automation in operation management

7/29/2019 Automation in operation Management

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TERM PAPER

Automation in Operations

Management

Operations Management

Srinidhi Rangarajan

1PB11MBA34

3rd

SEM M.B.A

PESIT


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Abstract

This paper consists of a brief discussion on automation in operations management. This paper

tries to study how automation is implemented in the modern world and whether it is of any

use or not in helping the various sectors it is being implemented in.

This paper contains:

Introduction to operations management Introduction to Automation Literature study More on automation Applications

Key words:

AutomationOperations managementAutomation toolsApplications


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Introduction

OPERATIONS MANAGEMENT

Operations management is an area of management concerned with overseeing, designing,

controlling the process of production and redesigning business operations in the production of

goods and/or services. It involves the responsibility of ensuring that business operations are

efficient in terms of using as few resources as needed, and effective in terms of meeting

customer requirements. It is concerned with managing the process that converts inputs (in the

forms of materials, labour, and energy) into outputs (in the form of goods and/or services).

The relationship of operations management to senior management in commercial contexts

can be compared to the relationship ofline officers to highest-level senior officers in military

science. The highest-level officers shape the strategy and revise it over time, while the line

officers make tactical decisions in support of carrying out the strategy. In business as in

military affairs, the boundaries between levels are not always distinct; tactical information

dynamically informs strategy, and individual people often move between roles over time.

According to the U.S. Department of Education, operations management is the fieldconcerned with managing and directing the physical and/or technical functions of a firm or

organization, particularly those relating to development, production, and manufacturing.

Operations management programs typically include instruction in principles of general

management, manufacturing and production systems, plant management, equipment

maintenance management, production control, industrial labour relations and skilled trades

supervision, strategic manufacturing policy, systems analysis, productivity analysis and cost

control, and materials planning Management, including operations management, is likeengineering in that it blends art with applied science. People skills, creativity, rational

analysis, and knowledge of technology are all required for success.
http://en.wikipedia.org/wiki/Business_operationshttp://en.wikipedia.org/wiki/Effectivehttp://en.wikipedia.org/wiki/Senior_managementhttp://en.wikipedia.org/wiki/Line_officerhttp://en.wikipedia.org/wiki/Military_sciencehttp://en.wikipedia.org/wiki/Military_sciencehttp://en.wikipedia.org/wiki/Strategyhttp://en.wikipedia.org/wiki/Military_tacticshttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Applied_sciencehttp://en.wikipedia.org/wiki/Applied_sciencehttp://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Military_tacticshttp://en.wikipedia.org/wiki/Strategyhttp://en.wikipedia.org/wiki/Military_sciencehttp://en.wikipedia.org/wiki/Military_sciencehttp://en.wikipedia.org/wiki/Line_officerhttp://en.wikipedia.org/wiki/Senior_managementhttp://en.wikipedia.org/wiki/Effectivehttp://en.wikipedia.org/wiki/Business_operations


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AUTOMATION

Automation is the use of machines, control systems and information technologies to

optimize productivity in the production of goods and delivery of services. The correct

incentive for applying automation is to increase productivity, and/or quality beyond that

possible with current human labour levels so as to realize economies of scale, and/or realize

predictable quality levels. The incorrect application of automation, which occurs most often,

is an effort to eliminate or replace human labour. Simply put, whereas correct application of

automation can net as much as 3 to 4 times original output with no increase in current human

labour costs, incorrect application of automation can only save a fraction of current labour

level costs. In the scope ofindustrialisation, automation is a step beyond mechanisation.

Whereas mechanisation provides human operators with machinery to assist them with the

muscular requirements of work, automation greatly decreases the need for human sensory

and mental requirements while increasing load capacity, speed, and repeatability. Automation

plays an increasingly important role in the world economy and in daily experience.

