Topic--5

Advanced production
technology
Advanced production technology
Advancement of production technology:
Mechanization---computerizationautomation
Mechanization: efforts of replacing human
power with machine power in functioning work
(machining/inspecting/lifting/..)
Computerization: efforts of replacing human
with computer systems in the work of
information processing and decisionmaking
process (data collection &
analyzing/alternative plan evaluating/.)
Advanced production technology
Automation: efforts of integrating
mechanization and computerization
into a system to perform all routinely
work.
1.Office automation: Hotel / Bank /
Airline /......(with copier /fax
machining /computer data
processing /....)
Advanced production technology
2. Factory Automation: fixed and
flexible automated plants (with NC
machine/robotics/CAD&CAM/.......)

Advanced technologies bring many
issues, problems and challenges to
both managers and workers.
Managing Technology
Technology: the know-how, physical things
and procedures used to produce products and
services; also support network
Three primary areas:
1. Product technology: translate ideas into
new products and service for firms customers.
2. Process technology: determines methods by
which an organization does things
3. Information technology: used to acquire,
process and transmit information; particularly
revolutionary in offices
Managing Technology
Management of technology
1.Links R&D, engineering and management to
plan, develop and complement new
technological capabilities
2.How much to know about technologies in
ones own operations
3.Managers are less effective when standing at
arms length from the technologies that
make up its current and core competencies
Tracing the Impact of New
Technology on Employment
Jobs Lost:
Unskilled Laborers
Machinists
Etc.
Union
Relations
Company
Policy Government
Unemployment
Policy
Company
Retraining Policy
Company
Training
Policy
Education
System
Adult Education
Colleges Universities
High Schools
New Technology
Jobs Created:
Programmers
CAD Operators
Etc.
New Industries:



New Skills
Required:


Skills Shortages
Infrastructure Technologies
Computer Hardware
Software Systems
Communications Network
Database Management
Systems
Artificial Intelligence/
Expert System
Machine Vision/ Sensors
Data Collection

Automated Guide Vehicles
AGV
Conveyers
Automated Storage/
Retrieval Systems (AS/RS)
Robotics
Information
Technology
Material Handling/
Storage Technology
Manufacturing Automation
Technologies
Production Automation
Technologies
Numerical control (NC)
CNC Machines
Robotics
Automated Assembly
Infrastructure Technologies
Information technologies
Hardware/ software/
communications
Machine vision, sensors
Bar code, RFI

Material handling/ storage
Conveyers, AGV
Automated storage/
retrieval system
Flexible Manufacturing
Systems
CIM: Factory of the Today
CIM: computer-integrated-manufacturing:
1. CAD: computer-aided-design
2. CAM: computer-aided-manufacturing
CNC: computer numerically controlled (machine)
3. CAPP: computer-aided-process planning
4. Integrated CAD/CAPP/CAM
5. Fixed automated flow line (AFL: hard automation)

CIM: Factory of the Today (II)
6.Flexible automated production line (flexible
automation)
FMS: flexible manufacturing system
AS/RS: automated storage/Retrieval system
AGV: automated guided vehicle
Robotics/CNC/Central control system
7. MRPII: manufacturing resources planning
JIT (Just in time)
MIS (Management information systems)
DSS ( decision support systems)
Computer-aided design and
manufacturing
CAD
CAM
CAD/CAM
NC; CNC
Industrial robots
Automated materials handling
AVG: AS/RS

Computer-aided design and
manufacturing
FMS:
---Three Key components of an FMS
---Strategic use of FMS
1.Intermediate flow strategy
2.Line flow process where
product life cycles are short
----Flexible manufacturing cells
A Picture of CIM
CAPP CAD
CAM
MRPII
MIS
CCS DSS JIT
ASRS
ROBOTICS
AGV
FMS
AFL
Automated Production Systems
Flexible Manufacturing Systems (FMS)
Kits of materials/parts for a product are loaded
on the materials-handling system
Code is entered into computer identifying
product and its location in the sequence
Each production machine (without a worker):
Receives settings/instructions from
computer
Automatically loads/unloads required tools
Carries out its processing instructions
Product automatically transferred to next
machine
Automated Production Systems
Automated Storage & Retrieval Systems (ASRS)
Receive orders for materials in operations
Collect the materials from locations in warehouse
Deliver the materials to workstations in operations
Three major elements of ASRS are:
Computers and communication systems
Automated materials handling/delivery systems
Storage and retrieval systems in warehouse
Main benefits of ASRS are:
Increased storage capacity
Increased system throughput
Reduced labor costs
Improved product quality

