This action might not be possible to undo. Are you sure you want to continue?
503, Sector-44 Noida – 201303 TECHNOLOGY MANAGEMENT Assignment A a) What is technology? Discuss the role of technology in the productivity growth.
Technology is the process by which humans modify nature wants. Most people, however, think of technology in terms of its software, aircraft, pesticides, water-treatment plants, birth-control pills, name a few. But technology is more than these
to meet their needs and artifacts: computers and and microwave ovens, to tangible products.
Technology includes all of the infrastructure necessary for the design, manufacture, operation, and repair of technological artifacts, from corporate headquarters and engineering schools to manufacturing plants and maintenance facilities. The knowledge and processes used to create and to operate technological artifacts -- engineering know-how, manufacturing expertise, and various technical skills -are equally important part of technology. Technology is a product of engineering and science, the study of the natural world. Science has two parts: (1) a body of knowledge that has been accumulated over time and (2) a processscientific inquiry-that generates knowledge about the natural world. Engineering, too, consists of a body of knowledge-in this case knowledge of the design and creation of human-made productsand a process for solving problems. Science aims to understand the "why" and "how" of nature, engineering seeks to shape the natural world to meet human needs and wants. Engineering, therefore, could be called "design under constraint," with science-the laws of nature-being one of a number of limiting factors engineers must take into account. Other constraints include cost, reliability, safety, environmental impact, ease of use, available human and material resources, manufacturability, government regulations, laws, and even politics. In short, technology necessarily involves science and engineering. Productivity is one of the most closely watched indicators of long-term economic prospects. Rising productivity is the key to making possible permanent increases in the standard of living. Changes in technology are the only source of permanent increases in productivity, but a number of transient factors can affect both true and "measured" productivity. For example, workers may work harder during periods of high demand and firms may use their capital assets more intensively by running factories for extra shifts; both factors can lead measured productivity to be too high relative to actual technological progress. Similarly, during periods of high demand, productivity can rise because firms take advantage of increasing returns to scale; the authors argue that this effect is not permanent and should be discounted when measuring long-run technical change. The strength of the latest economic expansion in the second half of 1990s has led many commentators to argue that the rapid increases in measured productivity during that period were attributable to bad measurement or to temporary factors of this type. The expansion that began in the 1990s also is distinguished by a large and longlasting increase in business investment. Although labor force employment, labor force participation, and rates of unemployment have been comparable to what
occurred in earlier expansions, the share of investment in information technology rose from a baseline of roughly 3 percent of GDP in the late 1980s to almost 6 percent of GDP by 1999. The authors suggest that this unusually rapid rate of investment actually may lead measured productivity growth to understate the underlying rate of technical change -- because rapid capital investment disrupts firms' ability to produce output, for example because their workers often are diverted from their normal tasks to install new equipment and learn to use it effectively. These "adjustment costs" lower output growth, and thus lower measured productivity growth as well. Controlling for this range of confounding effects, the authors find that the strong performance of productivity growth in the second half of the 1990s was in fact attributable to accelerating technical change, not to poor measurement or to temporary factors. They find that in the first half of the 1990s, true technology grew at an annual rate of 1.2 percent, but this rate rose to 3.1 percent for the 1995-9 period. In fact, the rate of technical change over 1995-9 exceeded even the measured growth rate of 2.5 percent, because of the temporary damping effect of higher investment on productivity growth noted above. In the aggregate, the authors conclude, there is "evidence of a substantial increase in the pace of technological change in the latter half of the 1990s." More intensive use of capital and labor accounted for some of the increase in measured productivity in the first half of the 1990s, but that utilization was flat or declining over the second half. Adjustment costs masked a substantial fraction of the increases in true technology that occurred in the second half of the 1990s. These results also suggest that productivity increases were distributed widely, if unevenly. Durable manufacturing experienced the fastest rate of technology growth and its largest acceleration, with increases of over 6 percent per year during the second half of the 1990s. Technological growth in the private non-manufacturing sector--which includes the large and important service sector--increased from 0.9 percent to 2.7 percent over the same period. In non-durable manufacturing, however, technology growth was "very slow," although the authors suggest that this result may arise from data problems at the end of the sample.
b) Explain the concept of atlas of technology.
2 .a) Why should technology be considered as a strategic resource?
1) It proposes that IT be treated as a key strategic resource and describes how the Information Management (IM) and IT frameworks can support the organization . 2) Information Management is taken to mean the entire process of defining, evaluating, protecting,
security. The software is intended to solve an enterprise-wide problem (rather than a departmental problem) and often written using an Enterprise Software Architecture. access and disseminate information of all types and for all purposes. Enterprise software. the management of IT within particular areas and the general use of technology. interactive product catalogue. staff and the community.Enterprise Content Management (ECM) is a formalized means of organizing and storing an organization's documents. and other content. methods. content management. that relate to the organization's processes. automated billing systems. customer relationship management. 3) Information Technology is taken to mean all computer and communications-based technologies which areused to collect. The term encompasses strategies. 6) organization information is a strategically important resource and all staff are responsible for the accuracy and currency of information in their domain.distributingand managing information within an organisation. and tools used throughout the lifecycle of the content. manufacturing. such as in a business or government. Capterra broadly defines enterprise software in the following manner: . 4) It will be supported by other plans and policies offering more detailed information on the management of specific IT issues. and development tools for building applications unique to the organization. also known as enterprise application software (EAS). is software used in organizations. Enterprise level software aims to improve the enterprise's productivity and efficiency by providing business logic support functionality. application integration. services and technology can be delivered and supported to meet the diverse needs of students. tools for modeling how the entire organization works. and forms automation Enterprise software describes a collection of computer programs with common business applications. Services provided by enterprise software are typically business-oriented tools such as online shopping and online payment processing. 5) To support and enable a organization wide Information Technology environment where quality systems. HR management. b) Why management of technology at the enterprise level important? Ans:. retail software). resource planning. IT service management. business intelligence. manipulate. as opposed to software chosen by individuals (for example. store.
