Operations Management
Operations Management
TECHNOLOGY
Part 2:
PRESENTATION A. Chapter 8
Process Technology
OUTLINE B. Chapter 9
People, Jobs and Organization
Process Technology
Key Questions
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
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
Quality
Speed
Dependability
Flexibility
Cost
C. Does the technology give an acceptable
financial return?
C. Does the technology give an acceptable
financial return?