ch07s

PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)

© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-1

Operations Operations ManagementManagement

Operations Technology, the Operations Technology, the Internet, and ERPInternet, and ERP

Supplement 7Supplement 7



OutlineOutline

The Internet Design Technology

Computer Aided Design (CAD) Standard for the Exchange of Product Data (STEP) Computer Aided Manufacturing (CAM) Virtual Reality Technology Computer-Integrated Manufacturing (CIM)



Outline - continuedOutline - continued

Production Technology Numerical Control Process Control Vision Systems Robots Automated Storage and Retrieval Systems (ASRSs) Automated Guided Vehicles Flexible Manufacturing Systems (FMS) Computer Integrated Manufacturing (CIM)



Outline - continuedOutline - continued

Technology in Services Information Sciences in Operations

Transaction Processing Management Information Systems Artificial Intelligence

Enterprise Resource Planning (ERP) Technology Issues in ERP Advantages and Disadvantages of ERP Systems ERP in the Service Sector



Learning ObjectivesLearning Objectives

When you complete this chapter, you should be able to :

Identify or Define: The Internet Computer-aided design (CAD) Computer-aided Manufacturing (CAM) Various production technologies Enterprise Requirements Planning (ERP)



Learning ObjectivesLearning Objectives

When you complete this chapter, you should be able to :

Explain: The Role of the Internet in Operations Virtual Reality in Operations Flexible Manufacturing Systems (FMS) Computer-Integrated Manufacturing (CIM) Manufacturing Uses of MIS How ERP Works Advantages and Disadvantages of ERP Systems



TechnologyTechnology

Technology is not a cure-all, but managing technology is certainly a major ingredient in building firms with a future.



Using The InternetUsing The Internet Boeing & Lufthansa put maintenance info online for

worldwide access Medical equipment manufacturer exchanges 3D design

info, in real time,with customers around the world Robotics manufacturer has web-enabled factory Master Lock uses Internet to make info available to

suppliers Ronald Tool Co. builds products from customer specs

sent via the Internet Caterpillar Inc sells industrial parts through e-commerce State Street Bank uses the web to support global

customer relationships



Design TechnologyDesign TechnologyComputer-Aided Design (CAD)Computer-Aided Design (CAD)

Refers to the use of computers to interactively design products and prepare engineering documentation

Extensions: Design for Manufacture and Assembly (DFMA) -

enables testing of design integration before manufacturing

3-D Object Modeling - enables the building of small models of the product



Design TechnologyDesign TechnologyStandard for the Exchange of Product Standard for the Exchange of Product

Data (STEP)Data (STEP)

Standard for exchange of CAD data Includes 3-D CAD data Enhances collaboration using talent

wherever it is in the world reducing design lead time and development cost.



Design TechnologyDesign TechnologyComputer-Aided Manufacturing (CAM)Computer-Aided Manufacturing (CAM)

Refers to the use of specialized computer programs to direct and control manufacturing equipment



Design TechnologyDesign TechnologyBenefits of CAD and CAMBenefits of CAD and CAM

Product quality Shorter design time Production cost reductions Database availability New range of capabilities Reduces need for “similar” parts



Design TechnologyDesign TechnologyVirtual RealityVirtual Reality

Enables creation of a “virtual model” Helps test integration of design Enables user to “try product” before

manufacturing (also enables customer to try product before purchase)



Production TechnologyProduction Technology Numerically controlled machines

Numerical control Computer numerical control Direct numerical control

Process control Vision systems Robots Automated storage and retrieval systems Automated guided vehicles Flexible manufacturing systems Computer integrated manufacturing



Production TechnologyProduction TechnologyNumerical ControlNumerical Control

Numerical control (NC) - machine can be controlled electronically

Computer Numerically Controlled (CNC) - machine actually has its own microprocessor and memory

Direct Numerical Control (DNC) - wired to a central computer



Production TechnologyProduction TechnologyProcess Control - OperationProcess Control - Operation

Sensors, often analog devices, collect data Analog devices read data on some periodic basis,

perhaps once a minute or once a second Measurements are translated into digital signals, and

transmitted to a digital computer Computer programs read the file (the digital data) and

analyze the data Output may be a: message on printer or console, signal

to a motor to change a value setting, warning light or horn, process control chart, etc.



