0% found this document useful (0 votes)
32 views68 pages

Operations Management

The document discusses process technology and how operations managers should understand, evaluate, and implement new technologies. It covers definitions of process and technology, different types of process technologies including material, information, and customer processing. The document also provides guidance on evaluating technologies based on fit, performance improvements, and financial returns.

Uploaded by

Janice Congzon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
32 views68 pages

Operations Management

The document discusses process technology and how operations managers should understand, evaluate, and implement new technologies. It covers definitions of process and technology, different types of process technologies including material, information, and customer processing. The document also provides guidance on evaluating technologies based on fit, performance improvements, and financial returns.

Uploaded by

Janice Congzon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 68

PROCESS Nelson Opeña

TECHNOLOGY
Part 2:
PRESENTATION A. Chapter 8
Process Technology
OUTLINE B. Chapter 9
People, Jobs and Organization
Process Technology
Key Questions

• What do operations managers need to


know about process technology?
• How are process technologies evaluated?
• How are process technologies
implemented?
Operation Manager and Technology
Who coined
THE WORD
“Robot”?
Answer:
Karel Capek
I. Understand the Process
Technology
II. Evaluate the Process
Technology
III. Implement the Process
Technology
I. Understand the Process Technology
A. Definition of Process Technology
B. Process Technology and Transformed
Resources
C. Integration Technology
D. The Four Key Questions of Process Technology
E. E. Emerging Technologies – Assessing their
implication
A. Definition of Process Technology

What is Process?
• A series of actions that
produce something or
that lead to a particular
result.
(Merriam-Webster Dictionary)
A. Definition of Process Technology

What is Technology?
• The use of science in
industry, engineering,
etc., to invent useful
things or to solve
problems.
(Merriam-Webster Dictionary)
A. Definition of Process Technology
Process Technology
- It is the machines, equipment, and devices
that create and / or deliver products and
services.
- It has very significant effect on quality,
speed, dependability, flexibility and cost.
B. Process Technology and Transformed
Resources

1. Material-processing technologies
2. Information-processing technologies
3. Customer-processing technologies
1. Material-Processing Technology

• It is any technology
that shapes,
transports, stores, or
in any way changes
physical objects.
• Eg. Circular saw,
welding machines, etc
2. Information-Processing Technology
• It is any device which
collects, manipulates,
stores, or distributes
information.
• Eg. E-commerce,
online shops, etc
3. Customer-Processing Technology
• It is a machine or
equipment that simplifies
the process being done by
human.
• 3 categories:
a. Active
b. Passive
c. One-way monitoring
3. Customer-Processing Technology

a. Active
- Customers use the
technology to create
the service
- Eg. Gym equipment,
ATM, telephone, etc
3. Customer-Processing Technology
b. Passive
- Processes and controls
the customer by
restraining the customers
action in some way
- Eg. Mass transportation
systems, elevators,
cinemas, etc
3. Customer-Processing Technology
c. One-way Monitoring
- Tracks customers’
movements or transactions
in an obstrusive way
- Eg. RFID tags, RFID
shopping carts, etc
Group Activity
Intructions
• Form groups with 3 members
• Identify which type of process technology are
the following pictures
• In order to answer, say the magic word
“Opsman – Teddy Deocares” while raising your
hand
• “Materials”, “Information”, “Customers”
• Best of 10
1. Elevator

Customer-processing technology
2. Lazada

Information-processing technology
3. Express Check-in Kiosks

Customer-processing technology
4. Automatic Pipe Welder

Material-processing technology
5. Smart Carts

Customer-processing technology
6. E-banking

Information-processing technology
7. Retail Security Tags

Customer-processing technology
8.Airport Conveyor Belts

Material-processing technology
9. eBay

Information-processing technology
10. Cars

Customer-processing technology
C. Integration Technology
- Processes material,
information and
customer
- eg. Electronic POS
processes shoppers,
products, and
information
D. The Four Key Questions of Process
Technology
1. What does the technology do that is different
from other similar technologies?
2. How does it do it? That is, what particular
characteristics of the technology are used to
perform its functions?
3. What benefits does using the technology give
to the operation?
4. What constraints or risks does using the
technology place on the operation?
Operations Principle
Operations managers
should understand
enough about process
technology to evaluate
alternatives.
Example 1: SAP - Cloud for Customer
• What does the
Sales Force Automation technology do?
• How does it do it?
• What benefits does it
give?
• What constraints or
risks does it impose?
Example 1: SAP - Cloud for Customer

Sales Force Automation • What does the


technology do?
It converts the manual
process of selling to
automated and real-
time
Example 1: SAP - Cloud for Customer

Sales Force Automation • How does it do it?


 It uses the “Cloud” to
process sales
transactions
Example 1: SAP - Cloud for Customer

Sales Force Automation • What benefits does it


give?
 It simplifies and
speeds up the selling
process
Example 1: SAP - Cloud for Customer

Sales Force Automation • What constraints or


risks does it impose?
 It will not sync with
the cloud without
internet connection
Example 2: Mobile Phones
Communication
• What does the
technology do?
• How does it do it?
• What benefits does it
give?
• What constraints or risks
does it impose?
E. Emerging Technologies – Assessing
their implication

• To demonstrate how operations managers


have to look beyond the technology in
order to start to understand their
implications.
Operations Principle
Emerging technologies can
have a potentially significant
impact on how operations are
managed.
What is IoT?
A network of internet-
connected objects able
to collect and
exchange data using
embedded sensors.
(Tech Insider)
Retail
Application
Product Codes

NEW
OLD
Electronic Product Code
Universal Product Code
-“RFID”
-“Barcode”
- can be scanned with wireless
- uses bar code scanner
radio frequency reader
- identifies type of item
- identifies each item
IMPLICATIONS A. Positive
1. Information and analysis
a. Knowing where things are
b. Knowing what is happening
c. Knowing what to do
2. Automation and control
a. Process optimization
b. Optimized resource usage
c. Fast reactions
IMPLICATIONS B. Negative
1. High price
2. Accuracy of information
3. Customer privacy
I. Understand the Process
Technology
II. Evaluate the Process
Technology
III. Implement the Process
Technology
II. Evaluate Process Technology
Criteria for evaluation:
A. Does the technology fit the processing task
for which it is intended?
B. How does the technology improve the
operations performance?
C. Does the technology give an acceptable
financial return?
A. Does the technology fit the
processing task?
1. Automation

Capital Intensity of
Process Technology
- The ratio of
technological to human
effort it employs
2. Scale / Scalability

vs

- Large - Small
- Fast - Slow
- Expensive - Cheap
2. Scale / Scalability

to

In IT, scalability is the ability to shift to a


different level of useful capacity quickly and
cost-effectively
3. Coupling / Connectivity

In IT, scalability is the ability to shift to a


different level of useful capacity quickly and
cost-effectively
3. Coupling / Connectivity
B. How does the operation improve
the operations performance?

Quality
Speed
Dependability
Flexibility
Cost
C. Does the technology give an acceptable
financial return?
C. Does the technology give an acceptable
financial return?

One year @ 10% per annum rate

Two years @ 10% per annum rate


I. Understand the Process
Technology
II. Evaluate the Process
Technology
III. Implement the Process
Technology
III. Implement the Process Technology

A. Resource and process distance


B. Customer acceptability
C. Anticipating implementation problems
A. Resource and process distance
B. Customer acceptability
User Acceptance Test
- Used in IT industry
- Actual software users test
the software to make sure
it can handle required tasks
in real-world scenarios,
according to specifications.
C. Anticipating implementation
problems
C. Anticipating implementation
problems
End of Chapter 8

You might also like