Workplace Technology and Design Presenters: Eileen, Cindy, Abon, Felix Date: 2012/01/03

Agenda  Core Organization Manufacturing Technology  Contemporary Applications  Core Organization Service Technology  Non-Core Departmental Technology  Workflow Interdependence among Departments  Impact of Technology on Job Design  Case study

Technology  It refers to the work processes, techniques, machines, and actions used to transform organizational inputs(materials, information, ideas) into outputs (products and services).  Core technology  The work process that is directly related to the organization’s mission.  Non-core technology  It is a department work process that is important to the organization but not directly related to its primary mission.

Manufacturing firms  Technical complexity  It represents the extent of mechanization of the manufacturing process.  Three basic technology groups: 1. Small-batch and unit production. 2. Large-batch production 3. Continuous-process production

Small-batch and unit production  These firms tend to be job shop operations that manufacture and assemble small orders to meet specific needs of customers.  It relies heavily on the human operators; it is thus not highly mechanized.

Large-batch production  It is a manufacturing process characterized by long production runs of standardized parts. Continuous-process production  The entire process is mechanized. Automated machines control the continuous process, and outcomes are highly predictable.

Flexible Manufacturing Systems  The ultimate automated factories. = Computer-integrated manufacturing = Smart factories = Advanced manufacturing technology = Agile manufacturing = The factory of the future

Three types  Computer-aided design (CAD)  Computer-aided manufacturing (CAM)  Integrated information network

CAD  Computers are used to assist in the drafting, design, and engineering of new parts. CAM  Computer controlled machines in materials handling, fabrication, production, and assembly greatly increase the speed at which items can be manufacturing.

Integrated information network  A computerized system links all aspects of the firm- including accounting, purchasing, marketing, inventory control, design, production, and so forth.

Product life-cycle management (PLM)  It can manage a product from idea through development, manufacturing, testing, and even maintenance in the field. 1. It stores data on ideas and products from all parts of the company. 2. It links product design to all departments involved in new product development. 3. It provides three dimensional images of new products for testing and maintenance.

Lean Manufacturing  It uses highly trained employees at every stage of the product process, who take a painstaking approach to details and problem solving to cut waste and improve quality.  Lean manufacturing and flexible manufacturing systems have paved the way for mass customization.

Core organization service technology Service Firms  Service technologies are different from manufacturing technologies and require different organizational design  Service organizations accomplish their primary purpose through the production and provision of services.  Education, health care, transportation, banking, and hospitality.

Difference between Manufacturing and Service Technologies

1. Produce intangible output 2. Are characterized by simultaneous production and consumption. 3. Labor and knowledge intensive 4. Direct interaction between customer and employee 5. Human capital is extremely important 6. Quality of service is perceived and cannot be directly measured 7. Rapid response time 8. Site selection is much more important.

New directions in Service  Customized output  Customer expectations are rising  Lean principle : Cut waste, Improve customer service

Structural Characteristics of Service Organizations versus Product Organizations

Designing the Service Organization  Service organizations are not necessarily large  Small locations, close to customers  Require technical core employees  Employees need social and interpersonal skills as well as technical skills  Decision making is decentralized  Low formalization.

Non-Core Departmental Technology  Each department in an organization has a production process that consist of a distinct technology.  Variety : frequency of unexpected and novel events  Variety in departments can range from repeating a single act to working on a series of unrelated problems.  Analyzability : ability to apply standard procedures

Framework for Department Technologies

Workflow Interdependence Interdependence  The extent to which departments depend on each other for information, resources or materials to accomplish their tasks.  Low interdependence means that departments can do their work independently High interdependence means departments depend on each other and must constantly exchange resources.

Types of interdependence(Thompson)

Structural Implications Coordination for Interdependence

Impact of Technology on Job Design Job Design  the assignment of goals and tasks to be accomplished by employees Job Simplification  the variety and difficulty of tasks performed by a single person are reduced Job Rotation  moving employees from job to job to give them a great variety of tasks

Impact of Technology on Job Design Job Enrichment  designing a job to provide greater responsibility, recognition, and opportunities for growth and development Job Enlargement  an expansion of the number of different tasks performed by an employee in a job

Sociotechnical Systems Mode l  an approach that combines the needs of people with the organization’s need for technical efficiency.

Story began in ,000 retail stores in 60 countries. Starbucks Mission Mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.

Starbucks Definition of lean Delivering the most value from the Customer’s perspective While consuming the fewest possible resources By leveraging the talents and idea of partners.

Starbucks Lean Vision Build the Foundation - Lean team - Key concepts A Standard Way of Working - Routines - Capability - Process improvement Lean as a System -Integrated into how we work and lead - Innovation pipeline - Continuous improvement Future Increased Customer Value & A Culture of Problem Solvers

Starbucks lean team ( globally and cross ) developing leaders to empower continuous improvement as the way to lead and work. To accomplish this to integrate Lean into 1. employee training 2. operational programs 3. store design and work processes. Member do a variety of different things 1. Some work in an improvement lab 2. Some develop curriculum and coaching

Lean Innovation Lab

Houston; We have a problem! Prepare For Change Stabilize the Work A system of Work Deployment Principle Back to Basics 2008

Partner Customer Business Improved Customer Experience Create value Quality More Engaged Partners Burdensome work Mentally engaged Improved Business Waste Sales/ Transaction Capacitily Lean Innovation Lab

Learn from our Partners: Leverage the insights and creativity of our partners to drive improvement Bring together cross functional teams to solve problems Develop testable hypotheses : Cheap, Creative, Flexible Make the work visible / demonstrate work: Platform to exhibit innovation Influence other groups/work Gain support Influence Lean as the way we work in our stores Lean Innovation Lab

Small lot production -fresh batch brewed every 8min Color coding-coffee Brewing matches pouring containers Point of use – coffee urns moved to front counter to prevent baristas turning their backs in customers Point of use- flavor syrups moved closer to espresso machine

Experienced Based Learning and Teaching: A Recipe For Success

Leveraging TWI to achieve goal

Work Routine Structure An organizing tool for the teacher – not for handing over to the learner Major Steps A logical segment of the work that advances the process Not meant to be a complete time motion study Key Points Anything that might… Make or break the job. Injure the partner (safety factors are always key points). Make the work easier to do. Most parts of the job are quite easy to learn – but 5% to 10% are difficult or tricky Reasons Why Explains the “why” behind each Key Point

Starbucks Teaching Model – Four Steps 1. Prepare 2. Present – twice -Major steps -Major steps + key points + reasons why 3. Practice – three times Silent demonstration only -Verbalizing and demonstrating major steps -Verbalizing and demonstrating major steps, -key points and reasons why 4. Follow-up

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Result

Where Starbucks are going Becoming a learning organization requires embracing asking questions as part of our culture