Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Chapter 8 Process technology Source: Corbis/Louis Psihoyes

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Operations strategy Design Improvement Planning and control Operations management Process design Supply network design Layout and flow Process technology Job design Product/service design Process technology Source: Empics

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 What other examples can you think of where the safety of operators is the major motivation for investment in robot technology? Robots are used in this example because of the hazardous environment in which the tasks take place Source: Corbis/Yiorgos Karahalis

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston % 80% 60% 40% 20% Technology and processing costs Cost per banking transaction 100% Branch 50% Telephone 25% Cash machine 12% Internet

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Operations Process Internet or other network Control system Network translates ePC code into useful information that can be used for monitoring and process control F132.C225.DF2B12CV ePC Code, a unique number 96 bits long Smart Tag, microchip with antenna that transmits ePC code Reader senses item and transmits ePC code to network

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Examples CustomerTechnology Personal communications Internet-based ordering Cash machines Active interaction with technology

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Examples CustomerTechnology Transport systems Theme park rides Car wash Passive interaction with technology

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Examples CustomerTechnology Security cameras Retail scanners Credit card tracking Hidden interaction with technology

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Examples CustomerTechnology Intermediary Call centre technology Travel agent booking system Hotel reservation system Use of technology through an intermediary

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Customer processing technologies Back-office - Back-office technology Front-office technology Front-office technology with links to the back-office Customers

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston What advantages do you think the technology described above gives? 2. Do you think the cows mind? 3. Why do you think the farmer still goes to watch the process? Cows are also customers

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 QB House speeds up the cut “Why not create a no-frills barber shop where the customer could get a haircut in ten minutes at a cost of 1,000 yen?” 1.How does QB House compete compared with conventional hairdressers? 2.In what way does technology help QB House to keep its costs down? Source: Andy Maluche/Photographers Direct

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Categorizing process technologies the extent to which they vary in their degree of automation the extent to which they vary in their scale the extent to which they vary in their degree of integration Process technologies can be categorized using three dimensions: Source: Jonathan Roberts

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Different process technologies are appropriate for different volume–variety combinations Coupling/ connectivity Broad/ unconstrained Narrow/ constrained Scale/ scalability Low High Automation Low High Low Variety Volume Manual, general- purpose, small- scale, flexible technology Automated, dedicated, large- scale, relatively inflexible technology High Low

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 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.

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Key Terms Test 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.

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Key Terms Test 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.

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Key Terms Test 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.

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Key Terms Test World Wide Web (www) 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.

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Key Terms Test 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.

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Key Terms Test 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.

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Key Terms Test 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.