Operations Management with TQM

Process Technology

INTRODUCTION

Advances in process technology have radically changed many operations over the last two or three
decades. And all indications are that the pace of technological development is not slowing down. Few
operations have been unaffected by this because all operations use some kind of process technology,
whether it is a simple internet link or the most complex and sophisticated of automated factories. But
whatever the technology, all operations managers need to understand what emerging technologies can
do, in broad terms how they do it, what advantages the technology can give and what constraints it
might impose on the operation. Figure 8.1 shows where the issues covered in this chapter relate to the
overall model of operations management activities.

What is process technology?

In this chapter, we discuss process technology – the machines, equipment and devices that create
and/or deliver products and services. Mechanical milking machines, for example, perform the task of
several farm workers by milking and feeding the cows in order to provide the raw milk for the next stage
in the process (see the short case ‘Customers are not always human’). Body scanners in hospitals create
a picture of soft body tissue using magnetic forces to provide a service that could not be performed by
humans. Large entertainment complexes such as Disney World use flight-simulation technologies to
create the thrill of space travel. This technology often involves the whole room, which is mounted on
hydraulic struts that can move the room and all the people in it. Combined with widescreen projection,
this provides a very realistic experience. Using technology in this way is one of the latest in a long history
of achievements from what the Disney Corporation calls its ‘imagineers’, whose role is to engineer the
experience for its customers. Some technology is peripheral to the actual creation of products and
services but plays a key role in facilitating the direct transformation of inputs to an operation. For
example, the computer systems which run planning and control activities, accounting systems and stock
control systems can be used to help managers and operators control and improve the processes.
Sometimes this type of technology is called indirect process technology. It is becoming increasingly
important, indeed many businesses spend more on the computer systems which control their processes
than they do on the direct process technology which acts on the material, information or customers.

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.

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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.

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 computer-based devices.

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.

World Wide Web (www)

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The protocols and standards that are used on the Internet for 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.

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.

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.

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.