sole proprietorships.designs. partnerships. patents. Targets any industry. 1. training institutions and so on).• • • • Targets any type of organization — corporations. etc.) solutions. government agencies — but does not directly target consumers. others licensed • Role of MNCs in global economy is growing steadily FDI is growing faster than other economic aggregates: national investment. Healthcare.) and industryspecific (Manufacturing. export activity and informal networks • Contractual: o FDI related: (internalized) transfers within multinationals or joint ventures with MNCs Role of internalized technology flows • Innovation is highly concentrated. nonprofits. •About 30-40% of this trade is within MNCs. country and enterprise • MNCs lead in innovation: most R&D is performed bylarge firms and most innovative firms are globalized • MNCs dominate technology flows in all forms.Embodied: in capital goods. Retail. a) What is technology absorption? What are the reasons for the external acquisition of technology ? Ans:Most technology in ‘latecomers’ comes from abroad. blueprints. fairs. Includes function-specific (Accounting. HR. Targets both large and small organizations — from Fortune 500 to "mom and pop" businesses. by region. models and so on -Tacit: knowledge that can be ‘transferred’ only by close interaction and learning by new user Using technology efficiently thus needs conscious effort by the enterprise & also the ‘system’ in which it works (suppliers. Due to the cost of building or buying what is often non-free proprietary software. customers. only large enterprises attempt to implement such enterprise software that models the entire business enterprise and is the core IT system of governing the enterprise and the core of communication within the enterprise. etc. but form depends on nature of technology: newest and most valuable technology is internalized. Supply Chain. GDP or exports • MNCs control about 2/3 of world trade. in mixture of two forms: . conferences. Technology flows forms: • Non-contractual: Public knowledge. technology support. and their role is particularly large in high-tech manufacturing . migration.
lead time.the activity that enables companies to identify the technological opportunities and threats that could affect the future growth and survival of their business. finance etc) • Access to MNC foreign markets. referring to: ". It primarily focuses on continual improvement in quality. particularly to global production networks b) What is technology intelligence capability? Ans:. A) Explain the term world class manufacturing? Ans:- World Class Manufacturing is a different set of concepts. the Web and its vast amount of content -. with very fine vertical specialization by function/component between countries • Local companies are also involved in global production networks. without local effort • Non-core components of operation (i. electronics and steel companies to gain a competitive edge. policies and techniques for managing and operating a manufacturing company. It is driven by the results achieved by the Japanese manufacturing resurgence following World War II. marketing.e." We're moving from the "Information Age" to the "Intelligence Age.e. having effective Technology Intelligence capabilities is becoming increasingly important. but only if they have very high levels of technological capabilities – and form strong ties with MNCs to access and absorb their technological know-how and management skills What this means for: Developing & Transition economies: • FDI is the most efficient way to access foreign technology if countries want • New. principles. It aims to capture and disseminate the technological information needed for strategic planning and decision-making. As technology life cycles shorten and business becomes more globalized.The concept of Technology Intelligence plays an important role here. meaning and insight 4. fast-changing proprietary technologies not available at arm’s length • Rapid access to new technology and subsequent upgrading.i.• MNC export activity is taking new forms: ‘global production networks’. cost. management..but today we've progressed to creating contextual access to the right pieces of information to derive intelligence. flexibility and customer service.. and adapts many of the ideas used by the Japanese in automotive." The former was all about building the database -. .
This often results in higher productivity. its effective application cannot be independent of other key components of a lean manufacturing system or it can ". such as the presence or absence of a part on a shelf.end up with the opposite of the desired result. the process relies on signals or Kanban between different points in the process. strive to eliminate waste and create lean organizations. the complete mechanism for making this work is often misunderstood. Implemented correctly. Just In Time production method is also called the Toyota Production System.. Quick notice that stock depletion requires personnel to order new stock is critical to the inventory reduction at the center of JIT."  In recent years manufacturers have continued to try to hone forecasting methods (such as . quality.World Class Manufacturing is a process-driven approach where implementations usually involve the following philosophies and techniques: Make-to-order Streamlined flow Small lot sizes Families of parts Doing it right the first time Cellular manufacturing Total preventive maintenance Quick changeover Zero Defects Just-in-time Variability reduction High employee involvement Cross functional teams Multi-skilled employees Visual signaling Statistical process control Companies engaging in World Class Manufacturing strategies focus on improving operations. JIT can improve a manufacturing organization's return on investment.. However. For instance. Ans:Just-in-time (JIT) is an inventory strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs. Kanban are usually 'tickets' but can be simple visual signals. Sequential methods of performing work are being replaced with concurrent methods to compress time. which tell production when to make the next part. and functional and hierarchical divisions of duties are being replaced by team-driven activities b) What is JIT? Discuss the basic elements that constitute JIT. But these companies also focus on speed of total throughput from order capture through delivery setting new standards for delivery without the heavy dependence on inventory. This saves warehouse space and costs. To meet JIT objectives. and efficiency.
