CHAPTER SEVEN

1
CHAPTER SEVEN MANUFACTURING AND SERVICE
TECHNOLOGIES An organizations core technology
is the work process that is directly related to
the mission. Manufacturing Firms Joan
Woodward's classic study classified manufacturing
firms into small batch (job shop, single
orders) mass production (assembly
line) continuous process technologies (automated
machines control a continuous process).
Woodward discovered that technology was related
to structure and performance, and was based on
technical complexity (extent of mechanization and
predictability of manufacturing process). Mass
production firms tended to be more formalized,
centralized, mechanistic, had larger span of
control and less-educated workers than small
batch or continuous process technologies.
Successful firms had complimentary structures
and technologies. Successful small-batch and
continuous process organizations tended to have
organic structures. Successful mass production
organizations tended to have mechanistic
structures.
2
Flexible Manufacturing The most recent
development in manufacturing technology is
Computer-Integrated Manufacturing, also called
advanced manufacturing technology, agile
manufacturing, smart factories or flexible
manufacturing systems. Flexible manufacturing
is the result of three subcomponents.
Computer-aided design (CAD) uses computers to
assist in the drafting, design, and engineering
of new parts. Computer-aided manufacturing
(CAM) increases the speed of manufacturing and
changing production setups by computer-controlled
machines. Integrated information network links
all aspects of the firm with a common data base.
A primary advantage of flexible manufacturing
is that a single manufacturing plant can function
as both small batch and mass production at the
same time with an infinite variety of products in
unlimited batch sizes. Flexible manufacturing
usually works best with a narrow span of control,
few hierarchical levels, adaptive tasks, low
specialization, decentralization, and an overall
organic structure. Lean manufacturing uses
highly trained employees at every stage of the
production process, which take a painstaking
approach to details and problem solving to cut
waste and improve quality. Service
Organization The service firm achieves its
greatest economies through disaggregation into
small units located close to customers, rather
than through manufacturings economies of scale.
3
Noncore Departmental Technology Variety
refers to the number of exceptions, problems or
novel events that occur in the department's
work. Analyzability refers to the extent to
which the work is mechanical, clear cut, and
follows an objective, computational procedure.
Work that requires intuition and judgment would
be considered unanalyzable. Framework The
framework includes four quadrants Routine
technologies are characterized by little task
variety and the use of objective computational
procedures. Craft technologies are characterized
by a fairly stable stream of activities, but the
conversion process is not analyzable or well
understood. Engineering technologies are high in
variety but analyzable. Nonroutine technologies
are unanalyzable and high in variety. Major
differences across departments occur between
routine and nonroutine departments. Internal
variables that can be adjusted to the technology
include Formalization Decentralization Worker
Skill Level Span of Control
4
Workflow Interdependence among Departments
Types Thompson defined three types of
technology interdependence that influence
structure. Pooled interdependence means that all
departments contribute to the organization but do
not interact directly with each other.
Pooled interdependence is associated with
mediating technology, that which mediates or
links clients from the external environment
(banks, real estate offices). Sequential
interdependence means that the outputs of one
department become the inputs to the next
department. Sequential interdependence is
associated with long-linked technology in which
each stage of production is dependent on the
previous stage (assembly lines). Reciprocal
interdependence means that departments exchange
resources and information simultaneously in both
directions. Reciprocal interdependence is found
with intensive technology in which the client
becomes the object of the conversion process or
receives a combination of services (hospitals,
universities).
5
Impact of Technology on Job Design Job
Design Job design includes the assignment of
goals and tasks to be accomplished. Job
rotation involves moving employees from job to
job for variety. Job simplification reduces
the variety and difficulty of tasks performed by
a single individual. Job enrichment approaches
use technology to increase responsibility,
recognition, and opportunities for achievement.
New computer-based manufacturing systems
provide many opportunities for job enrichment, or
jobs with higher level mental and social skills
requirements. Job enlargement is an expansion
of the number of different tasks performed by an
employee, made quite possible by new technology
that demands fewer workers on a given
task. Sociotechnical Systems The sociotechnical
systems approach combines the needs of people
with the needs of technical efficiency.