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Operations Operations ManagementManagement

Technology ManagementTechnology ManagementChapter 13Chapter 13

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Technology is not a cure-all, but managing technology is certainly a major ingredient in building firms with a future.

TechnologyTechnology

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Using the InternetUsing the Internet Boeing & Lufthansa put maintenance info online for

worldwide access Medical equipment manufacturer exchange 3D design

info, in real time, with customers around the world Robotics manufacturer has web-enabled factory Master lock uses Internet to make info available to

suppliers Ronald Tool Co. builds product from customer specs sent

via the Internet Caterpillar Inc sells industrial parts through e-commerce State Street Bank uses the web to support global

customer relationships

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Design TechnologyDesign Technology1. Computer-Aided Design (CAD)1. Computer-Aided Design (CAD)

Refers to the use of computers to interactively design products and prepares engineering documentation

Extensions: Design for Manufacture and Assembly (DFMA) –

enables testing of design integration before manufacturing

3-D Object Modeling – enables the building of small models of the product

3-D Object modeling3-D Object modeling

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Standard for exchange of CAD data Includes 3-D CAD data Enhances collaboration using talent wherever it is

in the world reducing design lead time and development cost

Design TechnologyDesign Technology2. Standard for the Exchange of 2. Standard for the Exchange of

Product Data (STEP)Product Data (STEP)

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Design TechnologyDesign Technology3. Computer-Aided Manufacturing (CAM)3. Computer-Aided Manufacturing (CAM)

Refers to the use of specialized computer programs to direct and control manufacturing equipment

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Product quality Shorter design time Production costs reduction Database availability New range of capabilities Reduces need for “similar” parts

Design TechnologyDesign TechnologyBenefits of CAD/CAMBenefits of CAD/CAM

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Design TechnologyDesign Technology4. Virtual Reality4. Virtual Reality

Enables creation of a “virtual model” Help test integration of design Enables users to “try product” before

manufacturing (also enables customer to try product before purchase)

Virtual Reality TechnologyVirtual Reality Technology

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Production TechnologyProduction Technology Numerically controlled machines Process control Vision Systems Robots Automated Storage and Retrieval Systems

(ASRS) Automated Guided Vehicles (AGV) Flexible Manufacturing Systems (FMS) Computer Integrated Manufacturing (CIM)

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Numerical Control (NC) – machine can be controlled electronically

Computer Numerically Controlled (CNC) – machine actually has its own microprocessor and memory

Direct Numerical Control (DNC) – wired to a central computer

Production TechnologyProduction Technology1. Numerical Control1. Numerical Control

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Sensors, often analog devices, collect data Analog devises read data on some periodic basis, perhaps

once a minute or once a second Measurements are translated into digital signals, and

transmitted to a digital computer Computer programs read the file (the digital data) and

analyze the data Output may be a: message on printer or console, signal to

a motor to change a value setting, warning light or horn, process control chart, etc.

Production TechnologyProduction Technology2. Process Control2. Process Control

Process-control softwareProcess-control software

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Combine video and computer technology Often used in inspection roles Consistently accurate, do not become bored, of

modest cost

Production TechnologyProduction Technology3. Vision Systems3. Vision Systems

Vision SystemVision System

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Machines that hold, move, or grasp items

Perform monotonous or dangerous tasks

Used when speed, accuracy, or strength are needed

Production TechnologyProduction Technology4. Robots4. Robots

Prepared by: Shatina Saad @ FPP OPM 53313-18

Types of RobotsTypes of Robots

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Provide for automated placement and withdrawal of parts and products into and from designated places in the warehouse.

