Technology in Operations

What this topic is all about

• Main types of technology• How technology supports

the effective management of operations

• The link to productivity & quality

Main Types of Technology

• Robots• Stock control / sales order fulfilment

programs• Automation• Design software systems• Communications

Robots

• Widely used in manufacturing• Advantages

– Speed, accuracy & efficiency– Reliable quality + less waste– Handle boring, repetitive or hazardous

tasks– Reduce unit costs (productivity)

• Disadvantages– Up-front investment– De-motivating for displaced staff

Automated stock control programs

• Integrated software and hardware used to monitor the quantity, location and status of stocks

• Stock control systems are also used to automate a sales order processing

Automated production

• Production processes and procedures that are performed by machines

• Reduces human intervention to a minimum

• Used to regulate workflows• Not just confined to factories –

any business process can potentially be automated (e.g. call handling, forms)

Automated stock control in action

See Inside the Amazon.co.uk Warehouse

Robots & Stock Control in Action

Watch the Sales Order Process at Dell (YouTube)

Production automation in action

Automation at the Goodfellas Pizza Factory (YouTube)

Communications

• Technology has revolutionalised business communications

• Significant implications for customer service & working more closely with suppliers

• Marketing processes now widely affected by technology (e.g. email promotion)

Communications – Mobile Technology

• Examples– laptop computers, PDAs – Smart mobiles / Blackberrys– GPS devices– Wireless / Bluetooth devices

• Benefits– Facilitates flexible working– Better customer service– Connects remote teams

Communications – Networks

• Examples– Local area networks (LANs)– Wide area networks (Wans)– Virtual private networks (VPNs)

• Benefits– Facilitates flexible working– Better customer service– Connects remote teams

Design technology – CAD/CAM

• Examples– Product design– Creative media– Design integrated into

manufacture– Product simulation

• Benefits– Speeds up R&D process– Virtual testing– Reduces costs

Test Your Understanding

http://www.tutor2u.net/business/quiz/technology/quiz.html

Technology in Operations