and systematic under-rewarding will lead to under-investment in activities that lead to inventions. Ans:. Innovation can therefore be seen as the process that renews something that exists and not. So when people change their value (system) the old (economic) system will tumble over to make room for the new one. as is commonly assumed.applying a trailing 13 week average as a better predictor for JIT planning. An invention may be derived from a pre-existing model or idea. which is an innovative set of useful social behaviors adopted by people and passed on to others. make choices outside of their norm. they must choose to do things differently. An invention that is novel and not obvious to others skilled in the same field may be able to obtain the legal protection of a patent. or it could be independently conceived in which case it may be a radical breakthrough. (~1930) seems to have stated that innovation changes the values onto which the system is based. A) Differentiate the terms invention and innovation. however some research demonstrates that basing JIT on the presumption of stability is inherently flawed. In addition. Innovation comes from the Latin innovātus which means to renew. Schumpeter c. device. One of the central concepts of economics is that externalities should be internalized— unless some of the benefits of this positive externality can be captured by the parties. the introduction of something new. Inventions often extend the boundaries of human knowledge or experience. so that the economy as a whole will invest a more-closely-optimum amount of resources in the process of invention. or process. the parties will be under-rewarded for their inventions. 5. In economic theory. or the useful application of new . there is cultural invention. For the renewal to take place it is necessary for people to change the way they make decisions.s. The patent system captures those positive externalities for the inventor or other patent owner. inventions are one of the chief examples of "positive externalities". When that happens innovation has occurred.An invention is a new composition. So innovation must be seen as something that does not something that is On a lower level. innovation can be seen as a change in the thought process for doing something. a beneficial side-effect that falls on those outside a transaction or activity.
sociology.inventions or discoveries. an idea. from the origination of an idea to its transformation into something useful. In particular. business. or organizations. the factors that lead to innovation are also considered to be critical to policy makers. a change or an improvement is only an innovation when it is put to use and effectively causes a social or commercial reorganization. the word "innovation" is often synonymous with the output of the process. something new must be substantially different to be innovative. and on the system within which the process of innovation unfolds. and innovation. customer value. or radical and revolutionary changes in thinking. While both invention and innovation have "uniqueness" implications. . whether they are individuals or organizations. Following Schumpeter (1934). profitability and market performance expectation. In economics the change must increase value. followers of innovation economics stress using public policy to spur innovation and growth. technology. ideas applied successfully in practice. An improvement on an existing form or embodiment. an innovation. economists tend to focus on the process itself. innovation is related to acceptance in society. processes. In many fields. economics and government policy. especially when it leads to new product categories or increasing productivity. Those who are directly responsible for application of inventions are often called pioneers in their field. Innovation is an important topic in the study of economics. composition or processes might be an invention. emergent. both or neither if it is not substantial enough. to make someone or something better. Colloquially. is the embodiment of something new. such as the arts. However. According to certain business literature. and engineering. contributors to the scholarly literature on innovation typically distinguish between invention. When pioneers are followed by many other the dominant value system may be replaced by the new one. Since innovation is also considered a major driver of the economy. an idea made manifest. products. to its implementation. When this happens innovation has occurred a posteriori. entrepreneurship. Invention and introduction of it that leads to increased productivity is the fundamental source of increasing wealth in an economy. It may refer to incremental. or producer value. The goal of invention is positive change. design.
Innovators produce. the project developed a number of prototype tools that were considered practical . It is closely related to (and may arguably be considered a subset of) knowledge transfer. . The project studied techniques for program synthesis. To that end. the present-day volume of research. has led to a focus on the process itself. automatic code generation. processes. combined with high-profile failures at Xerox PARC and elsewhere. innovation can be easily distinguished from invention. materials or services. Nikola Tesla was an inventor. As in most industrial research laboratories there was the pressure to show practical relevance of the work. Archimedes was notable for applying science to practical problems). The goal was to simplify specification of software systems and to make code synthesis practical by working in a restricted domain. Tesla spent money to create his inventions but was unable to monetize them. Inventors may or may not profit from their work. Issues in Technology Transfer :For several years the author was involved in a research project at a major aerospace corporation. knowledge. While conceptually the practice has been utilized for many years (in ancient times. technologies. applications. b) Why organizations resort to technology transfer? What are the issues that encompass technology transfer? Ans:. graphical design tools and similar topics. Thomas Edison was an innovator because he made money from his ideas. used almost synonymously. Related terms. Invention is the conversion of cash into ideas. market and profit from their innovations. samples of manufacturing and facilities among governments and other institutions to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products.In business. Technology brokers are people who discovered how to bridge the disparate worlds and apply scientific concepts or processes to new situations or circumstances. very high-level languages. Innovation is the conversion of ideas into cash. include "technology valorisation" and "technology commercialisation".Technology transfer is the process of sharing of skills. This is best described by comparing Thomas Edison with Nikola Tesla. methods of manufacturing.
