07 - Chapter 7: Manufacturing and Service Technologies...

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Chapter 7: Manufacturing and Service Technologies Definitions - Technology: work processes, techniques, ,machines and actions used to transform organizational inputs into outputs - Core technology: work process directly related to organizations mission (e.g. teaching in school) - Non-core technology: department work process important to the organization but not directly Core Organization Manufacturing Technology - Manufacturing Firms o Woodward’s Classification: surveyed 00 manufacturing firms to learn how they were organized and found a scale to organize process by technical complexity (extent of mechanization of the manufacturing process) High complexity; work performed by machines vs. low where worker does work Different technologies require different demand and they need an appropriate structure o Group I: Small-batch and unit production Small orders that meet specific needs, relies a lot on human operator (not mechanized) Workforce divided into manufacturing cells o Group II: Large-batch and mass production Long production runs of standardized parts with output going into inventory from which orders are filled due to customers not having special needs o Group III: Continuous-process production Entire process mechanized with no starting and stopping with automated machines controlling the process and outcomes being predicable Most management positions needed, ratios increase (direct-to-indirect, management-to-total personnel) - Strategy, Technology and Performance (review pg 250, exhibit 7.4) o Success of the firm determined by profitability, market share, stock price and reputation and ranked on a scale of commercial success according to whether they displayed above- average, average or below-average performance on strategic objectives
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Chapter 7: Manufacturing and Service Technologies o Compared structure-technology relationship vs. commercial success and discovered that successful firms have complementary structures and technologies o Structural characteristics can be interpreted as clustering into organic and mechanistic management systems (small batch, continuous organic, mass mechanic) Contemporary Applications - Two applications of manufacturing technologies o Manufacturing is 14% of US GDP and 11% of employees 1. Flexible Manufacturing Systems (FMS) o Also known as computer integrated manufacturing, smart factories, advanced manufacturing technology, agile manufacturing, factory of the future o Results from three subcomponents Computer-aided design (CAD) Computers assist drafting, design and engineering as designers guide computers to draw specific dimensions and components Computer-aided manufacturing (CAM) Computer-controlled machines that speed up manufacturing with flexibility of a production line possible (satisfying customer needs) Integrated information network Computerized system linking all aspects of a firm based on common data
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This note was uploaded on 12/08/2011 for the course BUS 272 taught by Professor Echo during the Spring '11 term at Simon Fraser.

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07 - Chapter 7: Manufacturing and Service Technologies...

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