Lecture 7: Manufacturing and Service Technologies

Question 1

Technology Definition

Answer 1

= Refers to the work processes, techniques, machines, and actions used to transform inputs into outputs

• Technology influences organizational structure
• Understanding technology helps design organizations’ efficiency

Question 2

Core technology Definition

Answer 2

= Relates to the transformational process of providing goods/services

Question 3

Non-Core Technology Definition

Answer 3

= Is not directly related to the primary mission of the organization

Question 4

Technical Complexity

Answer 4

= defines the extent to which the manufacturing process is mechanized

Question 5

Three basic technology groups (Woodward)

Answer 5

1. Small-batch and unit production
2. Large-batch and mass production
3. Continous-process process

Question 6

From Flexible Manufacturing to Mass Customization

Answer 6

= Lean manufacturing paved the way for mass customization
- Using mass-production technology to quickly and cost-effectively assemble individual goods and services
- A growing number of companies offer customized versions of their existing products

Question 7

How do service firms differ in technology?

Answer 7

= Service technologies are different from manufacturing technologies and require different organizational designs
= Education, health care, transportation, and banking all have unique dimensions

= Services have intangible output
= There is often direct interaction between customers and employees
= The human element is even more important

Question 8

Challenges for service companies

Answer 8

1. Biggest one:
   The balance between operational efficiency and the unique value proposition of the service firm to really respond to the clients’ needs
2. Keeping up with the fast changes in technology, being up-to-date, and being ahead of the curve
3. Perception of value in the eyes of clients
   -> struggling to demonstrate value
4. Talent
   -> How do we find the right kind of experts to do great work in service companies

Question 9

The trend toward lean services

Answer 9

= Customer expectations are rising
-> Firms tend to provide customized output

= Expectations have required that service firms must become lean:
-> Cut waste
-> Improve customer service

= Adopt continuous improvement approaches
= The next industrial revolution that will enable manufacturing firms to harness the power of data to offer additional services and as-a-service products:
-> Digital Industry 4.0

Question 10

2 Main differences between service and manufacturing organizations

Answer 10

= Service and manufacturing organizations significantly differ in terms of:
1. Structure
2. Personnel needs