CHAPTER 4 machinist’s skills by a

Technology and Operations Management programmable device that:

 Controls the movements
Technology of a tool used to make
 Helps service and manufacturing complex shapes
systems operate productively and
meet customers’ needs - Computer Numerical Control
- Technological innovation in (CNC) machines
goods, services, manufacturing,  NC Machines whose
and service delivery is operations are driven by
competitive necessity a computer

Technology Categories - ROBOT: Programmable

 Hardware Technology: Equipment machine designed to handle
and devices that perform a variety of materials or tools in the
tasks in the creation and delivery of performance of variety of tasks
goods and services
 Software Technology: application  Emerged with:
of the internet, computer software, - CAD/CAE
and information systems that:  Computer-aided Design/
- Helps provide date, information, Computer-aided
and analysis Engineering
- Facilitates the creation and  Enables engineers to
delivery of goods and services design, analyze, text
simulate, and
Manufacturing Technology Issues manufacture products
 Appropriate technology must be before they physically
selected for producing goods exist
 Process resources must be set up
and configured a logical fashion to - CAM
support production efficiency.  Computer-aided
 Labor must be trained to operate the manufacturing
equipment  Computer control of the
 Process performance must be manufacturing process
continually improved
 Work must be scheduled to meet  Make us of flexible manufacturing
shipping commitments/customer systems (FMSs)
promise dates - Flexible manufacturing
systems (FMSs): Two or more
 Quality must be ensured
computer-controlled machines
linked by automated handling
Computer Integrated Manufacturing
devices where computers:
Systems (CIMSs)
 Direct the overall
 Union of hardware, software,
sequence of operations
database management, and
and route work to an
communications to automate and
appropriate machine
control production activities
 Select and load proper
 Evolution of manufacturing tools
automation:  Control operations
- Numerical Control (NC) performed by a machine
machine tools help duplicate a
Advances in Manufacturing Technology - Forecasting customer retention
 Help expend the customer benefit (and defection) rates
package by allowing consumers to - Identifying fraudulent
create custom products transactions
- Three-dimensional printing - Studying customer benefit
- Industrial robots packages
- Nanotechnology - Studying and predicting
attractive Web characteristics
Service Technology - Linking the information listed
 E-service: Uses the Internet and above to competitive priorities by
technology to provide services to market segment and process
customers and support the sale of and value chain performance
goods
 Helps deliver time, place and Benefits Challenges
information, entertainment, Creates new Higher employee
and exchange value are industries and job skill levels required,
some of the services that are opportunities such as information
provided to customers technology and
service
Technology in Value Chains management skills
 Helps enhance the efficiency of Restructure old Integration of old
operations and less (legacy) and new
 Provides the capability to eliminate productive technology and
parts of the traditional value chain industries systems
structure and streamline operations Integrates supply Job shift and
- Internet and e-communications and value chain displacement
help in the integration of several players
components of the value chain Increases Less opportunity for
marketplace employee creativity
Business Analytics in Value Chains competitiveness and empowerment
 Helps integrate and analyze data and maintains the
throughout the value chain within an survival of the firm
information systems framework Provides the Protecting the
- Customer relationship capability to focus employee and
management (CRM) is a key on smaller target customer’s privacy
information systems market segments and security
through mass
Customer Relationship Management customization
 Business strategy designed to learn Improves/ Fewer human
more about customers; wants, increases service providers,
needs, and behaviors to: productivity, resulting in
- Build customer relationships and quality, customer, customer ownership
loyalty satisfaction, not being assigned,
- Enhance revenues and profits speed, safety, and nonhuman service
 Helps firms gain and maintain flexibility/customiz encounter, and
competitive advantage by: ation; does more inability of the
- Segmenting markets with less customers to
- Tracking sales trends and change decisions
advertising effectiveness and return goods
- Identifying a target market easily
 Lower cost Information support the analysis of decision
overload problems
Raises world’s Global outsourcing
standard of living and impact on
domestic job
opportunities
Monitors the Enforcement of
environment and regulations and
health of the laws to support
planet sustainability goals

Technology Decisions
 Made by operations managers who
strive to provide the best synthesis
of technology, people, and
processes
- Interaction is called a
sociotechnical system

 Depend on:
- Scalability: Measure of the
contribution margin required to
deliver a good or service as the
business grows and volumes
increase
 Contribution margin is
revenue minus variable costs

- High scalability: Capability to

serve additional customers at
extremely low incremental costs
 Infinite scalability - Capability
to serve additional customers
at zero incremental costs

- Low scalability: High

incremental variable costs
involved with serving additional
customers

Analytical Methods for Technology

Decisions
 Decision Analysis
- is the formal study of how people
make decisions, particularly
when faced with uncertain
information, as well as a
collection of techniques to