Lecture –13
Managing Technology
Topics Covered:
·
Technologies
in Manufacturing
·
Benefits
of Technology Investment
·
Risks
in Adopting New Technology
·
Model Questions
TECHNOLOGIES
IN MANUFACTURING
Although technological changes have occurred in
almost every industry, many may be unique to an industry. For instance, a
prestressed concrete block is a technological advance unique to the
construction industry. Major developments in the design of automobiles will
result in cars that are made from recyclable parts.
Some
technological advances in recent decades have had a significant, widespread
impact on manufacturing firms in many industries. These advances, which are the
topic of this section, can be categorized in two ways: hardware systems and
software systems.
Hardware technologies
have generally resulted in greater automation of processes; they perform labor‑intensive
tasks originally performed by humans. Examples of these major types of hardware
technologies are numerically controlled machine tools, machining centers,
industrial robots, automated materials handling systems, and flexible
manufacturing systems. These are all computer‑controlled devices that can be
used in the manufacturing of products. Software‑based technologies aid in the
design of manufactured products and in the sis and planning of manufacturing
activities. These technologies include computer aided design and automated
manufacturing planning and control systems. Each of these technologies will be
described in greater detail in the following sections.
Hardware Systems
Numerically controlled (NC) machines are comprised of (1) a typical machine tool used
to drill, or grind different types of parts; and (2) a computer that controls
the sequence of processes performed by the machine. NC machines were first
adopted by
Machining centers represent an increased level of automation and
complexity relative C machines. Machining centers not only provide automatic control
of a machine, they also carry many tools that can be automatically changed
depending on the tool d for each operation. In addition, a single machine may
be equipped with a shuttle in so that a finished part can be unloaded and an
unfinished part loaded while the machine is working on a part.
Industrial robots are used as substitutes for workers for many
repetitive manual activities tasks that are dangerous, dirty, or dull. A robot
is a programmable, multifunctional machine that may be equipped with an end
effector. Examples of end effectors include a gripter to pick things up, or a
tool such as a wrench, a welder, or a paint sprayer. Advanced capabilities have
been designed into robots to allow vision, tactile sensing and hand‑to‑hand
coordination.
Automated materials handing (AMH) systems improve
efficiency of transportation, storage, and retrieval of materials. Examples are
computerized conveyors, and automated storage and retrieval systems (AS/RS) in
which computers direct automatic loaders to pick and place items. Automated
guided vehicle (AGV) systems use embedded floor wires to direct driverless
vehicles to various locations in the plant. Benefits of AMH systems include
quicker material movement, lower inventories and storage space, reduced product
damage, and higher labor productivity.
These individual pieces of automation can be
combined to form manufacturing cells or
even complete flexible manufacturing
systems (FMS). A manufacturing cell might consist of a robot and a
machining center. The robot could be programmed to automatically insert and
remove parts from the machining center, thus allowing unattended operation. An
FMS is a totally automated manufacturing system that consists of machining
centers with automated loading and unloading of parts, an automated guided
vehicle system for moving parts between machines, and other automated elements
to allow unattended production of parts. In an FMS, a comprehensive computer
control system is used to run the entire system.
Software Systems
Computer‑aided design (CAD) is an approach to product and process design that
utilizes the power of the computer. CAD covers several automated technologies,
such as computer graphics to examine
the visual characteristics of a product, and computer‑aided engineering (CAE) to evaluate its engineering
characteristics. Rubbermaid used CAD to refine dimensions of its Tote Wheels to
meet airline requirements for checked baggage. CAD also includes technologies
associated with the manufacturing process design, referred to as computer‑aided process planning (CAPP). CAPP
is used to design the computer part programs that serve as instructions to
computer‑controlled machine tools, and to design the programs used to sequence
parts through the machine centers and other processes (such as the washing and
inspection) needed to complete the part. These programs are referred to as process plans. Sophisticated CAD systems
are also able to do on‑screen tests, replacing the early phases of prototype
testing and modification.
