What is Process Technology? Types, Automation in Manufacturing

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What is Process Technology?

Process technology refers to the use of machines, equipment, and devices for operations for creating and delivering products/services. In simple words, process technology is the application of equipment and machinery to any operations process. Process technologies add value to the creation of any product or service. Here, you should note that process technology is different from product or service technology.

While talking of manufacturing operations, it is relatively simple to distinguish process technology from product technology. Take the example of manufacturing a computer. The product technology of a computer is embodied in its hardware and software. However, the process technology here is the technology that assembles all the different components.

In service operations, it is often far more difficult to differentiate the process technology from the service technician. Take examples of theme parks like Disney World which uses flight simulation technologies in some of their rides. With the help of this technology, Disney creates a realistic experience of space flight for its customers. Do you think it is a service technology or process technology? Though the technology processes customers, it is also a part of the service that creates the customer experience.

Process technology acts directly as well as indirectly on resource inputs to perform operations. Direct process technology helps directly in creating the product/service. For example, Disney World’s flight simulation technologies or body scanners at any hospital. Indirect process technology helps in managing processes that create a product/service. In other words, indirect process technology helps in facilitating the direct creation of products and services; for example, the accounting system or stock control system of any organization.


Types of Process Technology

Process technology can be classified into three types:

Material Processing Technologies

For easy storage and transportation, materials are processed into simple forms. For example, metals are changed into sheets, bars, or rods; timbers are cut into boards; and plastic materials are turned into plastic boards and plastic strips, etc. The basic aim of processing (cutting, forming, joining, etc.) materials is to make products more suitable for customers’ needs. Thus, technologies, which are used for processing materials, are called material processing technologies. The following points explain such technologies:

  • Computer Numerically Controlled (CNC) Machine Tools: These tools perform metal-cutting and forming operations, which are controlled by a computer.

  • Robots: These are ‘automatic position-controlled reprogrammable multi-function manipulators’ that perform several tasks related to the handling of materials, parts, tools, or devices through variable programmed motions.

  • Automated Guided Vehicles (AGVs): These are small, independently powered vehicles, used to move materials to and from value-adding operations.

  • Flexible Manufacturing Systems (FMSs): These are computer-controlled semi-independent workstations, connected by automated material handling and machine loading.

  • Computer-integrated Manufacturing (CIM): It is a manufacturing approach that uses computers to monitor and control the entire production process. It integrates different individual processes to exchange information with each other and initiate actions.

Information-processing Technology

It includes devices, used to collect, manipulate, store, or distribute information. The several IT methods, which are used for this purpose involve:

  • Local Area Network (LAN) helps in interconnecting computers within a limited area such as a residence, school, laboratory, office, etc.

  • The Internet helps in accessing the World Wide Web (www), which is the distributed hypermedia/hypertext syste

  • Extranet that helps customers, suppliers, and banks to exchange information

  • E-business that allows the use of the Internet-based technology, either for supporting current business processes or for creating entirely new business opportunities

  • M-business that combines broadband Internet and mobile telephony devices

  • Decision Support System (DSS) that uses data storage and models to structure information and present the consequences of decisions

Customer Processing Technology

The technology is used to establish an interface between customers, staff, and the technology itself. It either provides the immediate interface between an organization and its customers, such as in the case of a bank’s Automated Teller Machine (ATM), or facilitates human interaction with customers. The following are different forms of customer-processing technology:

Active Interaction Technology

This allows customers to take control of the technology as the customer can tangibly identify the active technology. Mobile phone services, Internet-based ordering, e-mail, cash machines, etc. are examples of active interaction technology.

Passive Interaction Technology

This type of technology ‘processes’ customers and therefore, controls them by limiting their actions in some aspects. For example, being a passenger in aircraft or going to watch a movie in a theatre are some examples where customers are guided and thus, interact with the technology. But, the customers do not hold control over the technology and it is the technology that constrains the customer’s actions in one way or another.

Hidden Interaction With Technology

This type of technology is used to track customers’ movement unobtrusively. Customers neither directly interact with such technologies, nor do the technologies affect customers’ actions openly. Security cameras, retail scanners, and credit card tracking are a few examples of such technologies.

Interaction Through an Intermediary

It is a very common type of interaction that takes place between an organization and customers with the help of technology. Call center technology and travel booking system are a couple of examples, where interaction takes place with the help of an intermediary. This type of technology provides more flexible service benefits to customers.

Process technology is greatly characterized by the degree of automation of the technology. Automation refers to the use of computers and other automated machinery to execute business-related tasks. In other words, the course of making machines and processes self-operating is called automation.

Increasing competition, varying demands of customers, the pressure of quality output, and improved productivity, are some major reasons that compel organizations to automate their production and operations system. Let us now discuss how automation is performed in the manufacturing and service industries.


Automation in Manufacturing

Over the past few decades, technology has changed the nature of manufacturing. In old days, manufacturing was done manually. However, today, manufacturers are using machine automation to produce quality products faster and more efficiently. Automated machinery can be anything, ranging from a simple sensing device to a robot or other sophisticated equipment that may help the manufacturing organization in the automation of a single operation or an entire manufacturing process.

In today’s manufacturing world, automation has become the determining factor for generating a competitive advantage. It has allowed manufacturing organizations to mass produce products rapidly with great repeatability and quality. The biggest benefit of automation is that it improves quality, accuracy, and precision by saving labor and energy.

In manufacturing, automation is achieved by various means including mechanical, hydraulic, pneumatic, electrical, electronic devices, and computers. Various modern facilities, which are involved in complicated manufacturing systems, typically use all these techniques collectively. Automation in manufacturing helps in the following ways:

Reduction in Production Time

Automation speeds up the production time as the machine is programmed to work in a certain way.

