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Topic--5

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/…..)

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Topic--5

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  1. Topic--5 Advanced production technology

  2. 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/…..) Computerization: efforts of replacing human with computer systems in the work of information processing and decision—making process (data collection & analyzing/alternative plan evaluating/…….)

  3. 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 /....)

  4. 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.

  5. 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

  6. 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

  7. Tracing the Impact of New Technology on Employment • Jobs Created: • Programmers • CAD Operators • Etc. • New Industries: • … • … New Technology • New Skills • Required: • … • … Skills Shortages • Jobs Lost: • Unskilled Laborers • Machinists • Etc. Education System Company Training Policy Union Relations Company Retraining Policy Company Policy Adult Education High Schools Government Unemployment Policy Colleges Universities

  8. 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 Supportive Technologies Information Technology Material Handling/ Storage Technology

  9. Manufacturing Automation Technologies Production Automation Technologies Infrastructure Technologies Numerical control (NC) CNC Machines Robotics Automated Assembly • Information technologies • Hardware/ software/ • communications • Machine vision, sensors • Bar code, RFI • Material handling/ storage • Conveyers, AGV • Automated storage/ • retrieval system Flexible Manufacturing Systems

  10. 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)

  11. 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)

  12. A Picture of CIM CAM CAD CAPP MRPII CCS DSS JIT MIS ROBOTICS ASRS AGV AFL FMS

  13. 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

  14. 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

  15. Benefits of Flexible Manufacturing Systems

  16. Comparison of Manpower Requirements of Conventional Technology with Flexible Manufacturing Systems for Metal-Cutting Operations

  17. The History of Rationalization

  18. 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

  19. 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

  20. Some Examples of Automation in Services

  21. Manual Operations High Mechanized Operations Automated Operations Low Capital Intensity Low High Degree of Customer Contact inServicesand the Use of Automated Equipment Degree of Customer Contact

  22. Technology Improvement S-Curve Return on Technology Investment Early stage Late stage Middle stage Resources Investment in Technology Development

  23. Technology Management Readings (Your Handout: Everyone need to be ready to answer questions.

  24. 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:

  25. 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

  26. 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

  27. 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.

  28. 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.

  29. 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.

  30. Major Issues in Technology Management (III) • 6. Flexibility? How much? Types of flexibility: volume flexibility vs. product flexibility. Management flexibility: * Product mix flexibility/* Mix change flexibility * Design change flexibility/* Production flexibility Technical flexibility: * Routing flexibility/* Machine flexibility * Expansion flexibility/* Volume flexibility

  31. Flexibility Classification and Advantages

  32. Manufacturing Automation Technologies: Volume-Variety Trade-off Volume Fixed Automation: Transfer line High Production flexibility Flexible Automation: Computer integrated manufacturing systems 15,000 Productive capacity 2,000 Programmable Automation: Stand alone NC Medium 500 25 Low Variety: Part Numbers Per System 1 or 2 100 800 8 Low Medium High

  33. Manufacturing Automation Technologies: Volume-Variety Trade- off Production per Part Number Transfer line High Production flexibility 15,000 Special Manufacturing Systems Productive capacity 2,000 Flexible manufacturing system Medium 500 Manufacturing cell 25 Stand alone Low Variety: Part Numbers Per System 1 or 2 100 800 8 Low Medium High

  34. Use Technology as a Competitive Resource Which create competitive advantages Which may produce Invest • 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 Competitive Success Measures Values Stakeholders Institution • Owners • Managers • Employees • Community • Government In the factory

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