PROCESSTECHNOLOGY
Nelson Opeña
Part 2:
A. Chapter 8
Process Technology
B. Chapter 9
People, Jobs and Organization
PRESENTATION
OUTLINE
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 PrincipleOperations managers
should understand enough about process
technology to evaluate alternatives.
Example 1: SAP - Cloud for Customer
• What does the technology do?
• How does it do it?
• What benefits does it give?
• What constraints or risks does it impose?
Sales Force Automation
Example 1: SAP - Cloud for Customer
• What does the technology do?
It converts the manual process of selling to automated and real-time
Sales Force Automation
Example 1: SAP - Cloud for Customer
• How does it do it?
It uses the “Cloud” to process sales transactions
Sales Force Automation
Example 1: SAP - Cloud for Customer
• What benefits does it give?
It simplifies and speeds up the selling process
Sales Force Automation
Example 1: SAP - Cloud for Customer
• What constraints or risks does it impose?
It will not sync with the cloud without internet connection
Sales Force Automation
Example 2: Mobile Phones
• What does the technology do?
• How does it do it?
• What benefits does it give?
• What constraints or risks does it impose?
Communication
E. Emerging Technologies – Assessing their implication
• To demonstrate how operations managershave to look beyond the technology inorder to start to understand theirimplications.
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)
RetailApplication
OLDUniversal Product Code-“Barcode”- uses bar code scanner- identifies type of item
NEWElectronic Product Code-“RFID”- can be scanned with wireless radio frequency reader- identifies each item
Product Codes
IMPLICATIONS A. Positive1. Information and analysis
a. Knowing where things areb. Knowing what is happeningc. Knowing what to do
2. Automation and controla. Process optimizationb. Optimized resource usagec. Fast reactions
IMPLICATIONS B. Negative1. High price2. Accuracy of information3. 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- Fast- Expensive
- Small- Slow- Cheap
2. Scale / Scalability
In IT, scalability is the ability to shift to a different level of useful capacity quickly and cost-effectively
to
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