most of them non-technical in nature.e. • • • • • Academics tend to develop tools in the abstract. expertise and networks for innovative entrepreneurs. Technology must be sold by describing the concrete problems being solved. Large potential time savings are often not realistic due to a steep learning curve. There were several reasons for this rejection. An important reason for rejection is the perceived and often real lack of maintenance and support for systems that come out of research labs. One frequent objection to the use of machine generated code was readability.'' their value will not be apparent to decision makers. Those businesses that don't have a distinction often languish in price wars and then go out of business. Several attempts to transition some of the lab's technology to product divisions were met with universal rejection. An innovation is a value addition that is a novelty in the market and is commercially viable. entrepreneurs must consider how to distinguish their business from all the others. People in charge of software projects are extremely concerned about schedule risk. i. commented code. it will be rejected if there is even minimal risk that it might negatively impact the schedule. As a consequence significant effort was spent on generating human readable. From the academic point of view. machine generated Ada code is no different than compiler generated assembly code. Technology Innovation contributes to the development of both society and the new company by providing capital. Y TRANSFERBL TECHNOLOGY FER PROBLEMS Many reasons can be cited for lack of teAssignment B 1. Researchers tend to build tools in isolation without consideration of the environment and the work process of software production. Even if a new tool promises great time savings.a) What is technovation? Explain the process of tehnovation. One way to set your business apart in today’s high-tech world is through technovation. Tools that require changes in an established software development process are difficult to sell. An innovative product is one that takes a leap in the cost-benefit analysis in the area of . When scientists talk about concepts such as ``completeness of decision procedures'' of ``expressiveness of languages. it is its impact that matters. The technology is irrelevant. how much time is saved.But academic standards are not good enough to be accepted by those responsible for real products. But the programmer in the field will be skeptical of the new technology and will want to inspect and understand the code. and how quality is improved. Ans:Technovation In today's competitive business environment. they solve an intellectually interesting problem without regard to actual applications. Starting new companies creates dynamism and affluence in a society.. Customers recognize the utility and are therefore prepared to pay for such value.
Innovating a new technology involves risking capital. Innovative project concepts might be high-tech products. discoveries and inventions. patents. Criteria for evaluating a development effort: List and quantify ways in which the user's experience with the task will cause improvements with respect to: * costs * benefits * technology You could say that all innovation is successful by definition because any increase in a benefits-to-costs ratio is a success. and that it is ethically sound and sustainable. but the innovator has to be careful if he/she wants to make a profit because of the amount of money that often has to be spent on technology. Under intellectual property law. how much market demand there will be. symbols. or how soon. and designs. it was not until the 19th century that the term intellectual property began to be used. literary. and artistic works.endeavor by an entrepreneur. phrases. new production methods. or perhaps a knowledge-based business concept. The trick is to be innovative and profitable. that it is a vehicle for change and the creation of wealth. and not until the late 20th century that it became commonplace in the United States. and at the same time technologically advanced. trademarks. you don't know how long it will take. new services.  The British Statute of Anne 1710 and the Statute of Monopolies 1623 are now seen as the origin of copyright and patent law respectively. and when did they show up? What other innovations are still needed for your product to become practical? b) What are the principles of technology fusion? 2. and words. A) Explain the term intellectual property right? Intellectual property (IP) is a term referring to a number of distinct types of creations of the mind for which property rights are recognized—and the corresponding fields of law. owners are granted certain exclusive rights to a variety of intangible assets. new inventions with great potential. . Ans:- Although many of the legal principles governing intellectual property have evolved over centuries. It is vital that the project has strong commercial potential. If you undertake a project without a sufficient supporting infrastructure. how much it will cost. Constantly ask questions like . such as musical.What other innovations have made your product possible. industrial design rights and trade secrets in some jurisdictions. Common types of intellectual property include copyrights. What is Technovation? Technovation is an innovation that is technologically advanced.
It can be leveraged widely to many products and markets. from functionality. the design team can avoid what often become costly errors as the project moves to more complicated computational models and eventually into the physical realm. an involvement and a deep commitment to working across organizational boundaries. Few . Core competencies are the collective learning in organizations.  b) Core competency Ans: core competency is a specific factor that a business sees as being central to the way it.b) What is the role of WTO in protecting IPR? 3. works. The first is the idea that all elements of a product’s life-cycle. Core competencies are particular strengths relative to other organizations in the industry which provide the fundamental basis for the provision of added value. It is not easy for competitors to imitate 2. The overall goal being that the concurrent nature of these processes significantly increases productivity and product quality. a reliable process and/or close relationships with customers and suppliers. It fulfills two key criteria: 1. testability. should be taken into careful consideration in the early design phases. and involve how to coordinate diverse production skills and integrate multiple streams of technologies. A core competency can take various forms. but has had the opportunity to mature in recent years to become a well-defined systems approach towards optimizing engineering design cycles. aspects that are obviously important in today's fast-paced market. or its employees. By locating and fixing these issues early. assembly. most notably in the aerospace industry. producibility. The second concept is that the preceding design activities should all be occurring at the same time. It is communication. concurrent engineering has gathered much attention from industry and has been implemented in a multitude of companies. Because of this. It may also include product development or culture. Ans:- The basic premise for concurrent engineering revolves around two concepts. or concurrently. This philosophy is key to the success of concurrent engineering because it allows for errors and redesigns to be discovered early in the design process when the project is still in a more abstract and possibly digital realm. maintenance issues. such as employee dedication. environmental impact and finally disposal and recycling. Write short notes a) Concurrent engineering The concurrent engineering method is still a relatively new design management system. organizations and universities. including technical/subject matter know-how.
