Manufacturing and Service Technologies

Manufacturing and Service Technologies

Prepared by: Dr Amjad HamoriMr. Samer Dofash

Why to use Tech.?

•To be effective•To improve efficiency •To gain new competitive advantage• improve productivity•To reduce cost

What is Technology

• Technology refers to the work on input: 1)materials

2)information

3)ideas

Through tools:1)process

2)techniques

3)action

To transform it in Outputs

input

Output

process

Kinds of Tech.

• Core Technology: is the work process that is directly related to

the organization mission• Non-core Technology: is a department work process that is

important to the organization but not directly related to its primary mission

Kinds of core Tech.

• Core Technology: o Core manufacturing techo Core service tech.

Core Transformation Process for a Manufacturing Company

1. Manufacturing process2. Contemporary applications3. Flexible &lean manufacturing

Core Manufacturing Technology include :

Manufacturing Firms

• Technical complexity defines the extent of mechanization of the manufacturing process

• Three basic technology groups defined by Woodward:– Small-batch and unit production– Large-batch and mass production– Continuous-process production

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Manufacturing process

• Woodward scale organization according to technical complexity of the manufacturing process.

• Technical complexity : the extent of mechanization of manufacturing process.

• High tech. complexity= most of work is performed by machine• Low tech. complexity= workers play a larger role in production

• Woodward scale ten categories consolidated in three groups as flowing :

Analyzed Technical Complexity

• Three Groups1. Small-batch and unit production2. Large-batch and mass customization

production3. Continuous process production

Small-batch and unit production

• Manufacture small order to meet specific needs• Custom work is the norm• Relies heavily on human operator• Not highly mechanized• Highly skilled human operator• Sophisticated computerized machinery is to used for

the production process

Large-batch and mass customization production

• Long production runs• Standard parts• Output goes to inventory• Customer do not have special needs

Continuous process production

• Entire process is mechanized• There is no start point or stopping• Mechanization& standardization• Machines control process• Outcome highly predictable

Woodward’s Classification Based on System of Production

Continuous process Mass production Unit production

Structural characteristic

high medium low Management level

low high medium Supervisor

1:1 4:1 9:1 Direct/ indirect

high medium low Manager/total personnel low low high skills

low high low Formalization procedures low high low centralization

High low high Verbal communicationlow high low Written communicationorganic mechanistic organic Overall structure

Relationship between Technical Complexity and Structural Characteristics

Strategy, Technology, and Performance

• Strategy, structure, and technology need to be aligned

• Successful firms have complementary structures and technologies

• Failing to adopt a new technology or failing to realign strategy can lead to poor performance

• Manager should always remember that tech. and HR of organization are intertwined

Global Competition

• Unstable market• Short product cycle• More sophisticated and

knowledgeable consumer

• Flexibility to meet demand is a must

1. Manufacturing process2. Contemporary applications3. Flexible &lean manufacturing

Core Manufacturing Technology include :

Contemporary applications

Tow basic significant Contemporary applications for manufacturing tech.1. Flexible manufacturing system(FMS)

Computer-aided design(CAD)Computer-aided manufacturing(CAM)Integrated information network Product life-cycle Management (PLM)

2. Lean manufacturing

1. Manufacturing process2. Contemporary applications3. Flexible &lean manufacturing

Core Manufacturing Technology include :

Flexible manufacturing system(FMS)

Computer-aided design(CAD): computer are used to assist in the drafting, designing, and engineering of new part.

Flexible manufacturing system(FMS)

computer-aided manufacturing(CAM):» computer controlled machines in Materials

handling, fabrication. production., production, and assembly greatly increase the speed of manufacturing.

» Permits a production line to shift rapidly from producing one product to any variety of other products

» Quick fill customer request .

