OM2_Chapter_05 FINAL

Report
OM2
CHAPTER 5
TECHNOLOGY AND
OPERATIONS MANAGEMENT
DAVID A. COLLIER
AND
JAMES R. EVANS
OM2, Ch. 5 Technology and Operations Management
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part.
1
Chapter 5 Learning Outcomes
learning outcomes
LO1 Describe different types of technology and their
role in manufacturing and service operations.
LO2 Explain how manufacturing and service technology
is strengthening the value chain.
LO3
Explain the benefits and challenges of using
technology.
LO4 Describe the processes of technology development
and adoption.
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©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part.
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Chapter 5 Technology and Operations Management
Imagine a team of employees that works 16 hours a day,
seven days a week. They never call in sick or show up late.
They demand no benefits, require no health insurance, no
coffee breaks, and receive no paychecks. They never
complain. Sounds like a bunch of robots, huh? They are,
in fact, robots--and they're dramatically changing the way
Staples, the largest distributor of office products in the
United States, delivers thousands of orders to its
customers. Having people run around a warehouse looking
for those items is expensive, especially when the company
promises next day delivery. When customer orders come
in, the computer tells the 2 feet high, the 3-foot-long
machines where to find racks with the appropriate items;
the robots, following a network of evenly spaced bar-code
stickers spread across the floor, locate the racks, slide
beneath them, and lift them in the air.
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Chapter 5 Technology and Operations Management
They then carry them to picking stations and wait
patiently as humans pull the correct products and
place them in boxes. When orders are filled, the
robots neatly park the racks back among the rest.
When they run low on power, they head to batterycharging terminals, or, as warehouse personnel say,
"They get themselves a drink of water." Overall,
average daily output is up 60%.
What do you think?
In what ways has technology benefited your life and work as
a student?
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Chapter 5 Technology and Operations Management
Importance of Technology
• Virtually everything that is done in a business
depends on some type of technology.
• Technology is evolving at an extremely rapid
pace.
• Technological innovation in goods, services,
manufacturing, and service delivery is a
competitive necessity.
OM2, Ch. 5 Technology and Operations Management
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posted to a publicly accessible website, in whole or in part.
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Chapter 5 Technology and Operations Management
• Hard technology refers to equipment and
devices that perform a variety of tasks in the
creation and delivery of goods and services.
• Soft technology is the application of the
Internet, computer software, and information
systems to provide data, information, and
analysis and to facilitate the accomplishment of
creating and delivering goods and services.
OM2, Ch. 5 Technology and Operations Management
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posted to a publicly accessible website, in whole or in part.
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Chapter 5 Technology and Operations Management
RFID
•
•
•
Radio frequency ID (RFID) tags are the modern successor
to bar codes.
RFID tags are tiny computer chips that transmit radio
signals and can be mounted on packages or shipping
containers to help organizations identify product locations
and movement.
RFID tags are being embedded in virtually everything, from
clothes, to supermarket products, to livestock, to
prescription medicines, and have been used to monitor
residents in assisted living buildings and track the
movements of doctors, nurses, and equipment in hospital
emergency rooms.
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posted to a publicly accessible website, in whole or in part.
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Chapter 5 Technology and Operations Management
Manufacturing Technology Tours
• Making jigsaw puzzles consists of three major
steps: making puzzle pieces, making puzzle boxes,
and final assembly (see diagram on next slide).
• Manufacturing motorcycle transmission gears:
Mazak machining center can operate unattended
for hours—highly automated production (see
diagram on slide 8).
• Many manufacturing industries use specialized
technology.
OM2, Ch. 5 Technology and Operations Management
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posted to a publicly accessible website, in whole or in part.
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Production Process for Jigsaw Puzzle Making
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Examples of Machining Technology
Photos courtesy of Andrews Products, Inc.
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Exhibit 5.1
E-Commerce View of the Value Chain
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Chapter 5 Technology and Operations Management
Integrated Operating System (IOS)
• Integrate hard and soft technology across the
organization, allowing managers to make
better decisions and share information across
the value chain.
• Computer integrated manufacturing systems
(CIMS), enterprise resource planning (ERP)
systems, and customer relationship
management (CRM) systems are IOSs.
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posted to a publicly accessible website, in whole or in part.
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Chapter 5 Technology and Operations Management
Computer-Integrated Manufacturing Systems
• Computer-integrated manufacturing
systems (CIMS) represent the union of
hardware, software, database management,
and communications to automate and control
production activities.
 A robot is a programmable machine
designed to handle materials or tools in
the performance of a variety of tasks.
OM2, Ch. 5 Technology and Operations Management
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part.
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Chapter 5 Technology and Operations Management
CIMS
• CAD/CAE enables engineers to design,
analyze, test, simulate, and “manufacture”
products before they physically exist.
