Topic--5

Topic
--
5

Advanced production
technology

Advanced Production Technology


Advancement of production technology:


Mechanization
---
computerization
—
automation


Mechanization:

efforts of replacing human


power with machine power in functioning work


(machining/inspecting/lifting/…..)


C
omputerization:

efforts of replacing human


with computer systems in the work of


information processing and decision
—
making


process (data collection &


analyzing/alternative plan evaluating/…….)

Advanced Production Technology (II)



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 (III)

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 firm
’
s 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 (II)


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
one
’
s own operations

3.Managers are less effective when standing at
arm
’
s 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

Supportive 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 future


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 Future (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)

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

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

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

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

Automation in Services

Example


Airlines
–

air traffic control, passenger reservation


Banks
–

ATMs, computerized bank statements


Gas Stations
–

automated payment (pay
-
at
-
the
-
pump)


Health Care
–

MRI system, AGVS for waste
disposal


Grocery Store
–

self
-
service checkout stations


Real Estate
–

web based house
-
for
-
sale tour
video



Automation in Services (II)


Trend developing toward more
-
standardized
services and less customer contact.


Service standardization brings trade
-
offs:

–
-

Service not custom
-
designed for each
customer

–
+ Price of service reduced, or at least
contained


Banking industry is becoming increasingly
automated


Service firm can have a manual/automated mix:

–
Manual
-

“
front room
”

operations

–
Automated
-

“
back room
”

operations

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

Technology Improvement S
-
Curve

Return on Technology

Investment

Resources Investment

in Technology Development

Early stage

Late stage

Middle stage

Technology Management
Readings

(Your Handout:


Everyone need to be ready
to answer questions.

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)


Payback period, NPV, IRR, and other conventional
approaches alone are inadequate tools on which
to base product/process design/redesign
decisions


Product/process technology must be seen as a
long
-
term strategic choice


Returns on investment include:

–
Improved product/service quality

–
Faster order delivery

–
Increased flexibility

–
Reduced production cost

–
Increased market share

Justification of New Technology (III)


In conclusion, justification decisions
must be made based on firm
’
s 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.


Don
’
t 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.




M
anagement 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

Manufacturing Automation
Technologies: Volume
-
Variety
Trade
-
off

Low

Medium

Programmable

Automation:

Stand

alone NC

15,000

Flexible Automation:

Computer integrated

manufacturing systems

Fixed Automation:

Transfer line

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

Transfer line

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