File 18: the computer and the organization of work

Question 1

Explain the computer evolution (it spreading widely in the workplace). Add years.

Answer 1

1950s-1970s: mainframe spread

1980s: use of personal computer spread
1990s: networked computers and spread in workplace

Question 2

What explains the slowing of productivity while new technology diffuses? (computer diffusion) (2)

Answer 2

1. problems in measurement of productivity growth

2. problems in applying GPT (general purpose technology)

Question 3

How does difficulty in measuring productivity growth slow down productivity?

Answer 3

measuring productivity growth (outcome/income) does measure the benefits associated with quality improvements, product innovation and better customer service (includes speed of delivery)

Question 4

What can be argued about computers and how to attain productivity? (problems in applying GPT) (3)

Answer 4

1. computers can only contribute to productivity growth if the employees with skills are using it
2. computers reduces the cost of smaller batch production which producers must recognize to use computers productively
3. use of computer requires substantial reorganization of production: shifting more responsibiity to workers

Question 5

Why are computers associated with issue of skills?

Answer 5

computers require cognitive capacities and to be literate: requires capacity to read diagrams and charts (document literacy) (for example: processors in industry of steel, chemicals,). For pulp and paper, computers require the manipulation of symbols

Question 6

Increase demand for literacy in computer usage requires?

Answer 6

for more skilled employees

Question 7

Compare the computer related skills to those required before computer control of manufacturing process? Give an example.

Answer 7

skills required before computer controlled manufacturer was introduced. (requires close proximity to production process)
ex: before computer controlled operators in the paper industry: you had to determine whether bulges were developping in rolls of paper during winding, asses adequacy of chemical pulping process through observation of color of fluids released and able to assess the acidity of paper was correct by putting it on their tongue
=> education levels of workers have risen, upgrading in skills in unions, older skills may be romanticized (acidity test)

Question 8

What was the problem with computers in the form of mainframe?

Answer 8

tended to deliver information to senior management rather then the work force

Question 9

What did the diffusion of access to computers combined with the increased skill levels associated with their use lead to?

Answer 9

that more can be asked from employees and production organization needs to be adjusted to that

Question 10

How did the computerization of machine tools make batch production possible over a range of outputs? (2)

Answer 10

1. They classified assembly production into: manual (work w hand tools), dedicated machine assembly (use of 1 or more machines designed to produce smthing with specific characteristics), programmable assemble (use of computer controlled machine that can be reprogrammed to produce things with a range of characteristics)
2. unit cost of ouput
   - manual: little decline of cost as output rises (small fall with learning by doing)
   - dedicated machine assembly: large initial investment to produce machine. in longer run, unit cost falls by a lot (as the cost of investment in spread over more items of output) (learning by doing too)
   - programmable: equipment setting can be changed rapidly => cost of moving between products is reduced => total output of machine is huge (produces multiple prodcut) + new product start at lower price than dedicated machine

Question 11

What are the 2 consequences of programmable assembly?

Answer 11

1. broader product variety with same equipment

2. organizations may have to be adapted to exploit effiency of machine

Question 12

Give two examples of how a firm faces challenges in reorganizing work to efficiently exploit computers (programmable assembly).

Answer 12

1. According to Brynjolfsson and Hilt on medical products manufactuers (illustrates GPT issue):
   - firm wanted to widen range of products and increase product customization: made large investment in computer integrated manufacturing
   - made organizational changes: eliminated piece rate, gave workers responsibility of scheduling machine operation, decentralized decision making more generally, increased lateral communication and team work and increased communication with customers and suppliers
   - BUT work force continued to work according to pre investiment practices: operation was thus moved to a new greenfield ite and ne younf employees were hired => led to productivity gains
2. Amazon fulfillement center
   - outsourcing hiring: a labour broker (like steve dores)
   - many jobs: unpacking, scanning deliveries, moving goods to warehouse space, picking up items to meet order
   - very close monitoring of ressources made possible by IT equipment that signal worker location
   - instructions on optimal routes to be taken by those moving thru warehouse