Not only that. is taking care of things. While grassroots activity is vital in developing appropriate technology. ESAB India Limited is the Indian associate of ESAB AB. caring. The idea of appropriate technology is that local people. Third World craftspeople. ESAB India. isolated environment. at its Kalwa unit which is the major manufacturing . the Swedish multinational and the world’s largest company in welding and cutting. throw-away products. it is a genuine grassroots solution to economic needs. It's not appropriate to install solar modules in a place with very little sun. The result is consistency in the carry-through of the work by locals and continued maintenance and interest in the well-being of the project over the long haul. struggling on a daily basis with their needs. invent the technological innovations necessary to meet those needs. employs 206 people. including 35 S&T personnel. Planners and those who want to help others grapple with food and energy problems are wise to include local people in the early stages of project vision.companies are likely to build world leadership in more than five or six fundamental competencies. a larger view is definitely called for in understanding how organizations can combine funds and human resources to develop and market technologies. One quality that remains the same. a Public Limited Company with paid up capital of Rs. poor quality all go against intelligent decision-making and the true spirit of appropriate technology 4. In the Industrial World small businesses account for more technological advances in their areas of expertise than government supported researchers or research departments in massive corporations. c) Appropriate technology Ans:. farmers and other villagers invent. Case study: Please read the case study given below and answer questions given at the end. Planned obsolescence. local people can prioritize solutions to save precious funding and labor. In each situaton. helping. a wind generator in a place with little or no wind. core representation in most of the countries. What's appropriate in a large urban location is very different from what's appropriate in a remote. the essence of AT remains appreciating. it is not an overlay to the situation. create. Communication among international aid agencies can greatly enhance efficient use of funds for appropriate technology and a reduction of the "reinventing the wheel" syndrome. with production centers.Appropriate technology is being mindful of what we're doing and aware of the consequences. however. The definition of "Appropriate Technology" changes with each situation. 50 million. Bombay is a leading manufacturer of welding consumables and equipment. understand those needs better than anyone and can therefore suggest or in fact. and contribute to the technological process of their area much more than outside "experts" do. Appropriate technology works from the bottom up. Case Study Managing Technology and R&D ESAB Indian limited.
24 lakhs during 1991-92. Most of the developments relate to highly specific applications such as for oil. TECHNOLOGY AND STRATEGY POLICY ESAB’s objective was to become a world leader in welding technology. i.5% of . power. 1991 ESAB India Limited acquired the welding business of Indian Oxygen Limited (IOL). the top management of the parent company takes into account the in-house capability and potential for further advancement through imported technology. but are not covered in the product range of the principals abroad. but closely interacts with other functional groups. of welding and cutting equipment and 24020 km of welding electrodes. about 0. the welding business unit of Philips India Limited also became a part of ESAB Group in July 1988. In setting the objective of ESAB India. The development of low moisture absorption welding electrodes is a good example. R&D personnel participate in technical seminars and meetings in India and abroad. Typically. In May. The in-house R&D unit of the company employs about 10 persons including S&T personnel (scientists and engineers) and is headed by a well qualified chief at the level of General Manager directly reporting to the Managing Director. In fact. All possible support to R&D is extended by the management to retain the leadership in its field. The turnover of ESAB (India) almost tripled in three years due to active marketing efforts. The R&D unit of the ESAB India closely interacts from time to time with the principals in Sweden and at other places on developmental needs and receives relevant technical information which is very useful for R&D in India. The cost of such failures could be tremendous compared to the cost of welding consumables. including India. Here the organization insists on the important distinction that is to provide solutions and does not sell products. The company also encourages close interaction with the relevant R&D organizations and academic institutions. Calcutta. m. It has well equipped laboratories and pilot plant facilities for development purposes. ESAB now has well established R&D facilities in a number of countries. This unit was not doing well commercially. there are some products/areas which have specifically been developed to meet the needs of India and could be relevant to other developing countries as well. The R&D unit is a separate entity situated within the company premises occupying a floor area of about 300 sq. In the early eighties ESAB realized that to survive in the competitive world of welding it had to become the biggest company and a leader in technology. 100 crore. The annual R&D expenditure was about Rs. Subsequently. welding consumables constitute less than 1. based in the Netherlands in 1985. It is licensed to make 1250 nos.e.8% of the annual turnover. The new Indian organization now has four major manufacturing centers and has sales outlets in all parts of the sub-continent. A good technical library having books. In a world where technology dominates there are new opportunities for continuous development. The offshore structures of the North Sea required welding consumables (electrodes) which would produce welded fabrication free from structural failure in a very harsh working environment. It had a turnover of above Rs. The R&D unit of ESAB is a DSIR recognized unit and works presently mainly for the Indian market. It acquired the European welding activities of Philips electrical and electronic group. A computerized information facility has also been built up. There are immense export possibilities through constant development efforts to meet the specific requirements of other countries. ESAB acquired a number of companies active in the field of welding and cutting. The company’s commitment to welding technology and product development is evident from the goal of the organization which is to provide technical solutions to the customers. 30 crores during 1991-92. journals and periodicals in the field of manufacturing is maintained. underwater uses and are import substitutes.facility. The turnover then approached Rs. This was to be achieved by carrying in-house research and by absorbing the technology of newly acquired companies. As a route to achieve this objective.