Automation has had a notable impact in a wide range of industries beyond manufacturing

(where it began). Once-ubiquitous telephone operators have been replaced largely by

automated telephone switchboards and answering machines. Medical processes such as

primary screening in electrocardiography or radiography and laboratory analysis of human

genes, sera, cells, and tissues are carried out at much greater speed and accuracy by

automated systems. Automated teller machines have reduced the need for bank visits to

obtain cash and carry out transactions. In general, automation has been responsible for the

shift in the world economy from industrial jobs to service jobs in the 20th and 21st centuries.

The term automation, inspired by the earlier wordautomatic(coming fromautomaton), was

not widely used before 1947, when General Motors established the automation department.

At that time automation technologies were electrical, mechanical, hydraulic and pneumatic.

Between 1957 and 1964 factory output nearly doubled while the number of blue collar

workers started to decline.
http://en.wikipedia.org/wiki/Control_systemhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Industrialisationhttp://en.wikipedia.org/wiki/Mechanisationhttp://en.wikipedia.org/wiki/Machinehttp://en.wikipedia.org/wiki/World_economyhttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Telephone_operatorhttp://en.wikipedia.org/wiki/Telephone_switchboardhttp://en.wikipedia.org/wiki/Electrocardiographyhttp://en.wikipedia.org/wiki/Radiographyhttp://en.wikipedia.org/wiki/Geneshttp://en.wikipedia.org/wiki/Blood_plasmahttp://en.wikipedia.org/wiki/Cell_(biology)http://en.wikipedia.org/wiki/Biological_tissuehttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Automatichttp://en.wikipedia.org/wiki/Automatichttp://en.wikipedia.org/wiki/Automatichttp://en.wikipedia.org/wiki/Automatonhttp://en.wikipedia.org/wiki/Automatonhttp://en.wikipedia.org/wiki/Automatonhttp://en.wikipedia.org/wiki/Automatonhttp://en.wikipedia.org/wiki/Automatichttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Biological_tissuehttp://en.wikipedia.org/wiki/Cell_(biology)http://en.wikipedia.org/wiki/Blood_plasmahttp://en.wikipedia.org/wiki/Geneshttp://en.wikipedia.org/wiki/Radiographyhttp://en.wikipedia.org/wiki/Electrocardiographyhttp://en.wikipedia.org/wiki/Telephone_switchboardhttp://en.wikipedia.org/wiki/Telephone_operatorhttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/World_economyhttp://en.wikipedia.org/wiki/Machinehttp://en.wikipedia.org/wiki/Mechanisationhttp://en.wikipedia.org/wiki/Industrialisationhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Control_system


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LITERATURE REVIEW

A Short history on Automation Growth

Automation has a few key segments. In the 1970's, the original DCS was developed in the 1970's by ateam of engineers at Honeywell, and the first PLC was the brainchild of inventor Dick Morley and

others. Several innovative startups developed HMI software for PLCs and indusrial I/O. Innovative

sensors and actuators came from some key companies. In a fragmented business, most innovators get

stuck at growth plateuas and get bought out. But some continue to generate independent growth and

success

Trace the roots of all significant automation business segments and you'll find key people and

innovations. Industrial instrumentation and controls has always been a hotbed of new products -

improved sensors, amplifiers, displays, recorders, control elements, valves, actuators and other

widgets and gismos. But the markets are relatively small, specialized and fragmented, and it's rare that

any significant volume results directly from individual products. This model of business is greatly

seen in technical sales as well

Many automation companies were founded with innovative developments for niche

applications. The target customers were usually local end-users who provided the opportunity

to test new ideas, usually because of specific unmet needs. The successful startups expanded

their products and markets beyond initially narrow applications and geographies, depending

on the real value of the innovation, and also whether or not the founder was able to hire

suitable management, sales & marketing leaders to grow the company beyond the initial

entrepreneurial stages.

Since automation is such a fragmented business, all the larger (multi-billion $) companies are

mostly a conglomeration of products and services; each product segment generates relatively

small volume, but lumped together they form sizable businesses.

