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
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