Choice of Technology

Chapter 6

McGraw-Hill/Irwin  The McGraw-Hill Companies, Inc. 2007, All Rights

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 Definition
1 “Technology is a set of processes, tools,
methods and equipment used to produce goods
and services.”
2 This is the technology of the production
process, not of the goods and services
themselves.
3 What is wrong with statement 2? In services,
we have simultaneous production &
consumption, so the two cannot be separated.

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Computer Integrated Manufacturing
(CIM)
“Factory of the Future”
Computer Aided Design (CAD)
Computer Aided Manufacturing (CAM)
– Group Technology (GT)
– Flexible Manufacturing Systems (FMS)

Numerically Controlled (NC) Machines and Robotics

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Computer Aided Design (CAD)
Benefits to operations:
– Participate in concurrent design process
– Less proliferation of parts
– Shorter throughput time
– Faster implementation of engineering
changes
– Link to manufacturing process choices

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Computer Aided Manufacturing
(CAM)
Can streamline batch operations
– Use of group technology (GT)
Can add flexibility (FMS)
– Multiple model auto production lines
Computer-aided process planning (CAPP)

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Batch Layout

A B B
A A A
B B

C C D

C D

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Group Technology Layout

A A C C

C B A D

B C D A

D D B B

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 U-Shaped Cell Layout

C B B C

A D A D

C B C B

A D D A = work station

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 NC Machines & Robotics
NC Machines are automated but don’t have
‘arms’ as robots do
– Early NC machines were mechanically
controlled
– Later controlled by tape
– Now controlled directly by computer
e.g. computer controlled lathe
Robots: can imitate human motions
– e.g. welding machines in auto plant
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Automated Offices and Services
Transformation in offices: typical functions
– Handling messages
– Typing or keyboarding files
– Copying printed or electronic materials
– Filing
– Keeping a calendar

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 Impact on Services
Bringing the industrial model (production
line approach) to services
Services gaining efficiency of product focus
(e.g. ATM machines)
Physical & geographic boundaries falling
(on-line banking, e-business)
Making possible productivity increases in
services.
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 Automated Office
Impact of automation on offices
– Changing role of secretaries
– Redistribution of work
– Different ways of interacting with
customers
– Decentralization

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Pay for parking
with a mobile
phone

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Enterprise Resource Planning (ERP)
Systems
Integration of functions through
common database
– Forces standard systems throughout
company
ERP as the backbone of Supply
Chain Management

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Enterprise Resource Planning (ERP)
Systems
Some ERP software vendors
– SAP (Systems, Applications & Products)
– Baan (was Dutch, now IBM)
– PeopleSoft (purchased by Oracle)
– J.D. Edwards (purchased by PeopleSoft)
– Oracle
See: www.erpfans.com
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The Internet and e-Business
Growth of e-Business and B2B Commerce
– Order entry, reverse auctions, etc.
Business to Consumer (B2C)
Types of e-Business (see Table 6.3):
 e-Market companies (e-bay.com)
 e-Service providers (travelocity.com)
 e-Retailers and wholesalers (amazon.com)
 e-Producers (Cisco)

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 Technology Choice (1)
Role of technology strategy
– Must support enterprise strategy, e.g. is the
distinctive competence to be low price, product
variety, fast throughput……?

Technology decision needs to be made with

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 Technology Choice (2)
Must provide minimally acceptable return on
investment
Must consider the effect on the workers, i.e. socio-
technical system.
– Technological determinism
– Social & human consequences

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Sociotechnical Design

Sociotechnical
Design
Social Technical

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 Summary
Definition
Computer-Integrated Manufacturing
Automated Offices and Services
Enterprise Resource Planning Systems
The Internet and the e-Business
Technology Choice

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End of Chapter Six

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