Technology and Productivity

What Are the Potential Benefits of Technology?

Potential Benefits of Technology Cost reduction through productivity improvement Quality improvement Shorter delivery lead time Increased flexibility and convenience Safety improvement Expansion to new markets/customers

What Are the Potential Drawbacks of Automation?

Potential Drawbacks of Technology Change in employee/machine interfaces May not achieve expected effects (may not reduce labor cost/increase productivity) Potential conflict with Kaizen Reduced flexibility Reliance on technical staff

National Challenge Emphasis on short-term business planning Industry has limited ability to access and apply state-of-the-art research findings Education crisis presents technological challenge in the future Increased technology transfers to developing countries

Technology Strategy for PI Long-range planning for modernization of the organization’s productive core and its key interface and support functions Holistic view on product/service process technology Technology strategy for improving an organization’s distinctive competence and its potential competitive advantage

Evaluating Values of Technology Strategic impact – new market, competitive position, market share Customer impact – selection, price, quality, convenience, speed, etc. Financial impact – cost, profit, ROI Operating impact – efficiency Social impact – job, health, safety, environment

What Are the Costs and Value of Technology?

Economic Justification of Technology (1 of 2) What is the value of consistent and superior quality? What is the cost of poor quality (scrap, rework, customer dissatisfaction)? What is the cost of missed delivery dates, lost contracts, and shrinking market share? What is the value of increased productivity and reduced lead time?

Economic Justification of Technology (2 of 2) What is the value of flexibility and the ability to respond to market changes quickly? What is the cost of not being able to hold markets or open new markets due to lack of competitive equipment or capacity? What is the cost of inventory? What is the cost of delayed product development and engineering changes?

Technology for Productivity Improvement Five interdependent dimensions: Product/service design Physical production/service processes Information systems Management technology Product materials technology

Applications of Technology for PI – An Example

Product Design Technology for Productivity Improvement Computer-Aided Design (CAD) Rapid prototyping Virtual collaboration and communication for designers, cross-functional teams, suppliers, customers – web, groupware, instant messaging, project management, etc. Database and data warehouse for enterprise integration and data mining

Process Technology for Productivity Improvement Manufacturing (AMT) Numerically-controlled machines (NC) Flexible manufacturing systems (FMS) Cellular systems Computer-integrated manufacturing systems (CIM) Robots

Application of Technology in Manufacturing - Examples Welding Painting Lasers Fabrication Assembly Material Handling and storage Measurement and tracking systems

Automation in Distribution Automated Storage and Retrieval System (AS/RS) Automated Guided Vehicle System (AGVS) Point of Sales (POS) system Tracking system (e.g. UPS) Radio-Frequency Identification (RFID) system

Process Technology for Productivity Improvement Service Automated/computerized equipment Automated software systems Telecommunication systems Hand-held devices Software systems Internet

Applications of Technology in Services - Examples Billing and Payment On-line services Document transfer Order taking Customer service Application processing

Information System Technology for Productivity Improvement Application Software Systems Enterprise Resource Planning (ERP) Supply Chain Management (SCM) Customer Relationship Management (CRM) Advanced Planning & Scheduling (APS)

What Are the Key Functions of those Software Systems?

Management Technology for Productivity Improvement Standardization Continuous improvement/Kaizen Process mapping/improvement Project management Just-in-time Six sigma Knowledge Management

What Are Those Management Technologies?

Product Materials Technology for Productivity Improvement Ferrous metals Aluminum and Alloys Titanium Plastics Composite materials Ceramics Coatings and finishes

Applications of Cell Phone Technology for PI

Phone calls s Web surfing Photos Gaming Shopping Banking Entertainment Tracking Traffic Video Security Home appliances Learning Homework & Exams Videoconferencing

How to Develop Leadership in Technology for Managers?

Develop better understanding of cost- benefit analysis Increase accountability of technology investment Improve knowledge of technologies and their applications Focus more on strategic innovations