Basically five problems areas are addressed by operations research specialists in the manufacturing domain: theore- tical and practical aspectsin production planning, facility layout, inventory control, tool management and scheduling. Some of these problems can be solved off-line, while others must be treated as real-time problems impacted by the changing state of the system. Additionally, all of these problems have to be dealt with in an integrated systems framework. Several new topics have recently appeared in the scientific literature which now attract the interest of operations researchers. These include distributed real-time scheduling, hierarchical and heterarchical control systems, integrated algorithms for design, process planning, and equipment level programming, material handling in a finite capacity resource environment, and designing and implementing distributed data management systems. The contributions of these proceedings represent new andunique theoretical developments and applications related to these new topics. They deal with modelling production structures and applying expert systems or neural networks to production systems. Mathematical programming, control theory, simulation, genetic algorithms, tabu search, and simulated annealing are applied as solutiton techniques.