Reviewer in Operations Management &
Total Quality Management, Midterms
Technology – the application of knowledge for
achieving practical goals in a reproducible way.
 The word technology can also mean
the products resulting from such
efforts, including both tangible tools
such as utensils or machines, and
intangible ones such as software.
 Technology is about more than
gadgets and gizmos.
 The role and impact of technology in
both our personal and working lives is
ever growing.
 It involves organized ways of doing
things. It covers the intended and
unintended interactions between
products (machines, devices, artifacts)
and the people and systems who
make them, use them, or are affected
by them through various processes.
 Many people like to drink coffee, often
in a coffee shop. That coffee may
have come from trees that have been
bred specifically for increased yields
that support a small farmer and his
family but that requires pesticides that
were developed and manufactured in
another country. The harvested coffee
beans will themselves be transported
around the world, to be processed and
placed in packages that are distributed
to shops that then make the cup of
coffee in a polystyrene cup that was
manufactured for the purpose but
which then needs to be disposed of
and so on.
 Every choice we make relies on, and
feeds, a highly interdependent and far-
reaching way of life where some have
much and some have little.
Radio Frequency Identification (RFID) – a
wireless system comprised of two
components: tags and readers.
Reader – a device that has one or more
antennas that emit radio waves and receive
signals back from the RFID tag.
Computer–integrated manufacturing (CIM)
– the use of computer-controlled types of
machinery and automation systems in
manufacturing products. CIM combines
various technologies like computer-aided
design (CAD) and computer-aided
manufacturing (CAM) to provide an error-free
manufacturing process that reduces manual
labor and automates repetitive tasks.
 CIM is a manufacturing approach that
provides complete automation of a
manufacturing facility. All the operations
are controlled by computers and have
common storage and distribution.
The various processes involved in a CIM are
listed as follows:
 Computer-aided design.
 Prototype manufacture.
 Determining the efficient method for
manufacturing by calculating the costs
and considering the production
methods, volume of products, storage
and distribution.
 Ordering the necessary materials
needed for the manufacturing process.
 Computer-aided manufacturing of the
products with the help of computer
numerical controllers.
 Quality controls at each phase of the
development.
 Product assembly with the help of
robots.
 Quality check and automated storage.
 Automatic distribution of products from
the storage areas to awaiting
lorries/trucks.
 Automatic updating of logs, financial
data, and bills in the computer system.
Introduction
In last decade or so technology has
changed the way organization conduct their
business. Advent of technology in operation
management has increased productivity of the
organization.
Technology and Operations Management
The scope of Technology and operation
management has evolved over a period of time
and has moved from development of products
into design, management and improvement of
operating system and processes.
Usage of technology in operation
management has ensured that organizations
are able to reduce the cost, improve the
delivery process, standardize and improve
quality and focus on customization, thereby
creating value for customers.
Integration of Technology with Production
System
Technology drives efficiency in
organization and increases’ productivity of the
organization.
However, bringing technology in the
production system is highly complex process,
and it needs to following steps:
 Technology Acquisition: technology
acquired should align with overall
objectives of the organization and
 should be approved after elaborate cost-
benefit analysis.
 Technology Integration: technology
affects all aspects of production i.e.,
capital, labor and customer. Therefore, a
solid technology integration plan is
required.
 Technology Verification: once
technology integrated, it is important to
check whether technology is delivering
operational effectiveness and is been
used to its fullest.
Technology in Manufacturing and Design
Technology is getting extensively used
in customization of design products and
services. The usage of computers and
supporting electronic systems is integral part of
modern industrial and services industry.
Current techniques can be broadly classified
into following categories:
 Computer-Aided Design (CAD): CAD
facilitates linking of two more complex
components of design at very high level
of accuracy thus delivering higher
productivity.
 Computer-Aided Manufacturing
System (CAM): Precision is very
essential in operating any machines and
therefore, Computerized Numerically
Controlled machines are used, thus
ensuring highest level of accuracy.
