TECHNOLOGY and OPERATONS MANAGEMENT

TECHNOLOGY
- Is the study or use of the mechanical arts and applied science.
- In a business context technology, means the use of tool, machinery and computers.
- Plays a pivotal role in modern operations management, enhancing efficiency, productivity, and
decision –making processes.
- It keeps consistent procedures throughout the supply chain and provide a record for reference
should there be any quality or safety issues.

CATEGORIES OF TECHNOLOGY IN OPERATIONS

Hard Technology
- refers to equipment and devices that perform a variety of tasks in the creation and delivery of
goods and services.
Applications of Hard Technology
Computers
- Is a machine that can be programmed to carry out
sequences of arithmetic or logical operations
automatically.

Optical Switches
- Are used in optical computing and fiber-optic
communication networks to control light using nothing
but light.
Microprocessor
- Is a computer processor for which the data processing
logic and control is included on a single integrated circuit
or a small number of ICs.

Sensors
- Is a device that produces an output signal for the
purpose of sensing a physical phenomenon.

Radio-frequency Identification Tags (RFID)

- are tiny computer chips that can be placed on shipping
containers, individual products credit cards, prescription
medicines, passports, livestock and even people.
- They transmit radio signals to identify locations and track
movements throughout the supply chain.
Bar-code
- Consisting of bar and spaces, is a machine-readable
representation of numerals and characters.

Robots
- is a programmable machine designed to handle materials
or tools in the performance of a variety of tasks.

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Soft Technology
- refers to the application of the internet, computer software, and information systems to
provide data, information, and analysis and to facilitate the creation and delivery of goods and
services.
Applications of Soft Technology
 Artificial Intelligence
- The ability of a digital computer or computer-
controlled robot to perform tasks commonly
associated with intelligent beings.

Voice recognition system

- Identify and distinguish voices using automatic
speech recognition software programs.

Database Management system

- Are software systems used to store, retrieve, and
run queries on data.
- Serves as an interface between an end-user and
a database, allowing users to create, read,
update, and delete data in the database.

Common Issues in Technology

• The right technology must be selected for the goods that are produced
• Process resources, such as machines and employees, must be set up and configured in a
logical fashion to support production efficiency.
• Labor must be trained to operate the equipment.
• Process performance must be continually improved.
• Work must be scheduled to meet shipping commitments/customer promise dates.
• Quality must be ensured
Computer-Integrated Manufacturing Systems (CIMSs)
- Represent the union of hardware, software, database management, and
communications to automate and control production activities, from planning and
design to manufacturing and distributions.
• Numerical Control Machine Tools
- enable the machinist’s skills to be duplicated by a programmable device that controls
the movement of a tool used to make complex shapes.
• Computer Numerical Control Machines
- Are NC machines whose operations are driven by a computer.
• Computer-aided Design/Computer-aided Engineering (CAD/CAE)
Enables engineers to design, analyze, test, simulate, and manufacture products before
they physically exist, thus ensuring the product can be manufactured to specifications
when it is released to the shop floor.
• Computer-aided Manufacturing (CAM)
Involves computer control of the manufacturing process, such as determining tool
movements and cutting speeds
  Flexible manufacturing systems (FMSs)
- Consists of two or more computer-controlled machines or robots linked by automated
handling devices such as transfer machines, conveyors, and transport systems.
- Computers direct the overall sequence of operations and route the work to the
appropriate machine, select and load the proper tools, and control the operations
performed by the machine.
ADVANTAGES IN MANUFACTURING TECHNOLOGY
 Cloud Computing allows users to share databases, software and files over the internet
to foster innovation and efficiency. In manufacturing, means using the power of
computing and software to exchange and utilize production data, their availability and
much more. In all sorts of manufacturing operations, be it supply chain management
or marketing, human resources or machines, cloud computing in the manufacturing
industry does it all.
 Big Data is defined as exceptionally large data sets, potentially numbering into billions
of rows and parameters. In manufacturing, big data can include data collected at every
stage of production, including data from machines, devices, and operators.
 AI in manufacturing is the use of machine learning (ML) solutions and deep learning
neural networks to optimize manufacturing processes with improved data analysis and
decision-making.
 IoT enhances a manufacturer’s productivity by allowing them to monitor machine
performance data, configure machines automatically based on collected data, collect
relevant data from sensors that are then processed by production analytics software,
and configure machines remotely through cloud technology.
 Augmented Reality manufacturing is an advanced transformation that seamlessly
incorporates digital technologies into the production operation. This allows workers to
see and interact with digital objects and data as if they were real to create a more
immersive experience.
• Additive Manufacturing (3-D Printing)
- The process of producing a three dimensional solid object from a digital model file.
Additive
- means that successive layers of materials such as plastics, ceramics or glass are built up
rather than attained by traditional machining processes such as milling or drilling, which
remove materials.
Service Technology
• E-service
- refers to using the internet and technology to provide services that create and deliver
time, place, information, entertainment, and exchange value to customer and/or
support the sale of goods.
Characteristics of E-Service
 Open: Independent, as mush as possible, of specific platforms and computer
paradigm.
 Developed not only for intra-organization applications, but also for independent
organizations applications to be assembled and reused in distributed internet-based
cooperative environment.
 Easily compostable: assembling and integrating the e-service in an inter-
organization application does not require the development of complex adapters.
3 Main Components of E-services
 Service Provider
  Service Receiver
 Channels of service delivery