Particularly useful in inventory and test areas of manufacturing firms

Production TechnologyProduction Technology5. Automated Storage and Retrieval 5. Automated Storage and Retrieval

System (ASRS)System (ASRS)

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Material handling machines

Used to move parts & equipment in manufacturing

May be used to deliver mail & meals in service facilities

Production TechnologyProduction Technology6. Automatic Guided Vehicles (AGV)6. Automatic Guided Vehicles (AGV)

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Using automated machines (DNC) & materials handling equipment together

Often connected to centralized computer

Also called automated work cell

Production TechnologyProduction Technology7. Flexible Manufacturing Systems 7. Flexible Manufacturing Systems

(FMS)(FMS)

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Advantages Faster, lower-cost changes from one part to another Lower direct labor costs Consistent, and perhaps better quality

Disadvantages Limited ability to adapt to product mix changes Requires substantial preplanning and capital expenditures Technological problems of exact component positioning and

precise timing Tooling and fixture requirements

Production TechnologyProduction Technology FMS – Pros & Cons FMS – Pros & Cons

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Production TechnologyProduction TechnologyFlexible Manufacturing Systems (FMS)Flexible Manufacturing Systems (FMS)

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Manufacturing system that combines CAM with engineering (CAD), & production and inventory control

Computer-aided design (CAD) creates code to run DNC machine

Production TechnologyProduction Technology8. Computer Integrated Manufacturing (CIM)8. Computer Integrated Manufacturing (CIM)

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Equipment Options and UtilizationEquipment Options and Utilization

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Use of Information Technology at Use of Information Technology at North American Manufacturing PlantsNorth American Manufacturing Plants

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Technology Impacts in ServicesTechnology Impacts in Services Financial services Education Utilities and government Restaurants and foods Communications Hotels Wholesales/retail trade Transportation Health care Airlines

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Technology in ServicesTechnology in ServicesService Industry Example

Financial services Debit cards, electronic funds transfer, ATMs, Internet stock trading

Education Electronic bulletin boards, on-line journals

Utilities and government

Automated one-man garbage trucks, optical mail sorters, scanners, flood warning systems

Restaurants and foods

Wireless orders from waiters to kitchen, robot butchering, transponders on cars to track drive-thru

Communication Electronic publishing, interactive TV

Hotels Electronic check-in/check-out, electronic key/lock systems

Wholesale/retail trade

Point-of-sale terminals, e-commerce, electronic communication between store and supplier, bar coded data

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Technology in Services - ContinuedTechnology in Services - ContinuedService Industry Example

Transportation Automatic toll booths, satellite-directed navigation systems, route planning, progress monitoring

Health care On-line patient monitoring, on-line medical information systems, robotic surgery, expert system diagnosis assistance

Airlines Ticket less travel, scheduling, Internet ticket sales, improved navigation and route planning

Technology in serviceTechnology in service

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DSS, MIS and Transaction Processing DSS, MIS and Transaction Processing in Operations Managementin Operations Management

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MIS and Transaction Processing in MIS and Transaction Processing in Operations ManagementOperations Management

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Expert SystemExpert System

Make decisions faster than the expert Derive the benefits of having the expert present Equal and surpass, at least in terms of

consistency, the human expert Free the human expert for other work Can be disseminated to numerous non-experts for

education and training

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How an Expert Scheduling System How an Expert Scheduling System WorksWorks

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To Gain Competitive Advantage To Gain Competitive Advantage Through TechnologyThrough Technology

Have a strategic vision Plan for a distant time horizon Have a focused product line and know your

product and customer Tie strong internal technical capabilities to your

strategy Build learning organizations that can

effectively implement the changes necessary for constructive use of technology

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Enterprise Resource Planning (ERP)Enterprise Resource Planning (ERP)

Packaged business software systems that allow companies to: Automate and integrate the majority of their business

processes Share common data and practices across the entire

enterprise Produce and access information in a real-time

environment

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Example of an ERP SystemsExample of an ERP Systems

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MRP and ERP Information Flows, MRP and ERP Information Flows, Integrated with Other SystemsIntegrated with Other Systems

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Advantages of ERPAdvantages of ERP Provides integration of supply-chain, production and

administrative processes Creates commonality of databases Can incorporate improved, redesigned, “best processes” Increased communication and collaboration worldwide Helps integrate multiple sites and business units Is packaged with a software core that is off-the-shelf

coding Can provide a strategic advantage over competitors

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Disadvantages of ERPDisadvantages of ERP Is very expensive to purchase, and even more

costly to customize Requires major changes in the company and its

processes to implement Is such a complex program that many companies

cannot adjust to it Involves an ongoing process for implementation,

which is often never completed expertise in ERP is limited, with staffing an

ongoing problem