Operations Management - Process Technology

Chapter 8
Process Technology
Operations Management
Slack et al
Prentice Hall

1. PROCESS
TECHNOLOGY
Nelson Opeña

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

3. Process Technology

4. Key Questions
•What do operations managers need to
know about process technology?
•How are process technologies evaluated?
•How are process technologies
implemented?

6. Operation Manager and Technology

7. Who coined
THE WORD
“Robot”?
Answer:
KarelCapek

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

9. 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

10. 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)

11. 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)

12. 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.

13. B. Process Technology and Transformed
Resources
1.Material-processing technologies
2.Information-processing technologies
3.Customer-processing technologies

14. 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

15. 2. Information-Processing Technology
•It is any device which
collects, manipulates,
stores, or distributes
information.
•Eg. E-commerce,
online shops, etc

16. 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

17. 3. Customer-Processing Technology
a. Active
-Customers use the
technology to create
the service
-Eg. Gym equipment,
ATM, telephone, etc

18. 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

19. 3. Customer-Processing Technology
c. One-way Monitoring
-Tracks customers’
movements or transactions
in an obstrusiveway
-Eg. RFID tags, RFID
shopping carts, etc

21. 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

22. 1. Elevator
Customer-processing technology

23. 2. Lazada
Information-processing technology

24. 3. Express Check-in Kiosks
Customer-processing technology

25. 4. Automatic Pipe Welder
Material-processing technology

26. 5. Smart Carts
Customer-processing technology

27. 6. E-banking
Information-processing technology

28. 7. Retail Security Tags
Customer-processing technology

29. 8.Airport Conveyor Belts
Material-processing technology

30. 9. eBay
Information-processing technology

31. 10. Cars
Customer-processing technology

33. C. Integration Technology
-Processes material,
information and
customer
-eg. Electronic POS
processes shoppers,
products, and
information

34. 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?

35. Operations Principle
Operations managers
should understand
enough about process
technology to evaluate
alternatives.

36. 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

37. 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

38. Example 1: SAP -Cloud for Customer
•How does it do it?
It uses the “Cloud” to
process sales
transactions
Sales Force Automation

39. Example 1: SAP -Cloud for Customer
•What benefits does it
give?
It simplifies and
speeds up the selling
process
Sales Force Automation

40. 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

41. 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

42. E. Emerging Technologies –Assessing
their implication
•Todemonstratehowoperationsmanagers
havetolookbeyondthetechnologyin
ordertostarttounderstandtheir
implications.

43. Operations Principle
Emerging technologies can
have a potentially significant
impact on how operations are
managed.

45. What is IoT?
A network of internet-
connected objects able
to collect and
exchange data using
embedded sensors.
(Tech Insider)

47. Retail
Application

48. OLD
Universal Product Code
-“Barcode”
-uses bar code scanner
-identifies type of item
NEW
Electronic Product Code
-“RFID”
-can be scanned with wireless
radio frequency reader
-identifies each item
Product Codes

49. 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

50. IMPLICATIONSB. Negative
1.High price
2.Accuracy of information
3.Customer privacy

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

52. 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?

53. A. Does the technology fit the
processing task?

54. 1. Automation
Capital Intensity of
Process Technology
-The ratio of
technological to human
effort it employs

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

56. 2. Scale / Scalability
In IT, scalability is the ability to shift to a
different level of useful capacity quickly and
cost-effectively
to

57. 3. Coupling / Connectivity
In IT, scalability is the ability to shift to a
different level of useful capacity quickly and
cost-effectively

58. 3. Coupling / Connectivity

59. B. How does the operation improve
the operations performance?
Quality
Speed
Dependability
Flexibility
Cost

60. C. Does the technology give an acceptable
financial return?

61. C. Does the technology give an acceptable
financial return?
One year @ 10% per annum rate
Two years @ 10% per annum rate

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

63. III. Implement the Process Technology
A.Resource and process distance
B.Customer acceptability
C.Anticipating implementation problems

64. A. Resource and process distance

65. 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.

66. C. Anticipating implementation
problems

67. C. Anticipating implementation
problems

68. End of Chapter 8