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Lecture Operations management for competitive advantage (11/e) - Chapter Supplement B: Operations technology

Most of the recent growth in productivity has come from the application of operations technology. In services this comes from information processing and in manufacturing from a combination of soft and hard or machine technologies. This chapter presents the following content: Hardware systems, software systems, formula for evaluating robots, computer integrated manufacturing, technologies in services, benefits, risks. | Supplement B Operations Technology Hardware Systems Software Systems Formula for Evaluating Robots Computer Integrated Manufacturing Technologies in Services Benefits Risks OBJECTIVES 2 Hardware Systems Numerically controlled (NC) machines Machining centers Industrial robots Automated material handling (AMH) systems Automated Storage and Retrieval Systems (AS/AR) Automate Guided Vehicle (AGV) Flexible manufacturing systems (FMS) 3 Formula for Evaluating a Robot Investment Where P = Payback period in years I = Total capital investment required in robot and accessories L = Annual labor costs replaced by the robot (wage and benefit costs per worker times the number of shifts per day) E = Annual maintenance cost for the robot Z = Annual depreciation q = Fractional speedup (or slowdown) factor (in decimals). Example: If robot produces 150 % of what the normal worker is capable of doing, the fractional speedup factor is 1.5. The payback formula for an investment in robots is: 3 Example of | Supplement B Operations Technology Hardware Systems Software Systems Formula for Evaluating Robots Computer Integrated Manufacturing Technologies in Services Benefits Risks OBJECTIVES 2 Hardware Systems Numerically controlled (NC) machines Machining centers Industrial robots Automated material handling (AMH) systems Automated Storage and Retrieval Systems (AS/AR) Automate Guided Vehicle (AGV) Flexible manufacturing systems (FMS) 3 Formula for Evaluating a Robot Investment Where P = Payback period in years I = Total capital investment required in robot and accessories L = Annual labor costs replaced by the robot (wage and benefit costs per worker times the number of shifts per day) E = Annual maintenance cost for the robot Z = Annual depreciation q = Fractional speedup (or slowdown) factor (in decimals). Example: If robot produces 150 % of what the normal worker is capable of doing, the fractional speedup factor is 1.5. The payback formula for an investment in robots is: 3 Example of Evaluating a Robot Investment Suppose a company wants to buy a robot. The bank wants to know what the payback period is before they will lend them the $120,000 the robot will cost. You have determined that the robot will replace one worker per shift, for a one shift operation. The annual savings per worker is $35,000. The annual maintenance cost for the robot is estimated at $5,000, with an annual depreciation of $12,000. The estimated productivity of the robot over the typical worker is 110%. What is the payback period of this robot? P = I = 120,000 =1.47years L–E+q(L + Z) 35,000–5,000+1.1(35,000+12,000) 3 Software Systems Computer-aided-design (CAD) Computer-aided engineering (CAE) Computer-aided process planning (CAPP) Automated manufacturing planning and control systems (MP & CS) 4 Computer Integrated Manufacturing (CIM) Product and process design Planning and control The manufacturing process 5 Cost Reduction Benefits from Adopting New Technologies Labor costs Material costs .