Companies such as Ametek and Spectris have grown primarily through acquisition of small,

innovative, niche product companies where growth is self-limited either through lack of

capital for new products and or global sales & market expansion. Indeed, these industrial

mini-conglomerates thrive through astute and shrewd accumulation of innovative niche

players. But few acquirers can come up with follow-through developments that match the

original founder's innovations. And so the larger companies are usually satisfied with

managed product extensions and expansions - with few, really innovative breakthroughs.


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Innovative start ups which remain independent

Omron in Japan is a standout. The company was founded in 1933 and has grown to be the

largest industrial automation company in Japan. The unusual thing about Omron is that alone

among any multi-billion corporations it devotes a significant amount of attention to its

ethical, social and philosophical positions. This unusual ethos can be traced to the founder, an

engineer Dr. Kazuma Tateisi, who has written a significant bookThe Eternal Venture

Spirit. His innovative yet practical entrepreneurial philosophy continues in the corporate

culture of this significant company. The company continues to stimulate significant

innovation and a plethora of new products, and has grown to several billion $ worldwide,

targeting a doubling in revenues by the end of this decade

Another innovative start up National Instruments, headquartered in Austin, Texas, has about

4,000 employees, 2006 revenue of $660M, trading on NASDAQ with market-cap of over $

2B. The company was co-founded in 1976 by Dr. James Truchard, while he was still at

University of Texas, Austin. In 1986, Jim Truchard and Jeff Kodosky (who is also still at NI)

invented LabVIEW graphical development software. The intuitive graphical environment of

LabVIEW revolutionized the way engineers and scientists work, much like the spreadsheet

provided a new way for financial professionals to do their jobs. The company is expected to

grow well past the $ 1-billion benchmark and continue its independent growth and success.

Future growth in automation

Extrapolating automation history forward is an interesting challenge. In the past, growth

inflection points have developed from new products and leadership (DCS, PLC, sensors,

software). Today, growth is coming from global expansion and services, but that is only

incremental, and not by any means a surge

A new surge of growth will come through new technology (perhaps nanotech sensors, or

wireless), production at the lowest cost for global distribution, and fast time-to-market (not

impeded by standards committees and antiquated management conservatism). The managers,

innovators and visionaries who recognize the possibilities will become the new leaders of

tomorrow.


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More on Automation

The main advantages of automation are:

Increased throughput or productivity. Improved quality or increased predictability of quality. Improved robustness (consistency), of processes or product.

The following methods are often employed to improve productivity, quality, or robustness.

Install automation in operations to reduce cycle time. Install automation where a high degree of accuracy is required. Replacing human operators in tasks that involve hard physical or monotonous work.[3] Replacing humans in tasks done in dangerous environments (i.e. fire, space,

volcanoes, nuclear facilities, underwater, etc.)

Performing tasks that are beyond human capabilities of size, weight, speed,endurance, etc.

Economy improvement: Automation may improve in economy of enterprises, societyor most of humanity. For example, when an enterprise invests in automation,

technology recovers its investment; or when a state or country increases its income

due to automation like Germany or Japan in the 20th Century..

The main disadvantages of automation are:

Security Threats/Vulnerability: An automated system may have a limited level ofintelligence, and is therefore more susceptible to committing errors outside of its

immediate scope of knowledge (e.g., it is typically unable to apply the rules of simple

logic to general propositions).

Unpredictable/excessive development costs: The research and development cost ofautomating a process may exceed the cost saved by the automation itself.

High initial cost: The automation of a new product or plant typically requires a verylarge initial investment in comparison with the unit cost of the product, although the

cost of automation may be spread among many products and over time.

In manufacturing, the purpose of automation has shifted to issues broader than productivity,

cost, and time.
http://en.wikipedia.org/wiki/Automation#cite_note-2http://en.wikipedia.org/wiki/Automation#cite_note-2http://en.wikipedia.org/wiki/Automation#cite_note-2http://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Research_and_developmenthttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Planthttp://en.wikipedia.org/wiki/Planthttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Research_and_developmenthttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Automation#cite_note-2


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Reliability and precision

The old focus on using automation simply to increase productivity and reduce costs was seen

to be short-sighted, because it is also necessary to provide a skilled workforce who can make

repairs and manage the machinery. Moreover, the initial costs of automation were high and

often could not be recovered by the time entirely new manufacturing processes replaced the

old. (Japan's "robot junkyards" were once world famous in the manufacturing industry.)

