Lesson 9 - Use of technology

Robots are used in large manufacturing operations, but the move now in many organisations that want to reduce costs and improve production times is to source what is known as the ‘lean robot’, which is specifically designed for the customers’ needs. Car manufacturer DaimlerChrysler is a robot-intensive company with around 9000 robots in its Mercedes plant and 5000 in its Chrysler plant in the United States. DaimlerChrysler has invested in robots that specifically help with spot welding. The robots are lighter in weight and it means that more robots can be on the production line and some can even weld upside down. According to DaimlerChrysler, ‘More robots in the same area increases productivity.’

Outcomes (What you need to know and be able to do)  • How can technology improve operations? • Explain the impact of technology on service

organisations. • Explain the impact of technology on manufacturing

organisations • State two benefits and two costs of

manufacturing technology.

Questions from last lesson

Explain Quality Assurance

Suggested solution !Explanation should refer to quality assurance as a system by which an organisation's product or service must meet a quality standard set by an independent body (e.g. ISO 9001). Award 2 marks for definition.

Computer aided design

Computer-aided design (CAD) - Product designers and engineers work with computers to create products and modify specifications. The technology encourages wider possibilities because of the easy use of ‘what if’ approaches on the computer.

Computer-aided manufacturing

Computer-aided manufacturing (CAM) Computers are used to design and control the production process. With CAM, production runs (sizes, shapes, textures, etc.) can be changed efficiently as computers direct machinery and equipment.

Robots

Robots Computerised work machines are programmed to do various tasks in production. While they are still only machines and sometimes disappoint, robots are becoming even more sophisticated in their applications. And unlike humans, robots do not need rest periods, holidays or pay increases.

Computer integrated manufacturing

Computer-integrated manufacturing (CIM) This advanced process technology can utilise all the technologies listed here in one computerised system. CIM integrates all the major functions needed for production— product design (CAD), product engineering (CAM), inventory control and even data processing and accounting. A CIM facility can take a product idea from general concept to actual production in a very short time.

Use of technology in Service industries

Customer relationship management

CRM uses the internet to monitor and record customer interest, and to develop selling strategies based on that data. It is one of many new applications of internet technology to operations in service industries that will continue to be implemented in the next few years.

Benefits of CRM technology CRM technology promises better communication with customers and improved customer service. For instance, CRM systems can: ■ produce quotes on jobs/projects automatically ■ make customer appointments online and confirm them by email ■ send customers reminders on SMS ■ issue invoices and bills automatically ■ schedule jobs and provide customers with reports on jobs in progress ■ provide customers with opportunities to change and update job details ■ record and categorise customer complaints for action ■ manage inventories needed to meet customer demand ■ decrease reliance on paper documents ■ customise and personalise service for the individual customer online. !CRM serves business profitability two ways: it can decrease costs of achieving customer service outcomes (efficiency/productivity gains) and increase revenue by providing quality service online.

Think of a business that provides services and outline the technology they use.

Explain how this technology increases productivity

Explain the benefits and costs to the bakery

Exit Question

Outline two costs of manufacturing technology

Manufacturing technology is often expensive and can replace workers, meaning they lose their jobs.