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Chapter 7

0. Chapter 7. Manufacturing and Service Technologies. Service and Manufacturing Technologies. 0. Technology refers to the work processes, techniques, machines and actions used to transform input into outputs Technology influences organizational structure

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Chapter 7

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  1. 0 Chapter 7 Manufacturing and Service Technologies

  2. Service and Manufacturing Technologies 0 • Technology refers to the work processes, techniques, machines and actions used to transform input into outputs • Technology influences organizational structure • Core technology is the work process that directly relates to the organization’s mission • There are also non-core technology

  3. Core Transformation Process for a Manufacturing Company 0

  4. Pressures Affecting Organization Design 0

  5. Woodward’s Classification Based on System of Production 0

  6. Strategy, Technology, and Performance 0 • Strategy, structure, and technology need to be aligned • Successful firms have complementary structures and technologies • Failing to adopt a new technology or failing to realign strategy can lead to poor performance

  7. Flexible Manufacturing Systems 0 • The shop floor has been revolutionized • Computer-aided design (CAD) • Computer-aided manufacturing (CAM) • Integrated Information Network • FMS means that new products can be designed and prototypes without human hands

  8. Flexible Manufacturing Technology vs. Traditional Technologies 0

  9. Lean Manufacturing 0 • Highly trained employees at every stage of production • Cut waste and improve quality • Incorporates technological elements • Paved the way for mass customization • Using mass-production technology to quickly and cost-effectively assemble individual goods for customers

  10. Performance and Structural Implications 0 • Flexible manufacturing allows diverse products to be made on one assembly line • Mass customization to meet customer needs • Efficient machine utilization • Labor productivity increases • Scrap rates decrease • Increased productivity

  11. Core Organization Service Technology 0 • The service sector is growing • Service technologies are different from manufacturing technologies

  12. Service Firms 0 • Production and provision of services • Intangible output • Simultaneous production and consumption • Labor and knowledgeable intensive • Direct interaction between customer and employee • Quality is perceived • Site selection is very important

  13. Designing the Service Organization 0 • Service organizations are not necessarily large • Often small locations, close to customers • Service organizations require technical core employees – close to customer • Service customers interact directly with technical employees • The skills of technical employees need to be high • Employees need knowledge, awareness and interpersonal skills • Decision making is often decentralized

  14. Non-Core Departmental Technology 0 • Every department in an organization has a production process • Variety: frequency of unexpected and novel events • Analyzability: ability to apply standard procedures • Routine vs. Nonroutine Dimension • Engineering Technologies • Craft Technologies

  15. Framework for Department Technologies 0

  16. Department Technology to Structural and Management Characteristics 0

  17. Workflow Interdependence Among Departments 0 • The extent to which departments depend on each other for resources or materials • Low interdependence means that departments can do their work independently • High interdependence means departments depend on each other

  18. Interdependence and Management Implications 0

  19. Structural Priority and Implications 0 • Reciprocal interdependence should receive first priority • Reciprocal activities should be grouped together • Poor coordination will cause poor performance • Organizations should be designed to address interdependence

  20. Coordination for Interdependence 0

  21. Technology impacts: Job Design Organization Job Design Job Simplification Job Rotation Job Enrichment Job Enlargement Impact of Technology on Job Design 0 Sociotechnical systems approach recognizes the interaction of technical and human needs

  22. Sociotechnical Systems Model 0

  23. Design Essentials 0 • Key research notes that technology and structure can be co-aligned • Service technologies differ in a systematic way from manufacturing technologies • It is important to apply the correct management system to a department • Interdependence among departments dictates the amount of communication and coordination required in design

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