Chapter Six

Manufacturing and Service

Technologies
1
6 -
Transformation Process for a
Manufacturing Company
6-2
ENVIRONMENT
Organization
Raw Material
Inputs
Product or Service
Outputs
Transformation
Process
Departments
Materials
Handling
Milling
Inspection
Assembly
Woodwards Classification Based on System of
Production
Group I
Small-batch and unit production

Group II
Large-batch and mass production

Group III
Continuous process production
6-3
Computer-Integrated Manufacturing
Computer-aided design
(CAD)

Computer-aided manufacturing
(CAM)

Integrated Information Network
6-4
Relationship of Computer-Integrated Manufacturing
Technology to Traditional Technologies
6-5
NEW CHOICES
Mass
Production



Small batch



Flexible
Manufacturing



Mass
Customization



Continuous
Process



BATCH SIZE Small Unlimited
Customized
Standardized
P
R
O
D
U
C
T

F
L
E
X
I
B
I
L
I
T
Y

Comparison of Organizational Characteristics Associated with Mass
Production and
Computer Integrated Manufacturing
Characteristic Mass Production CIM
Structure:
Span of Control Wide Narrow
Hierarchical levels Many Few
Tasks Routine, repetitive Adaptive,
craft-like
Specialization High Low
Decision making Centralized Decentralized
Overall Bureaucratic,
mechanistic
Self-regulating,
organic
6-6
Comparison of Organizational Characteristics Associated with Mass
Production and
Computer Integrated Manufacturing
Characteristic Mass Production CIM
Human
Resources:
Interactions Stand alone Teamwork
Training Narrow, one time Broad, frequent
Expertise Manual,
technical
Cognitive, social
Solve problems
6-7
Comparison of Organizational Characteristics Associated with Mass
Production and
Computer Integrated Manufacturing
Characteristic Mass Production CIM
Interorganizational:
Customer Demand Stable Changing
Suppliers Many,
arms length
Changing
Few, close
relations
6-8
Differences Between Manufacturing and
Service Technologies
6-9
Manufacturing Technology
1. Tangible product
2. Products can be inventoried for later
consumption
3. Capital asset intensive
4. Little direct customer interaction
5. Human element may be less
important
6. Quality is directly measured
7. Longer response time is acceptable
8. Site of facility is moderately
important


Service Technology
1. Intangible product
2. Production and consumption take
place simultaneously
3. Labor and knowledge intensive
4. Customer interaction generally high
5. Human element very important
6. Quality is perceived and difficult to
measure
7. Rapid response time is usually
necessary
8. Site of facility is extremely important


Service:
Airlines, Hotels,Consultants,
Healthcare, Law firms
Product and Service:
Fast-food outlets, Cosmetics,
Real estate, Stockbrokers,
Retail stores
Product:
Soft drink companies,
Steel companies,
Auto manufacturers,
Food processing plants
Configuration and Characteristics of Service
Organizations vs. Product Organizations
Service Product
Structure:
Separate boundary roles Few Many
Geographical dispersion Much Little
Decision making Decentralized Centralized
Formalization Lower Higher
Human Resources:
Employee skill level Higher Lower
Skill emphasis Interpersonal Technical
6-10
Departmental Technologies
CRAFT
Low analyzability
Low variety
Examples:
Performing arts
Trades
Fine goods
manufacturing
ROUTINE
High analyzability
Low variety
Examples:
Sales
Clerical
Drafting
Auditing
6-11
Departmental Technologies
ENGINEERING
High analyzability
High variety
Examples:
Legal
Engineering
Tax accounting
General accounting
NONROUTINE
Low analyzability
High variety
Examples:
Strategic planning
Social science research
Applied research
6-12
Relationship of Department Technology to
Structural and Management Characteristics
6-13
Mechanistic Structure
1. High formalization
2. High centralization
3. Little training or experience
4. Wide span
5. Vertical, written
communications

ROUTINE
Mostly Mechanistic Structure
1. Moderate formalization
2. Moderate centralization
3. Formal training
4. Moderate span
5. Written and verbal
communications

ENGINEERING
Mostly Organic Structure
1. Moderate formalization
2. Moderate centralization
3. Work experience
4. Moderate to wide span
5. Horizontal, verbal
communications

CRAFT
Organic Structure
1. Low formalization
2. Low centralization
3. Training plus experience
4. Moderate to narrow span
5. Horizontal communications
meetings

NONROUTINE
Thompsons Classification of Interdependence
and Management Implications
6-14

Form of
Interdependence
Demands on
Horizontal
Communications,
Decision Making

Type of
Coordination
Required
Priority for
Locating Units
Close
Together
Pooled (bank)
Low
communication
Standardization,
rules, procedures

Divisional Structure


Low
Sequential
(assembly line)

Medium
communication
Plans, schedules,
feedback

Task Forces


Medium
Reciprocal (hospital)
High
communication
Mutual adjustment,
cross-departmental
meetings, teamwork

Horizontal Structure


High
Client
Client
Client
Primary Means to Achieve Coordination for Different
Levels of Task Interdependence in a
Manufacturing Firm
6-15
Reciprocal
(new product development)
Sequential
(product manufacture)
Pooled
(product delivery)
COORDINATION INTERDEPENDENCE
High
Low
Horizontal structure,
cross-functional teams

Face-to-face communication,
Unscheduled meetings,
Full-time integrators

Scheduled meetings, task forces

Vertical communication

Plans

Rules
Mutual
Adjustment
Planning
Standardization
Relationships Among Interdependence and
Other Characteristics of Team Play
Baseball Football Basketball
Interdependence: Pooled Sequential Reciprocal
Physical dispersion
of players:
High Medium Low

Coordination:
Rules that
govern the
sport
Game plan
and
position
roles
Mutual
adjustment
and shared
responsibility

Key management
job:
Select
players and
develop
their skills
Prepare
and
execute
game
Influence
flow of game
6-16
Source: Based on William Passmore, Carol E. Francis, and Jeffrey
Halderman, Sociotechnical Systems: A North American Reflection
On the Empirical Studies of the 70s, Human Relations 35 (1982):
1179-1204.
Sociotechnical Systems Model
6-17
Design for
Joint Optimization
Work roles, tasks,
workflow
Goals and values
Skills and abilities
The Social System
Individual and team
behaviors

Organizational/team
culture

Management practices

Leadership style

Degree of communication
and openness

Individual needs and
desires




The Technical System
Type of production
technology (small batch,
mass production, CIM, etc.)

Level of interdependence
(pooled, sequential,
reciprocal)

Physical work setting

Complexity of production
process (variety and
analyzability)

Nature of raw materials

Time pressure


Technology Comparison
6-18
Workbook
Activity

McDonalds

Burger King
Family
Restaurant
Organization Goals
Authority Structure
Woodwards Technology Type
Mechanistic vs. Organic
Teamwork vs. Individual
Interdependence
Routine vs. Nonroutine tasks
Task Specialization
Task Standardization
Technical vs. Social Expertise
Centralized vs. Decentralized