Technology and Operations Management

Technology and Operations Management

Learning Objectives

  • Describe different types of technology and their roles in manufacturing and service operations.

  • Explain how manufacturing service technology and analytics strengthen the value chain.

  • Explain the benefits and challenges of using technology.

  • Describe key technology decisions.

Types of Technology in Operations

Hard Technology

  • Refers to equipment and devices that perform various tasks in the creation and delivery of goods and services.

Understanding RFID Technology

  • Successor to barcodes, transmits radio signals to identify locations and track movements.

  • Enhances visibility and security.

  • Helps differentiate genuine products from counterfeits.

Soft Technology

  • Involves the application of internet, computer software, and information systems for data, information, and analysis to facilitate creation and delivery of goods and services.

Information Technology in Operations

  • Integrates all parts of the value chain through improved management of data and information.

  • Leads to more effective strategic and operational decisions.

    • Examples of Integrated Systems include:

      • Integrated Operating Systems (IOSs)

      • Computer Integrated Manufacturing Systems (CIMs)

      • Enterprise Resource Planning (ERP)

      • Customer Relationship Management (CRM)

Key Technology Decisions in Manufacturing

  1. Selection of Appropriate Technology: Must be aligned with the goods that are produced.

  2. Process Resource Configuration: Machines and employees need to be arranged logically to support production efficiency.

  3. Training Labor: Employees must be trained to operate machinery effectively.

  4. Continuous Improvement of Process Performance: Ongoing improvements are essential.

  5. Work Scheduling: Need to ensure commitments to shipping and customer promises are met.

  6. Quality Assurance: Must maintain quality throughout the production process.

Computer Integrated Manufacturing Systems (CIMSs)

  • Combines hardware, software, database management, and communication to automate/control production activities.

Roots of CIMSs

  • Numerical Control (NC): Allows machinists' skills to be replicated.

  • Computer Numerical Control (CNC): Operated by computers for enhanced precision.

Robotics in Manufacturing

  • Programmable machines designed for material/tool handling.

  • Can be taught various sequences of tasks; beneficial for hazardous materials and heavy objects.

Advanced Manufacturing Technologies

3-D Printing

  • Additive Manufacturing: Produces objects layer by layer from digital models.

  • Replacement for traditional machining processes.

Rapid Prototyping

  • Quickly produces physical models from digital designs, applicable across various industries (architecture, automotive, healthcare, etc.).

New Industrial Robots

  • Trained without coding, significantly reduces costs.

  • Examples include robots like Baxter, which enhance manufacturing efficiency.

Nanotechnology

  • Involves manipulation of matter at atomic levels, leading to super-precision manufacturing.

  • Examples include:

    • Faster computer processors.

    • Superconductive materials.

    • Durable materials and innovative clothing technologies.

Service Technology

  • Used in everyday services (e.g., banking, entertainment, medical services).

E-Service

  • Leverages internet to provide services that add value (e.g., booking travels). Introduces concepts like the Internet of Things and virtual reality to enhance customer experiences.

Technology’s Role in Value Chains

  • Facilitates elimination of traditional structures and streamlining operations, with analytics playing a critical role in data integration.

Customer Relationship Management (CRM)

  • Strategy aimed at understanding customer behavior and preferences to deliver targeted marketing efforts.

  • Involves market segmentation, service improvement, and enhancing customer satisfaction.

Benefits of Technology

  • New industry/job creation.

  • Improved productivity, quality, and customer service.

  • Sustainability and flexible work options (e.g., telecommuting).

Challenges of Technology

  • Requires higher employee skills and adaptability.

  • Integration of old and new systems can be complex.

  • Potential job displacement may occur.

Operations Management

  • Focuses on synthesizing technology, people, and processes efficiently.

  • Addresses the scalability of operations in e-commerce contexts.

Technology and Operations Management

Learning Objectives

  • Describe different types of technology and their roles in manufacturing and service operations.

  • Explain how manufacturing service technology and analytics strengthen the value chain.

  • Explain the benefits and challenges of using technology.

  • Describe key technology decisions.

Types of Technology in Operations

A. Hard Technology

  • Refers to equipment and devices that perform various tasks in the creation and delivery of goods and services.

1. Understanding RFID Technology

  • Successor to barcodes, transmits radio signals to identify locations and track movements.

  • Enhances visibility and security.

  • Helps differentiate genuine products from counterfeits.

B. Soft Technology

  • Involves the application of internet, computer software, and information systems for data, information, and analysis to facilitate creation and delivery of goods and services.

1. Information Technology in Operations

  • Integrates all parts of the value chain through improved management of data and information.

  • Leads to more effective strategic and operational decisions.

  • Examples of Integrated Systems:

    • Integrated Operating Systems (IOSs)

    • Computer Integrated Manufacturing Systems (CIMs)

    • Enterprise Resource Planning (ERP)

    • Customer Relationship Management (CRM)

Key Technology Decisions in Manufacturing

  • Selection of Appropriate Technology: Must be aligned with the goods that are produced.

  • Process Resource Configuration: Machines and employees need to be arranged logically to support production efficiency.

  • Training Labor: Employees must be trained to operate machinery effectively.

  • Continuous Improvement of Process Performance: Ongoing improvements are essential.

  • Work Scheduling: Need to ensure commitments to shipping and customer promises are met.

  • Quality Assurance: Must maintain quality throughout the production process.

Computer Integrated Manufacturing Systems (CIMSs)

  • Combines hardware, software, database management, and communication to automate/control production activities.

  • Roots of CIMSs:

    • Numerical Control (NC): Allows machinists' skills to be replicated.

    • Computer Numerical Control (CNC): Operated by computers for enhanced precision.

Robotics in Manufacturing

  • Programmable machines designed for material/tool handling.

  • Can be taught various sequences of tasks; beneficial for hazardous materials and heavy objects.

Advanced Manufacturing Technologies

A. 3-D Printing

  • Additive Manufacturing: Produces objects layer by layer from digital models.

  • Replacement for traditional machining processes.

B. Rapid Prototyping

  • Quickly produces physical models from digital designs, applicable across various industries (architecture, automotive, healthcare, etc.).

C. New Industrial Robots

  • Trained without coding, significantly reduces costs.

  • Examples include robots like Baxter, which enhance manufacturing efficiency.

D. Nanotechnology

  • Involves manipulation of matter at atomic levels, leading to super-precision manufacturing.

    • Examples include:

      • Faster computer processors.

      • Superconductive materials.

      • Durable materials and innovative clothing technologies.

Service Technology

  • Used in everyday services (e.g., banking, entertainment, medical services).

A. E-Service

  • Leverages internet to provide services that add value (e.g., booking travels).

  • Introduces concepts like the Internet of Things and virtual reality to enhance customer experiences.

Technology’s Role in Value Chains

  • Facilitates elimination of traditional structures and streamlining operations, with analytics playing a critical role in data integration.

Customer Relationship Management (CRM)

  • Strategy aimed at understanding customer behavior and preferences to deliver targeted marketing efforts.

  • Involves market segmentation, service improvement, and enhancing customer satisfaction.

Benefits of Technology

  • New industry/job creation.

  • Improved productivity, quality, and customer service.

  • Sustainability and flexible work options (e.g., telecommuting).

Challenges of Technology

  • Requires higher employee skills and adaptability.

  • Integration of old and new systems can be complex.

  • Potential job displacement may occur.

Operations Management

  • Focuses on synthesizing technology, people, and processes efficiently.

  • Addresses the scalability of operations in e-commerce contexts.