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1、CHAPTER 4 THE ROLE OF TECHNOLOGY IN OPERATIONSChapter OverviewTechnology is raising the bar for competition by allowing companies to compete on several different dimensions-low cost, quality, speed of delivery, and customization. Manufacturing technologies include machining centers, NC machines, ind

2、ustrial robots, CAD, CAD/CAM, FMS, and CIM. Information technologies include ERP, SCM, NPD, and CRM. ERP is a new generation of software that links all of the functional areas in an organization, and is providing a uniform software platform and database. Manufacturing is not the only sector being im

3、pacted by technology. Service industries are also impacted. Technology is being used in services to increase self-service, decrease the importance of location, shift from time-dependent to non-timedependent transactions, and increase disintermediation.Major Points of ChapterTechnology allows organiz

4、ations to compete on various dimensions.Manufacturing technologies include machining centers, NC machines, industrial robots, CAD, CAD/CAM, FMS, and CIM.ERP systems are a new generation of software that is providing a single, uniform software platform and database to facilitate transactions among th

5、e functional areas within a firm, and between firms and their customers and vendors.ERP systems are an outgrowth of MRP.ERP systems reduce the number of errors through the use of a common database, speed customer response times, speed order fulfillment times, and improve overall communication within

6、 the organization.Reasons for ERP failure include lack of top management commitment, lack of adequate resources, lack of proper training, and lack of communication.Technology is also impacting services by increasing self-service, decreasing the importance of location, shifting from time-dependent to

7、 non-time-dependent transactions, and increasing disintermediation.E-services have also grown, and include e-tailers, customer support, network providers, information providers, and application service providers.42Review and Discussion QuestionsWhat are the different ways in which technology can imp

8、act an operation? Use examples in both manufacturing and service operations. In manufacturing, NC machines combined with CAD are allowing for low cost customization. For services, the Internet is automating many operations, such as getting your balance for your bank account, or credit card account.T

9、echnology is allowing companies to compete on multiple dimensionslow cost, quality, speed of delivery, and customization. Examples will vary.Identify and compare the perceived benefits and costs for each of the following pairs of services:Traditional grocery storehome delivery grocery service (Peapo

10、d )The benefits of Internet grocery service is convenience, the drawbacks are the inability to see the product (squeeze the tomatoes), to browse the isles for impulse or new items, and potentially the cost of delivery.Neighborhood travel agent-Internet travel agent (Expedia )The benefits to Internet

11、 travel agents include booking tickets any time of the day or night, seeing everything that is available, and the ability to search on a variety of criteria. The drawbacks are that you loose the personal touch, and the expertise of the travel agent. Many travel agents have actually been to some of t

12、he locations that are being considered.Local bank branch office-Internet bank (Wingspan )The benefits to an Internet bank include access to account information 24-7, ability to pay electronically at the last moment, and to setup automatic payments. The drawbacks include the lack of personal touch, t

13、he ease of asking questions of a real person, and the ability to get cash (changes).Traditional bookstoreVirtual bookstore (Amazon )The benefits of a virtual bookstore include a wider selection, the ability to search database on available books, the ability to search for out-of-print books, and cost

14、. The drawbacks include the lack of personal touch (having a person suggest a book, or helping you find it in the store), inability to see and feel the book, and the lack of instantly purchasing and receiving the book.Chapter 4Describe how technology is adding value for each of the technology-driven

15、 services in Question 2.Internet grocery service-primarily adding convenience.Internet travel agent-adding convenience (available 24-7), and ability to search databases.Internet bankadding convenience (review balance 24-7, make electronic payments).Virtual bookstoreadding convenience, selection, and

16、 ability to search databases.What are the benefits of automation in a manufacturing company?Automation allows firms to automatically produce higher quality products at lower costs, while still providing some customization.What are the different ways in which infomediaries add value?Infomediaries add

17、 value by providing information. It could be general information, such as a firms financial information. The information could be sorted to fit an individuafs needs, or it could involve a custom search specifically designed for a specific customer.Visit any of the following services and identify the

18、 various ways in which technology is changing the way in which these services are being delivered.Answers will vary.Retail store.Examples of technology include anti-theft devices, surveillance cameras, as well as selling through the Internet.Restaurant.Changes include issuing pagers to waiting custo

19、mers, processing order and totaling the bill on computers. In the kitchen, technology is changing the cooking processes themselves including some automated processes.Bank office.Within the bank itself, little has changed other than computer being used to process the transactions. However, technology

20、 now allows many transactions to take place outside the bank itself, such as ATMs, and on-line banking.Supermarket.Examples include self-checkout lines, and computerized systems to provide recipes and shopping lists.44Case: EMC Uses Technoloav to Enhance Its Customer ServicesHow does technology provide EMC with a competitive advantage in the marketplace?It allows them to provide out

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