operations management - process technology

PROCESSTECHNOLOGY

Nelson Opeña

Part 2:

A. Chapter 8

Process Technology

B. Chapter 9

People, Jobs and Organization

PRESENTATION

OUTLINE

Process Technology

Key Questions

• What do operations managers need to know about process technology?

• How are process technologies evaluated?

• How are process technologies implemented?

Operation Manager and Technology

Who coined THE WORD “Robot”?Answer:

Karel Capek

I. Understand the Process Technology

II. Evaluate the Process Technology

III. Implement the Process Technology

I. Understand the Process Technology

A. Definition of Process Technology

B. Process Technology and Transformed Resources

C. Integration Technology

D. The Four Key Questions of Process Technology

E. E. Emerging Technologies – Assessing their implication

A. Definition of Process Technology

What is Process?

• A series of actions that produce something or that lead to a particular result.

(Merriam-Webster Dictionary)

A. Definition of Process Technology

What is Technology?

• The use of science in industry, engineering, etc., to invent useful things or to solve problems.(Merriam-Webster Dictionary)

A. Definition of Process Technology

Process Technology

- It is the machines, equipment, and devices that create and / or deliver products and services.

- It has very significant effect on quality, speed, dependability, flexibility and cost.

B. Process Technology and Transformed Resources

1. Material-processing technologies

2. Information-processing technologies

3. Customer-processing technologies

1. Material-Processing Technology

• It is any technology that shapes, transports, stores, or in any way changes physical objects.

• Eg. Circular saw, welding machines, etc

2. Information-Processing Technology

• It is any device which collects, manipulates, stores, or distributes information.

• Eg. E-commerce, online shops, etc

3. Customer-Processing Technology

• It is a machine or equipment that simplifies the process being done by human.

• 3 categories:

a. Active

b. Passive

c. One-way monitoring

3. Customer-Processing Technology

a. Active

- Customers use the technology to create the service

- Eg. Gym equipment, ATM, telephone, etc

3. Customer-Processing Technology

b. Passive

- Processes and controls the customer by restraining the customers action in some way

- Eg. Mass transportation systems, elevators, cinemas, etc

3. Customer-Processing Technology

c. One-way Monitoring

- Tracks customers’ movements or transactions in an obstrusive way

- Eg. RFID tags, RFID shopping carts, etc

Group Activity

Intructions

• Form groups with 3 members

• Identify which type of process technology are the following pictures

• In order to answer, say the magic word “Opsman – Teddy Deocares” while raising your hand

• “Materials”, “Information”, “Customers”

• Best of 10

1. Elevator

Customer-processing technology

2. Lazada

Information-processing technology

3. Express Check-in Kiosks

Customer-processing technology

4. Automatic Pipe Welder

Material-processing technology

5. Smart Carts

Customer-processing technology

6. E-banking

Information-processing technology

7. Retail Security Tags

Customer-processing technology

8.Airport Conveyor Belts

Material-processing technology

9. eBay

Information-processing technology

10. Cars

Customer-processing technology

C. Integration Technology

- Processes material, information and customer

- eg. Electronic POS processes shoppers, products, and information

D. The Four Key Questions of Process Technology

1. What does the technology do that is different from other similar technologies?

2. How does it do it? That is, what particular characteristics of the technology are used to perform its functions?

3. What benefits does using the technology give to the operation?

4. What constraints or risks does using the technology place on the operation?

Operations PrincipleOperations managers

should understand enough about process

technology to evaluate alternatives.

Example 1: SAP - Cloud for Customer

• What does the technology do?

• How does it do it?

• What benefits does it give?

• What constraints or risks does it impose?

Sales Force Automation

Example 1: SAP - Cloud for Customer

• What does the technology do?

It converts the manual process of selling to automated and real-time

Sales Force Automation

Example 1: SAP - Cloud for Customer

• How does it do it?

It uses the “Cloud” to process sales transactions

Sales Force Automation

Example 1: SAP - Cloud for Customer

• What benefits does it give?

It simplifies and speeds up the selling process

Sales Force Automation

Example 1: SAP - Cloud for Customer

• What constraints or risks does it impose?

It will not sync with the cloud without internet connection

Sales Force Automation

Example 2: Mobile Phones

• What does the technology do?

• How does it do it?

• What benefits does it give?

• What constraints or risks does it impose?

Communication

E. Emerging Technologies – Assessing their implication

• To demonstrate how operations managershave to look beyond the technology inorder to start to understand theirimplications.

Operations Principle

Emerging technologies can have a potentially significant

impact on how operations are managed.

What is IoT?A network of internet-connected objects able to collect and exchange data using embedded sensors.(Tech Insider)

RetailApplication

OLDUniversal Product Code-“Barcode”- uses bar code scanner- identifies type of item

NEWElectronic Product Code-“RFID”- can be scanned with wireless radio frequency reader- identifies each item

Product Codes

IMPLICATIONS A. Positive1. Information and analysis

a. Knowing where things areb. Knowing what is happeningc. Knowing what to do

2. Automation and controla. Process optimizationb. Optimized resource usagec. Fast reactions

IMPLICATIONS B. Negative1. High price2. Accuracy of information3. Customer privacy

I. Understand the Process Technology

II. Evaluate the Process Technology

III. Implement the Process Technology

II. Evaluate Process Technology

Criteria for evaluation:

A. Does the technology fit the processing task for which it is intended?

B. How does the technology improve the operations performance?

C. Does the technology give an acceptable financial return?

A. Does the technology fit the processing task?

1. Automation

Capital Intensity of Process Technology- The ratio of technological to human effort it employs

2. Scale / Scalability

vs

- Large- Fast- Expensive

- Small- Slow- Cheap

2. Scale / Scalability

In IT, scalability is the ability to shift to a different level of useful capacity quickly and cost-effectively

to

3. Coupling / Connectivity

In IT, scalability is the ability to shift to a different level of useful capacity quickly and cost-effectively

3. Coupling / Connectivity

B. How does the operation improve the operations performance?

Quality

Speed

Dependability

Flexibility

Cost

C. Does the technology give an acceptable financial return?

C. Does the technology give an acceptable financial return?

One year @ 10% per annum rate

Two years @ 10% per annum rate

I. Understand the Process Technology

II. Evaluate the Process Technology

III. Implement the Process Technology

III. Implement the Process Technology

A. Resource and process distance

B. Customer acceptability

C. Anticipating implementation problems

A. Resource and process distance

B. Customer acceptability

User Acceptance Test

- Used in IT industry

- Actual software users test the software to make sure it can handle required tasks in real-world scenarios, according to specifications.

C. Anticipating implementation problems

C. Anticipating implementation problems

End of Chapter 8