OPERATIONS MANAGEMENT

LESSON OBJECTIVES

 At the end of the lesson, the students should be able to:

 How technology has changed production methods.

 HOW TECHNOLOGY HAS CHANGED PRODUCTION METHODS

 Automation is where the equipment used in the factory is controlled by a

computer to carry out mechanical processes, such as paint spraying on a
car assembly line. The production line will consist mainly of machines and
only a few people will be needed to ensure that everything proceeds
smoothly.
HOW TECHNOLOGY HAS CHANGED PRODUCTION METHODS

 Mechanisation is where the production is done by machines but operated by

people, for example, a printing press.
 Robots are machines that are programmed to do tasks, and are particularly
useful for unpleasant, dangerous and difficult jobs.
 They are quick, very accurate and work non-stop 24 hours a day.
HOW TECHNOLOGY HAS CHANGED PRODUCTION METHODS

 CAD (computer aided design) is computer software that draws

items being designed more quickly and allows them to be rotated to
see the item from all sides instead of having to draw it several times.
 It is used to design new products or to re-style existing products.
 It is particularly useful for detailed technical drawings.
HOW TECHNOLOGY HAS CHANGED PRODUCTION METHODS

 CAM (computer aided manufacture) is where computers monitor the production

process and control machines or robots on the factory floor.
HOW TECHNOLOGY HAS CHANGED PRODUCTION METHODS

 CIM (computer integrated manufacturing) is the total integration of

computer aided design (CAD) and computer aided manufacturing (CAM).

 The computers that design the products are linked directly to the computers that
aid the manufacturing process.

 Technology has also improved productivity in shops with electronic payment

methods and scanners at the tills.
HOW TECHNOLOGY HAS CHANGED PRODUCTION METHODS

 EPOS (electronic point of sale). This is used at checkouts where the operator
scans the bar code of each item individually.

 The price and description of the item is displayed on the checkout monitor and
printed on the till receipt.
HOW TECHNOLOGY HAS CHANGED PRODUCTION METHODS

 EFTPOS (electronic funds transfer at point of sale).

 This is where the electronic cash register is connected to the retailer’s main
computer and also to banks over a wide area computer network.

 The money will be directly debited from the customer’s account after they have
signed for the debit to be made or have entered their PIN (personal
identification number).
ADVANTAGES OF NEW TECHNOLOGY

 Productivity is greater as new production methods are used.

 Greater job satisfaction stimulates workers, as routine and boring jobs are now
done by machines.

 The types of jobs have changed as more skilled workers are needed to use the
new technology.
AVANTAGES OF NEW TECHNOLOGY

 Better quality products are produced owing to better production methods and
better quality control.

 More accurate consumer demand results from computers being used to monitor
inventory levels.
AVANTAGES OF NEW TECHNOLOGY

 Quicker communication and reduced paperwork, owing to computers, lead to

increased profitability.

 The information that is available to managers is much greater and this results in
better and quicker decision making.

 New products are introduced as new methods of production are introduced. The
market and tastes of the consumer have changed.
THE DISADVANTAGES OF NEW TECHNOLOGY

 Unemployment rises as machines/computers replace people on the factory floor

and in offices.

 It is expensive to invest in, which also increases the risks as large quantities of
products need to be sold to cover the cost of purchasing the equipment.
THE DISADVANTAGES OF NEW TECHNOLOGY

 Employees are unhappy with the changes in their work practices when new
technology is introduced.

 New technology is changing all the time and will often become outdated quite
quickly and need to be replaced if the business is to remain competitive.