Increase in Accuracy With Less Human Error

An automated machine, which is programmed to perform a task repeatedly, helps in increasing the accuracy compared to an employee. Moreover, as a machine performs tasks, the chance of making mistakes becomes less. By avoiding human error, the quality of a product can also be improved.

Reduced Costs

Automation increases power-saving capabilities and thereby, reduces the cost of production. Moreover, an automated system reduces the dependability on employees. This ultimately lessens the overall cost of an organization that occurs on hiring, payroll, benefits, sick days, etc.

Increased Safety

Automation increases power-saving capabilities and thereby, reduces the cost of production. Moreover, an automated system reduces the dependability of employees. This ultimately lessens the overall cost of an organization that occurs on hiring, payroll, benefits, sick days, etc.

Higher Volume Production

Automation increases productivity by avoiding manual delays and achieving the optimum efficiency of the machine. It avoids reprocessing, which ultimately increases productivity. Moreover, as automation gives useful data about the machine, the possibility of analyzing the cause of low or poor productivity increases. An organization by identifying and eliminating such causes can improve its productivity.


Automation in Services

Today service industries form an essential part of the economy of any country. The service industry includes businesses and organizations involved in food and hospitality services, health care, wholesale and retail trades, education, entertainment, social and support services, banking and financial services, transportation, IT and BPO services, etc. Automation has helped the service industry in improving its performance and deliver quality services to consumers.

Automation helps in reducing the number of staff and work hours required to provide a service. Moreover, with the help of automated processes, organizations can mechanize tedious and time-consuming tasks and thereby reducing the cost as well as the amount of time used in manual labor.

Take an example of an ATM that not only provides faster and more convenient banking services to customers but also saves a bank employee’s time, which he/she can use to carry out other tasks. Thus, automation helps businesses to remain competitive by producing greater output at lower costs. In service industries where human contact is an essential component, automation provides additional time to workers so that they could assist customers with more complex issues.

Automation also helps in the standardization of service processes by substituting capital for labor like in the case of ATMs; or by establishing a routine for labor like self-service and billing in supermarkets. The standardization of services promotes reliability, effectiveness, trust, and improved efficiency. Standardization not only reduces costs but also increases consistency.

Thus, with the help of automated service processes, customers can get standardized services in a structured manner. Moreover, automation of service processes offers organizations the opportunity to expand by giving them the ability to offer more services and meet increased consumer demand.

Automation also helps in the standardization of service processes by substituting capital for labor like in the case of ATMs; or by establishing a routine for labor like self-service and billing in supermarkets. The standardization of services promotes reliability, effectiveness, trust, and improved efficiency. Standardization not only reduces costs but also increases consistency.

Thus, with the help of automated service processes, customers can get standardized services in a structured manner. Moreover, automation of service processes offers organizations the opportunity to expand by giving them the ability to offer more services and meet increased consumer demand.

Even then, many service organizations are now focusing to automate their processes to achieve competitiveness. If you talk of the service industry, it is the accommodation and food service, which involves more than half of all labor time. The activities that workers perform in food service and accommodations have a certain potential for automation, based on technical considerations.

This involves preparing, cooking, or serving food; cleaning food preparation areas; preparing hot and cold beverages; and collecting dirty dishes. Some of this potential has long been in use as restaurants are now testing new, more sophisticated automation concepts, like self-service ordering or even robotic servers. Take the example of Momentum Machines which has made a hamburger-cooking robot, which can assemble and cook 360 burgers an hour. Moreover, the device could automate several cooking and food preparation activities.

Apart from accommodation and food service, retailing is another major sector in the service industry with a high technical potential for automation. Technology-driven stock management and logistics can help retailers immensely in performing their tasks more efficiently.

For example, installing a barcode scanner in the checkout lanes of a retail store is an example of automating the checkout procedure. This code helps in the identification and tracking of products at the store just by entering the Stock Keeping Unit (SKU) number. SKU helps in managing the inflow and outflow of the stock by giving them a unique identification. In addition, automation has great scope in maintaining records of sales, gathering customer or product information, and other data-collection activities.


Automation tools used in manufacturing and service Industries

  • PLC: A programmable logic controller, PLC, or programmable controller is a digital computer used for automation of typically industrial electromechanical processes, such as control of machinery on factory assembly lines, amusement rides or light fixtures.

  • Sensors: A sensor is a transducer that converts a physical stimulus from one form into a more useful form to measure the stimulus.

  • Actuators: Hardware devices that convert a controller command signal into a change in a physical parameter.

  • Drives: Whenever something must be moved, a motor is usually at the source of most automated equipment. There are many types of AC and DC motors.

  • Scada: SCADA (Supervisory Control and Data Acquisition) is a system that operates with coded signals over communication channels so as to provide control of remote equipment (using typically one communication channel per remote station.

  • Networking: Network automation is the use of IT controls to supervise and carry out everyday network management functions. These functions can range from basic network mapping and device discovery to network configuration management and the provisioning of virtual network resources.
Article Source
  • Slack, N., & Lewis, M. (2011). Operations Strategy (1st ed.). Harlow [u.a.]; Munich: Pearson.

  • Waters, C. (2006). Operations Strategy (1st ed.). London: Thomson.

  • Heizer, J. & Render, B. (2001). Operations Management (1st ed.). Upper Saddle River, N.J.: Prentice Hall.

  • Kale, S. (2013). Production and Operations Management (1st ed.). New Delhi: McGraw Hill Education (India).


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