Benefits of Flexible Manufacturing
Systems
Comparison Prior
Method
Flexible
Manufacturing
System
Average
Improvement
Range of
Improvement For
Total Sample
Number of
Machines
29 9 70% 60-90%
Floor space 1500 m
2
500 m
2
66% 30-80%
Direct labor 70 16 77% 50-88%
Product cost $2000 $1000 50% 25-75%
In-process
time
18.6 days 4.2 days 77% 30-90%
Number of
operations
15 8 47%
Number of
setups
13 5 62% 10-75%
Machine
efficiency
20% 70% 50% 15-90%
Comparison of Manpower Requirements of
Conventional Technology with Flexible
Manufacturing Systems for Metal-Cutting
Operations
Comparison Conventional
Systems
United States
Conventional
Systems
Japan
Flexible
Manufacturing
Systems
Japan
Engineering 34 18 16
Manufacturing
overhead
64 22 5
Fabrication 52 28 6
Assembly 44 32 16
Total number of
workers
194 100 43
Some Examples of Automation in
Services
Services
Industries
Examples of Automation
Airlines
Reservation systems
Cargo containerization

Air traffic control systems
Autopilot systems
Banks,
savings and
loans, and
financial
services
Automated teller
machines (ATMs)
Magnetic-ink character
recognition codes (MICR)
Optical scanners
Computerized bank statements
Electronic funds transfer
Retailing/
wholesaling
Optical scanners
Automated warehouse
Automated photo booths
Point-of-sale terminals
Bar code systems
Health care
AGVS for waste disposal
Magnetic resonance
imaging (MRI) systems
Automated patient monitoring
Bedside terminals
CAT scanners
Degree of Customer Contact in Services
and the Use of Automated Equipment
Degree of
Customer Contact
Capital
Intensity
High
High
Low
Low
Manual Operations
Mechanized Operations
Automated
Operations
The History of Rationalization
Point
Automation
Line
Automation
Plane
Automation
Solid
Automation
Rationalization
of a single
Process
Special
purpose
machines
Rationalization
of a production
line
Transfer
machines
Rationalization
of a product
line
Consist
production
from
fabrication to
assembly
Rationalization
of the entire
factory
Information
management
FMS
1950 1960 1970 1980
Redesigning Products for Automated
Assembly
Reduce the amount of assembly required
Reduce the number of fasteners required
Design components to be automatically
delivered and positioned
Design products for layered assembly and
vertical insertion of parts
Design parts so that they are self-aligning
Design products into major modules for
production
Increase component quality to avoid
machine jams
Enterprise Resource Planning
ERP needs:
1. integrates functional areas
2. support all enterprise process
EPR application:
1.resolves around a single comprehensive
database, available to the entire organization
2. Applications may include:
Financial and accounting information
HR and payroll information
Supply chain/Customer/manufacturing information
Enterprise Resource Planning
Use of ERP
1. Used by service provider and
manufacturers
2. Increasing interoperability in ERP
systems has promoted acceptance
Implementation considerations:
1. Advantages
2. Problems
Technology Improvement S-Curve
Return on Technology
Investment
Resources Investment
in Technology Development
Early stage Late stage
Middle stage
Technology Management
Readings
(Supplementary:
p.5-9 to 5-10)
Major Issues in Technology
Management
1. Automation is not a cure to all of
production problems. Many failure
cases.
2. Justification of High-technology
and automation is not a simple work.
traditional short-term cost analysis is
no longer appropriate in justifying the
adoption of high-tech and automation,
because:
Justification of New Technology
A. time-lag between high initial cost
required at beginning and small and
slowly increased benefits at much later.
B. organizational learning effect in
adopting new technology is coming late
and common ignored.
C.Many intangible benefits associated with
high-tech and automation are very hard to
measure and accounted in short time
period.
Justification of New Technology (II)
In conclusion, justification decisions
must be made based on firms long-
term strategic advantages over its
competitiveness, profitability,
improvements in productivity and
quality and survival in the
marketplace.
Major Issues in Technology
Management (II)
3.Implementation of high-tech and
automation project is often painful, both
time and cost are overrun greatly. There
is no turnkey project, each system is
custom-made, previous experience is not
available, even employee training for new
system will take longer time than
expected
4.Technologies limitations:
5.Managing the changing that resulting
from the adoption of high-tech and
automation is a new challenge to MGT.
Managing Technological Change
Have a master plan for automation.
Recognize the risks in automating.
Establish a new production technology
department
Allow ample time for completion of automation.
Do not try to automate everything at once.
People are the key to making automation
successful.
Dont move too slowly in adopting new
technology.
Major Issues in Technology
Management (III)
6. Flexibility? How much?
Types of flexibility: volume flexibility
vs. product flexibility.

