Chapter 8
Process technology
Source: Corbis/Louis Psihoyes
Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Process technology
Operations
strategy
Supply network design
Layout
and flow
Process
technology
Design
Job
design
Product/service
design
Source: Empics
Process design
Operations
management
Improvement
Planning and
control
Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Source: Corbis/Yiorgos Karahalis
Robots are used in this example because of the hazardous environment
in which the tasks take place
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 5th 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
machine
Internet
Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Smart Tag,
microchip with
antenna that
transmits ePC
code
F132.C225.DF2B1
2CV
ePC Code, a
unique number
96 bits long
Network translates
ePC code into useful
information that can
be used for monitoring
and process control Internet or
other
network
Control
system
Reader senses
item and
transmits ePC
code to network
Operations Process
Slack, Chambers and Johnston, Operations Management 5th 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 5th 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 5th 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 5th 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 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Customer processing technologies
Customers
Back-office
Back-- office
technology
Front-office
Front-office
technology with
links to the
back-office
Front-office
technology
Slack, Chambers and Johnston, Operations Management 5th 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 5th 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 5th 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 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Different process technologies are appropriate for different
volumevariety combinations
Automation
Low
High
Scale/
scalability
Coupling/
connectivity
Low
Broad/
unconstrained
High
Narrow/
constrained
High
Variety
High
Low
Volume
Low
Manual, generalpurpose, smallscale, flexible
technology
Automated,
dedicated, largescale, relatively
inflexible
technology
Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key Terms Test
Process technology
The machines and devices that create and/or deliver goods
and services.
Indirect process technology
Technology that assists in the management of processes
rather than directly contributes to the creation of
products and services, for example information
technology that schedules activities.
Electronic point of sale (EPOS)
Technology that records sales and payment transactions as
and when they happen.
Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key Terms Test
Computer numerically controlled (CNC) machine tools
Machines that use a computer to control their activities, as
opposed to those controlled directly through human
intervention.
Robots
Automatic manipulators of transformed resources whose
movement can be programmed and reprogrammed.
Automated guided vehicles (AGVs)
Small, independently powered vehicles that move material
to and from value-adding operations.
Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key Terms Test
Flexible manufacturing systems (FMS)
Manufacturing systems that bring together several technologies into a
coherent system, such as metal cutting and material handling
technologies; usually their activities are controlled by a single
governing computer.
Computer-integrated manufacturing (CIM)
A term used to describe the integration of computer-based monitoring
and control of all aspects of a manufacturing process, often using a
common database and communicating via some form of computer
network.
Information technology (IT)
Any device, or collection of devices, that collects, manipulates, stores
or distributes information, nearly always used to mean computerbased devices.
Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key Terms Test
Distributed processing
A term used in information technology to indicate the use of smaller
computers distributed around an operation and linked together so
that they can communicate with each other; the opposite of
centralized information processing.
Local area network (LAN)
A communications network that operates, usually over a limited
distance, to connect devices such as PCs, servers, etc.
Ethernet
A technology that facilitates local area networks to allow any device
attached to a single cable to communicate with any other devices
attached to the same cable; also now used for wireless
communication that allows mobile devices to connect to a local area
network.
Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key Terms Test
World Wide Web (www)
The protocols and standards that are used on the Internet
for formatting, retrieving, storing and displaying
information.
Extranets
Computer networks that link organizations together and
connect with each organizations internal network.
E-business
The use of Internet-based technologies either to support
existing business processes or to create entirely new
business opportunities.
Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key Terms Test
E-commerce
The use of the Internet to facilitate buying and selling
activities.
Management information systems (MIS)
Information systems that manipulate information so that it
can be used in managing an organization.
Decision support system (DSS)
A management information system that aids or supports
managerial decision making; it may include both
databases and sophisticated analytical models.
Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key Terms Test
Expert systems (ES)
Computer-based problem-solving systems that, to some
degree, mimic human problem-solving logic.
Bar code
A unique product code that enables a part or product type
to be identified when read by a bar code scanner.
Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Key Terms Test
Active interaction technology
Customer processing technology with which a customer
interacts directly, for example cash machines.
Passive interactive technology
Customer processing technology over which a customer
has no, or very limited, control, for example cinemas and
moving walkways.
Slack, Chambers and Johnston, Operations Management 5th Edition Nigel Slack, Stuart Chambers, and Robert Johnston 2007
