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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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-2
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)
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-3
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)
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-4
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-5
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)
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-6
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-7
TechnologyTechnology
Technology is not a cure-all, but managing technology is certainly a major ingredient in building firms with a future.
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-8
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-9
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-10
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.
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-11
Design TechnologyDesign TechnologyComputer-Aided Manufacturing (CAM)Computer-Aided Manufacturing (CAM)
Refers to the use of specialized computer programs to direct and control manufacturing equipment
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-12
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-13
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)
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-14
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
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© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-15
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
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© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-16
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.
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-17
Photo S7.7 Photo S7.7
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
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Production TechnologyProduction TechnologyVision SystemsVision Systems
Combine video and computer technology Often used in inspection roles Consistently accurate, do not become bored,
of modest cost
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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
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© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-20
Types of RobotsTypes of Robots
Large articulated robot
Cartesian(rectilinear)
Spherical(polar)
CylindricalArticulated
(revolute, jointed,anthropomorphic)
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© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-21
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.
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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)
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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)
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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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-25
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
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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)
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-27
Computer-Integrated Computer-Integrated ManufacturingManufacturing
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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%
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-29
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 (%)
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-30
Technology Impacts ServicesTechnology Impacts Services
Financial services Education Utilities and
government Restaurant and foods Communications
Hotels Wholesale/retail trade Transportation Health care Airlines
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© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-31
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-32
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-33
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-34
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-35
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-36
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-37
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-38
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-39
Example of an ERP SystemExample of an ERP System
Finance and Accounting
Centralized ERP
Database, Software, and Servers
ShippingProduction and Material
Management
Human Resources
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-40
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
PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render)
© 2001 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458S7-41
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