Photo S7.7 Photo S7.7



Production TechnologyProduction TechnologyVision SystemsVision Systems

Combine video and computer technology Often used in inspection roles Consistently accurate, do not become bored,

of modest cost



Machines that hold, move, or grasp items

Perform monotonous or dangerous tasks

Used when speed, accuracy, or strength are needed © 1984-1994 T/Maker Co.

Production TechnologyProduction TechnologyRobotsRobots



Types of RobotsTypes of Robots

Large articulated robot

Cartesian(rectilinear)

Spherical(polar)

CylindricalArticulated

(revolute, jointed,anthropomorphic)



Production TechnologyProduction TechnologyAutomated Storage and Retrieval Automated Storage and Retrieval

System (ASRS)System (ASRS)

Provide for automatic placement and withdrawal of parts and products into and from designated places in a warehouse.



Material handling machines

Used to move parts & equipment in manufacturing

May be used to deliver mail & meals in service facilities

© 1984-1994 T/Maker Co.

Production TechnologyProduction TechnologyAutomatic Automatic Guided Vehicles (AGV)Guided Vehicles (AGV)



Using automated machines (DNC) & materials handling equipment together

Often connected to centralized computer

Also called automated work cell

Computer

Machine 1

Machine 2

Robotor AGV

Auto ToolChg.

Auto ToolChg.

Production TechnologyProduction TechnologyFlexible Manufacturing Systems Flexible Manufacturing Systems

(FMS)(FMS)



Production TechnologyProduction TechnologyFMS - Pros & ConsFMS - Pros & Cons

Advantages Faster, lower-cost changes from one part to another Lower direct labor costs Reduced inventory Consistent, and perhaps better quality

Disadvantages Limited ability to adapt to product or product mix changes Requires substantial preplanning and capital

expenditures Technological problems of exact component positioning and

precise timing Tooling and fixture requirements



Production TechnologyProduction TechnologyFlexible Manufacturing SystemsFlexible Manufacturing Systems

11

10 100 1000 10000 100000 1000000

10

100

1000Work cells

CIM

Focusedautomation

Dedicatedautomation

Volume

Prod

ucts FlexibleManufacturing

System

Generalpurpose



Manufacturing system that combines CAM with engineering (CAD), & production & inventory control

Computer-aided design (CAD) creates code to run DNC machines

DNC Robots

PIC

AGV

CAD

TopMgmt

CAM

Production TechnologyProduction TechnologyComputer Integrated Manufacturing (CIM)Computer Integrated Manufacturing (CIM)



Computer-Integrated Computer-Integrated ManufacturingManufacturing



Equipment Options and UtilizationEquipment Options and Utilization

General purpose machines

Numerical controlled machines

Automated tool changing

Computer numerical control

Direct numerical control

Robots, AVG’s

Computer integrated manufacturing

FlexibleManufacturingSystems

InformationSciences

TypicalEquipmentUtilization 5%-25% 20%-75% 70%-90%



Use of Information Technology at North Use of Information Technology at North American Manufacturing PlantsAmerican Manufacturing Plants

0 20 40 60 80

Computer Aided Design

Bar Coding

Industrial Computers

Computer Numerical Control (CNC)

Electronic Data Interchange (EDI)

Robotics

Automated Materials Handling (AGVs)

Automated Storage & Retrieval System (ASRS)

72

72

62

54

40

28

24

20

Plants with at least moderate experience (%)



