Process technology
Source: Corbis/Louis Psihoyes
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Process Technology
• Process technology
– Direct Process technology
– Indirect process technology
– Integrating technologies
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Whenever your are in process of
purchasing technology
• Questions?
– What does the technology do?
– How does it do it?
– What are benefits?
– What are the constraints?
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Cows are also customers
1. What advantages do you think the technology described above gives?
2. Do you think the cows mind?
3. Why do you think the farmer still goes to watch the process?
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Process Technologies
• Material – processing technologies
• Information Processing Technologies
• Customer Processing Technologies
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Material Processing Technology
• CNC – Computer numerically controlled
machine tools
• Robots
• AGV – Automatic guided vehicles
• CIM – Computer integrated manufacturing
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Robots are used in this example because of the hazardous environment
in which the tasks take place
Source: Corbis/Yiorgos Karahalis
What other examples can you think of where the safety of operators is the major
motivation for investment in robot technology?
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Information Processing Technology
• IT
• Centralized and decentralized processing
• LAN
• WAN
• Extranet
• Internet
• E-Business
• M-Business
• MIS
• Expert System
• Decision support system
• Bar Codes
• RFID
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Technology and processing costs
Cost per banking transaction
100%
100%
80%
60%
50%
40%
25%
20%
12%
Branch Telephone Cash Internet
machine
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Network translates ePC code
into useful information that can
be used for monitoring and
process control
Internet or other
network
Smart Tag, microchip
with antenna that
transmits ePC code
Control system
F132.C225.DF2B12CV
Reader senses item and
ePC Code, a unique transmits ePC code to
number 96 bits long network
Operations Process
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Customer Processing Technology
• Technology involving customer interaction
• Technology with an intermediary
• Customer training
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Active interaction with technology
Customer Technology
Examples
Personal communications
Internet-based ordering
Cash machines
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Passive interaction with technology
Customer Technology
Examples
Transport systems
Theme park rides
Car wash
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Hidden interaction with technology
Customer Technology
Examples
Security cameras
Retail scanners
Credit card tracking
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Use of technology through an intermediary
Customer Technology
Intermediary
Examples
Call centre technology
Travel agent booking system
Hotel reservation system
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Customer processing technologies
Customers
Back-office Front-office
Front-office
Back-- office technology with Front-office
technology links to the technology
back-office
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
QB House speeds up the cut
“Why not create a no-frills barber shop
where the customer could get a haircut in
ten minutes at a cost of 1,000 yen?”
1. How does QB House compete
compared with conventional
hairdressers?
2. In what way does technology help
QB House to keep its costs down?
Source: Andy Maluche/Photographers Direct
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Categorizing process technologies
Process technologies can be categorized using
three dimensions:
the extent to which they vary in their degree
of automation
Source: Jonathan Roberts
the extent to which they vary in their scale
the extent to which they vary in their degree of
integration
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Different process technologies are appropriate for different
volume–variety combinations
Scale/ Coupling/ High Variety Low
Automation
scalability connectivity
Low Volume High
Low Low Broad/
Manual, general-
unconstrained purpose, small-
scale, flexible
technology
Automated,
dedicated, large-
scale, relatively
High High Narrow/ inflexible
constrained technology
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Choice of Technology
• Market requirement evaluation
• Operations resource evaluation
• Financial evaluation
Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
