Reference no: EM133247690

Managing Technology in Operations Management

In last decade or so technology has changed the way organisations conduct their business. The advent of technology in operations management has increased the productivity of organisations.

Technology and Operations Management
The scope of technology and operations management has evolved over a period and has moved from development of products into design, management and improvement of operating systems and processes. The utilisation of technology in operations management has ensured that organisations are able to reduce the cost, improve the delivery process, standardise and improve quality and focus on customisation, thereby creating value for customers.
Integration of Technology with Production System
Technology drives efficiency in organisations and increases the productivity of the organisation. However, bringing technology into the production system is a highly complex process, and it needs the following steps:
Technology Acquisition: Technology acquired should align with overall objectives of the organisation and should be approved after an appropriate cost-benefit analysis.
Technology Integration: Technology affects all aspects of production i.e. capital, labour and customer. Therefore, a solid technology integration plan is required.
Technology Verification: Once technology has been integrated, it is important to check whether it is delivering operational effectiveness.

Technology in Manufacturing and Design
Technology is being extensively used in the customisation of products and services. The usage of computers and supporting electronic systems is an integral part of the modern industrial and services industry. Current techniques can be broadly classified into following categories:
Computer-Aided Design (CAD): CAD facilitates linking of two more complex components of design at very high level of accuracy thus delivering higher productivity.
Computer-Aided Manufacturing System (CAM): Precision is very essential in operating any machines and therefore, Computerized Numerically Controlled machines are used, thus ensuring highest level of accuracy.
Standard for the Exchange of Product Data: As the name suggests product design is transmitted among CAM and CAM in three dimensions. Standard for The Exchange of Product Data process sharing of product across all phases of product life cycle and serves as neutral file exchange.
Software Systems in Manufacturing
There are various software systems available to integrated operations and manufacturing functions with other business functions of organisation. Some of the common software systems are Enterprise Resource Planning (ERP), Supply-Chain Management (SCM), New-Product Development (NPD) and Customer Relationship Management (CRM).
Enterprises Resources Planning (ERP) links all business functions like manufacturing, marketing, human resource and finance through a common software platform. The main benefits of the ERP solution are that it not only reduces database errors but also delivers value to customer through faster delivery and order fulfillment.

Automation in Production and Operations
Automation reduces manual intervention in the manufacturing process. It increases productivity and reduces margin of error thereby facilitating economies of scale. There is this-advantages of automation also, such as unemployment, high breakdown cost and initial capital investment. Therefore, automation may not be suitable in all situations and in the end alignment with an overall organisation objective is important.
Challenges
Technology can be a facilitating factor in bringing about change in operations and production management. But it may not be feasible to use technology in all aspects with challenges coming through high initial cost of investment, high cost of maintenance and mismanagement.

QUESTION: Examine with the use of relevant examples from the article how technology can be integrated into a production system?