Practical Session 7

Repetitive Focused Strategy- Continued ♦ Facilities often organized by assembly lines ♦ Characterized by modules ♦ Parts & assemblies made previously ♦ Modules combined for many output options ♦ Other names ♦ Assembly line ♦ Production line ♦ The most clearly example of a repetitive process is the usage of a robot: “ A robot is a mechanical device that can perform preprogrammed physical tasks. A robot may act under the direct control of a human (eg. the robotic arm of the space shuttle) or autonomously under the control of a pre-programmed computer. Robots may be used to perform tasks that are too dangerous or difficult for humans to implement directly (e.g. the space shuttle arm) or may be used to automate repetitive tasks that can be performed more cheaply by a robot than by the employment of a human (e.g. automobile production).”

Repetitive Focused Strategy- Continued Another expamle is the Automated Storage and Retrieval System (ASRS). Computer-controlled warehouses that provide for the automatic placement and withdrawal of parts and products into and from designated places in a warehouse. These systems are also found in inventory and test areas of manufacturing firms. Material handling machines Used to move parts & equipment in manufacturing May be used to deliver mail and meals in service facilities

Mass Customization-Continued Individualized goods and services Proliferation of products improving quality and reducing costs Making what the customer wants when the customer wants economically System: sales-design-production-supply chain-logistic Use of computers to interactively design products and prepare engineering documentation (drafting and three-dimensional drawings) To save time and money. The payoff is particularly significant because most product costs are determined at the design stage.

Which is the role of technology in relation with process strategy? Is the use of information technology to monitor and control a physical process. For example, process control is used to measure the moisture content and thickness of a paper. To determine and control temperatures, pressures, and quantities in petroleum refineries, petrochemical processes, cement plants, steel mills, nuclear reactors and other product-focused facilities. It offers control: Numerically controlled machines Numerical control Computer numerical control Direct numerical control Process control Vision systems Robots Automated storage and retrieval systems Automated guided vehicles Flexible manufacturing systems Computer integrated manufacturing Numerical control (NC) - machine can be controlled electronically Computer Numerically Controlled (CNC) - machine actually has its own microprocessor and memory Direct Numerical Control (DNC) - wired to a central computer

Which factors should be included? Quantitative factors – Considerations relevant to a decision that can be measured in terms of money or quantitative units. Examples are incremental revenue, added cost, and initial outlay. Qualitative factors – They are the factors relevant to a decision that are difficult to measure in terms of money. Qualitative factors may include: effect on employee morale, schedules and other internal elements; relationships with and commitments to suppliers; effect on present and future customers; and long-term future effect on profitability. In some decision-making situations, qualitative aspects are more important than immediate financial benefit from a decision.

Which is the impact of the usage of Communication and Informations Technology? The information sciences are making a major impact in additional areas that have applications in operations: – Transaction processing – Management Information Systems – Artificial Intelligence It is a system dedicating to obtaining, formatting, manipulating, and presenting data as information to managers when needed.