3. Potential Benefits of
Technology
Cost reduction through productivity
improvement
Quality improvement
Shorter delivery lead time
Increased flexibility and convenience
Safety improvement
Expansion to new markets/customers
5. Potential Drawbacks of
Technology
Change in employee/machine interfaces
May not achieve expected effects (may not
reduce labor cost/increase productivity)
Potential conflict with Kaizen
Reduced flexibility
Reliance on technical staff
6. National Challenge
Emphasis on short-term business planning
Industry has limited ability to access and
apply state-of-the-art research findings
Education crisis presents technological
challenge in the future
Increased technology transfers to
developing countries
7. Technology Strategy for PI
Long-range planning for modernization of
the organization’s productive core and its
key interface and support functions
Holistic view on product/service process
technology
Technology strategy for improving an
organization’s distinctive competence and
its potential competitive advantage
8. Evaluating Values of Technology
Strategic impact – new market, competitive
position, market share
Customer impact – selection, price, quality,
convenience, speed, etc.
Financial impact – cost, profit, ROI
Operating impact – efficiency
Social impact – job, health, safety,
environment
10. Economic Justification of
Technology (1 of 2)
What is the value of consistent and superior
quality?
What is the cost of poor quality (scrap,
rework, customer dissatisfaction)?
What is the cost of missed delivery dates,
lost contracts, and shrinking market share?
What is the value of increased productivity
and reduced lead time?
11. Economic Justification of
Technology (2 of 2)
What is the value of flexibility and the ability
to respond to market changes quickly?
What is the cost of not being able to hold
markets or open new markets due to lack of
competitive equipment or capacity?
What is the cost of inventory?
What is the cost of delayed product
development and engineering changes?
12. Technology for Productivity
Improvement
Five interdependent dimensions:
•Product/service design
•Physical production/service processes
•Information systems
•Management technology
•Product materials technology
14. Product Design Technology
for Productivity Improvement
Computer-Aided Design (CAD)
Rapid prototyping
Virtual collaboration and communication for
designers, cross-functional teams, suppliers,
customers – web, groupware, instant
messaging, project management, etc.
Database and data warehouse for enterprise
integration and data mining
15. Process Technology for
Productivity Improvement
Manufacturing (AMT)
•Numerically-controlled machines (NC)
•Flexible manufacturing systems (FMS)
•Cellular systems
•Computer-integrated manufacturing
systems (CIM)
•Robots
16. Application of Technology in
Manufacturing - Examples
Welding
Painting
Lasers
Fabrication
Assembly
Material Handling and storage
Measurement and tracking systems
17. Automation in Distribution
Automated Storage and Retrieval System
(AS/RS)
Automated Guided Vehicle System (AGVS)
Point of Sales (POS) system
Tracking system (e.g. UPS)
Radio-Frequency Identification (RFID)
system
18. Process Technology for
Productivity Improvement
Service
•Automated/computerized equipment
•Automated software systems
•Telecommunication systems
•Hand-held devices
•Software systems
•Internet
19. Applications of Technology in
Services - Examples
Billing and Payment
On-line services
Document transfer
Order taking
Customer service
Application processing
20. Information System Technology
for Productivity Improvement
Application Software Systems
•Enterprise Resource Planning (ERP)
•Supply Chain Management (SCM)
•Customer Relationship Management
(CRM)
•Advanced Planning & Scheduling (APS)
21. What Are the Key Functions
of those Software Systems?
22. Management Technology for
Productivity Improvement
Standardization
Continuous improvement/Kaizen
Process mapping/improvement
Project management
Just-in-time
Six sigma
Knowledge Management
28. How to Develop Leadership in
Technology for Managers?
Develop better understanding of cost-
benefit analysis
Increase accountability of technology
investment
Improve knowledge of technologies and
their applications
Focus more on strategic innovations