To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Chapter 5 - Managing Technology

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Process Technologies along Supply Chains Figure 5.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Suppliers Process Technologies along Supply Chains Figure 5.1 Purchasing Communication Transportation EDI Materials handling Testing Storage Office technology Information technology

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Purchasing Communication Transportation EDI Materials handling Testing Storage Office technology Information technology Suppliers Process Technologies along Supply Chains Figure 5.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Purchasing Communication Transportation EDI Materials handling Testing Storage Office technology Information technology Suppliers Process Technologies along Supply Chains Figure 5.1 Service Operations Basic processes Testing Materials handling Office technology Information technology

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Purchasing Communication Transportation EDI Materials handling Testing Storage Office technology Information technology Service Operations Basic processes Testing Materials handling Office technology Information technology Suppliers Process Technologies along Supply Chains Figure 5.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Purchasing Communication Transportation EDI Materials handling Testing Storage Office technology Information technology Service Operations Basic processes Testing Materials handling Office technology Information technology Suppliers Process Technologies along Supply Chains Figure 5.1 Manufacturing Operations Basic processes CIM (computer- integrated manufacturing) Materials handling Office technology Information technology Materials technology Testing Storage

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Manufacturing Operations Basic processes CIM (computer- integrated manufacturing) Materials handling Office technology Information technology Materials technology Testing Storage Purchasing Communication Transportation EDI Materials handling Testing Storage Office technology Information technology Service Operations Basic processes Testing Materials handling Office technology Information technology Suppliers Process Technologies along Supply Chains Figure 5.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Manufacturing Operations Basic processes CIM (computer- integrated manufacturing) Materials handling Office technology Information technology Materials technology Testing Storage Purchasing Communication Transportation EDI Materials handling Testing Storage Office technology Information technology Service Operations Basic processes Testing Materials handling Office technology Information technology Suppliers Process Technologies along Supply Chains Figure 5.1 Distribution Communication Transportation EDI Materials handling Packaging Storage Office technology Information technology

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Manufacturing Operations Basic processes CIM (computer- integrated manufacturing) Materials handling Office technology Information technology Materials technology Testing Storage Purchasing Communication Transportation EDI Materials handling Testing Storage Office technology Information technology Service Operations Basic processes Testing Materials handling Office technology Information technology Distribution Communication Transportation EDI Materials handling Packaging Storage Office technology Information technology Suppliers Process Technologies along Supply Chains Figure 5.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Manufacturing Operations Basic processes CIM (computer- integrated manufacturing) Materials handling Office technology Information technology Materials technology Testing Storage Purchasing Communication Transportation EDI Materials handling Testing Storage Office technology Information technology Service Operations Basic processes Testing Materials handling Office technology Information technology Distribution Communication Transportation EDI Materials handling Packaging Storage Office technology Information technology Suppliers Customers Process Technologies along Supply Chains Figure 5.1 Marketing and Sales Communication Media technology Electronic commerce Testing Office technology Information technology

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Manufacturing Operations Basic processes CIM (computer- integrated manufacturing) Materials handling Office technology Information technology Materials technology Testing Storage Purchasing Communication Transportation EDI Materials handling Testing Storage Office technology Information technology Service Operations Basic processes Testing Materials handling Office technology Information technology Distribution Communication Transportation EDI Materials handling Packaging Storage Office technology Information technology Marketing and Sales Communication Media technology Electronic commerce Testing Office technology Information technology SuppliersCustomers Process Technologies along Supply Chains Figure 5.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Basic Processes

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Basic Processes Table 5.1 Process Technology Electronic funds transfer and encoded check processors Autopilots and ship navigation systems CAT scanners and dentist chair systems Electronic library cataloguing and language translation computers Computerized meter reading and optical mail scanners Vending machines and point-of-sale electronic terminals Electronic reservation systems and electronic key-and-lock systems Industry Type Banking Transportation Health care Education Utilities and government Wholesale and retail trade Hotels In Services

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. In Manufacturing Basic Processes Process Technology Chemical reactions and refining Casting and shearing Sawing and optical lasers Painting and polishing Soldering and screw fastening Industry Type Changing the physical property of the materials Changing the shape of the physical materials Machining to fixed dimensions Obtaining a surface finish Joining parts or materials Table 5.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Technologies for Other Functional Areas

