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Technology and Operations Management

Chapter 3 discusses the role of technology in manufacturing and service operations, highlighting both hard and soft technology's impact on efficiency and value chains. It covers the importance of selecting appropriate technology, the benefits of computer-integrated manufacturing systems, and the integration of enterprise resource planning and customer relationship management systems. Additionally, it addresses scalability in technology decisions and the challenges faced by businesses in implementing these technologies.

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kyle zambale
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22 views16 pages

Technology and Operations Management

Chapter 3 discusses the role of technology in manufacturing and service operations, highlighting both hard and soft technology's impact on efficiency and value chains. It covers the importance of selecting appropriate technology, the benefits of computer-integrated manufacturing systems, and the integration of enterprise resource planning and customer relationship management systems. Additionally, it addresses scalability in technology decisions and the challenges faced by businesses in implementing these technologies.

Uploaded by

kyle zambale
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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T EC H N O LO GY A N D

O PE RA T I O N S
MA N A G EM E N T
CHAPTER 3

C EDR IC A. Z AMBALE
BY KYLE
LEARNING OBJECTIVES
• DESCRIBE DIFFERENT TYPES OF TECHNOLOGY AND THEIR ROLE IN
MANUFACTURING AND SERVICE OPERATIONS.

• EXPLAIN HOW MANUFACTURING AND SERVICE TECHNOLOGY IS


STRENGTHENING THE VALUE CHAIN.

• EXPLAIN THE BENEFITS AND CHALLENGES OF USING TECHNOLOGY.


• DESCRIBE KEY TECHNOLOGY.
3IMPORTANCE OF TECHNOLOGY

• TECHNOLOGY—BOTH PHYSICAL AND INFORMATION—HAS


DRAMATICALLY CHANGED HOW WORK IS ACCOMPLISHED IN EVERY
INDUSTRY, FROM MINING TO MANUFACTURING TO EDUCATION TO
HEALTH CARE.

• TECHNOLOGICAL INNOVATION IN GOODS, SERVICES,


MANUFACTURING, AND SERVICE DELIVERY IS A COMPETITIVE
NECESSITY.
HARD TECHNOLOGY REFERS TO EQUIPMENT AND
DEVICES THAT PERFORM A VARIETY OF TASKS IN THE
CREATION AND DELIVERY OF GOODS AND SERVICES.
SOFT TECHNOLOGY IS THE APPLICATION OF THE
INTERNET, COMPUTER SOFTWARE, AND INFORMATION
SYSTEMS TO PROVIDE DATA, INFORMATION, AND
ANALYSIS, AND TO FACILITATE THE ACCOMPLISHMENT OF
CREATING AND DELIVERING GOODS AND SERVICES.
MANUFACTURING TECHNOLOGY
THE RIGHT TECHNOLOGY MUST BE SELECTED FOR THE GOODS THAT ARE
PRODUCED.
PROCESS RESOURCES, SUCH AS MACHINES AND EMPLOYEES, MUST BE SET UP
AND CONFIGURED IN A LOGICAL FASHION TO SUPPORT PRODUCTION EFFICIENCY.
LABOR MUST BE TRAINED TO OPERATE THE EQUIPMENT.
PROCESS PERFORMANCE MUST BE CONTINUALLY IMPROVED.
WORK MUST BE SCHEDULED TO MEET SHIPPING COMMITMENTS/CUSTOMER
PROMISE DATES.
QUALITY MUST BE ENSURED.
COMPUTER-INTEGRATED
MANUFACTURING SYSTEMS
COMPUTER-INTEGRATED MANUFACTURING SYSTEMS (CIMS) REPRESENT THE
UNION OF HARDWARE, SOFTWARE, DATABASE MANAGEMENT, AND
COMMUNICATIONS TO AUTOMATE AND CONTROL PRODUCTION ACTIVITIES.
NUMERICAL CONTROL (NC) MACHINE TOOLS ENABLE THE MACHINIST’S SKILLS
TO BE DUPLICATED BY A PROGRAMMABLE DEVICE (ORIGINALLY PUNCHED PAPER
TAPE) THAT CONTROLS THE MOVEMENTS OF A TOOL USED TO MAKE COMPLEX
SHAPES.
A ROBOT IS A PROGRAMMABLE MACHINE DESIGNED TO HANDLE MATERIALS OR
TOOLS IN THE PERFORMANCE OF A VARIETY OF TASKS.
COMPUTER-INTEGRATED
MANUFACTURING SYSTEMS
 CAD/CAE ENABLES ENGINEERS TO DESIGN, ANALYZE, TEST, SIMULATE, AND
“MANUFACTURE” PRODUCTS BEFORE THEY PHYSICALLY EXIST.
 CAM INVOLVES COMPUTER CONTROL OF THE MANUFACTURING PROCESS.
FLEXIBLE MANUFACTURING SYSTEMS (FMS) CONSIST OF TWO OR MORE
COMPUTER-CONTROLLED MACHINES LINKED BY AUTOMATED HANDLING
DEVICES. COMPUTERS DIRECT THE OVERALL SEQUENCE OF OPERATIONS AND
ROUTE THE WORK TO THE APPROPRIATE MACHINE, SELECT AND LOAD THE
PROPER TOOLS, AND CONTROL THE OPERATIONS PERFORMED BY THE
MACHINE.
CIMS FACTS
ACCORDING TO THE NATIONAL RESEARCH COUNCIL, COMPANIES WITH COMPUTER-
INTEGRATED MANUFACTURING SYSTEM EXPERIENCE HAVE BEEN ABLE TO:
 DECREASE ENGINEERING DESIGN COSTS BY UP TO 30 PERCENT;
 INCREASE PRODUCTIVITY BY 40 TO 70 PERCENT;
 INCREASE EQUIPMENT UTILIZATION BY A FACTOR OF 2 TO 3;REDUCE WORK-IN-
PROCESS AND LEAD TIMES BY 30 TO 60 PERCENT;
 AND IMPROVE QUALITY BY A FACTOR OF 3 TO 4.
SERVICE TECHNOLOGY

