1. Chapter 8
Process technology
Corbis

2. Layout and flow Operations strategy Process design Design Improvement
Supply network design
Layout
and flow
Process technology
People, jobs and organization
Product/service design
Planning and control

3. Key operations questions
In Chapter 8 – Process technology – Slack et al. identify the following key questions:
What is process technology?
How does one gain an understanding of process technologies?
How are process technologies evaluated?
How are process technologies implemented?

4. Pilotless technology for aircraft
What are the operations-related advantages and disadvantages of pilotless technology?
What are the market-related advantages and disadvantages of pilotless technology?
How would you overcome the disadvantages of pilotless technology?

5. Material, information or customer process technologies
Manual machine tools
Material processing technology
Automated scheduling system
Information processing technology
Milking machines (cows are customers too!)
Customer processing technology
Baggage handling systems
Mail processing system
Electronic point of sale systems
Global positioning system

6. Robots are used in this example because of the hazardous environment in which the tasks take place
What other examples can you think of where the safety of operators is the major motivation for investment in robot technology?

7. Examples of materials-processing technology
CNC machine tool
Industrial robot
Automatic guided vehicle (AGV).
Flexible manufacturing system (FMS)
Computer integrated manufacturing (CIM)

8. Technology helps recovery from Hurricane Katrina
How did IBM’s use of communications technology improve the recovery operation after Hurricane Katrina?

9. Technology and processing costs
100%
100%
Branch
80%
Cost per banking transaction
60%
50%
Telephone
40%
25%
Cash machine
20%
12%
Internet 9

10. Radio Frequency Identification (RFID)
Control system
Network translates ePC code into useful information that can be used for monitoring and process control
Internet or other network
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
Operations process

11. Some applications of e-business to operations
Organizational tasks
E-business applications and/or contributions
E-business tools and systems
Design
Customer feedback, research on customer requirements, product design, quality function deployment, data mining and warehousing
WWW-integrated CAD, Hyperlinks, 3D navigation, Internet for data and information exchange
Purchasing
Ordering, fund transfer, supplier selection
EDI, Internet-purchasing, EFT
Supplier development
Partnership, supplier development
WWW-assisted supplier selection, communication using Internet ( s), research on suppliers and products with WWW and intelligent agents
Human resource management
E-recruiting, benefit selection and management, training and education using WWW
s, interactive web sites, WWW-based multimedia applications
Production
Production planning and control, scheduling, inventory management, quality control
B2B e-business, MRP, ERP, SAP, BAAN, Peoplesoft, IBM e-business (web-integrated)
Marketing/ sales and customer service
Product promotion, new sales channels, direct savings, reduced cycle time, customer services, Internet sales, selection of distribution channels, transportation, scheduling, third-party logistics
B2B e-business, Internet ordering, Website for the company Electronic funds transfer, On-line TPS, Bar-coding system, ERP, WWW integrated inventory management, Internet delivery of products and services
Warehousing
Inventory management, forecasting, scheduling of work force
EDI, EFT, WWW-integrated inventory management

12. Type of interaction between the customer and the technology
Types of customer processing technology
Type of interaction between the customer and the technology
Examples
Active interaction with the technology
Mobile phone services
Internet-based ordering
Cash machines
Passive interaction with the technology
Transport systems
Theme park rides
Automatic car wash
Hidden interaction with the technology
Security cameras
Retail scanners
Credit card tracking
Interaction with the technology through an intermediary
Call centre technology
Travel shop’s booking system

13. Using RFID in healthcare
This shows the use of RFID technology in a hospital to refer patient’s records. How might it affect the hospital’s process performance?

14. Customer-processing technology – Active interaction with technology
Examples
Personal communications
Internet-based ordering
Cash machines

15. Customer-processing technology – Passive interaction with technology
Examples
Transport systems
Theme park rides
Car wash

16. Customer-processing technology – Hidden interaction with technology
Examples
Security cameras
Retail scanners
Credit card tracking

17. Technology Customer Intermediary
Customer-processing technology – Use of technology through an intermediary
Customer
Technology
Intermediary
Examples
Call centre technology
Travel agent booking system
Hotel reservation system

18. Customer-processing technologies
Customers
Back office
Front office
Back-office
technology
Front-office
technology with
links to the
Back office
Front-office
technology

19. Cows are also customers
What advantages do you think the technology described above gives?
Do you think the cows mind?
Why do you think the farmer still goes to watch the process?

20. QB House speeds up the cut
‘Why not create a no-frills barber’s shop where the customer could get a haircut in ten minutes at a cost of 1,000 Yen?’
How does QB House compete compared with conventional hairdressers?
In what way does technology help QB House to keep its costs down?

21. Categorizing process technologies
Process technologies can be categorized using three dimensions:
the extent to which they vary in their degree of automation;
the extent to which they vary in their scale;
the extent to which they vary in their degree of integration.

22. Different process technologies are appropriate for different volume–variety combinations
High
Variety
Low
Coupling/ connectivity
Scale/ scalability
Automation
Low
Volume
High
Broad/ unconstrained
Narrow/ constrained
Manual, general-purpose, small-scale, flexible technology
Low
High
Low
High
Automated, dedicated, large-scale, relatively inflexible technology

23. Learning potential depends on both technological resource and process ‘distance’
Potential for learning is relatively high
Potential for learning is limited – too many things change
Process modification
Process extension
Process development
Process pioneer
Process distance
Resource distance
Technological modification
Technological extension
Technological development
Technological pioneer

24. Reduced performance during with implementation of new processes reflects ‘adjustments costs’
Planned performance
Start of implementation
New technology planned to be on-stream
Forecast performance
Actual performance
Operations performance (Quality levels)
Planned implementation period
Time