Automation is now often applied primarily to increase quality in the manufacturing process,

where automation can increase quality substantially. For example, internal combustion engine

pistons used to be installed manually. This is rapidly being transitioned to automated machine

installation, because the error rate for manual installment was around 1-1.5%, but has beenreduced to 0.00001% with automation.

Health and environment

The costs of automation to the environment are different depending on the technology,

product or engine automated. There are automated engines that consume more energy

resources from the Earth in comparison with previous engines and those that do the opposite

too. Hazardous operations, such as oil refining, the manufacturing ofindustrial chemicals,

and all forms ofmetal working, were always early contenders for automation.

Convertibility and turnaround time

Another major shift in automation is the increased demand for flexibility and convertibility in

manufacturing processes. Manufacturers are increasingly demanding the ability to easily

switch from manufacturing Product A to manufacturing Product B without having to

completely rebuild the production lines. Flexibility and distributed processes have led to the

introduction ofAutomated Guided Vehicles with Natural Features Navigation.

Digital electronics helped too. Former analogue-based instrumentation was replaced by

digital equivalents which can be more accurate and flexible, and offer greater scope for more

sophisticated configuration, parameterization and operation. This was accompanied by the

field bus revolution which provided a networked (i.e. a single cable) means of

communicating between control systems and field level instrumentation, eliminating hard-

wiring..
http://en.wikipedia.org/wiki/Internal_combustion_enginehttp://en.wikipedia.org/wiki/Pistonhttp://en.wikipedia.org/wiki/Oil_refininghttp://en.wikipedia.org/wiki/Chemical_industryhttp://en.wikipedia.org/wiki/Metal_workinghttp://en.wikipedia.org/wiki/Production_linehttp://en.wikipedia.org/wiki/Automated_Guided_Vehiclehttp://en.wikipedia.org/wiki/Fieldbushttp://en.wikipedia.org/wiki/Fieldbushttp://en.wikipedia.org/wiki/Automated_Guided_Vehiclehttp://en.wikipedia.org/wiki/Production_linehttp://en.wikipedia.org/wiki/Metal_workinghttp://en.wikipedia.org/wiki/Chemical_industryhttp://en.wikipedia.org/wiki/Oil_refininghttp://en.wikipedia.org/wiki/Pistonhttp://en.wikipedia.org/wiki/Internal_combustion_engine


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Automation tools

Engineers can now have numerical control over automated devices. The result has been a

rapidly expanding range of applications and human activities. Computer-aided technologies

(or CAx) now serve the basis for mathematical and organizational tools used to create

complex systems. Notable examples of CAx include Computer-aided design (CAD software)

and Computer-aided manufacturing (CAM software). The improved design, analysis, and

manufacture of products enabled by CAx has been beneficial for industry

Information technology, together with industrial machinery and processes, can assist in the

design, implementation, and monitoring of control systems. One example of an industrial

control system is a programmable logic controller (PLC). PLCs are specialized hardened

computers which are frequently used to synchronize the flow of inputs from (physical)

sensors and events with the flow of outputs to actuators and events. An automated online

assistant on a website, with an avatar for enhanced humancomputer interaction.