the total cost of the structure. The welder will produce better welds in a friendly environment or with electrodes with better welding characteristics. The most successful welds produce the base component or fabrication at the lowest level. ESAB’s R&D is in the forefront of action to make the environment friendlier to the welder. Introduction of a Total Quality Program is the ESAB group is a step in this direction. Welding is not an end in itself. process research and development with the customers’ production experience often lead to collaborative ventures to improve economy. The early objective was to have extra low hydrogen in the weld metal. QUALITY Products are services which do not meet the quality requirements of the customers and do not stand the test of time. Attention will. At the same time the product was further developed to give improved welding characteristics in order to improve manufacturability and to reduce cost. There was a parallel development of new welding machines to match the automatic welding processes (including welding robots). It. This costly process could be eliminated by packing the electrodes in vacuum sealed packages (Vac Pac) at a relatively high cost. Total quality is the need of the hour. As can be seen. Today in these markets more than half of the total production of weld metal is derived from continuous solid and flux cored wires processes. ENVIRONMENT The cost and quality of the weld very much depend on the welder who in turn is profoundly influenced by the working environment. Many new automatic consumables have been added. Expenses incurred on product and process development have to be recovered from sales so that R&D process for continuous improvement can go on. For this purpose special low hydrogen electrodes were made and then re-packed just before use. therefore. mainly to achieve higher productivity and lower manufacturing cost. focus increasingly on issues relating to the internal and external environment and economy. a single point control (synergic control) of the welding machines and reduce fume. Today quality does not remain within the boundaries of the product alone. Combining ESAB’s product. developments in welding concern while process and are realized by improving existing products and introducing new technologies. a shift from the manual welding process to semi and fully automatic welding processes has taken place in most of the developed countries. . and productivity and safety standards in the latter works. in future. The cost of failure of the structures is frequently many times the cost of the structure itself. Controlling the toxicity limit of the welding fume shows concern towards the health of the welder whilst at the same time improving the effectiveness. While finalizing the requirement for a new product the quality of the weld is inbuilt in the specification. The low moisture absorption electrodes have now been produced which reduce the cost of the solution of the welding problem. became necessary to develop consumables to meet this challenge. The key words which characterize ESAB’s commitment to the continuous development of processes and system are: • The productivity of the welder and fabricator • The quality of weld deposit • The working environment PRODUCTIVITY During the last decade and a half. quality. Efforts at developing the low cost devices for packing continued. It is a process to produce a structure. The packing standards were also changed to suit automatic welding consumables for uninterrupted supply of high-quality wire to the robotic processes (ESAB’s Marathon Pac).
For successful development and commercialization of a product. work on adaptation to Indian condition starts. materials management and production departments are all involved. marketing and sales. Theoretical knowledge and practical experience are essential for doing this. The department is manned by a group of highly qualified persons who have the experience in other line functions so that their perception of the problem is realistic rather than theoretical. This adaptation is necessary because of variations in the raw materials and production plant. The required product was developed in two phases. The new formulation is first tried on pilot plant and subsequently transferred to production. In the beginning. The formulations are broken into their basic chemical constituents and on them the chemical composition of the indigenous raw materials is superimposed. This has helped ESAB earn the name of a technology based company. in a specific nuclear project the requirements were very stringent and critical. In the event that a group product cannot be identified. The R&D department accordingly has established its importance in the organization and has representation in all decisions of the group management pertaining to technology and product management. The R&D personnel remain involved till the product is established commercially. Members have had previous experience in quality control. the principals abroad are contracted for details of formulation and production data. R&D must also be involved in manufacturing technology to meet the company’s own demand for improved productivity. production or marketing before they joined the R&D group. the marketing department has to present its requirements in regard to future market demand. quality or to increase manufacturing flexibility. If it is. For instance. Once the need has been agreed the R&D department attempts to ascertain whether the product is available within the ESAB group. METHODOLOGY If the product development is market-led. absorption and up-gradation of imported technologies for all the welding activities. then the R&D department of the principals combines with their Indian counterparts for a program for development. market demand was not large but with time it expanded and now they have a proprietary product with large demand. All members of the department help each other to keep expectation within feasible limits. After establishing the basic formulation and production data. possible new businesses or new applications. A tentative formula is obtained which is refined through experiment to give the final desired product. Many such market-led developments have been successfully carried out in India. DIFFICULTIES ENCOUNTERED What has been discussed above works if the situation is ideal? Reality is often different. Imbalances are suitably adjusted to provide the correct weld metal analysis and welding characteristics of the electrode. Emphasis is on continuous local technological development.The R&D department of ESAB India is the focal point of all technical activities of ESAB in India. It also acts as the interface between the principals in Sweden and the Indian organization. Technology and product is market lead in India. the technical requirements were first met and subsequently the cost was reduced. Initially. It undertakes research and development activities related to new products and technologies for meeting the needs of the growing Indian market. Some of the major difficulties encountered in actual practice relate to: • Changes in specifications during the development period • Failure to achieve the required result by the R&D department • Unduly long response time of development • Prohibitive cost of product . They are capable of understanding the real problems or the requirement of new products as envisaged by the customer.
