Chapter 9 – Key Questions

• Why invest in process technology?

• How can process technology be

evaluated (in terms of its affect on
strategic performance, capability
development, etc.)?

• What factors drive the successful

implementation of process
technology?

© Nigel Slack and Michael Lewis 2003

 Chapter Topics
Resource Usage

Issues include:

Market Competitiveness
• Internal and external
Quality ‘drivers’ of process
Performance

technology investment
Objectives

Speed • The impact of

process technology
Dependability on performance
objectives
Flexibility
• Process technology
as strategic resources
Cost
• Implementing new
process technologies

Supply Process Technology Development

Capacity choice and and
Network
implementation Organization
Decision Areas

© Nigel Slack and Michael Lewis 2003 Slide 9.1

 Drivers of Investment in New Technology

Supply side drivers of Internal drivers Demand side drivers

new process of new process of new process
technology technology technology

Process life cycle Issues include: Issues include:

issues which include:
Integration Evolving customer
Technology opportunity needs
Disintermediation
Limits to technological Competitor behaviour
development Overcoming
geographical
Learning and capability constraints
building over time

© Nigel Slack and Michael Lewis 2003 Slide 9.2

 Technology ‘S’ curves

A
S-curve 1 S-curve 2
(for “old” (for “new”

Return
Return

technology) technology)

Effort / Time Effort / Time

© Nigel Slack and Michael Lewis 2003 Slide 9.3

 Evaluating Process Technologies
Proposed Process
Technology

FEASIBILITY ACCEPTABILITY VULNERABILITY

Can we adopt it? What do we get if we What could go wrong
adopt it? if we adopt it?

What INVESTMENT What RETURN What RISKS

both financial and will it give in terms of do we run if things go
managerial will it financial consequences, wrong?
need? market requirements and
operations resource
capabilities?

© Nigel Slack and Michael Lewis 2003 Slide 9.4

 Acceptability of a Process Technology
Operations Resource Market
Capabilities Requirements
Is the process How does the process
technology: Proposed technology affect:
Process
Scarce? Technology Quality?
Difficult to move? Speed?
Difficult to copy? Dependability?
Difficult to Flexibility?
substitute for? Cost?

Financial Evaluation
Does the process
technology give an
acceptable return on
the investment
necessary for its
adoption?

© Nigel Slack and Michael Lewis 2003 Slide 9.5

 Extent of Resource and Process Distance
(How much change?)

Resource Distance
Current Minor Simple Significant Pioneering
technological technological technological technological technological
resource base modification extension development innovation

Process Distance
Current Minor Simple Significant Pioneering
operations process process process process
processes modification extension development innovation

© Nigel Slack and Michael Lewis 2003 Slide 9.11

 Resource and Process Distance
Learning Range

zero
Process Distance

learning
potential

strong
learning
potential

Resource Distance

© Nigel Slack and Michael Lewis 2003 Slide 9.12

 Overcoming Resource
Distance
• Effective Project Management
• Use of Pilot Operations
• Upgrading Over Time

© Nigel Slack and Michael Lewis 2003

 Overcoming Process
Distance
• Involving Users
– Subject Matter Experts
– Representatives
– Willingness

© Nigel Slack and Michael Lewis 2003

 Successful Implementation of
Process Technology Requires

• Understanding the degree of change

• Involvement of key stakeholders
– Top management sponsors
– Key users involved in project design
– Key technical resources
• Clearly documented project documentation
• Clearly defined performance objectives
• Communication strategy

© Nigel Slack and Michael Lewis 2003

 Chapter 9 – Key Questions
• Why invest in process technology?

• How can process technology be

evaluated (in terms of its affect on
strategic performance, capability
development, etc.)?

• What factors drive the successful

implementation of process
technology?

© Nigel Slack and Michael Lewis 2003

 Chapter 9 – Key Questions
Why invest in process technology?
• Market side pressure to improve
operations
• Enhanced performance objectives
(quality, speed, dependability, flexibility,
cost)
• Long-term capability improvements
• Long-term capacity management

© Nigel Slack and Michael Lewis 2003

 Chapter 9 – Key Questions
How can process technology be
evaluated (in terms of its affect on
strategic performance, capability
development, etc.)?
• Feasibility – can we adopt it?
• Acceptability – what do we get if we
adopt it?
• Vulnerability – what could go wrong if
we adopt it?

© Nigel Slack and Michael Lewis 2003

 Chapter 9 – Key Questions
What factors drive the
successful implementation of
process technology?
• Understanding the degree of change
• Involvement of key stakeholders
• Clearly documented project
documentation
• Clearly defined performance objectives
• Communication strategy

© Nigel Slack and Michael Lewis 2003