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Lesson 9 - Use of technology
Robots are used in large manufacturing operations, but the move
now in many organisations that want to reduce costs and improve
production times is to source what is known as the ‘lean robot’,
which is specifically designed for the customers’ needs. Car
manufacturer DaimlerChrysler is a robot-intensive company with
around 9000 robots in its Mercedes plant and 5000 in its Chrysler
plant in the United States. DaimlerChrysler has invested in robots
that specifically help with spot welding.The robots are lighter in
weight and it means that more robots can be on the production line
and some can even weld upside down.According to DaimlerChrysler,
‘More robots in the same area increases productivity.’
Outcomes (What you need to know and be able to do) 
• How can technology improve operations?	

• Explain the impact of technology on service
organisations.	

• Explain the impact of technology on manufacturing
organisations	

• State two benefits and two costs of
manufacturing technology.
Questions from last lesson
Explain Quality Assurance
Suggested solution	

!
Explanation should refer to quality assurance as a
system by which an organisation's product or
service must meet a quality standard set by an
independent body (e.g. ISO 9001).	

Award 2 marks for definition.
Computer aided design
Computer-aided design (CAD) - Product designers and engineers work
with computers to create products and modify specifications. The
technology encourages wider possibilities because of the easy use of ‘what
if’approaches on the computer.
Computer-aided manufacturing
Computer-aided manufacturing (CAM) Computers are used to design and
control the production process. With CAM, production runs (sizes, shapes,
textures, etc.) can be changed efficiently as computers direct machinery and
equipment.
Robots
Robots Computerised work machines are programmed to do various tasks
in production. While they are still only machines and sometimes
disappoint, robots are becoming even more sophisticated in their
applications. And unlike humans, robots do not need rest periods, holidays
or pay increases.
Computer integrated
manufacturing
Computer-integrated manufacturing
(CIM) This advanced process
technology can utilise all the
technologies listed here in one
computerised system. CIM integrates all
the major functions needed for
production— product design (CAD),
product engineering (CAM), inventory
control and even data processing and
accounting. A CIM facility can take a
product idea from general concept to
actual production in a very short time.
Use of technology in Service industries
Customer relationship management
CRM uses the internet to monitor and record customer interest, and to develop selling
strategies based on that data. It is one of many new applications of internet technology
to operations in service industries that will continue to be implemented in the next few
years.
Benefits of CRM technology
CRM technology promises better communication with customers and improved
customer service. For instance, CRM systems can:	

■ produce quotes on jobs/projects automatically	

■ make customer appointments online and confirm them by email	

■ send customers reminders on SMS	

■ issue invoices and bills automatically	

■ schedule jobs and provide customers with reports on jobs in progress	

■ provide customers with opportunities to change and update job details	

■ record and categorise customer complaints for action	

■ manage inventories needed to meet customer demand	

■ decrease reliance on paper documents	

■ customise and personalise service for the individual customer online.	

!
CRM serves business profitability two ways: it can decrease costs of achieving customer
service outcomes (efficiency/productivity gains) and increase revenue by providing quality
service online.
Think of a business that provides services and outline the
technology they use.
Explain how this technology increases productivity
Explain the benefits and costs to the bakery
Exit Question
Outline two costs of manufacturing technology
Manufacturing technology is often expensive and can replace
workers, meaning they lose their jobs.

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Lesson 9 use of technology

  • 1. Lesson 9 - Use of technology Robots are used in large manufacturing operations, but the move now in many organisations that want to reduce costs and improve production times is to source what is known as the ‘lean robot’, which is specifically designed for the customers’ needs. Car manufacturer DaimlerChrysler is a robot-intensive company with around 9000 robots in its Mercedes plant and 5000 in its Chrysler plant in the United States. DaimlerChrysler has invested in robots that specifically help with spot welding.The robots are lighter in weight and it means that more robots can be on the production line and some can even weld upside down.According to DaimlerChrysler, ‘More robots in the same area increases productivity.’
  • 2. Outcomes (What you need to know and be able to do)  • How can technology improve operations? • Explain the impact of technology on service organisations. • Explain the impact of technology on manufacturing organisations • State two benefits and two costs of manufacturing technology.
  • 3. Questions from last lesson Explain Quality Assurance Suggested solution ! Explanation should refer to quality assurance as a system by which an organisation's product or service must meet a quality standard set by an independent body (e.g. ISO 9001). Award 2 marks for definition.
  • 4. Computer aided design Computer-aided design (CAD) - Product designers and engineers work with computers to create products and modify specifications. The technology encourages wider possibilities because of the easy use of ‘what if’approaches on the computer.
  • 5. Computer-aided manufacturing Computer-aided manufacturing (CAM) Computers are used to design and control the production process. With CAM, production runs (sizes, shapes, textures, etc.) can be changed efficiently as computers direct machinery and equipment.
  • 6. Robots Robots Computerised work machines are programmed to do various tasks in production. While they are still only machines and sometimes disappoint, robots are becoming even more sophisticated in their applications. And unlike humans, robots do not need rest periods, holidays or pay increases.
  • 7. Computer integrated manufacturing Computer-integrated manufacturing (CIM) This advanced process technology can utilise all the technologies listed here in one computerised system. CIM integrates all the major functions needed for production— product design (CAD), product engineering (CAM), inventory control and even data processing and accounting. A CIM facility can take a product idea from general concept to actual production in a very short time.
  • 8. Use of technology in Service industries
  • 9. Customer relationship management CRM uses the internet to monitor and record customer interest, and to develop selling strategies based on that data. It is one of many new applications of internet technology to operations in service industries that will continue to be implemented in the next few years.
  • 10. Benefits of CRM technology CRM technology promises better communication with customers and improved customer service. For instance, CRM systems can: ■ produce quotes on jobs/projects automatically ■ make customer appointments online and confirm them by email ■ send customers reminders on SMS ■ issue invoices and bills automatically ■ schedule jobs and provide customers with reports on jobs in progress ■ provide customers with opportunities to change and update job details ■ record and categorise customer complaints for action ■ manage inventories needed to meet customer demand ■ decrease reliance on paper documents ■ customise and personalise service for the individual customer online. ! CRM serves business profitability two ways: it can decrease costs of achieving customer service outcomes (efficiency/productivity gains) and increase revenue by providing quality service online.
  • 11. Think of a business that provides services and outline the technology they use. Explain how this technology increases productivity
  • 12.
  • 13. Explain the benefits and costs to the bakery
  • 14. Exit Question Outline two costs of manufacturing technology Manufacturing technology is often expensive and can replace workers, meaning they lose their jobs.