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Operations Management

by: Miss Kaitlin Botsford

Operations Management SCM 352

Miss Kaitlin Botsford

GPA 3.61


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This 16 page Class Notes was uploaded by Miss Kaitlin Botsford on Sunday October 25, 2015. The Class Notes belongs to SCM 352 at University of Nevada - Las Vegas taught by Staff in Fall. Since its upload, it has received 42 views. For similar materials see /class/228634/scm-352-university-of-nevada-las-vegas in none at University of Nevada - Las Vegas.


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Date Created: 10/25/15
OltN OIgtum m mozoomlt gt20 Oum gtozm ltgtzgtmmltmz l learning outcomes L01 L02 L03 L04 Describe different types of technology and their role in manufacturing and service operations Explain how manufacturing and service technology is strengthening the value chain Explain the benefits and challenges of using technology Describe the processes of technology development and adoption Imagine a team of employees that works 16 hours a day seven days a week They never call in sick or show up late They demand no bene ts require no health insurance no coffee breaks and receive no paychecks They never complain Sounds like a bunch of robots huh They are in fact robotsand they re dramatically changing the way Staples the largest distributor of of ce products in the United States delivers thousands of orders to its customers Having people run around a warehouse looking for those items is expensive especially when the company promises next day delivery When customer orders come in the computer tells the 2 feet high the 3footlong machines where to nd racks with the appropriate items the robots following a network of evenly spaced barcode stickers spread across the floor locate the racks slide beneath them and lift them in the air They then carry them to picking stations and wait patienty as humans pull the correct products and place them in boxes When orders are filled the robots neaty park the racks back among the rest When they run low on power they head to batterycharging terminals or as warehouse personnel say quotThey get themselves a drink of water quot Overall average daily output is up 60 What do you think In what ways has technology bene ted your life and work as a student Technological innovation in goods services manufacturing and service delivery is a competitive necessity Technology is evolving at an extremely rapid pace gt short product life cycles 0 Hard technology refers to equipment and devices that perform a variety of tasks in the creation and delivery of goods and services 0 Soft technology is the application of the Internet computer software and information systems to provide data information and analysis and to facilitate the accomplishment of creating and delivering goods and services 5 Radio Frequency Identification RFID iii iiilill BarCode Identifies the content of a carton product xyz What are EPC and RFID EPCs are powered by RFID Technology has been around since the 1940s eg to tag and antitheft ignition key system The next generation of bar codes EPCs can identify a specific box of product X EPCs do not track customers EPCs contain a standard bar code a unique identifier EPCs assist retailers in monitoring and tracking the products v a DDDVDDABEIDDDJJEFDEIDLEEIDCD DDDD RFlD identifies SKU individual items 333 RFlD identi es aggregate crates pallets boxes RFlD identi es deliveries amp receipts ExpressPay I key fob Source LARAN RFID and made 6 5 Fixed Portal Readers r Hand Held Readers Shelf Rea ers Integration Server Local Server RFID tags are tiny computer chips that transmit radio signals and can be mounted on packages or shipping containers to help organizations identify product locations and movement RFID tags are being embedded in virtually everything from clothes to supermarket products to livestock to prescription medicines and have been used to monitor residents in assisted living buildings and track the movements of doctors nurses and equipment in hospital emergency rooms Manufacturing motorcycle transmission gears Mazak machining center can operate unattended for hours highly automated production Many manufacturing industries use specialized technology What are the pros and cons of automated processes Automatic pailet changer CUX steel slugs at Mazak machmmg Cemer Toyoda angle head grinder Mitsubishi gear shang Dh f quotrt of Andrew Product Management Intermediary Bricks 8 Mortar andor Direct Electronic Communication Returns Returns I Sgnchronlzed Information and Feedback Loops l Integrated Operating System 105 Integrate hard and soft technology across the firm allowing managers to make better decisions and share information across the value chain Computer integrated manufacturing systems CIMS enterprise resource planning ERP systems and customer relationship management CRM systems are 1055 1 ComputerIntegrated Manufacturing Systems CIMS The union of hardware software database management and communications to automate and control production activities A robot is a programmable machine designed to handle materials or tools in the performance of a variety of tasks CADCAE enables engineers to design analyze test simulate and manufacture products before they physically exist CAM involves computer control of the manufacturing process Flexible manufacturing systems FMS consist of two or more computer controlled machines