OPPORTUNITIES OF ESAB INDIA In the international scenario the technological developments are taking place at a very rapid pace. In relation to development activity. 8. Often development may use costly materials and the finished available product may become more expensive than an alternative product in the market resulting in failure to develop a commercially viable product. so R&D is assured of a quick and easy success. A developer must be conversant with the cost structure of the product. Guidelines and directions from the principals abroad are only part of the story. All industrial R&D activities must have commercialization of the development as its goal. the customers’ need may change. QUESTIONS 1. expenses incurred to development come under the microscope. Local R&D is important to satisfy local needs and constraints. it may only cause a small delay but in case of major changes. Development is not a single department’s job. the specifications may sometimes be too stringent that it may not be possible to manufacture a new product within the constraints and projected cost. Any development will be termed a failure if it does not improve the bottom line of the organization. If such a change is not very major. ESAB India’s role in future will be to develop the existing techniques and to participate in the research and development of new techniques with a view to maintain its leading position in the field of welding and cutting in the 21st century. The top management must commit itself (through the company objectives) to render active support of development of product and technology. The commitment of the top management will ensure that in the long-term. What efforts were made by ESAB AB and ESAB India in the field of product development? . Undue delay in developing a product may result in losing market opportunity for which it was intended. Alternatively. But finally we must aim to be a world competitive supplier of welding and cutting solutions. 4. investment in R&D activities will pay off handsomely. many new and good developments never reach the market because they do not satisfy a recognized customer need. Indian R&D efforts should be directed initially towards meeting the local needs and overcoming local constraints by suitable adaptation. It is also possible that the targets laid down in the guidelines received from the principals cannot be met because of non-availability of specific raw materials at reasonable prices. Such adaptation will hasten the process of industrialization. India with its wealth of technical expertise should adopt overseas technological advances for speedy commercial implementation and benefit from them. the following observations of general nature can be made: 1. 2. if development is production-led. Active involvement from marketing and sales. Appropriate technology is the need for all R&D effort while adapting products and technologies from abroad. 6. These are all major handicaps in developing the desired product. Many difficulties may be faced during the R&D process. This point must be kept in mind from the very beginning. Often in times. it may mean development in an entirely new direction. These difficulties can arise in market-led development. production and materials management is essential to make the new product reach the customer at right time and at the right cost. All problems and difficulties described above combine into a single problem—loading the interest of the customer.In the course of development. What strategic route ESAB AB followed to become technology leader in the world? What could be the reasons behind such a route? 2. 5. Cost of the product plays an important role in the development efforts. However. 7. 3.
Which of the following is NOT a part of Techno ware A) Powered equipment B) Automated machines C) Computerized machines D) Operating ability 2.3. How is the R&D function at ESAB India organized? Critically examine. Which of the following depict the central role of a corporate R&D A) Development of relevant breakthrough technology B) Continuous process and product improvement C) Day to day problem solving D) Engage in basic research 7. D qualified person is to be promoted as a unit head 6. An R& D centre is to be set up when A) Technology is a competing strategy B) The company uses reverse engineering C) Subsidy exists for setting up R&D units D) A Ph. Which of the following is NOT very important in managing technology A) Production process B) Product & process design C) Information systems D) Compensation packages 4. 4. Technology management is concerned with all EXCEPT A) Incremental innovation in existing technologies B) Development of new technology C) Combining older technologies D) Procurement of machines similar to the one existing 5. Info ware consists of all the following EXCEPT A) Describing facts B) Familiarizing facts C) Repairing abilities D) Utilizing facts 3. All of the following are determinants of productivity except A) Effective control over cost and quality B) Rationalization of work flow C) Training hours spent on staff D) Optimal scheduling of work and material handling . What difficulties ESAB has experienced in relation to product development efforts? What would you suggest to overcome these difficulties? What opportunities are open to ESAB India? How best can it avail of those opportunities? Assignment C (Objective Questions) Tick Marks (√) the most appropriate answer 1.
