OVERVIEW OF TECHNOLOGY

AND OPERATION
MANAGEMENT

LECTURE NOTES FOR TOM

BY FAHMY RADHI
 Changing world

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 Technology Definitions
 Technology defines as an essential input for the
production of goods and service
 Technology is all the knowledge, product, process, tools,
methods and system employed in the creation of goods or
in providing services
 Technology is the integral body of technical and
organizational (software) and tools (hardware) used in the
production of goods and services.
 Hard technology is technology that is embodied in
machinery and equipment,
 Soft technology is the know-how and information that
is disembodied from hard technology

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 Types of Technology
Product technology is the knowledge used to
produce any product or service.
Process technology is the knowledge used to
transform some of the inputs for the production
of a given product or service.
Management technology is the knowledge
used to manage the operations of a company
efficiently and effectively

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 Product Technology

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 Process Technology
COMPUTER INTEGRATED
COMPUTER-AIDED DESIGN MANUFACTURING (CIM)

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 Robotic in Manufacturing Technology

ROBOT AND ITS STANDARD MOVEMENTS ROBOTICS

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 Technology Components
Technoware – object embodied into physical facilities, such
as machinery, tools, equipment
Humanware – person embodied into human abilities, such
as skills, knowledge, craftsmanship, expertise and creativity
Infoware – record embodied into document knowledge,
such as specifications, manuals, design, blue print
Orgaware – institution embodied into management of
organizational framework, such as management practices,
organizational networks, methods and techniques

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 DISTRIBUTION STRATEGY OF NETWORKING
RECORDING INDUSTRY AT NAPSTER
International Trading

AGENT/
IMPORTER WHOLESELLER RETAILER
EXPORTER

COMPOSER
“Un-barrier to sell”
RECORDING
ACTRESS
INDUSTRY NAPSTER CUSTOMER
Internet
(Download)
PRODUCER Marketing Intermediary

AGENT WHOLESELLER RETAILER

National Trading

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 “STRIKE-UP BANDWITH
BY USING INTERNET MEDIA”

OTHER
COSTUMER WEB COSTUMER
ON INTERNET
NAPSTER

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Operations Management
Planning, organizing, executing and
controlling in a systematic process that
transform inputs into outputs of greater
value
It deals with the production of goods
and services

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 Transformation Process

Input Process Output

Materials Manufacturing Automobiles

Machines Assembling Televisions
Man/workers Transporting Services
Money/capital Storing
Information Consulting

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 Functions - Bank

Commercial Bank
© 1984-1994
T/Maker Co.

Marketing Operations Finance/

Accounting

Teller Check Transactions

Security
Scheduling Clearing Processing

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 Functions - Airline

Airline
© 1984-1994 T/Maker Co.

Marketing Operations Finance/

Accounting

Flight Ground Facility

Catering
Operations Support Maintenance

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Functions - Manufacturer

Manufacturing

Marketing Operations Finance/

Accounting

Manufacturing Production Quality

Purchasing
Control Control

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Characteristics of Goods
Tangible product
Consistent product
definition
Production usually
separate from
consumption
Can be inventoried
Low customer
interaction © 1995 Corel Corp.

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 Characteristics of Service
Intangible product
Produced & consumed at
same time
Often unique
High customer
interaction
Inconsistent product
definition
Often knowledge-based
Frequently dispersed
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 The output from most operations is a mixture of
goods and services
PURE GOODS
Tangible
CRUDE OIL PRODUCTION

Can be stored
ALUMINIUM SMELTING Production precedes
consumption
SPECIALIST MACHINE TOOL
Low customer
contact
MANUFACTURER
Can be transported
Quality is evident
RESTAURANT

COMPUTER SYSTEMS
SERVICES

PSYCHOTHERAPY CLINIC
CONSULTANCY
MANAGEMENT
Intangible
Cannot be stored
Production and
consumption are
simultaneous
High customer contact
Cannot be transported
Quality difficult to judge
PURE SERVICES

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10 Strategic OM Decisions
Goods & service design
Quality
Process & capacity design
Location selection
Layout design
Human resource and job design
Supply-chain management
Inventory
Scheduling
Maintenance

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 Productivity
Measure of process improvement
Represents output relative to input
Productivity Units produced
= Input used

Only through productivity increases can our

standard of living improve

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