Operations Management (opm530) -c13 Technology Management

Operations Management Technology Management Chapter 13 Prepared by: Shatina Saad @ FPP

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Outline ♦ INTERNET ♦ DESIGN TECHNOLOGY ♦ PRODUCTION TECHNOLOGY ♦ TECHNOLOGY IN SERVICES ♦ INFORMATION SCIENCES IN OPERATIONS ♦ ENTERPRISE RESOURCE PLANNING (ERP)

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Learning Objectives When you complete this chapter, you should be able to : Identify or Define: ♦ ♦ ♦ ♦ ♦

The Internet Computer-aided design (CAD) Computer-aided manufacturing (CAM) Various production technologies Enterprise Resources Planning (ERP)

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Learning Objectives When you complete this chapter, you should be able to : Describe or Explain: The role of the Internet in Operations ♦ Virtual Reality in Operations ♦ Flexible Manufacturing Systems (FMS) ♦ Computer-integrated Manufacturing (CIM) ♦ Manufacturing uses of MIS ♦ How ERP works ♦ Advantages and disadvantages of ERP Systems OPM 533 Prepared by: Shatina Saad @ 13-4 ♦

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Technology ♦ Technology is not a cure-all, but managing technology is certainly a major ingredient in building firms with a future.

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Using the Internet ♦ Boeing & Lufthansa put maintenance info online for worldwide access ♦ Medical equipment manufacturer exchange 3D design info, in real time, with customers around the world ♦ Robotics manufacturer has web-enabled factory ♦ Master lock uses Internet to make info available to suppliers ♦ Ronald Tool Co. builds product from customer specs sent via the Internet ♦ Caterpillar Inc sells industrial parts through e-commerce OPM 533 ♦ State Prepared by: Shatina Saad @ Bank uses Street 13-6 the web to support FPP global customer relationships

Design Technology 1. Computer-Aided Design (CAD) ♦ Refers to the use of computers to interactively design products and prepares engineering documentation ♦ Extensions: Design for Manufacture and Assembly (DFMA) – enables testing of design integration before manufacturing ♦ 3-D Object Modeling – enables the models of the productOPM 533 Preparedbuilding by: Shatina Saadof @ small13-7 ♦

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Design Technology 2. Standard for the Exchange of Product Data (STEP) ♦ Standard for exchange of CAD data ♦ Includes 3-D CAD data ♦ Enhances collaboration using talent wherever it is in the world reducing design lead time and development cost Prepared by: Shatina Saad @ FPP

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Design Technology 3. Computer-Aided Manufacturing (CAM) ♦ Refers to the use of specialized computer programs to direct and control manufacturing equipment

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Design Technology Benefits of CAD/CAM ♦ Product quality ♦ Shorter design time ♦ Production costs reduction ♦ Database availability ♦ New range of capabilities ♦ Reduces need for “similar” parts

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Design Technology 4. Virtual Reality ♦ Enables creation of a “virtual model” ♦ Help test integration of design ♦ Enables users to “try product” before manufacturing (also enables customer to try product before purchase) Prepared by: Shatina Saad @ FPP

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Production Technology ♦ Numerically controlled machines ♦ Process control ♦ Vision Systems ♦ Robots ♦ Automated Storage and Retrieval Systems (ASRS) ♦ Automated Guided Vehicles (AGV) ♦ Flexible Manufacturing Systems (FMS) ♦ Computer Integrated Manufacturing OPM 533 Prepared by: Shatina Saad @ 13-12 (CIM) FPP

Production Technology 1. Numerical Control ♦ Numerical Control (NC) – machine can be controlled electronically ♦ Computer Numerically Controlled (CNC) – machine actually has its own microprocessor and memory ♦ Direct Numerical Control (DNC) – wired to a central computer Prepared by: Shatina Saad @ FPP

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Production Technology 2. Process Control ♦ Sensors, often analog devices, collect data ♦ Analog devises read data on some periodic basis, perhaps once a minute or once a second ♦ Measurements are translated into digital signals, and transmitted to a digital computer ♦ Computer programs read the file (the digital data) and analyze the data ♦ Output may be a: message on printer or OPM 533 Prepared by: Shatina Saad @ 13-14 FPP console, signal to a motor to change a

Production Technology 3. Vision Systems ♦ Combine video and computer technology ♦ Often used in inspection roles ♦ Consistently accurate, do not become bored, of modest cost

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Production Technology 4. Robots ♦ Machines that hold, move, or grasp items ♦ Perform monotonous or dangerous tasks ♦ Used when speed, accuracy, or strength are needed Prepared by: Shatina Saad @ 13-16 FPP

