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technology, task design and process layout
In order to increase efficiency, reduce costs and increase quality operations managers use technology, task design and process layout. Changes made to these three things will then alter the transforming resources within the business- it will require changes to the facilities and human resources used within the business.
Technology
Technology
Technology
Define: Technology is the application of science or knowledge that enables people to do new things or perform established tasks in new and better ways.
It involves the use of machinery and systems that enable businesses to undertake the transformation process more effectively and efficiently.
The capital cost of technology is often high, therefore businesses must decide if they are going to purchase or lease it.
With Operations, there are two main types of technology that can be used:
Office Technology
Office Technology
Office technology is often commonplace and well known. It includes many everyday pieces of technology including:
•Computer and laptops and ipads
•Keyboard
•Data storage devices (USB, external hard drives, Cloud
•Modem
•Mobile Phones, paging services, answering machines
•Combined printer, photocopier, scanner and Fax
Manufacturing Technology
Manufacturing Technology
•Key manufacturing technology includes:
Robotics,
Computer-aided design (CAD)
Computer-aided manufacturing (CAM)
Manufacturing Technology
Robotics
Robotics
Robotics are used in engineering and specialised areas of research, as well as on assembly lines where a programmable machine capable of doing several different tasks is required.
Robotics allows for a degree of precision and accuracy which is generally unmatched by human labour.
CAD
CAD
Computer-aided design (CAD) is a computerised design tool that allows businesses to create product possibilities from a series of input parameters.
E.g. The technology allows architects, engineers and designers to draw and adjust three-dimensional designs using a computer.
CAM
CAM
Computer-aided manufacturing (CAM) is software that controls manufacturing processes.
CAD can be linked directly to the manufacturing process through CAM.
This process provides electronic links for exchanging data, which results in time being saved and fewer mistakes being made.
CAM software will enable the computer to control large sections of production with greater efficiency, fewer errors and fewer staff.
e.g. Woolworths Technology
Stock smart- forecasts the amount of stock needed in distribution centres and stores
Automatically organises trucks and employees to dispatch goods from warehouse to the store
Case Study Example
While watching the videos take notes on where IKEA uses technology, specific details and how might this help IKEA gain a competitive advantage
8:57 minutes – 14:00 minutes
Chapter 4 - 2:56 Chapter 6
Task Design
Task Design
Define: The determination of the tasks that need to be performed, the processes by which they will be performed and the skills and experience of any labour required to perform those tasks.
In order to know what machinery to purchase, how many people and what skills are required, an important process conducted by the operations manager is to first conduct a task design.
Often a business will do a skills audit to ascertain the level of skills its staff has.
Skills Audit is a formal process used to determine the present level of skilling and any skill shortfalls that need to be made up either through recruitment or training.
Note- until operations have completed task design for each job in the operations function, HR cannot recruit the required workers.
Case Study Example
Task Design and Process Layout
Process Layout
Process Layout
Define: the physical arrangement of equipment, processes and people within the operations of a business
There are a number of ways to organise the physical layout of a plant.
Process layout
Product layout
Fixed position layout
*Note- this can be confusing because the syllabus category is called 'process layout' and within this category there are three items, one of which is 'process layout'
Process Layout
Process Layout
The process layout is the arrangement of machines so that the machines and equipment are grouped together by the function (or process) they perform. i.e. all cutting tasks would be done in one place, all sewing tasks in another and all packaging in another (irrespective of type)
This is ideal for high volumes of output
Process layouts can reduce production costs (through economies of scale)
Examples- LEGO, Samsung, Foxconn and car manufacturers
IKEA- Production of the EKTORP sofa is in a process layout (See IKEA megafactories Chapter 9)
IKEA’s stores have a process layout – different areas for customer service, kitchen design, restaurant etc.
Product Layout
Product Layout
Product layout is where the equipment arrangement relates to the sequence of tasks performed in manufacturing a product.
Work stations are arranged to match the sequence of operations, and work flows from station to station. (i.e. all tasks relating to dress making cutting, sewing, ironing, packaging are together. )
Product layout would tend to suit a business who is involved in mass production.
Operations managers must set times for the assembly task, which requires an understanding of not only the nature of the task but also the tools and skills required.
TESLA FACTORY- •https://www.tesla.com/en_AU/videos/national-geographic-megafactories-trailer?redirect=no
Fixed Position Layout
Fixed Position Layout
Fixed position layout is an operational arrangement in which employees and equipment come to the product.
This is usually for large scale, bulky activities such as the construction of bridges, ships and buildings. These processes are known as project production (production on site for a projection).
Office Layout
is generated to ensure that work can be performed efficiently in a safe office environment.
Office space is organised around workstations.
Workstations are the desk areas required by office workers, usually fitted with access to a computer monitor, keyboard, telephone, mouse and mouse pad, storage, and close access to a printer, scanner and fax
Activity: Explain how a change in office layout can benefit operations management using relevant examples
Activity: Jacaranda 4.5 Exercise 1 & 3
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