- INTERNET is the main channel of E-service.

- TELEVISION, MOBILE PHONE, TELEPHONE and other technology use to provide service
are the classic channel.
Domains of E-service
 Electronic business is any kind of business or commercial transaction that includes
sharing information across the internet. Commerce constitutes the exchange of
products and services between businesses, groups, and individuals and can be seen
as one of the essential activities of any business
 E-government
 E-public
 E-health
 E-learning

Technology in Value Chains

• Customer relationship management (CRM)
- Is a business strategy designed to learn more about customer’s wants, needs, and
behaviors in order to build customer relationships and loyalty, and ultimately enhance
revenues and profits.
CRM ROLES FOR COMPETITVE ADVANTAGE
• Segmenting markets based on demographic and behavioral characteristics
• Tracking sales trends and advertising effectiveness by customer and market segment
• Identifying which customers should be the focus of targeted marketing initiatives with
predicted high customer response rate
• Forecasting customer retention rates and providing feedback as to why customers leave
the company
• Identifying which transaction are likely to be fraudulent
• Studying which goods and services are purchased together, and what might new good
ways to bundle them
• Studying and predicting what Web characteristics are most attractive to customers and
how the website might be improved
• Linking the previous information to competitive priorities BY MARKEY SSEGMENT and
process and value chain performance.

Benefits and Challenges of Technology

BENEFITS CHALLENGES
• Creates new industries and job • Higher employee skill required, such
opportunities. as information technology and service
• Restructures old and less productive management skills.
industries • Integration of old(legacy) and new
• Integrates supply and value chain technology and systems
players • Hob shift and displacement
• Increases marketplace • Less opportunity for employee
competitiveness and maintains the creativity and empowerment.
 survival of the firm. • Protecting the employees and
• Provides the capability to focus on customer’s privacy and security.
smaller target market segments • Fewer human service providers,
through mass customization resulting in customer ownership not
• improves/increases productivity, being assigned, nonhuman service
quality, customer satisfaction, speed, encounters, and inability of the
safety, and flexibility/customization customer to change decisions and
• Lower cost return goods easily
• Raises world’s standard of living • Information overload
• Monitors the environment and health • Global outsourcing and impact on
of the planet. domestic job opportunities
• Enforcement of regulations and laws
to support sustainability goals.

Key Technology Decision

Scalability – is a measure of the contribution margin required to deliver a good or services as
the business grows and volumes increase.
 High scalability is the capability to serve additional customers at zero or extremely low
incremental costs.
 Low scalability implies that serving additional customers requires high incremental
variable cost.