Organizational Design, Competences & Technology. Chapter 9. Technology. Everything used to create valuable G/S from raw materials (conversion of I O) : EquipmentKnowledge ToolsTechniques MachineryComputers SkillsDisposal of G/S
Organizational Design, Competences & Technology
Everything used to create valuable G/S from raw materials (conversion of I O):
--The use of technology (to add value) can be a corporation’s core competence.
--We use technology to: reduce costs; increase efficiency, reliability & quality of products.
1. Choose a technology to effectively change I to O.
2. Design a structure that will allow the organization to effectively use that technology.
High technical complexity
Low technical complexity
Advantages of each?
It is very difficult to maintain high quality & consistency of production when technical complexity is:
Small batch technology
Small quantities, wide range of products
Conversion process is flexible
Expensive (not preprogrammable)
Ideal for new, complex products (Louis Vuitton)
Conversion process is automated, mechanized, continuous
Nuclear power, brewery, chemicals
As technical complexity increases, one would expect:
(widens then narrows constant monitoring
of subordinates/ equipment; rapid response to disaster)
Task interdependence= how tasks are related to one another
Low:people/ departments are individually specialized(work separately & independently)
High:people/ departments are jointly specialized(depend on one another for inputs & resources).
How to prevent disruption of conversion process?(Reduce the uncertainty)
1. Slack resources- stockpile Inputs or finished G/S
2. Vertical integration- forward or backward
3. Standardize the conversion process.
Specialize produce only a narrow range of G/S
Traditionally mass production consisted of:
Inability to adapt product
to changing customers’ needs
Design 3-D objects on computer.Benefits?
Toyota’s core competence
Benefits of AMT