Chapter 8 - Process Technology

Operations Management and Process Technology

Process Technology
o The machines, equipment, and devices that create/deliver products
and services

What do Operations Managers Need to Know About Process Technology?

1 Need to understand the technology

Understanding Process Technologies - 4 Key Questions
1. What does the technology do that is different from other similar
technologies?
2. How does it do it?
3. What benefits does using the technology give to the operation?
4. What constraints or risks does using the technology place on the
operation?

Process Technology and Transformed Resources

i Material-processing technologies
Any technology that shapes, transports, stores, or in any way
changes physical objects
Ex. Trucks, conveyors, packing machines, warehousing systems
ii Information-processing technology
Any device which collects, manipulates, stores or distributes
information.
iii Customer-processing technology
Give an acceptable level of service while significantly reducing
costs

3 Types of Customer Processing Technologies

a Active Interaction technology
Customers themselves are using the technology to
create the service
Ex. ATMs, Cars, Telephones, Internet bookings and
purchases
b Passive interactive technology
They process and control customers by constraining
their actions in some way
Ex. Aircraft, Mass transport systems, walkways,
cinemas, theme parks
c Hidden technologies
Customers are not aware of them
Ex. Security cameras, surveillance equipment

i Integrating technologies
Process more than one type of resource
 Ex. EPOS

Emerging Technologies
i 3D Printing
ii Internet of Things
"A world where physical objects are seamlessly integrated into
the information network, and where the physical objects can
become active participants in the business processes."

Implications for Information and Analysis

Knowing where things are
Knowing what is happening
Knowing what to do

Implications for Automation and Control

Process Optimization
Processes that can be controlled can be more easily
optimized
Optimized Resource Usage
Knowing exactly how much resource is being used can
help in reducing costs
Fast Reactions
Rapid, real-time sensing of unpredictable
circumstances and immediate responses governed by
automated Systems

i Telemedicine
Medical staff no longer need to be physically present to examine
and diagnose a patient
3 Types of Telemedicine:
a. Store and Forward
Acquiring medical data and transmitting this data to a
medical specialist
b. Remote Monitoring
Monitor a patient remotely
c. Interactive Telemedicine
Real-time interactions between patient and provider

1 They should be able to evaluate alternative technologies

3 Sets of Criteria for Evaluation

1. Does the technology fit the processing task for which it is intended?
3 Dimensions of Process Technology
1 Degree of Automation
2 Scalability
Large-scale technologies can usually process items
cheaper (High Volume, Low Variety)
 Small-scale technologies are nimble and flexible (Low
Volume, High Variety)
3 Degree of Coupling
More suited to relatively High Volume, Low Variety

1 How does the technology improve the operation's performance?

Improve in terms of Quality, Speed, Dependability,
Flexibility, Cost

1 Does the technology give an acceptable financial return?

ROI should be greater than cost

1 They should be able to implement the technology

Resource Distance
The less the new technology is understood, the greater their distance
form the current technology resource base of the operation
Process Distance
The extent to which an implementation requires an operation to modify
its existing processes, the greater the process distance.
The greater the resource and process distance, the more difficult any
implementation is likely to be
Customer Acceptability
Complexity
Repetition
Variety of Tasks performed by the Customer