Chapter 8 Process Technology

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

Chapter 8

Process technology

Source: Corbis/Louis Psihoyes


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

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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 environmentin which the tasks take place

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100%

80%

60%

40%

20%

Technology and processing costs

Cost per banking transaction

100%

Branch

50%

Telephone

25%

Cash machine

12%

Internet


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


Examples

Customer Technology

Personal communications

Internet-based ordering

Cash machines

Active interaction with technology


Examples

Customer Technology

Transport systems

Theme park rides

Car wash

Passive interaction with technology


Examples

Customer Technology

Security cameras

Retail scanners

Credit card tracking

Hidden interaction with technology


Examples

Customer Technology

Intermediary

Call centre technology

Travel agent booking system

Hotel reservation system

Use of technology through an intermediary


Customer processing technologies

Back-office

-Back- office technology

Front-office

Front-office technology

Front-office technology with links to theback-office

Customers


1. 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


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 helpQB House to keep its costs down?

Source: Andy Maluche/Photographers Direct


Categorizing process technologies

the extent to which they vary in their degreeof 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 usingthree dimensions:

Source: Jonathan Roberts


Different process technologies are appropriate for different volume–variety combinations

Coupling/ connectivity

Broad/ unconstrained

Narrow/ constrained

Scale/ scalability

Low

High

Automation

Low

High

High

Low

Variety

Volume

Manual, general-purpose, small-scale, flexible

technology

Automated, dedicated, large-scale, relatively

inflexible technology

High

Low


Key Terms TestProcess technologyThe machines and devices that create and/or deliver goods

and services.

Indirect process technologyTechnology 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.


Key Terms Test

Computer numerically controlled (CNC) machine toolsMachines that use a computer to control their activities, as

opposed to those controlled directly through human intervention.

RobotsAutomatic 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.


Key Terms TestFlexible 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.


Key Terms TestDistributed processingA 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.

EthernetA 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.


Key Terms TestWorld Wide Web (www)The protocols and standards that are used on the Internet

for formatting, retrieving, storing and displaying information.

ExtranetsComputer networks that link organizations together and

connect with each organization’s internal network.

E-businessThe use of Internet-based technologies either to support

existing business processes or to create entirely new business opportunities.


Key Terms Test

E-commerceThe 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.


Key Terms Test

Expert systems (ES)Computer-based problem-solving systems that, to some

degree, mimic human problem-solving logic.

Bar codeA unique product code that enables a part or product type

to be identified when read by a bar code scanner.


Key Terms Test

Active interaction technologyCustomer processing technology with which a customer

interacts directly, for example cash machines.

Passive interactive technologyCustomer processing technology over which a customer

has no, or very limited, control, for example cinemas and moving walkways.

Chapter 8 Process Technology

Documents

robert johnston

stuart chambers

office technology slack

edition nigel slack

operations process slack

inflexible technology

control slack

use of technology