Chapter 8 Process technology Source CorbisLouis Psihoyes Slack

Chapter 8 Process technology Source: Corbis/Louis Psihoyes Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Process technology Operations strategy Supply network design Layout and flow Process technology Design Job design Product/service design Source: Empics Process design Operations management Improvement Planning and control Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Source: Corbis/Yiorgos Karahalis Robots are used in this example because of the hazardous environment in which the tasks take place What other examples can you think of where the safety of operators is the major motivation for investment in robot technology? Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Technology and processing costs Cost per banking transaction 100% 80% 60% 50% 40% 25% 20% 12% Branch Telephone Cash machine Internet Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Network translates e. PC code into useful information that can be used for monitoring and process control Smart Tag, microchip with antenna that transmits e. PC code F 132. C 225. DF 2 B 12 CV Code, a unique e. PC number 96 bits long Control system Internet or other network Reader senses item and transmits e. PC code to network Operations Process Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Active interaction with technology Customer Technology Examples Personal communications Internet-based ordering Cash machines Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Passive interaction with technology Customer Technology Examples Transport systems Theme park rides Car wash Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Hidden interaction with technology Customer Technology Examples Security cameras Retail scanners Credit card tracking Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Use of technology through an intermediary Customer Technology Intermediary Examples Call centre technology Travel agent booking system Hotel reservation system Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Customer processing technologies Customers Back-office Back-- office technology Front-office technology with links to the back-office Front-office technology Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Cows are also customers 1. What advantages do you think the technology described above gives? 2. Do you think the cows mind? 3. Why do you think the farmer still goes to watch the process? Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

QB House speeds up the cut “Why not create a no-frills barber shop where the customer could get a haircut in ten minutes at a cost of 1, 000 yen? ” 1. How does QB House compete compared with conventional hairdressers? 2. In what way does technology help QB House to keep its costs down? Source: Andy Maluche/Photographers Direct Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Categorizing process technologies Process technologies can be categorized using three dimensions: the extent to which they vary in their degree of automation Source: Jonathan Roberts the extent to which they vary in their scale the extent to which they vary in their degree of integration Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Different process technologies are appropriate for different volume–variety combinations Automation Low High Scale/ scalability Coupling/ connectivity Low Broad/ unconstrained High Narrow/ constrained High Variety High Low Volume Low Manual, generalpurpose, smallscale, flexible technology Automated, dedicated, largescale, relatively inflexible technology Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Key Terms Test Process technology The machines and devices that create and/or deliver goods and services. Indirect process technology Technology that assists in the management of processes rather than directly contributes to the creation of products and services, for example information technology that schedules activities. Electronic point of sale (EPOS) Technology that records sales and payment transactions as and when they happen. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Key Terms Test Computer numerically controlled (CNC) machine tools Machines that use a computer to control their activities, as opposed to those controlled directly through human intervention. Robots Automatic manipulators of transformed resources whose movement can be programmed and reprogrammed. Automated guided vehicles (AGVs) Small, independently powered vehicles that move material to and from value-adding operations. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Key Terms Test Flexible manufacturing systems (FMS) Manufacturing systems that bring together several technologies into a coherent system, such as metal cutting and material handling technologies; usually their activities are controlled by a single governing computer. Computer-integrated manufacturing (CIM) A term used to describe the integration of computer-based monitoring and control of all aspects of a manufacturing process, often using a common database and communicating via some form of computer network. Information technology (IT) Any device, or collection of devices, that collects, manipulates, stores or distributes information, nearly always used to mean computerbased devices. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Key Terms Test Distributed processing A term used in information technology to indicate the use of smaller computers distributed around an operation and linked together so that they can communicate with each other; the opposite of centralized information processing. Local area network (LAN) A communications network that operates, usually over a limited distance, to connect devices such as PCs, servers, etc. Ethernet A technology that facilitates local area networks to allow any device attached to a single cable to communicate with any other devices attached to the same cable; also now used for wireless communication that allows mobile devices to connect to a local area network. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Key Terms Test World Wide Web (www) The protocols and standards that are used on the Internet formatting, retrieving, storing and displaying information. Extranets Computer networks that link organizations together and connect with each organization’s internal network. E-business The use of Internet-based technologies either to support existing business processes or to create entirely new business opportunities. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Key Terms Test E-commerce The use of the Internet to facilitate buying and selling activities. Management information systems (MIS) Information systems that manipulate information so that it can be used in managing an organization. Decision support system (DSS) A management information system that aids or supports managerial decision making; it may include both databases and sophisticated analytical models. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Key Terms Test Expert systems (ES) Computer-based problem-solving systems that, to some degree, mimic human problem-solving logic. Bar code A unique product code that enables a part or product type to be identified when read by a bar code scanner. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Key Terms Test Active interaction technology Customer processing technology with which a customer interacts directly, for example cash machines. Passive interactive technology Customer processing technology over which a customer has no, or very limited, control, for example cinemas and moving walkways. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007