All are reasons for external acquisition of technology EXCEPT A) Firm lets other firms to take big risk before participation B) Technology already developed saves time and cost C) Technology that can be handled with existing machines and equipment D) Doesn’t require recruitment of skilled labor 13. Technology that proprietary to a firm is known as A) Basic technology B) Generic technology C) Key technology D) Appropriate technology 14. A technology for which research has progressed far enough to indicate its success is known as A) High technology B) Emerging technology .8. All the following are technological intelligence capability EXCEPT A) Ability to monitor worldwide technological trends B) Ability to source technology C) Ability to get skilled labor D) Ability to mange acquired technology 16. Productivity techniques used to reduce costs of one or more of production inputs by replacing with the cheaper available substitutes is known as A) Group technology B) TQM C) Factor substitution D) Six Sigma 11. Which is NOT an issue in acquisition and absorption of technology from external sources A) Difficult to assess the relative merits of technologies which are complex B) Adapting and modifying technologies to local conditions C) Negotiating technology license D) Arranging payment for the technology 15. All of the following are characteristics of high technology EXCEPT A) A fast rate of growth B) High ratio of R&D expenditure to sales C) Very limited market D) Less educated employees 12. Reverse engineering is also known as A) Experience and design looping B) Design to cost C) Reengineering D) Zero defect production 10. A term used to indicate a good match between the technology utilized and the resources required for its optimal use A) New technology B) Emerging technology C) Appropriate technology D) Codified technology 9.
A necessary condition for technological fusion is A) Technological diversification B) Technological determinism C) Technology codification D) Technology integration 22. Core competence of Sony is A) Capacity to miniaturize B) Optical media expertise C) Heavy R&D expenditure D) JIT production 24. Japanese companies focus on ___________ rather than result A) People B) Processes C) Quality D) Plans 25. All of the following are basic constituents of JIT EXCEPT A) Simplification of product design B) Improvement of plant layout design based on flow C) Immediate payment to suppliers C) Making vendors partner to the production process 18. Which of the following is NOT a conducive atmosphere for innovation A) An open decentralized organizational structure B) Ensure that new ideas are not easily killed . The development of new hybrid technologies by combining the capabilities of existing technologies is called A) Technovation B) Technology fusion C) Technology intelligence D) Technology push 21. Gaurav’s role in his organization is to scan the market and bring new technologies to the organization. medium and small companies D) International alliances among industries in developed countries 23. His role can be identified as A) Project manager B) Sponsor C) Technological gatekeeper D) Entrepreneur 20.C) Appropriate technology D) Codified technology 17. All of the following are part of business alliances in use in Japan EXCEPT A) Exchange of expertise by companies in different fields B) Merger and acquisition of companies C) Alliance among large. Which of the following is not a characteristic of CIM A) Compatible hardware and software B) Paperless office and integrated business system C) Flexibility of operations and low cost of implementation D) Use of CNC machines 19.
phonograms and broadcasts B) Scientific discoveries C) Trademarks. If one is Copyrights. WIPO convention covers all of the following under IPR except A) Performances of performing artists. Following are reasons for making inventions EXCEPT A) Personal satisfaction B) Solving problems faced in everyday life C) Being recognized by others D) Zeal for charity 28. which is the other A) Agricultural Property rights B) Real estate rights C) Industrial Property rights D) Self expression rights 33.C) Minimize administrative interference D) Tight deadlines 26. Traditionally intellectual property is divided into two groups. service marks. Two basic objectives of a national policy relate to the promotion of productivity. and commercial names and designations D) Agricultural patent rights . Neighboring rights does not include A) The rights of performing artists in their performance B) The rights of producers of Phonograms in their phonograms C) The rights of broadcasting organization in their radio television broadcast D) The rights of authors in their books 29. The process of ___________ threatens the developing world by appropriating the collective knowledge of the society into proprietary knowledge for the commercial profit of a few A) Liberalization B) Globalization C) Privatization D) Commercialization 30. The six step ASSETS process does not contain A) Asses current situation B) Specify technology strategy C) Codify technology D) Select technology portfolio 32. innovation and competition on one hand and the facilitation of the firm’s _________ on the other A) Competitive capabilities B) Financial strength C) Autonomy D) Labor unions 27. Which is not a planned channel for technology transfer A) Reverse engineering B) Joint venture C) Franchise D) Foreign Direct Investment 31.
The act of producing or selling a product containing an intentional and calculated reproduction of a genuine trademark is called A) Counterfeiting B) Cyber squatting C) Infringement D) Copyrights violation 36. Area not covered by TRIPS agreement A) Trademarks and service marks B) Industrial designs C) Geographical indications D) Layout design of manufacturing plans 39. the excess goods are A) Illegitimate goods B) Overrun goods C) Grey market goods D) Black goods 37. The term used to protect the rights of an unpublished book A) Copyright B) Trademark C) Service mark D) Publishing rights 38. Darjeeling tea has protected its intellectual property rights based on A) Trademark B) Service mark C) Geographical indications D) Patents . When a producer has authorization from an IPR holder to produce goods but exceeds the quantity. A form of networking of institutions and activities for inducting high technologies A) Technology Park B) Technology associations C) Technology groups D) Technology centers 35.34. MFM treatment under TRIPS means A) Mild and fast foreign negotiations with MNC’s B) Treating everyone equally C) Special treatment to some nations D) Increasing reciprocity 40.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.