27: Using technology in operations

Question 1

Information technology:

Answer 1

The use of electronic technology to gather, store, process and communicate information.

Question 2

Robots

Answer 2

A computer controlled machine able to perform a physical task.
Known for their speed, accuracy and efficiency. They increase product quality compared to manual production methods.

Question 3

Automated stock control programmes

Answer 3

More flexible and information is easier to retrieve. Widely used in service and manufacturing businesses.

• How much is there in stock?
• What is the current value of stock held?
• How old is the stock?
• Which are the fastest moving items of stock and which are the slowest?

Also give following benefits:

• Automatic stock monitoring, triggering orders when the re-stock level is reached.
• Identifying the cheapest & fastest suppliers.
• Bar coding systems which speed up processing, recording of stock and customer check outs.

Question 4

Supply Chain

Answer 4

All of the stages in the production process from obtaining raw materials to selling to the consumer - from point of origin to point of consumption.

Question 5

Enterprise resource planning:

Answer 5

IT software known as ERP.
- Plan.
- Suppliers.
- Manufacture.
- Deliver.
- Return.
ERP will monitor all of these stages and by using the internet, allows the supply chain of a business to be linked into the supply chains of customers and suppliers in a single overall network. Following benefits of ERP:
- Supply only according to demand - avoids waste and helps achieve sustainability.
- Just in time ordering of stocks.
- Reduces costs at all stages of the supply chain materials and products are electronically tracked at all stages.
- Improved delivery times & better customer service.

Question 6

Sustainability:

Answer 6

production systems that prevent waste by using the minimum on non-renewable resources so that levels of production can be sustained in the future.

Question 7

Communications technology

Answer 7

Internet and email access. These can be used for external communication with suppliers and customers.
Allows rapid, cheap and frequent internal communication within the organisation. This can be used to improve accuracy and speed of passing information between the Operations Management Department.

Question 8

Overall benefits of using new technology:

Answer 8

• Lower unit costs of production as technology replaces labour intensive methods increases labour productivity.
• Better communications and management information systems.
• Quicker and more flexible operations.
• Better customer service, for example through internet purchasing.
• Improvement in quality and reduction in wastage.