Chapter 27: Using technology operations

1. Chapter 27: Using technology operations

2. Technology • In the business world, the application of practical, mechanical, electrical and related sciences to industry and commerce. • In this chapter, specific attention is paid to the following aspects of technology: • Robotics • Automation, such as stock control • Communications • Design

3. Robotics • Some of the main applications of robotics are: • Handling operations (on a production line, robots can be used to manipulate materials and components into position, in order for other production activities to take place) • Welding (joining together materials) • Other production applications (such as dispensing liquid, painting and coating materials, sealing components and gluing, cutting, grinding, polishing) • Assembling • Packaging and palletising • Measurement, inspection and testing • Hazardous applications

4. Automation • The use of machinery to replace human resources • Technology is important in several aspects of automation: • Production Planning • Operating – in CAM (computer-aided manufacture), the use of robots and fully automated production lines, controlled by computers, has increased productivity and reduced the problems arising from human error. • Controlling – computer-based quality assurance systems • Stock control: • Computer programs linked to statistics on patterns of consumer purchases allow firms to anticipate changes in stock levels more accurately • Allows organisations to access instantly their current stock levels • EPOS (electronic point of sale) systems link tills to stock control and will order new stock automatically when an item has fallen to the reorder level • Firms can establish the locations where stock is being held, so that in emergencies, stock can be moved between branches

5. Communications • ICT – Information and Communication Technology • Allows firms to improve both internal and external communications, improving efficiency and the firm’s understanding of its market • Internal information can be processed and amended more quickly • Company intranets enable employees (and suppliers and customers if necessary) to access company information at any time • Increases the speed of communication • Using loyalty cards, firms can accumulate information on the buying habits of their customers (Relationship marketing) • The internet has created a whole new category of business (e-commerce or dot.com companies) – can bring advantages to the firms that use it.

6. Design • Comparison and testing of new ideas – different ideas can be introduced and compared much more quickly in a CAD (computer-aided design) system than in a manual one. • Creation of new products

7. Other aspects of technology • Technology also influences: • Investor Relations – improves the scope for communicating accounting information to stakeholders • The nature of employment: • New skills and jobs are needed and have been introduced • Multi-skilling of staff – creating jobs that are less rigidly defined and adaptable to changes in the workplace - Changes in working practices – offers greater flexibility in terms of the place of employment ie: Teleworking (people working from home)

8. Benefits of using technology in operations: • Reducing costs • Improving quality • Reducing waste • Increasing productivity • Flexibility • Financial monitoring • New and better products/services • Better working conditions

9. Issues in introducing and updating technology • Resistance to change • Lower morale • Cost • Keeping up with change • Lower barriers to entry