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Technologies for Other Functional Areas Operations Figure 5.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Technologies for Other Functional Areas Planning and budgeting technology Electronic data interchange (EDI) Information technology Office technology Electronic commerce Accounting Operations Figure 5.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Technologies for Other Functional Areas Planning and budgeting technology Electronic data interchange (EDI) Information technology Office technology Electronic commerce Accounting Operations Figure 5.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Technologies for Other Functional Areas Planning and budgeting technology Electronic data interchange (EDI) Information technology Office technology Electronic commerce Product technology Office technology Information technology Process technology Pilot-plant technology Computer-aided design (CAD) Accounting Engineering Figure 5.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Technologies for Other Functional Areas Planning and budgeting technology Electronic data interchange (EDI) Information technology Office technology Electronic commerce Product technology Office technology Information technology Process technology Pilot-plant technology Computer-aided design (CAD) Accounting Engineering Operations Figure 5.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Technologies for Other Functional Areas Planning and budgeting technology Electronic data interchange (EDI) Information technology Office technology Electronic commerce Product technology Office technology Information technology Process technology Pilot-plant technology Computer-aided design (CAD) Planning and budgeting technology Office technology Online databases Information technology Accounting Engineering Finance Operations Figure 5.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Technologies for Other Functional Areas Planning and budgeting technology Electronic data interchange (EDI) Information technology Office technology Electronic commerce Product technology Office technology Information technology Process technology Pilot-plant technology Computer-aided design (CAD) Planning and budgeting technology Office technology Online databases Information technology Accounting Engineering Finance Operations Figure 5.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Technologies for Other Functional Areas Planning and budgeting technology Electronic data interchange (EDI) Information technology Office technology Electronic commerce Product technology Office technology Information technology Process technology Pilot-plant technology Computer-aided design (CAD) Planning and budgeting technology Office technology Online databases Information technology Accounting Engineering Finance Operations Human Resources Training technology Office technology Performance evaluation Motivational research Information technology Figure 5.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Technologies for Other Functional Areas Planning and budgeting technology Electronic data interchange (EDI) Information technology Office technology Electronic commerce Training technology Office technology Performance evaluation Motivational research Information technology Product technology Office technology Information technology Process technology Pilot-plant technology Computer-aided design (CAD) Planning and budgeting technology Office technology Online databases Information technology Accounting Engineering Finance Operations Human Resources Figure 5.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Technologies for Other Functional Areas Planning and budgeting technology Electronic data interchange (EDI) Information technology Office technology Electronic commerce Training technology Office technology Performance evaluation Motivational research Information technology Product technology Office technology Information technology Process technology Pilot-plant technology Computer-aided design (CAD) Planning and budgeting technology Office technology Online databases Information technology Accounting Engineering Finance Operations Human Resources Management Information Systems Hardware Databases Software Telecommunications Figure 5.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Technologies for Other Functional Areas Hardware Databases Software Telecommunications Planning and budgeting technology Electronic data interchange (EDI) Information technology Office technology Electronic commerce Training technology Office technology Performance evaluation Motivational research Information technology Product technology Office technology Information technology Process technology Pilot-plant technology Computer-aided design (CAD) Planning and budgeting technology Office technology Online databases Information technology Accounting Engineering Finance Operations Human Resources Management Information Systems Figure 5.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules ERP System Figure 5.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Figure 5.3 ERP System Data Analysis Product costing Job costs

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Data Analysis Product costing Job costs ERP System Figure 5.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Figure 5.3 Data Analysis Product costing Job costs ERP System Sales and Marketing Sales orders Pricing system

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Data Analysis Product costing Job costs Sales and Marketing Sales orders Pricing system ERP System Figure 5.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Figure 5.3 Data Analysis Product costing Job costs Sales and Marketing Sales orders Pricing system ERP System Customer Service Field service Quality

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Data Analysis Product costing Job costs Sales and Marketing Sales orders Pricing system Customer Service Field service Quality ERP System Figure 5.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Figure 5.3 Data Analysis Product costing Job costs Sales and Marketing Sales orders Pricing system Customer Service Field service Quality ERP System Supply-Chain Management Forecasting Purchasing Distribution

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Data Analysis Product costing Job costs Sales and Marketing Sales orders Pricing system Customer Service Field service Quality Supply-Chain Management Forecasting Purchasing Distribution ERP System Figure 5.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Figure 5.3 Data Analysis Product costing Job costs Sales and Marketing Sales orders Pricing system Customer Service Field service Quality Supply-Chain Management Forecasting Purchasing Distribution ERP System Accounting and Finance Accounts payable and receivable General ledgers Asset management

