Supplement C

SUPPLEMENT B
OPERATIONS TECHNOLOGY
Review and Discussion Quesions
1. Do robots have to be trained? Explain.
As discussed in the Supplement, robots have to be taught a series of motions by a human
operator before they start producing.
. !o" does the axiom used in industrial selling, #$ou don%t sell the product, you sell the
company,# pertain to manufacturing technology?
&ndustrial customers invariably ta'e plant tours to evaluate "hether or not a potential
supplier%s technology is capable of meeting their product needs.
(. )ist three analytical tools *other than financial analysis+ covered else"here in the boo' that
can be used to evaluate technological alternatives.
Simulation, statistical process control *e.g., ,aguchi methods+, and -ueuing theory.
.. ,he /elleville, 0ntario, Canada subsidiary of Atlanta1based &nterface &nc., one of the "orld%s
largest ma'ers of commercial flooring, credits much of its profitability to #green
manufacturing# or #eco1efficiency.# 2hat do you believe these terms mean? And ho" could
such practices lead to cost reductions?
Among many Canadian businesses, green manufacturing is becoming 'no"n as natural
capitalism or eco1efficiency. ,he idea is that if you ma'e products "ith less energy, fe"er
materials, and less pollution, you save money. ,he basic tenets of natural capitalism include
doing more "ith fe"er ra" resources and abolishing industrial "aste.
3. 4ive t"o examples each of recent process and product technology innovations.
,"o examples of ne" process technologies are communication satellites for transmission of
information, 5&SC *5educed &nstruction Set Computation+ technology for microprocessors.
,"o examples of ne" product technologies are camcorders and cellular phones. 6ote ho"
satellites could be thought of as a ne" product *technology+, but it is also a ne" process
technology that is a "ireless alternative to transmitting information across the globe.
7. 2hat is the difference bet"een a 6C machine and a machining center?
8achining Centers represent an increased level of automation and flexibility relative to 6C
machines. ,hey have the ability to carry many tools, "hich can be used se-uentially to
perform different processes on an item. Also, they may have multiple "or'tables that help
reduce set1up times by pre1loading 9obs and thus provides greater flexibility.

Supplement C
:. ,he ma9or auto companies are planning to invest millions of dollars on developing ne"
product and process technologies re-uired to ma'e electric cars. Describe briefly "hy thy are
investing in these technologies. Discuss the potential benefits and ris's involved in these
investments.
,he ma9or reason the auto companies are investing in these technologies is to meet the threat
of regulation. &n California and other states, the auto companies have been mandated to sell a
certain minimum percentage of non1polluting cars. ,hey are furiously developing the
product and process technologies for electric cars. ,he potential benefits are not being
penali;ed by meeting the deadlines. Also, as consumers become more conscious of the
environment, they may prefer cars that are less polluting and, to 'eep their loyalty, they have
to ma'e electric cars available. Clearly, this development effort re-uires large investments.
,he technology ris' is the uncertainty about "hich particular technology for ma'ing electric
cars "ill prove to be the most effective. Also, it is possible that gasoline1based cars may be
made almost nonpolluting due to technological advances, ma'ing the investments in electric
car technology a "aste. <urther, there are considerable environmental ris's due to
uncertainties about "hether the government "ill indeed enforce it regulations by a specific
date of relax the regulations. <or instance, in the case of gasoline cars, the federal
government has often relaxed fuel1emission standards in terms of fleet mileage re-uirements.
<inally, there are operational and organi;ational ris's due to the uncertainties about "hether
the auto firms "ill be able to adapt their operations and organi;ations to fully adopt these ne"
technologies, given the long history of these companies "ith gasoline1based technologies for
ma'ing cars.
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