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Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Chapter 8
Process technology
Source: Corbis/Louis Psihoyes
Slack, Chambers and Johnston, Operations Management 5th 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
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Slack, Chambers and Johnston, Operations Management 5th 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 environmentin which the tasks take place
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Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
100%
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 5th 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 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Examples
Customer Technology
Personal communications
Internet-based ordering
Cash machines
Active interaction with technology
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Examples
Customer Technology
Transport systems
Theme park rides
Car wash
Passive interaction with technology
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Examples
Customer Technology
Security cameras
Retail scanners
Credit card tracking
Hidden interaction with technology
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Examples
Customer Technology
Intermediary
Call centre technology
Travel agent booking system
Hotel reservation system
Use of technology through an intermediary
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Customer processing technologies
Back-office
-Back- office technology
Front-office
Front-office technology
Front-office technology with links to theback-office
Customers
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
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
Slack, Chambers and Johnston, Operations Management 5th 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 helpQB House to keep its costs down?
Source: Andy Maluche/Photographers Direct
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
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
Slack, Chambers and Johnston, Operations Management 5th 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
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 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
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.
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
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.
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
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.
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
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.
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
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.
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
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.
Slack, Chambers and Johnston, Operations Management 5th 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 codeA 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 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
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.