Technology Impacts ServicesTechnology Impacts Services

Financial services Education Utilities and

government Restaurant and foods Communications

Hotels Wholesale/retail trade Transportation Health care Airlines



Technology’s Impact on ServicesTechnology’s Impact on ServicesService Industry Example

Financial services Education

Utilities & Government

Restaurants & foods

Communication

Hotels

Debit cards, electronic funds transfer, automatic teller

Multimedia presentations, bulletin boards, library catalogs, Internet

Automated one-man garbage trucks, optical mail scanners, airborne warning and control

Optical checkout scanners, wireless orders from waiter to kitchen, robot butchering

Electronic publishing, interactive TV voice mail, “notepad” computers, cellular phones

Electronic check-in and checkout systems, electronic key/lock systems



Technology’s Impact on Services Technology’s Impact on Services - continued- continued

Service Industry Example Wholesale/retail

Transportation

Health care

Airlines

Point-of-sale, electronic communications between store and supplier, bar-coded data, automated security systems

Automatic toll booths, satellite-directed navigation

MRI scanners, sonograms, patient monitoring, on-line medical information

Ticketless travel, computer scheduling



DSS, MIS and Transaction DSS, MIS and Transaction Processing in OMProcessing in OM

Manufacturing, distribution, and procurement planning DSS

Manufacturingcontrol

Distributioncontrol

Procurementcontrol

Shopfloor

reporting

QualityOrderfilling

Work orderprocessing

Rawmaterials

Procurement

Warehousereceiving

MIS

Transactionprocessing

system



MIS & Transaction MIS & Transaction Processing in OMProcessing in OM

Manufacturing and Material Management

Manufacturing Control Material Control

Quality Procurement

Shop floor reporting

Shop work orders

Inventory Warehouse receiving

MIS

Transaction processing



Expert SystemsExpert Systems Make decisions faster than the expert Derive the benefits of having an expert at their

disposal without having the expert present Equal and surpass, at least in terms of

consistency, the human expert Free the human expert for other work Can be disseminated to numerous nonexperts

for education and training



How an Expert Scheduling System How an Expert Scheduling System WorksWorks

ProcessProcess

DatabaseSpecific facts

describing present status of operations

DatabaseSpecific facts

describing present status of operations

Inference EngineDetermine rules to use in what sequence to respond to a

request

Inference EngineDetermine rules to use in what sequence to respond to a

request

Knowledge BaseGeneral rules for

classifying, obtained from

experts

Knowledge BaseGeneral rules for

classifying, obtained from

experts

Information from factory

floor Expert onScheduling

Heuristics

Models

OperatingManagerRequests for

schedules

Advice, explanationspossible schedules



To Gain Competitive Advantage To Gain Competitive Advantage Through TechnologyThrough Technology

Have a strategic vision Plan for a distant time horizon Have a focused product line and know your

product and customer Tie strong internal technical capabilities to your

strategy Build learning organizations that can effectively

implement the changes necessary for constructive use of technology



Enterprise Resource Planning Enterprise Resource Planning (ERP)(ERP)

Packaged business software systems that allow companies to: Automate and integrate the majority of their

business processes Share common data and practices across the entire

enterprise Produce and access information in a real-time

environment



Example of an ERP SystemExample of an ERP System

Finance and Accounting

Centralized ERP

Database, Software, and Servers

ShippingProduction and Material

Management

Human Resources



Advantages of ERPAdvantages of ERP Provides integration of supply-chain, production and

administrative processes Creates commonality of databases Can incorporate improved, redesigned, “best processes: Increases communication and collaboration worldwide Helps integrate multiple sites and business units Is packaged with a software core that is off-the-shelf coding Can provide a strategic advantage over competitors



Disadvantages of ERPDisadvantages of ERP Is very expensive to purchase, and even more costly to

customize Requires major changes in the company and its

processes to implement Is such a complex program that many companies

cannot adjust to it Involves an ongoing process for implementation, which

is often never completed Expertise in ERP is limited, with staffing an ongoing

problem

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