 Standard for the Exchange of Product
Data: As the name suggests product
design is transmitted among CAM and
CAM in three dimensions. Standard for
The Exchange of Product Data process
sharing of product across all phases of
product life cycle and serves as neutral
file exchange.
Software Systems in Manufacturing
There are various software systems
available to integrated operations and
manufacturing functions with other business
functions of organization.
Some of the common software systems
are:
1. Enterprise Resource Planning (ERP),
2. Supply-Chain Management (SCM),
3. New-Product Development (NPD), and
4. Customer Relationship Management
(CRM).
Enterprises Resources Planning (ERP) –
links all business functions like manufacturing,
marketing, human resource and finance
through a common software platform. The main
benefits of the ERP solution are that it not only
reduces database errors but also delivers value
to customer through faster delivery and order
fulfillment.
Automation in Production and Operations
Automation reduces manual intervention
in the manufacturing process. It increases
productivity and reduces margin of error
thereby facilitating economies of scale. There
is this-advantages of automation also, such as
unemployment, high breakdown cost and initial
capital investment. Therefore, automation may
not be suitable in all situations and in the end
alignment with an overall organization objective
is important.
Challenges
Technology can be facilitating factor in
bringing about change in operations and
production management. But it may not be
feasible to use technology in all aspects with
challenge coming through high initial cost of
investment, high cost of maintenance and
mismanagement.
One way is to streamline the process of
tracking and distributing inventory. But the
biggest benefits of technology in supply chains
Management come from reducing costs,
improving customer service, and increasing
operational efficiency.
Facility layout – refers to the specific
arrangement of physical facilities. Facility-
layout studies are necessary whenever:
1. A new facility is constructed,
2. There is a significant change in demand
or throughout volume,
3. A new good or service is introduced to
the customer benefit package, or
4. Different processes, equipment, and/or
technology are installed.
Product Layout  Examples: Legal services, such as
labor law, bankruptcy, divorce; medical
 Advantages: Lower work-in-process
specialties such as maternity, oncology,
inventories, shorter processing times, less
surgery.
material handling, lower labor skills, and
 Advantages: Reduced materials-
simple planning and control systems.
handling requirements, quicker
 Disadvantages: A breakdown at one
response to quality problems, more
workstation can cause the entire process
efficient use of floor space, more worker
to shut down; a change in product design
responsibility increasing morale.
or the introduction of new products may
 Disadvantages: Duplication of
require major changes in the layout,
equipment among cells, greater worker
limiting flexibility.
skills requirements.

Process Layout – consists of a functional

grouping of equipment or activities that do
similar work.
 Examples: Legal offices, shoe
manufacturing, jet engine turbine
blades, and hospitals use a process
layout.
 Advantages: A lower investment in
equipment, the diversity of job inherent
in a process layout can lead to
increased worker satisfaction.
 Disadvantages: High movement and
transportation costs, more complicated
planning and control systems, longer
total processing time, higher in-process
inventory or waiting time, and higher
worker-skill requirements.
Cellular Layout – the design is not according
to the functional characteristics of equipment,
but rather self-contained groups of equipment
(called cells), needed for producing a particular
set of goods or services.
Fixed-position layout – consolidates the
resources necessary to manufacture a good or
deliver a service, such as people, materials,
and equipment, in one physical location.
 Examples: The production of large
items such as heavy machine tools,
airplanes, buildings, locomotives, and
ships. Service-providing examples
include major hardware and software
installations, sporting events, and
concerts.
 Advantages: Work remains stationary,
reducing movement.
 Disadvantages: High level of planning
control required.
Facility Layout in Service Organizations
Service organizations use product,
process, cellular, and fixed-position layouts to
organize different types of work.
Process Layout – services that
need the ability to provide a wide
variety of services to customers
with differing requirements
usually use a process layout.
Examples: Libraries, hospitals, insurance
companies.