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Data Analysis Product costing Job costs Sales and Marketing Sales orders Pricing system Customer Service Field service Quality Supply-Chain Management Forecasting Purchasing Distribution Accounting and Finance Accounts payable and receivable General ledgers Asset management ERP System Figure 5.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Figure 5.3 Data Analysis Product costing Job costs Sales and Marketing Sales orders Pricing system Customer Service Field service Quality Supply-Chain Management Forecasting Purchasing Distribution Accounting and Finance Accounts payable and receivable General ledgers Asset management ERP System Manufacturing Material requirements planning Scheduling

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Data Analysis Product costing Job costs Sales and Marketing Sales orders Pricing system Customer Service Field service Quality Supply-Chain Management Forecasting Purchasing Distribution Accounting and Finance Accounts payable and receivable General ledgers Asset management Manufacturing Material requirements planning Scheduling ERP System Figure 5.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Figure 5.3 Data Analysis Product costing Job costs Sales and Marketing Sales orders Pricing system Customer Service Field service Quality Supply-Chain Management Forecasting Purchasing Distribution Accounting and Finance Accounts payable and receivable General ledgers Asset management Manufacturing Material requirements planning Scheduling ERP System Human Resources Benefits Payroll

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Human Resources Benefits Payroll Data Analysis Product costing Job costs Sales and Marketing Sales orders Pricing system Customer Service Field service Quality Supply-Chain Management Forecasting Purchasing Distribution Accounting and Finance Accounts payable and receivable General ledgers Asset management Manufacturing Material requirements planning Scheduling ERP System Figure 5.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Application Modules Human Resources Benefits Payroll Data Analysis Product costing Job costs Sales and Marketing Sales orders Pricing system Customer Service Field service Quality Supply-Chain Management Forecasting Purchasing Distribution Accounting and Finance Accounts payable and receivable General ledgers Asset management Manufacturing Material requirements planning Scheduling Back-Office ProcessesFront-Office Processes ERP System Figure 5.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Systems

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Systems Figure 5.4A

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Systems

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. ERP Systems Figure 5.4B

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Research and Development Stages

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Research and Development Stages Figure 5.5 Stage 1 Basic Research Generates new knowledge and pioneers technological advances

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Research and Development Stages Figure 5.5 Stage 1 Basic Research Generates new knowledge and pioneers technological advances

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Research and Development Stages Solves practical problems by applying findings from basic research Stage 2 Applied Research Figure 5.5 Stage 1 Basic Research Generates new knowledge and pioneers technological advances

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Research and Development Stages Figure 5.5 Stage 1 Basic Research Solves practical problems by applying findings from basic research Stage 2 Applied Research Generates new knowledge and pioneers technological advances

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Research and Development Stages Figure 5.5 Stage 1 Basic Research Solves practical problems by applying findings from basic research Stage 2 Applied Research Generates new knowledge and pioneers technological advances Creates new products or processes to meet market needs Stage 3 Development

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Research and Development Stages Figure 5.5 Stage 1 Basic Research Solves practical problems by applying findings from basic research Stage 2 Applied Research Creates new products or processes to meet market needs Stage 3 Development Generates new knowledge and pioneers technological advances

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Research and Development Stages Figure 5.5 Stage 1 Basic Research Solves practical problems by applying findings from basic research Stage 2 Applied Research Creates new products or processes to meet market needs Stage 3 Development Generates new knowledge and pioneers technological advances New processes New products and services

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Research and Development Stages Figure 5.5 New processes New products and services Stage 1 Basic Research Solves practical problems by applying findings from basic research Stage 2 Applied Research Creates new products or processes to meet market needs Stage 3 Development Generates new knowledge and pioneers technological advances

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Research and Development Stages Interfirm partnerships and suppliers Figure 5.5 New processes New products and services Stage 1 Basic Research Solves practical problems by applying findings from basic research Stage 2 Applied Research Creates new products or processes to meet market needs Stage 3 Development Generates new knowledge and pioneers technological advances

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Research and Development Stages New processes New products and services Stage 1 Basic Research Solves practical problems by applying findings from basic research Stage 2 Applied Research Creates new products or processes to meet market needs Stage 3 Development Interfirm partnerships and suppliers Figure 5.5 Generates new knowledge and pioneers technological advances