• CAM involves computer control of the
manufacturing process.
• Flexible manufacturing systems (FMS)
consist of two or more computer-controlled
machines linked by automated handling
devices.
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Chapter 5 Technology and Operations Management
Enterprise Resource Planning
• Enterprise Resource Planning (ERP)
systems integrate all aspects of a business—
accounting, customer relationship
management, supply chain management,
manufacturing, sales, human resources—into a
unified information system and provide more
timely analysis and reporting of sales,
customer, inventory, manufacturing, human
resource, and accounting data.
OM2, Ch. 5 Technology and Operations Management
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part.
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Chapter 5 Technology and Operations Management
Enterprise Resource Planning (ERP)
Two prominent vendors of ERP software are
SAP and Oracle.
• ERP allows departments to share
information and communicate with each
other easily.
• ERP is not about software, but about
changing the way the organization and its
operations are managed.
OM2, Ch. 5 Technology and Operations Management
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
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Chapter 5 Technology and Operations Management
Customer Relationship Management Systems
• Customer relationship management
(CRM) is a business strategy designed to
learn more about customers’ wants, needs,
and behaviors in order to build customer
relationships and loyalty, and ultimately
enhance revenues and profits.
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Chapter 5 Technology and Operations Management
Service Technology
• Service technologies are used behind the
scenes to facilitate your experience as a
customer.
• E-service refers to using the Internet and
technology to provide services that create and
deliver time, place, information,
entertainment, and exchange value to
customers and/or support the sale of goods.
OM2, Ch. 5 Technology and Operations Management
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posted to a publicly accessible website, in whole or in part.
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Chapter 5 Technology and Operations Management
Service Technology
• Many health care facilities are adopting
electronic medical record (EMR) systems
that can be easily integrated with medical
records, billing, patient scheduling, and
accounting (see text box).
• Technology at UPS such as handheld devices,
UPSnet, UPS Mail, etc. (see text box).
OM2, Ch. 5 Technology and Operations Management
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part.
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Chapter 5 Technology and Operations Management
Service Technology
Automation is found in many areas of services,
including automated car washes, robotic surgery,
mail sorting machines, delivery of medical records
within hospitals, automated one-man garbage
trucks, fetal monitors, electronic hotel keys and
locks, airline auto-pilot, and entertainment using
robots such as Disney World’s Hall of Presidents
and Country Bear Jamboree.
OM2, Ch. 5 Technology and Operations Management
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part.
2020
Chapter 5 Technology and Operations Management
Using Technology to Improve Library Service
The Metropolitan Library System in Oklahoma City is
implementing a new scanning system that uses
radio-frequency identification (RFID) tags to keep
track of books. The program will cost the library
system about $400,000. The system is designed to
speed up check-out times. Up to five books can be
checked in or out at once. One of the most helpful
features is a new shelf scanner. Librarians used to
check books one at a time, making sure they were
on the right shelf and in the right place. Library
productivity will also increase.
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Chapter 5 Technology and Operations Management
Technology in Value Chains
Four major types of business relationships:
 B2B: Business to Business
 B2C: Business to Customer
 C2C: Customer to Customer
 G2C: Government to Customer
Electronic transaction capability allows all parts of
the value chain to immediately know and react to
changes in demand and supply.
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Exhibit 5.2
Example Benefits and Challenge of Adopting Technology
OM2, Ch. 5 Technology and Operations Management
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part.
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Chapter 5 Technology and Operations Management
Making Technology Decisions
•
Scalability is a measure of the contribution margin
required to deliver a good or service as the business
grows and volumes increase.
•
High scalability is the capability to serve additional
customers at zero or extremely low incremental costs
(e.g., Monster.com).
•
Low scalability implies that serving additional
customers requires high incremental variable costs (e.g.,
see WebVan).
•
Many of the dot.coms that failed in the year 2000
had low scalability and unsustainable demand.
OM2, Ch. 5 Technology and Operations Management
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Chapter 5 Technology and Operations Management
How Intel describes the history of technology
revolutions:
 Stage I. Birth
 Stage II. Turbulence
 Stage III. Build-out
Examples:
 Global Digital Revolution (see text box)
 U.S. Railroad Industry
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posted to a publicly accessible website, in whole or in part.
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Chapter 5 Case Study on RFID
Bracket International-The RFID Decision Case Study
1. By searching the Internet and library, summarize
the advantages and disadvantages of RFID
systems. How does RFID compare to barcoding? Did you find any RFID applications for
services? (maximum of two pages)
2. What is the payback for this possible RFID
adoption?
3. What do you recommend Mr. Bracket do in the
short- and long-term? Explain your reasoning.
OM2, Ch. 5 Technology and Operations Management
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part.
2626
Exhibit Extra
OM2, Ch. 5 Technology and Operations Management
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part.
Examples of Service Technology
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