 SERVICE TECHNOLOGIES ARE USED BEHIND THE SCENES TO FACILITATE YOUR


EXPERIENCE AS A CUSTOMER.
E-SERVICE REFERS TO USING THE INTERNET AND TECHNOLOGY TO PROVIDE
SERVICES THAT CREATE AND DELIVER TIME, PLACE, INFORMATION,
ENTERTAINMENT, AND EXCHANGE VALUE TO CUSTOMERS AND/OR SUPPORT THE
SALE OF GOODS
TECHNOLOGY IN VALUE CHAINS

• AN INTERMEDIARY IS ANY ENTITY—REAL OR VIRTUAL—THAT COORDINATES


AND SHARES INFORMATION BETWEEN BUYERS AND SELLERS.

• RETURN FACILITATORS SPECIALIZE IN HANDLING ALL ASPECTS OF CUSTOMERS


RETURNING A MANUFACTURED GOOD OR DELIVERED SERVICE AND REQUESTING
THEIR MONEY BACK, REPAIRING THE MANUFACTURED GOOD AND RETURNING IT
TO THE CUSTOMER, AND/OR INVOKING THE SERVICE GUARANTEE.
ENTERPRISE RESOURCE PLANNING

 ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS INTEGRATE ALL ASPECTS OF A


BUSINESS—ACCOUNTING, CUSTOMER RELATIONSHIP MANAGEMENT, SUPPLY CHAIN
MANAGEMENT, MANUFACTURING, SALES, HUMAN RESOURCES—INTO A UNIFIED
INFORMATION SYSTEM AND PROVIDE MORE TIMELY ANALYSIS AND REPORTING OF
SALES, CUSTOMER, INVENTORY, MANUFACTURING, HUMAN RESOURCE, AND
ACCOUNTING DATA.
 ERP COMBINES EACH DEPARTMENT’S INFORMATION INTO A SINGLE,
INTEGRATED SYSTEM WITH A COMMON DATABASE SO THAT DEPARTMENTS CAN
EASILY SHARE INFORMATION AND COMMUNICATE WITH EACH OTHER.
CUSTOMER RELATIONSHIP
MANAGEMENT SYSTEMS

 CUSTOMER RELATIONSHIP MANAGEMENT (CRM) IS A BUSINESS


STRATEGY DESIGNED TO LEARN MORE ABOUT CUSTOMERS’ WANTS, NEEDS,
AND BEHAVIORS IN ORDER TO BUILD CUSTOMER RELATIONSHIPS AND
LOYALTY, AND ULTIMATELY ENHANCE REVENUES AND PROFITS.
TECHNOLOGY DECISIONS AND
IMPLEMENTATION
SCALABILITY IS A MEASURE OF THE CONTRIBUTION MARGIN REQUIRED TO DELIVER A
GOOD OR SERVICE AS THE BUSINESS GROWS AND VOLUMES INCREASE.
HIGH SCALABILITY IS THE CAPABILITY TO SERVE ADDITIONAL CUSTOMERS AT ZERO OR
EXTREMELY LOW INCREMENTAL COSTS (E.G., MONSTER.COM).
LOW SCALABILITY IMPLIES THAT SERVING ADDITIONAL CUSTOMERS REQUIRES HIGH
INCREMENTAL VARIABLE COSTS (E.G., SEE WEBVAN).
 MANY OF THE DOT.COMS THAT FAILED IN THE YEAR 2000 HAD LOW SCALABILITY AND
UNSUSTAINABLE DEMAND (SEE WEBVAN, FOR EXAMPLE).
QUIZZZZ
1. REFERS TO EQUIPMENT AND DEVICES THAT PERFORM A VARIETY OF TASKS IN THE CREATION AND
DELIVERY OF GOODS AND SERVICES.
2. IS A MEASURE OF THE CONTRIBUTION MARGIN REQUIRED TO DELIVER A GOOD OR SERVICE AS THE
BUSINESS GROWS AND VOLUMES INCREASE.
3. IS THE CAPABILITY TO SERVE ADDITIONAL CUSTOMERS AT ZERO OR EXTREMELY LOW
INCREMENTAL COSTS (E.G., MONSTER.COM).
4. IMPLIES THAT SERVING ADDITIONAL CUSTOMERS REQUIRES HIGH INCREMENTAL VARIABLE COSTS
(E.G., SEE WEBVAN).
5. IS THE APPLICATION OF THE INTERNET, COMPUTER SOFTWARE, AND INFORMATION SYSTEMS TO
PROVIDE DATA, INFORMATION, AND ANALYSIS.
1. HARD TECHNOLOGY
2. SCALABILITY
3. HIGH SCALABILITY
4. LOW SCALABILITY
5. SOFT TECHNOLOGY

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