Choice of Technology

Chapter 6

McGraw-Hill/Irwin

The McGraw-Hill Companies, Inc. 2007, All Rights Reserved

Outline of Chapter 6
Definition Computer-Integrated Manufacturing Automated Offices and Services Enterprise Resource Planning Systems The Internet and the e-Business Technology Choice

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Definition
1 Technology is a set of processes, tools,

methods and equipment used to produce goods and services. 2 This is the technology of the production process, not of the goods and services themselves. 3 What is wrong with statement 2? In services, we have simultaneous production & consumption, so the two cannot be separated.
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Computer Integrated Manufacturing (CIM)

Factory of the Future
Computer Aided Design (CAD) Computer Aided Manufacturing (CAM)
Group Technology (GT)
Flexible Manufacturing Systems (FMS)

Numerically Controlled (NC) Machines and Robotics Economies of Scope

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Computer Aided Design (CAD)

Benefits to operations:
Participate in concurrent design process Less proliferation of parts Shorter throughput time Faster implementation of engineering changes Link to manufacturing process choices

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Computer Aided Manufacturing (CAM)

Can streamline batch operations
Use of group technology (GT)

Can add flexibility (FMS)

Multiple model auto production lines

Computer-aided process planning (CAPP)

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Batch Layout
A A C A C A B B D B B

C
D

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Group Technology Layout

A C B D

A B C D

C A D B

C D A B
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U-Shaped Cell Layout

C A B D A B C D

C A D

C D A

B
= work station

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NC Machines & Robotics

NC Machines are automated but dont have arms as robots do Early NC machines were mechanically controlled Later controlled by tape Now controlled directly by computer
e.g. computer controlled lathe

Robots: can imitate human motions

e.g. welding machines in auto plant
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Automated Offices and Services

Transformation in offices: typical functions Handling messages Typing or keyboarding files Copying printed or electronic materials Filing Keeping a calendar

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Impact on Services
Bringing the industrial model (production line approach) to services Services gaining efficiency of product focus (e.g. ATM machines) Physical & geographic boundaries falling (on-line banking, e-business)

Making possible productivity increases in services.

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Automated Office
Impact of automation on offices
Changing role of secretaries Redistribution of work Different ways of interacting with customers Decentralization

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Pay for parking with a mobile phone

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Enterprise Resource Planning (ERP) Systems Integration of functions through common database
Forces standard systems throughout company

ERP as the backbone of Supply Chain Management

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Enterprise Resource Planning (ERP) Systems Some ERP software vendors

SAP (Systems, Applications & Products) Baan (was Dutch, now IBM) PeopleSoft (purchased by Oracle) J.D. Edwards (purchased by PeopleSoft) Oracle

See: www.erpfans.com
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The Internet and e-Business

Growth of e-Business and B2B Commerce
Order entry, reverse auctions, etc.

Business to Consumer (B2C) Types of e-Business (see Table 6.3):

e-Market companies (e-bay.com) e-Service providers (travelocity.com) e-Retailers and wholesalers (amazon.com) e-Producers (Cisco)

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Technology Choice (1)

Role of technology strategy
Must support enterprise strategy, e.g. is the
distinctive competence to be low price, product

variety, fast throughput?

Technology decision needs to be made with the strategy & system in mind, not on a machine by machine basis.
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Technology Choice (2)

Must provide minimally acceptable return on investment Must consider the effect on the workers, i.e. sociotechnical system. Technological determinism Social & human consequences

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Sociotechnical Design

Sociotechnical Design

Social

Technical

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Summary
Definition Computer-Integrated Manufacturing Automated Offices and Services Enterprise Resource Planning Systems The Internet and the e-Business Technology Choice

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End of Chapter Six

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