Technology and Productivity

1. Technology and Productivity

2. What Are the Potential Benefits of Technology?

3. Potential Benefits of Technology • Cost reduction through productivity improvement • Quality improvement • Shorter delivery lead time • Increased flexibility and convenience • Safety improvement • Expansion to new markets/customers

4. What Are the Potential Drawbacks of Automation?

5. Potential Drawbacks of Technology • Change in employee/machine interfaces • May not achieve expected effects (may not reduce labor cost/increase productivity) • Potential conflict with Kaizen • Reduced flexibility • Reliance on technical staff

6. National Challenge • Emphasis on short-term business planning • Industry has limited ability to access and apply state-of-the-art research findings • Education crisis presents technological challenge in the future • Increased technology transfers to developing countries

7. Technology Strategy for PI • Long-range planning for modernization of the organization’s productive core and its key interface and support functions • Holistic view on product/service process technology • Technology strategy for improving an organization’s distinctive competence and its potential competitive advantage

8. Evaluating Values of Technology • Strategic impact – new market, competitive position, market share • Customer impact – selection, price, quality, convenience, speed, etc. • Financial impact – cost, profit, ROI • Operating impact – efficiency • Social impact – job, health, safety, environment

9. What Are the Costs and Value of Technology?

10. Economic Justification of Technology (1 of 2) • What is the value of consistent and superior quality? • What is the cost of poor quality (scrap, rework, customer dissatisfaction)? • What is the cost of missed delivery dates, lost contracts, and shrinking market share? • What is the value of increased productivity and reduced lead time?

11. Economic Justification of Technology (2 of 2) • What is the value of flexibility and the ability to respond to market changes quickly? • What is the cost of not being able to hold markets or open new markets due to lack of competitive equipment or capacity? • What is the cost of inventory? • What is the cost of delayed product development and engineering changes?

12. Technology for Productivity Improvement • Five interdependent dimensions: • Product/service design • Physical production/service processes • Information systems • Management technology • Product materials technology

13. Applications of Technology for PI – An Example

14. Product Design Technology for Productivity Improvement • Computer-Aided Design (CAD) • Rapid prototyping • Virtual collaboration and communication for designers, cross-functional teams, suppliers, customers – web, groupware, instant messaging, project management, etc. • Database and data warehouse for enterprise integration and data mining

15. Process Technology for Productivity Improvement • Manufacturing (AMT) • Numerically-controlled machines (NC) • Flexible manufacturing systems (FMS) • Cellular systems • Computer-integrated manufacturing systems (CIM) • Robots

16. Application of Technology in Manufacturing - Examples • Welding • Painting • Lasers • Fabrication • Assembly • Material Handling and storage • Measurement and tracking systems

17. Automation in Distribution • Automated Storage and Retrieval System (AS/RS) • Automated Guided Vehicle System (AGVS) • Point of Sales (POS) system • Tracking system (e.g. UPS) • Radio-Frequency Identification (RFID) system

18. Process Technology for Productivity Improvement • Service • Automated/computerized equipment • Automated software systems • Telecommunication systems • Hand-held devices • Software systems • Internet

19. Applications of Technology in Services - Examples • Billing and Payment • On-line services • Document transfer • Order taking • Customer service • Application processing

20. Information System Technology for Productivity Improvement • Application Software Systems • Enterprise Resource Planning (ERP) • Supply Chain Management (SCM) • Customer Relationship Management (CRM) • Advanced Planning & Scheduling (APS)

21. What Are the Key Functions of those Software Systems?

22. Management Technology for Productivity Improvement • Standardization • Continuous improvement/Kaizen • Process mapping/improvement • Project management • Just-in-time • Six sigma • Knowledge Management

23. What Are Those Management Technologies?

24. Product Materials Technology for Productivity Improvement • Ferrous metals • Aluminum and Alloys • Titanium • Plastics • Composite materials • Ceramics • Coatings and finishes

25. Applications of Cell Phone Technology for PI

26. Phone calls E-mails Web surfing Photos Gaming Shopping Banking Entertainment Tracking Traffic Video Security Home appliances Learning Homework & Exams Videoconferencing Applications of Cell Phone Technology for PI

27. How to Develop Leadership in Technology for Managers?

28. How to Develop Leadership in Technology for Managers? • Develop better understanding of cost-benefit analysis • Increase accountability of technology investment • Improve knowledge of technologies and their applications • Focus more on strategic innovations