Process technology

Source: Corbis/Louis Psihoyes

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Process Technology

• Process technology
– Direct Process technology
– Indirect process technology
– Integrating technologies

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Whenever your are in process of
purchasing technology
• Questions?
– What does the technology do?
– How does it do it?
– What are benefits?
– What are the constraints?

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Cows are also customers

1. What advantages do you think the technology described above gives?

2. Do you think the cows mind?
3. Why do you think the farmer still goes to watch the process?

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Process Technologies

• Material – processing technologies

• Information Processing Technologies
• Customer Processing Technologies

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Material Processing Technology

• CNC – Computer numerically controlled

machine tools
• Robots
• AGV – Automatic guided vehicles
• CIM – Computer integrated manufacturing

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Robots are used in this example because of the hazardous environment
in which the tasks take place

Source: Corbis/Yiorgos Karahalis

What other examples can you think of where the safety of operators is the major
motivation for investment in robot technology?

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Information Processing Technology
• IT
• Centralized and decentralized processing
• LAN
• WAN
• Extranet
• Internet
• E-Business
• M-Business
• MIS
• Expert System
• Decision support system
• Bar Codes
• RFID

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Technology and processing costs
Cost per banking transaction
100%
100%

80%

60%

50%
40%

25%
20%

12%

Branch Telephone Cash Internet

machine

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Network translates ePC code
into useful information that can
be used for monitoring and
process control
Internet or other
network
Smart Tag, microchip
with antenna that
transmits ePC code
Control system
F132.C225.DF2B12CV
Reader senses item and
ePC Code, a unique transmits ePC code to
number 96 bits long network

Operations Process

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Customer Processing Technology

• Technology involving customer interaction

• Technology with an intermediary
• Customer training

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Active interaction with technology

Customer Technology

Examples

Personal communications
Internet-based ordering
Cash machines

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Passive interaction with technology

Customer Technology

Examples

Transport systems
Theme park rides
Car wash

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Hidden interaction with technology

Customer Technology

Examples

Security cameras
Retail scanners
Credit card tracking

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Use of technology through an intermediary

Customer Technology

Intermediary

Examples

Call centre technology

Travel agent booking system
Hotel reservation system

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Customer processing technologies

Customers

Back-office Front-office

Front-office
Back-- office technology with Front-office
technology links to the technology
back-office

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 QB House speeds up the cut

“Why not create a no-frills barber shop

where the customer could get a haircut in
ten minutes at a cost of 1,000 yen?”

1. How does QB House compete

compared with conventional
hairdressers?

2. In what way does technology help

QB House to keep its costs down?

Source: Andy Maluche/Photographers Direct

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Categorizing process technologies

Process technologies can be categorized using

three dimensions:

the extent to which they vary in their degree

of automation
Source: Jonathan Roberts

the extent to which they vary in their scale

the extent to which they vary in their degree of

integration

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Different process technologies are appropriate for different
volume–variety combinations
Scale/ Coupling/ High Variety Low
Automation
scalability connectivity
Low Volume High
Low Low Broad/
Manual, general-
unconstrained purpose, small-
scale, flexible
technology

Automated,
dedicated, large-
scale, relatively
High High Narrow/ inflexible
constrained technology

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Choice of Technology

• Market requirement evaluation

• Operations resource evaluation
• Financial evaluation

Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007