Operations Management and Technology Ross L. Fink

Design Technology Computer-Aided Design (CAD)  Refers to the use of computers to interactively design products and prepare engineering documentation com/product2.htm

Design Technology Computer-Aided Manufacturing (CAM)  Refers to the use of specialized computer programs to direct and control manufacturing equipment

Design Technology Benefits of CAD and CAM  Product quality  Shorter design time  Production cost reductions  Database availability  New range of capabilities  Reduces need for “similar” parts

Production Technology  Numerically controlled machines  Numerical control  Computer numerical control  Direct numerical control  Process control  Vision systems  Robots  Automated storage and retrieval systems  Automated guided vehicles  Flexible manufacturing systems  Computer integrated manufacturing

Production Technology Process Control - Operation  Sensors, often analog devices, collect data  Analog devices read data on some periodic basis, perhaps once a minute or once a second  Measurements are translated into digital signals, and transmitted to a digital computer  Computer programs read the file (the digital data) and analyze the data  Output may be a: message on printer or console, signal to a motor to change a value setting, warning light or horn, process control chart, etc.

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 Machines that hold, move, or grasp items  Perform monotonous or dangerous tasks  Used when speed, accuracy, or strength are needed © T/Maker Co. Production Technology Robots

Automated Storage and Retrieval System (ASRS)  Provide for automatic placement and withdrawal of parts and products into and from designated places in a warehouse.

 Material handling machines  Used to move parts & equipment in manufacturing  May be used to deliver mail & meals in service facilities © T/Maker Co. Production Technology Automatic Guided Vehicles (AGV)

 Using automated machines (DNC) & materials handling equipment together  Often connected to centralized computer  Also called automated work cell Computer Machine 1 Machine 2 Robot or AGV Auto Tool Chg. Auto Tool Chg. Flexible Manufacturing Systems (FMS)

Production Technology FMS - Pros & Cons  Advantages  Faster, lower-cost changes from one part to another  Lower direct labor costs  Reduced inventory  Consistent, and perhaps better quality  Disadvantages  Limited ability to adapt to product or product mix changes  Requires substantial preplanning and capital expenditures  Technological problems of exact component positioning and precise timing  Tooling and fixture requirements

Enterprise Resource Planning (ERP)  Packaged business software systems that allow companies to:  Automate and integrate the majority of their business processes  Share common data and practices across the entire enterprise  Produce and access information in a real-time environment

Advantages of ERP  Provides integration of supply-chain, production and administrative processes  Creates commonality of databases  Can incorporate improved, redesigned, “best processes:  Increases communication and collaboration worldwide  Helps integrate multiple sites and business units  Is packaged with a software core that is off-the-shelf coding  Can provide a strategic advantage over competitors

Disadvantages of ERP  Is very expensive to purchase, and even more costly to customize  Requires major changes in the company and its processes to implement  Is such a complex program that many companies cannot adjust to it  Involves an ongoing process for implementation, which is often never completed  Expertise in ERP is limited, with staffing an ongoing problem

Internet Uses  Supply Chain Management -- Business Networking  Exchange of information  Purchasing  Transactions  Identifying vendors  Qualifying vendors  Order tracking  Price negotiation  Feedback

Internet Uses  Interface with legacy systems  Design  Order fulfillment  Scheduling (Production or Personnel)  Project management  Quality control  Inventory management  Capacity