CAD
has been used to design everything from computer chips to potato chips. Frito‑Lay,
for example, used CAD to design its O'Grady's double‑density, ruffled potato
chip. The problem in designing such a chip is that if it is cut improperly, it
may be burned on the outside and soggy on the inside, be too brittle (and
shatter when placed in the bag), or display other characteristics that make it
unworthy for, say, a guacamole dip. However, through the use of CAD, the proper
angle and number of ruffles were determined mathematically; the O'Grady's model
passed its stress test in the infamous Frito‑Lay "crusher" and made
it to your grocer's shelf.
CAD
is now being used to custom design swimsuits. Measurements of the wearer are
fed into the CAD program, along with the style of suit desired. Working with
the customer, the designer modifies the suit design as it appears on a human‑form
drawing on the computer screen. Once the design is decided upon, the computer
prints out a pattern, and the suit is cut and sewn on the spot.
Automated manufacturing planning and
control systems (MP&CS)
are simply computer‑based information systems that help plan, schedule, and
monitor a manufacturing operation. They obtain information from the factory
floor continuously about work status, material arrivals, and so on, and they
release production and purchase orders. Sophisticated manufacturing and
planning control systems include order‑entry processing, shop‑floor control,
purchasing, and cost accounting.
BENEFITS OF
TECHNOLOGY INVESTMENT
The typical benefits from adopting new
manufacturing technologies are both tangible and intangible. The tangible
benefits can be used in traditional modes of financial analysis, such as
discounted cash flow, to make sound investment decisions. Specific benefits can
be summarized as follows:
COST
REDUCTION
Labor costs Replacing people with robots, or enabling fewer
workers to run semiautomatic equipment.
Material costs
Using existing materials more
efficiently, or enabling the use of high tolerance materials.
Inventory
costs Fast changeover
equipment allowing for JIT inventory management.
Quality costs Automated inspection and reduced variation in
product output.
Maintenance
costs Self‑adjusting
equipment.
OTHER
BENEFITS
Increased
product variety Scope
economies due to flexible manufacturing systems.
Improved
product features Ability to
make things that could not be made by hand (e.g., microprocessors).
Shorter cycle
times Faster setups and
change‑overs.
Greater
product output
RISKS IN
ADOPTING NEW TECHNOLOGY
Although there may be many benefits in acquiring
new technologies, several types of risk accompany the acquisition of new
technologies. These risks have to be evaluated and traded off against the
benefits before the technologies are adopted. Some of these risks are described
next.
TECHNOLOGICAL
RISKS
An early adopter of a new technology has the
benefit of being ahead of the competition, but he or she also runs the risk of
acquiring an untested technology whose problems could disrupt the firm's
operations. There is also the risk of obsolescence, especially with electronics‑based
technologies where change is rapid and when the fixed cost of acquiring new
technologies or the cost of upgrades is high. Also, alternative technologies
may become more cost‑effective in the future, negating the benefits of a
technology today.
OPERATIONAL
RISKS
There could also be risks in applying a new
technology to a firm's operations. Installation of a new technology generally
results in significant disruptions, at least in the short run, in the form of
plantwide reorganization, retraining, and so on. Further risks are due to the
delays and errors introduced in the production process and the uncertain and
sudden demands on various resources.
ORGANIZATIONAL
RISKS
Finns may lack the organizational culture and top
management commitment required to absorb the short‑term disruptions and
uncertainties associated with adopting a new technology. In such organizations,
there is a risk that the firm's employees or managers may quickly abandon the
technology when there are short‑term failures or will avoid major changes by
simply automating the firm's old, inefficient process and therefore not obtain
the benefits of the new technology.
ENVIRONMENTAL
OR MARKET RISKS
In many cases, a firm may invest in a particular
technology only to discover a few years later that changes in some
environmental or market factors make the investment worthless. For instance, in
environmental issues auto firms have been reluctant to invest in technology for
making electric cars because they are uncertain about future emission standards
of state and federal government, the potential for decreasing emissions from
gasoline-based cars, and the potential for significant improvement in battery
technology. Typical examples of market risks are fluctuations in currency
exchange rates and interest rates.
Model
Questions:
1.
Briefly discuss the Technologies used in Manufacturing.
2.
What are the Benefits of Technology Investment?
3.
Discuss the Risks involved in Adopting New Technology.
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