The International Workshop of Advanced Manufacturing and Automation (IWAMA) is a joint workshop between SFI Norman (SINTEF and NTNU) and Shanghai Key Laboratory of Manufacturing Automation and Robotics (Shanghai University). It is a basic meeting for academic and industrial experts in advanced manufacturing and automation and is a biannual event alternating between Norwegian and Chinese venues. Workshop research focuses on the transformation of the present factories, towards re-usable, flexible, modular, intelligent, digital, virtual, affordable, easy-to-adapt, easy-to-operate, easy-to-maintain, and highly reliable "Future Factories." This book contains the proceedings of IWAMA 2012, mainly covering the following sessions in manufacturing engineering related to the topic of "Future Factories": Advanced Manufacturing Technology, Manufacturing Management, and Robotics and Automation. (Series: NTNU Engineering Series - No. 2)