Human-machine interfaces (HMI) or computer human interfaces (CHI), formerly known as

man-machine interfaces, are usually employed to communicate with PLCs and other

computers. Service personnel who monitor and control through HMIs can be called by

different names. In industrial process and manufacturing environments, they are called

operators or something similar. In boiler houses and central utilities departments they are

called stationary engineers. Different types of automation tools that exist:

ANN - Artificial neural network BPM - Bonita Open Solution DCS - Distributed Control System HMI - Human Machine Interface SCADA - Supervisory Control and Data Acquisition PLC - Programmable Logic Controller PAC - Programmable automation controller Instrumentation Motion control Robotics
http://en.wikipedia.org/wiki/Numerical_controlhttp://en.wikipedia.org/wiki/Computer-aided_technologieshttp://en.wikipedia.org/wiki/Computer-aided_designhttp://en.wikipedia.org/wiki/Computer-aided_manufacturinghttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Machineryhttp://en.wikipedia.org/wiki/Industrial_processhttp://en.wikipedia.org/wiki/Industrial_control_systemshttp://en.wikipedia.org/wiki/Industrial_control_systemshttp://en.wikipedia.org/wiki/Programmable_logic_controllerhttp://en.wikipedia.org/wiki/Sensorhttp://en.wikipedia.org/wiki/Automated_online_assistanthttp://en.wikipedia.org/wiki/Automated_online_assistanthttp://en.wikipedia.org/wiki/Avatar_(computing)http://en.wikipedia.org/wiki/Human%E2%80%93computer_interactionhttp://en.wikipedia.org/wiki/Human%E2%80%93computer_interactionhttp://en.wikipedia.org/wiki/Human%E2%80%93computer_interactionhttp://en.wikipedia.org/wiki/Human-computer_interactionhttp://en.wikipedia.org/wiki/Human%E2%80%93computer_interactionhttp://en.wikipedia.org/wiki/Artificial_neural_networkhttp://en.wikipedia.org/wiki/Bonita_Open_Solutionhttp://en.wikipedia.org/wiki/Distributed_Control_Systemhttp://en.wikipedia.org/wiki/Human_Machine_Interfacehttp://en.wikipedia.org/wiki/Supervisory_Control_and_Data_Acquisitionhttp://en.wikipedia.org/wiki/Programmable_Logic_Controllerhttp://en.wikipedia.org/wiki/Programmable_automation_controllerhttp://en.wikipedia.org/wiki/Instrumentationhttp://en.wikipedia.org/wiki/Motion_controlhttp://en.wikipedia.org/wiki/Motion_controlhttp://en.wikipedia.org/wiki/Instrumentationhttp://en.wikipedia.org/wiki/Programmable_automation_controllerhttp://en.wikipedia.org/wiki/Programmable_Logic_Controllerhttp://en.wikipedia.org/wiki/Supervisory_Control_and_Data_Acquisitionhttp://en.wikipedia.org/wiki/Human_Machine_Interfacehttp://en.wikipedia.org/wiki/Distributed_Control_Systemhttp://en.wikipedia.org/wiki/Bonita_Open_Solutionhttp://en.wikipedia.org/wiki/Artificial_neural_networkhttp://en.wikipedia.org/wiki/Human%E2%80%93computer_interactionhttp://en.wikipedia.org/wiki/Human-computer_interactionhttp://en.wikipedia.org/wiki/Human%E2%80%93computer_interactionhttp://en.wikipedia.org/wiki/Avatar_(computing)http://en.wikipedia.org/wiki/Automated_online_assistanthttp://en.wikipedia.org/wiki/Automated_online_assistanthttp://en.wikipedia.org/wiki/Sensorhttp://en.wikipedia.org/wiki/Programmable_logic_controllerhttp://en.wikipedia.org/wiki/Industrial_control_systemshttp://en.wikipedia.org/wiki/Industrial_control_systemshttp://en.wikipedia.org/wiki/Industrial_processhttp://en.wikipedia.org/wiki/Machineryhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Computer-aided_manufacturinghttp://en.wikipedia.org/wiki/Computer-aided_designhttp://en.wikipedia.org/wiki/Computer-aided_technologieshttp://en.wikipedia.org/wiki/Numerical_control


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Applications

Automated video surveillance

The Defence Advanced Research Projects Agency (DARPA) started the research and

development of automated visual surveillance and monitoring (VSAM) program, between

1997 and 1999, and airborne video surveillance (AVS) programs, from 1998 to 2002.

