Chapter 8 Process Technology

Chapter 8
Process technology
Source: Corbis/Louis Psihoyes
Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Process technology
Process design
Source: Empics
Operations
Supply network design strategy
Layout Operations
and flow management
Design Improvement
Process Job
technology design Planning and
control
Product/service
design
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?
Technology and processing costs
Cost per banking transaction
100%
100%
80%
60%
50%
40%
25%
20%
12%
Branch Telephone Cash Internet

machine
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
Active interaction with technology
Customer Technology
Examples
Personal communications
Internet-based ordering
Cash machines
Passive interaction with technology
Customer Technology
Examples
Transport systems
Theme park rides
Car wash
Hidden interaction with technology
Customer Technology
Examples
Security cameras
Retail scanners
Credit card tracking
Use of technology through an intermediary
Customer Technology
Intermediary
Examples
Call centre technology

Travel agent booking system
Hotel reservation system
Customer processing technologies
Customers
Back-office Front-office
Front-office
Back-- office technology with Front-office
technology links to the technology
back-office
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?
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
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
Different process technologies are appropriate for different
volumevariety combinations
Scale/ Coupling/ High Variety High
Automation
scalability connectivity
Low Volume Low
Low Low Broad/
Manual, general-
unconstrained purpose, small-
scale, flexible
technology
Automated,
dedicated, large-
scale, relatively
High High Narrow/ inflexible
constrained technology
Key Terms Test
Process technology
The machines and devices that create and/or deliver goods
and services.
Indirect process technology

Technology that assists in the management of processes
rather than directly contributes to the creation of
products and services, for example information
technology that schedules activities.
Electronic point of sale (EPOS)

Technology that records sales and payment transactions as
and when they happen.
Key Terms Test
Computer numerically controlled (CNC) machine tools
Machines that use a computer to control their activities, as
opposed to those controlled directly through human
intervention.
Robots
Automatic manipulators of transformed resources whose
movement can be programmed and reprogrammed.
Automated guided vehicles (AGVs)

Small, independently powered vehicles that move material
to and from value-adding operations.
Key Terms Test
Flexible manufacturing systems (FMS)
Manufacturing systems that bring together several technologies into a
coherent system, such as metal cutting and material handling
technologies; usually their activities are controlled by a single
governing computer.
Computer-integrated manufacturing (CIM)

A term used to describe the integration of computer-based monitoring
and control of all aspects of a manufacturing process, often using a
common database and communicating via some form of computer
network.
Information technology (IT)

Any device, or collection of devices, that collects, manipulates, stores
or distributes information, nearly always used to mean computer-
based devices.
Key Terms Test
Distributed processing
A term used in information technology to indicate the use of smaller
computers distributed around an operation and linked together so
that they can communicate with each other; the opposite of
centralized information processing.
Local area network (LAN)

A communications network that operates, usually over a limited
distance, to connect devices such as PCs, servers, etc.
Ethernet
A technology that facilitates local area networks to allow any device
attached to a single cable to communicate with any other devices
attached to the same cable; also now used for wireless
communication that allows mobile devices to connect to a local area
network.
Key Terms Test
World Wide Web (www)
The protocols and standards that are used on the Internet
for formatting, retrieving, storing and displaying
information.
Extranets
Computer networks that link organizations together and
connect with each organizations internal network.
E-business
The use of Internet-based technologies either to support
existing business processes or to create entirely new
business opportunities.
Key Terms Test
E-commerce
The use of the Internet to facilitate buying and selling
activities.
Management information systems (MIS)

Information systems that manipulate information so that it
can be used in managing an organization.
Decision support system (DSS)

A management information system that aids or supports
managerial decision making; it may include both
databases and sophisticated analytical models.
Key Terms Test
Expert systems (ES)
Computer-based problem-solving systems that, to some
degree, mimic human problem-solving logic.
Bar code
A unique product code that enables a part or product type
to be identified when read by a bar code scanner.
Key Terms Test
Active interaction technology
Customer processing technology with which a customer
interacts directly, for example cash machines.
Passive interactive technology

Customer processing technology over which a customer
has no, or very limited, control, for example cinemas and
moving walkways.

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Chapter 8

Source: Corbis/Louis Psihoyes

Source: Corbis/Yiorgos Karahalis

Branch Telephone Cash Internet

Call centre technology

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

Why not create a no-frills barber shop

1. How does QB House compete

2. In what way does technology help

Source: Andy Maluche/Photographers Direct

Process technologies can be categorized using

the extent to which they vary in their degree

the extent to which they vary in their scale

the extent to which they vary in their degree of

Indirect process technology

Electronic point of sale (EPOS)

Automated guided vehicles (AGVs)

Computer-integrated manufacturing (CIM)

Information technology (IT)

Local area network (LAN)

Management information systems (MIS)

Decision support system (DSS)

Passive interactive technology

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