 Product Layout – service
organizations that provide highly
standardized services tend to
use product layouts.
Examples: Restaurant kitchens

Designing Product Layouts
Assembly Line – a product layout dedicated to
combining the components of a good or service
that has been created previously.
 Examples: Automobile assembly, Subway
sandwich shops, insurance policy
processing
Assembly line balancing – a technique to
group tasks among workstation has-in the ideal
case- the same amount of work.
 Required information:
1. The set of tasks to be performed and
the time required to perform each
task.
2. The precedence relations among the
tasks– that is, the sequence in which
tasks must be performed.
3. The desired output rate or forecast of
demand for the assembly line.
Cycle time – the interval between successive
outputs coming off the assembly line.
Process Selection – refers to the way an
organization chooses to produce its goods or
services.
 Process selection refers to deciding on the
way the production of goods or services will
be organized.
 Processes convert inputs to outputs; they
are the core of operations management.
 It takes into account:
o Selection of technology,
o Capacity planning
o Layout of facilities, and
o Design of work systems.
Basic Processing Types
a. Job Shop: Usually operates a relatively
small scale. It is used when a low
volume of high-variety goods or services
will be needed. High flexibility and
skilled workers are necessary.
 Companies choosing a job process
often bid for work. Typically, they make
products to order and don’t produce
them ahead of time. The specific
needs of the next customer are
unknown, and the timing of repeat
orders from the same customer is
unpredictable. Each new order is
handled as a single unit— as a job.
 A job shop is a type of manufacturing
process in which small batches of a
variety of custom products are made.
 However, examples of job shops
include a wide range of businesses—a
machine tool shop, a machining
center, a paint shop, a commercial
printing shop, and other
manufacturers that make custom
products in small lot sizes.
 Examples: Veterinarian Office, Print
Shop
b. Batch Shop: Used when a moderate
volume of goods or services are
needed. The skill level of workers need
not be as high, and equipment need not
be as flexible.
 Products are produced in batches, for
example, to fill specific customer
orders. A batch process executes
different production runs for different
products.
 The disadvantage is the setup time
required to change from one product
to the other, but the advantage is that
some flexibility in product mix can be
achieved.
 Batch production refers to a method in
manufacturing in which products are
created as specified groups, or
amounts, that each go through a
series of steps to make the desired
product. This type of production is
created within a time frame and is
used to guarantee specific quality
changes.
 At a local sandwich shop, they
prepare the cookies for each day by
dropping pieces of dough onto cookie
sheets and placing the sheets in an
oven. A day's supply of fresh cookies
 is available as a batch, in just a little There is no choice: electricity must be
while. generated continuously.
 Examples: Bakeries, movie theaters,  In other cases, the equipment used for
and airlines. manufacturing the product requires
c. Repetitive/Assembly Line: Used when continuous operation, to stay profitable.
high volumes of standardized goods or  This is the case with paper making. Starting
services are needed. Slight flexibility of up a paper machine takes a lot of time and
equipment is needed. The skill of produces a lot of waste. Once the machine
workers is relatively low. This process is running, though, it can continue to
type is often referred to as an assembly. produce quality paper without downtime or
 An assembly line processes work in excessive waste. As a result, paper
fixed sequence. However, the assembly machines nearly always run 24 hours a day,
line connects the activities and paces 7 days a week. If demand drops, they'll shut
them, for example, with a conveyor belt. down the least efficient machine or a
A good example of an assembly line is machine already scheduled for
an automobile plant. maintenance.
 An assembly line is a production
Continuous production – operating 24/7, is
process that breaks the manufacture of
perfect for a product for which there is a high
a good into steps that are completed in
demand, or for products that are very similar
a pre-defined sequence. Assembly lines
and are made in a similar manner. Many plastic
are the most commonly used method in
and resin products need to be produced in
the mass production of products. They
large quantities. This used to be done using
reduce labor costs because unskilled
batch production. However, newer technologies
workers are trained to perform specific
for injection molding have made continuous
tasks.
production possible. The result has been
 Assembly lines are common methods of
improved efficiency for producing plastic parts.
assembling complex items such as
automobiles and other transportation  Examples: Oil Refinery, Power Plant
equipment, household appliances and
electronic goods. Process Selection/ Design and System
 Can be a straight-line layout or u- Design Analysis
shaped layout.