Currently, there is a major effort underway in the vision community to develop a fully

automated tracking surveillance system. Automated video surveillance monitors people and

vehicles in real time within a busy environment. Existing automated surveillance systems are

based on the environment they are primarily designed to observe, i.e., indoor, outdoor or

airborne, the amount of sensors that the automated system can handle and the mobility of

sensor, i.e., stationary camera vs. mobile camera. The purpose of a surveillance system is to

record properties and trajectories of objects in a given area, generate warnings or notify

designated authority in case of occurrence of particular events.

Automated highway systems

As demands for safety and mobility have grown and technological possibilities have

multiplied, interest in automation has grown. Seeking to accelerate the development and

introduction of fully automated vehicles and highways, the United States Congress authorized

more than $650 million over six years for intelligent transport systems (ITS) and

demonstration projects in the 1991 Intermodal Surface Transportation Efficiency Act

(ISTEA). Congress legislated in ISTEA that theSecretary of Transportation shall develop an

automated highway and vehicle prototype from which future fully automated intelligentvehicle-highway systems can be developed. Such development shall include research in

human factors to ensure the success of the man-machine relationship. The goal of this

program is to have the first fully automated highway roadway or an automated test track in

operation by 1997. This system shall accommodate installation of equipment in new and

existing motor vehicles."
http://en.wikipedia.org/wiki/DARPAhttp://en.wikipedia.org/wiki/Space_Tracking_and_Surveillance_Systemhttp://en.wikipedia.org/wiki/United_States_Congresshttp://en.wikipedia.org/wiki/Intelligent_transport_systemhttp://en.wikipedia.org/wiki/Intermodal_Surface_Transportation_Efficiency_Acthttp://en.wikipedia.org/wiki/United_States_Secretary_of_Transportationhttp://en.wikipedia.org/wiki/United_States_Secretary_of_Transportationhttp://en.wikipedia.org/wiki/United_States_Secretary_of_Transportationhttp://en.wikipedia.org/wiki/Intermodal_Surface_Transportation_Efficiency_Acthttp://en.wikipedia.org/wiki/Intelligent_transport_systemhttp://en.wikipedia.org/wiki/United_States_Congresshttp://en.wikipedia.org/wiki/Space_Tracking_and_Surveillance_Systemhttp://en.wikipedia.org/wiki/DARPA


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Automated manufacturing

Automated manufacturing refers to the application of automation to produce things in the

factory way. Most of the advantages of the automation technology has its influence in the

manufacture processes.

The main advantages of automated manufacturing are higher consistency and quality,

reduced lead times, simplified production, reduced handling, improved work flow, and

increased worker morale when a good implementation of the automation is made.

Home automation

Home automation (also called domotics) designates an emerging practice of increased

automation of household appliances and features in residential dwellings, particularly through

electronic means that allow for things impracticable, overly expensive or simply not possible

in recent past decades.

Industrial automation

Industrial automation deals with the optimization of energy-efficient drive systems by precisemeasurement and control technologies. Nowadays energy efficiency in industrial processes

are becoming more and more relevant. Semiconductor companies like Infineon Technologies

are offering 8-bit microcontroller applications for example found in motor controls, general

purpose pumps, fans, and e-bikes to reduce energy consumption and thus increase efficiency.

One of Infineon`s 8-bit product line found in industrial automation is the XC800 family.
http://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Domoticshttp://en.wikipedia.org/wiki/Infineon_Technologieshttp://en.wikipedia.org/wiki/Motor_controlhttp://en.wikipedia.org/wiki/XC800_familyhttp://en.wikipedia.org/wiki/XC800_familyhttp://en.wikipedia.org/wiki/Motor_controlhttp://en.wikipedia.org/wiki/Infineon_Technologieshttp://en.wikipedia.org/wiki/Domoticshttp://en.wikipedia.org/wiki/Manufacturing


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References

1)Google.com2)Wikipedia3)Scribd.com4)Oppapers.com5)A few operations management text books

automation in operation management

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