Operations Strategy - Process Technology Strategy

Information about Operations Strategy - Process Technology Strategy

Published on July 22, 2014

Author: sujith5989

Source: authorstream.com

Content

Operations Strategy 5a: Operations Strategy 5a Process Technology Strategy Ch 5 Slack & Lewis Process Technology: Process Technology Process technology is the appliance of science to any operations process. It is distinct from product and service technology. In service operations it is difficult to distinguish process from product/service technology Direct or Indirect process technology Manufacturing & service opns rely on indirect process technology – information technology Material, Information, Customer processing PowerPoint Presentation: Resource usage Issues covered in this chapter Development And Organisation Decision areas Capacity Supply network Market competitiveness Issues include, Characterising process technologies. Understanding the general characteristics of process technologies over time. The effect of new forms of technology on performance. Evaluating process technology. The impact of process technology on performance objectives. Process Technology definition and characteristics Quality Performance objectives Dependability Speed Flexibility Cost Process Technology Strategy: Process Technology Strategy Process technology strategy is defined as the set of decisions that define the strategic role that direct and indirect process technology can play in the overall operations strategy of the organization and sets out the general characteristics that help to evaluate alternative technologies. Process Technology Strategy: Process Technology Strategy What does the technology do which is different from other similar technologies? How does it do it? What constraints does using the technology place on the operation? What skills will be required from the operations staff in order to install, operate and maintain the technology? What capacity does each unit of the technology have? What is the expected useful lifetime of the technology? Process Technology Strategy: Process Technology Strategy Process technology should reflect volume and variety High variety low volume process technology that is general purpose with wide range of processing activities that high variety demands High volume low variety process technology that requires narrow range of processing & high volume Spectrum from general purpose to dedicated technology Scale & Scalability Automation Coupling & Connectivity Scale and Scalability: Scale and Scalability Factors that affect scale of process technology What is the capital cost of technology? Can the process technology match the demand over time? How vulnerable is the operation ? What scope exists for new technological developments? Scale and Scalability: Scale and Scalability Scalability is the ability to shift to a different level of useful capacity quickly, cost-effectively and flexibly. This is true for product manufacture where the process technology is customer facing and demand is uncertain and variable. Less capacity may lead to customer dissatisfaction High capacity means excess invested capital to serve few customers Critical drivers of scalability The system architecture Underlying process standardisation PowerPoint Presentation: Few, large units of process technology Many, small units of process technology Scale/Scalability High Low Scale issues… Higher capital costs Economies of scale Vulnerable to failure ‘All or nothing’ change Scaleability issues… Customised, legacy systems Specific expertise required Idiosyncratic processes In-house development Scale issues… Lower capital costs Demand matching Failure redundancy Upgrading easier Scaleability issues… Reliable architecture Dispersed system skills Standard processes Outsourced? Scale and scalability are important characteristics of technology Automation and Analytic content: Automation and Analytic content Degree of automation of technology is the relative balance between human intervention and the technological effort. Low automation means higher direct costs and automated process leads to lower direct costs Factors to be considered are : What degree of support is required? The cost of maintaining the automatic system may be much costlier than the direct labor replaced. How flexible is the process? How dependable is the process? Is the system robust? Automation and Analytic content: Making a choice between the power, speed and general physical abilities of automation against flexible, intuitive and analytic abilities of human beings. The characterizing dimension for technology that can cope with increasingly complex tasks is the degree of analytical content that the system can bring to bear on a task. (Eg. Vending machines) The drivers are : The amount of parallel processing required The level of customer interaction Automation and Analytic content PowerPoint Presentation: Automation and ‘Analytical content’ are important characteristics of technology Process (technology plus humans) has low acuity and judgement Process (technology plus humans) has high acuity and judgement Automation issues… What degree of support is required? How flexible is the process? How dependable is the process? Analytical content issues… Higher capital cost Parallel processing Complex connectivity Automation issues… Higher direct costs Human control and judgement Human creativity Analytical content issues… Lower capital cost Simple sequential rules Often single point of connection Automation/‘Analytical content’ High Low Coupling and Connectivity: Coupling and Connectivity Process technologies are being coupled together for cost and quality advantages – the benefits are derived from the integration (coupling) of activities that were previously separated. Coupling could be physical links between equipments (robot moving semi finished jobs between machines) or merging of managerial tasks. Integration of separate processes involve high capital costs but close coupling can lead to synchronization reducing WIP and costs. Coupling and Connectivity: Coupling and Connectivity Coupling in information processing technology meant hard wiring two disparate processes Viable for high volumes, lacked flexibility for variety Platform independent systems allow entities to communicate irrespective of their specifications allowing greater degree of Connectivity Connected IT systems have to access to a common data portal for real time information Drivers of Coupling and Connectivity Hardware development and Software development PowerPoint Presentation: Coupling and connectivity are important characteristics of technology Technology is integrated Technology is separated Coupling issues… High capital costs Better synchronisation System efficiency Connectivity issues… Platform independence Bandwidth available Reliable middleware Coupling issues… Lower capital costs Fragmentation or flexibility? System robustness Connectivity issues… Customised, legacy systems Hard-wired Restricted access Coupling/Connectivity High Low Speed or rigidity? Security concerns Control flexibility Product Process Matrix: Product Process Matrix All three technology dimensions are related Larger the unit of capacity, more it is capital than labour intensive; More opportunity for coupling of its various parts For standardised, low cost, high volume products requiring less flexibility Small scale technologies, highly skilled staff, tend to be more flexible; High degree of product variety or service customisation The three technology dimensions may be related, they do not match perfectly PowerPoint Presentation: The three dimensions of process technology are often closely linked Few, large units of process technology Many, small units of process technology Process (technology plus humans) has low acuity and judgement Process (technology plus humans) has high acuity and judgement Technology is integrated Technology is separated High Low SCALE High Low AUTOMATION High Low COUPLING Cost performance Flexibility performance Characteristics of Process Technology affect cost and flexibility

Related presentations


Other presentations created by sujith5989

Crossing the Chasm  - Examples
27. 05. 2014
0 views

Crossing the Chasm - Examples

Starbucks Entry in India
27. 05. 2014
0 views

Starbucks Entry in India

Operations Strategy Introduction
22. 07. 2014
0 views

Operations Strategy Introduction