Management flexibility:
* Product mix flexibility/* Mix change flexibility
* Design change flexibility/* Production flexibility
Technical flexibility:
* Routing flexibility/* Machine flexibility
* Expansion flexibility/* Volume flexibility

Flexibility Classification and
Advantages
Environmental Uncertainty Type of Flexibility Potential Strategic Advantages
Product volume demanded
Delivery time required by
customers
Delivery of input material
PROCESS
PROCESS
Respond to market sales variations
Respond to short lead times
required by customers and
unreliability of suppliers
Machine downtime
Degree of market
segmentation
PROCESS
PRODUCT
Delivery and dependability
Demand for product diversity and
customization
Length of product life cycle PRODUCT Respond to innovation and
competitor action
Customer specification
required
PRODUCT Competition based on product
value
Raw material quality PRODUCT Product quality and consistency
End-market information
made available
INFRASTRUCTURE Responsive to true demand signal
Appropriate organization
design and incentives
INFRASTRUCTURE Supports learning and adoptions of
technological change
Creating and Applying Technology
Research & development stages
1.Basic research.
2.Applied research.
3.Development: concept development,
technical feasibility, detailed product or
service design and process design.
Technology fusion: Combining several
existing technologies and scientific discipline
to create a hybrid technology
Technology Strategy
Implementation Guidelines
Technology acquisition:
1. how far back in R&D should we
get involved
2. internal sources/ inter firm
relationships: outsource to
universities license from another firm,
joint venture or alliance, etc.
3. suppliers
Implementation Guidelines (II)
Technology integration:
1.fragmentation
2.cross-functional teams and
concurrent engineering
The human side:
1.Impact of new technology on jobs and
people
2.Education and employee involvement
3.Leadership: good steward, realists,
advocate, etc.

Manufacturing Automation
Technologies: Volume-Variety
Trade-off
Low Medium
Programmable
Automation:
Stand
alone NC
15,000
Flexible Automation:
Computer integrated
manufacturing systems
F
i
x
e
d

A
u
t
o
m
a
t
i
o
n
:

T
r
a
n
s
f
e
r

l
i
n
e

2,000
500
25
Medium
Low
High
Volume
1 or 2
8
100 800
High
Variety: Part
Numbers
Per System
Manufacturing Automation
Technologies: Volume-Variety
Trade- off
Low Medium
15,000
Stand alone
T
r
a
n
s
f
e
r

l
i
n
e

2,000
500
25
Medium
Low
High
Production
per Part
Number
1 or 2
8
100 800
High
Variety: Part
Numbers
Per System
Special
Manufacturing
Systems
Manufacturing
cell
Flexible
manufacturing
system
Use Technology as a Competitive
Resource









More quickly
More reliable
Fine products
Profits
Meaningful careers
Satisfying jobs
Community health
National progress



Cost/ efficiency
Delivery cycles
Delivery reliability
Quality
Minimal investment
Flexibility for volume
change, product change,
and technological
change

Invest
Which may
produce
Which create
competitive
advantages
Values

Institution

Stakeholders
Competitive
Success Measures
In the factory Owners
Managers
Employees
Community
Government