Organization Theory n Design

Manufacturing n service technologies

Ch-7

By Kaleem a. Barlas

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Learning Objectives • Core manufacturing technologies • Contemporary applications • Core organizational service technologies• Non-core departmental technologies • Departmental design• Work-flow indolence among departments • Impact of technology on job design

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Core manufacturing technologies Manu-technologies include traditional manufacturing, processes n

contemporary applications, such as flexible manufacturing n lean manufacturing. Research by Joan Woodward indicates

Manufacturing firms Technical complexities

High complexity; means most of the work is performed by machines

Low complexity; means workers play larger role in production process

She developed a scale of technical complexity n summarized it into ten categories

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Ten categories

1. Production of single piece to customers order

2. Production of technically complex unit one by one

3. Fabrication of large equipment in stages

4. Production of pieces in small batches

5. Production of components in large batches subsequently assembled diversely

6. Production of large batches assembly line type

7. Mass production

8. Continuous process production

9. Continuous process production in batches

10. Continuous flow production of liquids, gasses n solid

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Strategy, Technology, n Performance

Success of firms depends on;• Profitability • Market share • Stock price• Reputation

Strategy must therefore include”Alignment of structure, strategy n technology. Like IBM realigned their strategy

to compete against Dell n other PC venders by shifting from mainframe approach to PC n started developing new supply chain n out sourcing

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Contemporary Applications• New development in manufacturing technologies• Computers have revolutionized all types of manufacturing• Small batches • Large batches • Continuous processes • Needs highly trained n skilled employees• Wireless technology n radio-frequency systems are further

revolutionizing manufacturing• Automatic control systems are improving production• Mass production has lowered the cost of production

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Flexible Manufacturing Systems • New manufacturing technologies • Robots • Numerically controlled machine tools • Radio-frequency• Wireless technology• Computerized S/W for production n design • Re-engineering • Remote control machines• CAD/CAM/ • Integrated information network

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Flexible Manufacturing Systems Continued The ultimate automated factories are referred to as;• FMS (flexible manufacturing systems) • Computer integrated manufacturing• Smart factories• Advanced manufacturing technology• Agile manufacturing • Factories of the future•

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Lean Manufacturing Systems when flexible manufacturing reaches ultimate level to improve quality,

customers services, n cost controlling, and all parts are used interdependently n combined with flexible management processes the system is referred to as lean manufacturing.

Lean management uses highly trained employees in every stage of the production process

Dell is one of the most successful companies who uses this system of production for to make mass customized products to satisfy their customers

Mercedes Benz is an other co. which is adapting to this strategy

YOU sleeping wake up

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The advantage of flexible manufacturing is that different sizes, types n customers requirements can be freely fulfilled.

Bar codes on parts enable machines to make changes

A manufacturer can turn out infinity variety of products in unlimited batch sizes

Machine utilization is more efficient

Labor productivity increases

Scrap rates decrease

Customer satisfaction increases

Performance n Structural implications

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Core Organizational Service Technology

An other change occurring in the technology of orgs. Is the growing service sector. Percentage of workers in the manufacturing sector is reducing and in service sector it has increase three times more in the recent past such as hospitals, hotels, banking, tele. communications etc.

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Service Firms

Manufacturing orgs. Achieve their goals through production of products n service orgs through production of services. Such as education, health, banking etc.

Service industry produces intangible out-put as against tangible by manufacturing.

Services are perishable n can not be stored, services are produced n consumed.

Services are produced on request only. Like dentistry

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New directions in services • Customized • Can not be replicated • Can not be separated from the producer• Are used to promote products like advertising

Designing the service orgs.

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The feature of service orgs structure :• Close to customers• Separate boundary roles• Geographical dispersion• Decision making• Formalization • Employee skill level• Skill emphasis• Service technology• Freedom of DM

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Continued • Strategy , structure n

management processes are different than manufacturing

• Manufacturing firms must also understand service technologies to create user friendly products

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Non-core Departmental technology• Each dept. has distinct technology for

production processes • R&D• HR• Advertising• Quality Control• Finance • Marketing, sales, n so on

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VarietyWhether processes are

performed the same way every time or differ from time to time as employees as employees transform inputs into outputs

Repetitive jobs contain little variety

Dimensions of departmental activities

Analyzability

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The second concern is the ability to analyze work activities

• Problem solving • Computational procedure• Standard procedures• Instructions and manuals• Causes n symptoms of

problems• Judgments n decision

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Department design

Mechanistic structureRoutine technologies

Organic structureNon-routine technologies

Are associated with this structure.

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Departmental Management • Formalization • Decentralization• Worker skills level • Span of control • Communications • Coordination• Integration

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Workflow Interdependence among depts.

Types Pooled like sub-way restaurants

Sequential one department’s out put is

other depart. In-put

Resciprocal

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continued

Reciprocal like in hospitals

Structural Priority Must consider DM, Communication, n

coordination. Its necessary in reciprocal structure n in NPD dept. like CAD/CAM

These units should report to same person for effective ops.

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Structural Implications • Manual adjustments • Planning• Standardization• Interdependence• Information sharing

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Impact of technology on job design

• Repetitive job become boring• Job rotation over comes it• Variety of tasks• Mass production leads to job

simplification• Job enrichment leads to employee

growth • Technology takes over the jobs like

ATMS • Leads to training in advance

technologies

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Socio-technical Systems

The socio-technical systems approach means interaction between man and technology. Which needs job designing in by combining the needs of people with the organization’s needs fore technical efficiency

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Assignment 2

Briefly discuss flexible manufacturing systems