Scribd
Upload
57 views

Operations Management: For Competitive Advantage

The document discusses various operations technologies including hardware systems like robots and automated material handling systems. It provides a formula for evaluating robot investments and an example calculation. Software systems like CAD, CAM, and CIM are covered. Technologies in services such as office automation and EDI are also mentioned. The benefits of new technologies include cost reductions in labor, materials, inventory and quality. Risks involve technological issues, organizational challenges, environmental impacts, and market uncertainties.

Uploaded by

krithikaelango
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
57 views

Operations Management: For Competitive Advantage

The document discusses various operations technologies including hardware systems like robots and automated material handling systems. It provides a formula for evaluating robot investments and an example calculation. Software systems like CAD, CAM, and CIM are covered. Technologies in services such as office automation and EDI are also mentioned. The benefits of new technologies include cost reductions in labor, materials, inventory and quality. Risks involve technological issues, organizational challenges, environmental impacts, and market uncertainties.

Uploaded by

krithikaelango
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 11

CHASE AQUILANO JACOBS

Operations Management
For Competitive Advantage
Supplement C

Operations Technology
ninth edition
Supplement C
Operations Technology
• Hardware Systems
• Software Systems
• Formula for Evaluating Robots
• Computer Integrated Manufacturing
• Technologies in Services
• Benefits
• Risks
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)


Formula for Evaluating a Robot
Investment
The payback formula for an investment in robots is:

P= I
L – E + q(L + Z)
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 is1.5.
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)
Software Systems
• Computer-aided-design (CAD)
– Computer-aided engineering (CAE)
– Computer-aided process planning (CAPP)

• Automated manufacturing planning and


control systems (MP & CS)
Computer Integrated
Manufacturing (CIM)
• Product and process design

• Planning and control

• The manufacturing process


Technologies in Services
• Office automation

• Image processing systems

• Electronic data interchange (EDI)

• Decision support systems & expert systems

• Networked computer systems


Cost Reduction Benefits from
Adopting New Technologies
• Labor costs
• Material costs
• Inventory costs
• Transportation or distribution costs
• Quality costs
• Other costs
Other Benefits….
• Increased product variety

• Improved product features and quality

• Shorter cycle times


Risks
• Technological risks

• Organizational risks

• Environmental risks

• Market risks

You might also like