Chapter -08 Process technology

PROCESS TECHNOLOGY In general process technologies are devices or machines that we use every day in operations. Two key factors in the selection of technology: What technology can do? What are the limitations of technology?.

Process technology The machines and devices that create or deliver goods and services. For example: Cappuccino machine is making the cappuccino coffee and internet is helping us to book hotel/airline e.t.c. Indirect process technology The technology that indirectly functions in an operation. For example the computer systems in planning, controlling and accounting activities.

Integrating technology technology that process combination or mix or materials, customers and people. Electronic point of scale Technology that records and payment transactions as it happens. Explain the factors that help the operational managers to take decision on technologies. Operational managers ask the following questions to find out the suitability of a technology:

1. What does technology do which is different from other technologies?. 2. How does it do it? 3. What are the benefits of using the technology? 4. What are the potential constraints with this technology?

Material processing technologies 1. Computer Numerically Controlled Machines tools - Machines tools that use computer to control actions. 2. Robots Automatic operators of transformed resources, whose movement can be programmed and reprogrammed.

Automated Guided Vehicles Small independently powered vehicles that move materials to and from the operations. Flexible manufacturing Systems Manufacturing systems that bring several technologies into a single system. Computer Integrated manufacturing system Computer based control and monitoring of all aspects of a manufacturing process.

Summary of Materials-processing technologies. Page 227 Information-processing Technology Any device or colletion of devices that collects, manipulates and stores or distributes information is know as IT. Centralized information processing and Decentralized information processing All the computers for the management purposes were centralized: All the processes where controlled by a single computer. But decentralized or distributed processing means, the use of smaller computers linked together for communicating together.

1. LAN (local area networks) communication network for a shorter distance 1. LAN (local area networks) communication network for a shorter distance 2. Ethernet – technology for LAN 3.Telecommunication – Digital communication for both voice and data transmissions. 4.The internet – network of networks 5.The world wide web – Information was organized into pages and contained both text and graphics. 6.Extranets - computer networks that connect organizations together. 7.E-business - internet based technologies either to support business or to create new business opportunities. 8. E-Commerce – internet for buying and selling. 9.M-Business - mobile technology for business process.

10.Management information systems – information systems that can be used to manage an organization. 11.Descision support systems – management information systems that support decision making. 12. Expert systems – computer based problem solving systems. 13.Bar code- Product code that helps the product to be identified. 14.Radio Frequency Identification – With the memory chip or smart tag identifies the product.

Technology involving customer interactions. ATM, Gym machines, Internet bookings. Active interaction technology – where customer interacts directly. For example ATM machines. Passive interaction Technology – Customer has limited or no control over the interaction. For example cinemas, Walkways, security cameras.

Interaction with the technology through intermediaries. Interact with the technology with the help of an intermediary. Forexample booking airlines ticket through travel agent or doing airline check-in through Check-in staff. Capital intensity – the ratio of technological to human intervention in operations is known as capital intensity.

Decision making for automated technology page 240 Larger technologies can process cheaper than smaller technologies. But smaller technologies are flexible than the larger ones. Scalability means the ability to change to a different level capacity quickly and cost effectively.

Principles for the choice of technology market requirements operations resource requirements Market requirements 1. Quality 2. Speed 3. Dependability 4. Flexibility 5. Cost

Operations resource requirements constraints Capabilities Financial evaluation