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Organization theory and design: Lecture 14 provides students with content about: manufacturing and service technologies; organizational level manufacturing technology; woodward’s technical complexity categories; computer integrated manufacturing (CIM);... Please refer to the lesson for details!
Manufacturing & Service Technologies • Exploring manufacturing and service technologies and how technology is related to organizational structure 14 Manufacturing & Service Technologies • Technology refers to tools, techniques, machines and actions used to transform organizational inputs (materials, information, ideas) into outputs (products and services) • Technology is an organization’s production process and includes work procedures as well as machinery • For a service organization technology includes the equipment and procedures for delivering the service Organizational Level Manufacturing Technology Woodward’s Study: • She classified manufacturing firms according to the technical complexity of the manufacturing process • Technical complexity represents the extent of mechanization of the manufacturing process • High and low technical complexity and role of machines and workers Woodward’s Technical Complexity Categories Small batch and unit production: – job shops, assemble small orders, specific needs of customers are met, human operators have prime importance, Large batch and mass production: – long production runs of standardized parts, output goes into inventory, customers not have special needs, (assembly lines for automobiles) Continuous Process Production: – entire process is mechanized, no starting and stopping, mechanization and standardization are one step ahead of assembly lines, outputs are highly predictable, (chemical plants, oil refineries) Relationship Between Technical Complexity & Structural Characteristics Structure Unit Production Mass Production Continuous Process Production Mgt levels Superv span 23 48 15 Direct/indir lab 9:1 4:1 1:1 Mgr/t perso low med High Worker skills high low High Formalization low high Low Centralization low high Low Verbal Com High Low High Written Com Low High Low Overall structure organic mechanistic organic Woodward’s own Words • “Different technologies impose different kinds of demands on individuals and organizations, and those demands had to be met through an appropriate structure” Computer Integrated Manufacturing (CIM) • CIM is also called advanced manufacturing technology, agile manufacturing, the factory of the future, smart factories, or flexible manufacturing systems • Mass customization Mass Production & CIM Characteristic MP CIM Span of control Hierarchy levels Tasks Specialization Decision making Overall HR interactions Training Expertise Customer demand Suppliers wide many routine high centralized mechanistic standalone narrow manual stable many narrow few adaptive low decentralized organic teamwork broad, frequent cognitive changing few, close relations ... machines and actions used to transform organizational inputs (materials, information, ideas) into outputs (products and services) • Technology is an organization? ??s production process and includes... Woodward’s own Words • “Different technologies impose different kinds of demands on individuals and organizations, and those demands had to be met through an appropriate structure” Computer Integrated... mechanization of the manufacturing process • High and low technical complexity and role of machines and workers Woodward’s Technical Complexity Categories Small batch and unit production: – job shops, assemble