linked by automated handling devices 2 Enterprise Resource Planning ERP ERP systems integrate all aspects of a business accounting customer relationship management supply chain management manufacturing sales human resources into a unified information system and provide more timely analysis and reporting of sales customer inventory manufacturing human resource and accounting data a Two prominent vendors of ERP software are SAP and Oracle ERP allows departments to share information and communicate with each other easily ERP is not about software but about changing the way the organization and its operations are managed 3 Customer Relationship Management CRM Systems CRM is a business strategy designed to learn more about customers wants needs and behaviors in order to build customer relationships and loyalty and ultimately enhance revenues and profits Service technologies are used behind the scenes to facilitate your experience as a customer Eservice refers to using the Internet and technology to provide services that create and deliver time place information entertainment and exchange value to customers andor support the sale of goods Many health care facilities are adopting electronic medical record EMR systems that can be easily integrated with medical records billing patient scheduling and accounting Technology at UPS such as handheld devices UPSnet UPS Mail etc Automation is found in many areas of services including automated car washes robotic surgery mail sorting machines delivery of medical records within hospitals automated oneman garbage trucks fetal monitors electronic hotel keys and locks airline auto pilot and entertainment using robots such as Disney World s Hall of Presidents and Country Bear Jamboree Exhibit Extra Examples of Service Technology Service Industry Financial Services Electronic funds transfer and e bllls Automatic teller machines Online stock trading and mortgage services Automated checkprocessing sorter UtilityGovernment Services Automated oneperson garbage trucks Online real estate valuation and tax information Online libraries Optical mail scanners RetailWholesale Services Virtual tours of real estate offerin s Supermarkets automated selfcheckout and smart carts Automatic car washing system Web video cameras webcams in automobile dealer service bays Autocall distribution systems Health Care CAT scanners Wireless web medial doctor systems Fetal monitors etherapy medical services Digital imaging technology from remote sites Pacemakers Education Services Online degreegranting universities and courses ebooks IDbooks and elearning Online motorist traffic schools Sports based web games and leagues Transportation Vehicle global positioning services Wireless handheld inventory tracking devices RFID tags for location and inventory control Autopilot for aircraft and the Space Shuttle EZPass transponders and systems for highway toll booths Using Technology to Improve Library Service The Metropolitan Library System in Oklahoma City is implementing a new scanning system that uses radio frequency identification RFID tags to keep track of books The program will cost the library system about 400000 The system is designed to speed up checkout times Up to five books can be checked in or out at once One of the most helpful features is a new shelf scanner Librarians used to check books one at a time making sure they were on the right shelf and in the right place Library productivity will also increase 1 B2B Business to Business Cisco Systems network equipment Oracle software 2 B2C Business to Customer Amazoncom books Lands End clothing 3 C2C Customer to Customer eBay auctions 4 G2C Government to Customer Electronic transaction capability allows all parts of the value chain to immediately know and react to changes in demand and supply Another type of eCommerce is consumer to business CZB such as pricelinecom Exhibit 52 Bene ts Creates new industries and job opportunltres Challenges Higher employee skill levels required such as lm ormation technology and senice management skills Restrucmres old and less productive InduSlrles Integration ol old llegacy and new technology and systems integrates supply and value chain players Job shift and displacement Increases marketplace COrrtoetitiveness and maintains the survrval of the firm Less opportunity for errtplOVee creativuy nd empowerment Provrdes the capabrlrty to locus on smaller target market segments lcustomrzel Protecting the employee39s and customer39s prlvacy and security lmprovesi increases productivity quality and customer sanstacrion speed safety and llexlorluvcustornrzatlor39 ctoes more with less Fewer human service providers resulting In Customer ownershrp not being assigned nonhuman service encounters and inability of the customer to change decisions and return goods easrly Lowers cost Information overload Raises world39s standard or llvmg Global outsourcing and impact on domestic Job opportunities Scalability is a measure of the contribution margin required to deliver a good or service as the business grows and volumes increase High scalability is the capability to serve additional customers at zero or extremely low incremental costs eg Monstercom Low scalability implies that serving additional customers requires high incremental variable costs eg see WebVan Many of the dotcoms that failed in the year 2000 had low scalability and unsustainable demand


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