EXPERT SYSTEMS WILL BE CRITICAL TECHNOLOGY FOR SUCCESS. PRACTICAL APPLICATION OF EXPERT SYSTEMS IN MANUFACTURING WILL DEPEND ON SELECTING APPROPRIATE PROJECTS, TOOLS, AND STRATEGIES FOR SUCCESSFUL IMPLEMENTATION.