- Businesses are increasingly using a range of technologies to automate production processes
Diagram: IT Technology used in Operations
Information technology can be applied to a range of operations processes, including design, manufacture, safety and logistics
Computer-aided design (CAD)
- The process of digitally creating design simulations of products in 2D or 3D
- It can also include the use of computer software to create mapping processes for industrial machinery, e.g. the movements required by a robotic arm in a television factory
Evaluation of CAD in operations
Advantages
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Disadvantages
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- Lower product design costs as the need to produce expensive prototypes is eliminated
- High levels of accuracy reduce the chance of production errors and defects, leading to high quality output
- Quicker design development reduces the time taken to bring a product to market
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- Bespoke or complex design software is usually very expensive
- Design and production employees need extensive training to ensure designs are transformed into finished products effectively
- Computer processing and storage capacity may need upgrades
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Computer-aided manufacturing (CAM)
- The use of computers to assist in operations of a manufacturing plant, such as production processes, planning, management, transportation and storage
Computer-integrated manufacturing (CIM)
- The complete automation of a manufacturing plant, with all processes functioning under computer control with digital information tying them together
Evaluation of CAM and CIM in operations
Advantages
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Disadvantages
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- Production can take place with minimal human input, reducing labour costs
- Often linked directly to CAD systems, it allows for mass customisation as changes are be made to work in progress
- IT-controlled production systems are usually highly accurate, generating high quality output
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- High initial cost of hi-tech equipment that will need ongoing maintenance and upgrades
- Equipment failure and breakdowns can cause significant disruption to production
- Output is only as good as the system's programmer - if faulty code is not detected and corrected, product quality will be impacted
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Drones
- Unpiloted aircraft are being used to carry out an increasing range of business tasks, including package delivery, photography and security
- E.g. Large agriculture businesses use drones to spot failing crops and areas of concern in large fields, mapping boundaries and even applying pesticides
Evaluation of IT in Operations
- The installation and maintenance of IT technology in production is likely to incur significant costs
- Purchasing IT hardware and software may require external finance, such as loans which will need to be repaid with interest
- Employees will need training in order to safely and effectively operate technology
- Down time as technology is installed and workers are trained, it impacts output levels
- Businesses must be sure that this capital expenditure is outweighed by gains in productivity and improvements in quality and flexibility
- Higher levels of productivity may only be achieved with high levels of output
- Automation usually works best in the manufacture of standardised products
- Flexibility in production refers to how easy it is to install machinery and switch to different machinery which is required to manufacture different products (known as retooling)
- The most flexible technology is also likely to be the most costly