Flexible manufacturing system(FMS)

Integrated information network : » computerized system link all aspects of firm .» Enable manager to make decision

Flexible manufacturing system(FMS)

Product life-cycle Management (PLM): software can manage a product from idea through development, manufacturing, testing, and maintenance.

advantages:1)store data from each dep.2)link product design to all dep.3)provide 3D images of new product

Lean Manufacturing

• Highly trained employees at every stage of production (the heart is people)

• Cut waste and improve quality• Incorporates technological elements• Paved the way for mass customization

– Using mass-production technology to quickly and cost-effectively assemble individual goods for customers

1. Manufacturing process2. Contemporary applications3. Flexible &lean manufacturing

Core Manufacturing Technology include :

Flexible Manufacturing Technology vs. Traditional Technologies

Performance and Structural Implications

Flexible manufacturing allows diverse products to be made on one assembly line

Computer-aided craftsmanship

More efficient

Increased productivity

Decreased scrap

Customer satisfaction

Comparison of Organizational Characteristics

Kinds of core Tech.

• Core Technology: o Core manufacturing techo Core service tech.

Core Organization Service Tech.

• Service technologies are different from manufacturing technologies and require different organizational design

• Education, health care, transportation, and banking all have unique dimensions

• Services have intangible output• Service is knowledge, idea, rather than physical product• Service do not exist until it is requested by customer • If it do not consumed immediately upon production it

will disappears

Core Organization Service Tech

• Knowledge intensive• High direct interaction with

customer • Quality of service can not

be measured• Rapid response to

customer• Located where customer

want

Core manufacturing tech• Capital intensive• Little direct interaction with

customer• Quality is measurable at

time• Response is longer is

acceptable• Located where company

think it have to

Core Organization Service Technology

Core Organization Service Technology

Trend Toward Lean Services

• Customer expectations are rising• Expectations have required that service firms

must become lean, too– Cut waste– Improve customer service

• Adopt continuous improvement approach

Designing the Service Organization

• Service organizations are not necessarily large• Often small locations, close to customers• Service organizations require technical core

employees – close to customer• Service customers interact directly with technical

employees• The skills of technical employees need to be high• Employees need knowledge, awareness, and

interpersonal skills• Decision making is often decentralized

Structural Characteristics of Service Organizations versus Product Organizations

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Kinds of core Tech.

• Core Technology: o Core manufacturing techo Core service tech.

Kinds of Tech.

• Core Technology: is the work process that is directly related to

the organization mission• Non-core Technology: is a department work process that is

important to the organization but not directly related to its primary mission

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Non-Core Departmental Technology

• Every department in an organization has a production process– Variety: frequency of unexpected and novel

events

– Analyzability: ability to apply standard procedures

• Routine vs. Nonroutine Dimension

• Engineering Technologies

• Craft Technologies

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Framework for Department Technologies

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Department Design

• Overall design is either organic or mechanistic• Design characteristics vary depending on work

unit– Formalization– Decentralization– Employee skill level– Span of control– Communication and coordination

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Relationship of Department Technology to Structural and Management Characteristics

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Workflow Interdependence Among Departments

• The extent to which departments depend on each other for resources or materials

• Low interdependence means that departments can do their work independently

• High interdependence means departments depend on each other

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Interdependence and Management Implications

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Interdependence of Departments Involved in the Flight Departure Process

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Structural Priority and Implications

Reciprocal interdependence should receive first priority

Reciprocal activities should be grouped together

Poor coordination will cause poor performance

Organizations should be designed to address interdependence

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Coordination for Interdependence

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Relationship of Interdependence and Team Play Characteristics

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Impact of Technology on Job Design

Technology impacts:1) Job Design2) Sociotechnical

systems

Job Design

Job Simplification

Job Rotation

Job Enrichment

Job EnlargementSociotechnical systems approach recognizes the interaction of technical and human needs

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Sociotechnical Systems Model

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Design Essentials

Key research notes that technology and structure can be co-aligned

Service technologies differ in a systematic way from manufacturing technologies

It is important to apply the correct management system to a department

Interdependence among departments dictates the amount of communication and coordination required in design

New technologies are enriching jobs to make organizations a happier place to work

Sociotechnical system theory attempts to design systems that meet technical and human aspects

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