 Examples: TVs, cellphones,
automobiles, and computers.
d. Project Shop: Used for nonroutine
work, with a unique set of objectives to
be accomplished in a time frame.
 costly
 In a project, the inputs are brought to
the location as they are needed; there
is no flow in the process.
 The project shop has all manufacturing
in one location. All material and
information have to come to this
location, and the finished product is
then completed at this location.
 Project manufacturing is an operation Forecast
designed to produce large, expensive,
specialized products such as custom o A statement about the future value.
homes, defense weapons such as o Better those predictions more informed
aircraft carriers and submarines, and the decisions are.
aerospace products such as passenger Product and Service Design
planes, and the Space Shuttle.
 Examples: building construction, house o Translate customer wants and needs
construction, putting on a play, into products.
publishing a book, and building a o Formulate cost targets.
bridge. o Formulate quality goals.

 There are some products that, to be Technological Change

practical, must be made continuously. In the o Process selection also involves
example of electricity, people use it all the introducing the advancements in the
time, but it cannot be efficiently stored. equipment.
 o Documentation consists of: process
input, supplier, output, and customers.

Capacity Planning
 Evaluate Performance
o Process of determining the production
o It is important to have good measures to
capacity needed by an organization to
evaluate a process.
meet changing demands.
o Metrics are the performance measures
Facility Layout for the process and steps within it.
 Redesign Process
o Process by which the placement of
o Metrics should uncover the gaps or
departments and workgroup within a
disconnects.
facility are determined.
o Redesign = new process +
Work Design documentation of current process.
o Work design defines a product’s Process Redesign – the approach to ensuring
characteristics of: that a particular set of interconnected activities
 Appearance, are performed correctly, and in the most
 Materials, efficient and effective manner possible.
 Dimensions,
 Implement Changes
 Tolerances, and o Implementation is more than just
 Performance standards.
developing a plan and carrying it out.
Process Design – at the heart of operations 7 Types of Process Redesign/Process
management. It is the process of creating and Improvement Methodologies
improving systems that convert inputs into
outputs. Process design involves 1. Six Sigma Methodology
understanding how work is done within an 2. Total Quality Management (TQM)
organization and then designing and 3. Lean Manufacturing
implementing ways to improve it. 4. Continuous Improvement (kaizen)
5. Plan Do Check Act (PDCA)
 Step 1. Define the Problem. 6. Whys analysis
 Step 2. Collect Information. 7. Business Process Management (BPM)
 Step 3. Brainstorm & Analyze Ideas.
 Step 4. Develop Solutions/Build a Model. A Systematic Approach to Process Analysis
 Step 5. Present your Ideas to Others for
 Suggestion system
Feedback.
 Design team
 Step 6. Improve your Design.
 Metrics
Various aspects in product design.  Flowcharts
1. Design for function  Service Blueprint
2. Design for making Process: Flow Chart Symbols
3. Design for selling
oval start, end
Process Analysis – the documentation and rectangle task or work activity
detailed understanding of how work is triangle waiting time, quality
performed and how it can be redesigned. cheking
square application/requirements
 Identify opportunity
arrow movement, transfer
o Managers must pay attention to 4-core
double- input or arrival into
processes: headed process
1. Supplier relationship arrow
2. New Product Development (NPD) broken not directly but possible
3. Order fulfillment lines to do, what ifs
4. Customer relationship diamond results in taking
 Define scope alternative paths
o It establishes the boundaries of the
process to be analyzed.
o The resources that management assign
to improve or reengineer the process
should match the scope of the process.
 Document Process
o Analyst should document the process.