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Types of Robots

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Production Technology 5. Automated Storage and Retrieval System (ASRS) ♦ Provide for automated placement and withdrawal of parts and products into and from designated places in the warehouse. ♦ Particularly useful in inventory and test areas of manufacturing firms

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Production Technology 6. Automatic Guided Vehicles (AGV) ♦ Material handling machines ♦ Used to move parts & equipment in manufacturing ♦ May be used to deliver mail & meals in service Prepared by: Shatina Saad @ 13-19 FPP facilities

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Production Technology 7. Flexible Manufacturing Systems (FMS) ♦ Using automated machines (DNC) & materials handling equipment together ♦ Often connected to Prepared by: Shatina Saad @ 13-20 FPP centralized

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Production Technology FMS – Pros & Cons ♦ Advantages ♦ ♦ ♦

Faster, lower-cost changes from one part to another Lower direct labor costs Consistent, and perhaps better quality

♦ Disadvantages Limited ability to adapt to product mix changes ♦ Requires substantial preplanning and capital expenditures ♦ Technological problems of exact component positioning and precise timing ♦ Tooling OPM 533 Prepared by: Shatina Saad and@ fixture 13-21 requirements ♦

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Production Technology Flexible Manufacturing Systems (FMS)

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Production Technology 8. Computer Integrated Manufacturing (CIM)

♦ Manufacturing system that combines CAM with engineering (CAD), & production and inventory control ♦ Computer-aided design (CAD) creates code to Prepared by: Shatina Saad @ 13-23 FPP run DNC

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Equipment Options and Utilization

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Use of Information Technology at North American Manufacturing Plants

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Technology Impacts in Services

♦ Financial services ♦ Education ♦ Utilities and government ♦ Restaurants and foods ♦ Communications ♦ Hotels ♦ Wholesales/retail trade ♦ Transportation ♦ Health care ♦ Airlines Prepared by: Shatina Saad @ FPP

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Technology in Services Service Industry Financial services

Example

Education

Electronic bulletin boards, on-line journals

Debit cards, electronic funds transfer, ATMs, Internet stock trading

Utilities and government

Automated one-man garbage trucks, optical mail sorters, scanners, flood warning systems Restaurants Wireless orders from waiters to kitchen, and foods robot butchering, transponders on cars to track drive-thru Communicati Electronic publishing, interactive TV on Hotels Electronic check-in/check-out, electronic systems Wholesale/re key/lock Point-of-sale terminals, e-commerce, tail trade electronic communication between store and supplier, bar coded data Prepared by: Shatina Saad @ FPP

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Technology in Services Continued

Service Example Industry Transportatio Automatic toll booths, satellite-directed n navigation systems, route planning, progress monitoring Health care On-line patient monitoring, on-line medical information systems, robotic surgery, expert system diagnosis assistance Airlines

Ticket less travel, scheduling, Internet ticket sales, improved navigation and route planning

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DSS, MIS and Transaction Processing in Operations Management

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MIS and Transaction Processing in Operations Management

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Expert System ♦ Make decisions faster than the expert ♦ Derive the benefits of having the expert present ♦ Equal and surpass, at least in terms of consistency, the human expert ♦ Free the human expert for other work ♦ Can be disseminated to numerous OPM 533 Prepared by: Shatina Saad @ non-experts for education and 13-31 FPP

How an Expert Scheduling System Works

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To Gain Competitive Advantage Through Technology ♦ Have a strategic vision ♦ Plan for a distant time horizon ♦ Have a focused product line and know your product and customer ♦ Tie strong internal technical capabilities to your strategy ♦ Build learning organizations that can effectively implement the changes necessary for constructive use of technology Prepared by: Shatina Saad @ FPP

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Enterprise Resource Planning (ERP) ♦ Packaged business software systems that allow companies to: Automate and integrate the majority of their business processes ♦ Share common data and practices across the entire enterprise ♦ Produce and access information in a real-time environment ♦

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Example of an ERP Systems

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MRP and ERP Information Flows, Integrated with Other Systems

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Advantages of ERP ♦ Provides integration of supply-chain, production and administrative processes ♦ Creates commonality of databases ♦ Can incorporate improved, redesigned, “best processes” ♦ Increased communication and collaboration worldwide ♦ Helps integrate multiple sites and business units ♦ Is packaged with a software core that is off-the-shelf coding Prepared by: Shatina Saad @ 13-37 advantage over OPM 533 ♦ Can provide a strategic FPP

Disadvantages of ERP ♦ Is very expensive to purchase, and even more costly to customize ♦ Requires major changes in the company and its processes to implement ♦ Is such a complex program that many companies cannot adjust to it ♦ Involves an ongoing process for implementation, which is often never completed ♦ expertise in ERP is limited, with OPM 533 Prepared by: Shatina Saad @ 13-38 FPP staffing an ongoing problem