a novel technique for measuring the technology application on cng industry of pakistan

8/8/2019 A Novel Technique for Measuring the Technology Application on CNG Industry of Pakistan

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Abstract - This paper proposes a new model for

Technology & Automation Evaluation of an industry. Themethod involves measuring the effect of different technology

elements on various dimensions of an industry. As proof-of-

concept, the Technology Ratio of a sample (Tesla Industries)

has been calculated using this method. It has been found that

this technique may be applied to analyze the Technologyapplication of any industry, thus indicating the areas that

may be automated to improve performance and efficiency.

Keywords - Automation, Technology, TESLA

I. INTRODUCTION

Industry is the back bone of any country.

Pakistan’s economy is still largely based on the low-tech,low-value industries that have long been fully mechanized

and running very efficiently in developed nations [1].

The importance of technology cannot beunderestimated; it is probably an understatement to

suggest that technology has changed the way that business

is done in today's world. So many technologicaladvancements have occurred in the last couple of decades,

and even greater innovations seem to be on the horizon. Inorder to help improve communications and to maximize

efficiency in the workplace, businesses are more than everreliant on technology in the today’s world. The increased

use of the internet, email and other mobile technologies

have revolutionized the way companies operate and madeIT a critical factor in building and maintaining asuccessful company. With the increased importance of working remotely and the need to make sure all staff work

as effectively as possible, the companies have no choicebut to embrace technology; otherwise they would be

easily overcome by their competitors.

In the last decade or so, there has been a huge

increase in the use of technology in businesses. Thekeeping the past trends in mind, in can be easily said that

in the next decade, this shift towards technology will onlyincrease further. The sooner a company integrates

technology into its functions, the more successful it would

be [2].

The industries in today’s world employ differenttechnologies to improve their productivity, quality, and

cost effectiveness and efficiency in order to maintain acompetitive edge. The most effective of the various

technologies currently being used are Computer-Aided

Design (CAD), Computer-Aided Manufacturing (CAM),

Customer Resource Management (CRM), Supply Chain

Management (SCM) and Enterprise Resource Program

(ERP).

Pakistan is the world’s third largest user of Compressed Natural Gas (CNG) after Argentina and

Brazil [3]. Currently there are 3,085 CNG stations in

Pakistan serving 2.5 million vehicles and employing over

128,000 jobs [4]. The CNG industry has seen a manifoldgrowth in the CNG usage over the last decade because

CNG is cheaper than gasoline and also creates lesserpollution. In spite of growth, the CNG industry is largely

not technology oriented. The aim of this paper is to

analyze the technologies currently being used in the

Pakistani CNG industry and study their effects.

In this paper, the effects of these technologies (CAD,CAM, CRM, SCM and ERP) on the industry would be

analyzed. Another important factor that is necessary for acompany to be on the cutting – edge of technology is

research and development, therefore R&D would also be

a part of our technology analysis. Then, the paper would

focus on the impact of technology on the CNG industry of

Pakistan. The company selected for the technology

analysis is TESLA industries. Tesla Industries is a privatelimited company formed in 1992. It has an established

network of production and supply in more than 30 cities

around Pakistan. Currently TESLA is the Pakistan’slargest manufacturer of CNG equipment, electrical control

devices and regulation equipment [5].

II. METHODOLOGY

The data regarding the latest technologies used

now-a-days in the progressing world was collectedthrough the internet. The collected data was analyzed and

an appropriate framework for the impact of technology on

the industry was devised.

A Novel Technique for Measuring the Technology Application on

CNG Industry of Pakistan

N. Sharif 1, J. Hassan

2, M. Asim

3

1School of Electrical Engineering and Computer Science,

National University of Sciences and Technology, Islamabad, [email protected],


National University of Sciences and Technology, Islamabad, Pakistan [email protected]


National University of Sciences and Technology, Islamabad, [email protected]



The main components of the analysis model are the

following technologies:

1) ERP (Enterprise Resource Program)

2) CAD (Computer Aided Design)3) CAM (Computer Aided Manufacturing)

4) SCM (Supply Chain Management)5) CRM(Customer Resource Management)

6) R&D (Research and Development)

Although other technologies also exist; but these are

the ones that have made the most impact. These

technologies have greatly influenced today’s industries. In

fact, they have completely revolutionized the functioningof the companies. Our model caters the degree of impact

these technologies have produced on the industry.

We have kept our model flexible, so that

technological analysis of any industry/company can bedone using it.

The following steps were taken to devise theframework for our model:

1) The impact of each technology on the industry

was analyzed.

2) Weights were assigned to each technology on thebasis of the impact that a technology produced

on the industry.3) The population for our survey was decided; in

this case it was the TESLA industries.

4) The survey was conducted through interviewwith the TESLA employees and also through a

questionnaire. The questionnaire comprised of

both open and closed ended questions.5) Based on the results of the survey, the company

was given scores for each technology in our

model.

In this paper the technology analysis of the CNGindustry of Pakistan is being conducted. Therefore, the

data on the CNG industry in Pakistan was collected.Currently, there are about 10 firms manufacturing CNG

Equipment in Pakistan. Since it is difficult to analyze the

whole industry, the research has been restricted to one

particular firm. As Tesla Industries is a big firm thus it

can safely be assumed that research work give the general

trend of the CNG industry.

For data collection, the following methods were

adopted:

A. Interview with TESLA team

The interview was based on matters such asMarketing strategy, Development procedures, Product

Quality, employees’ attitude, mechanical structure, datamanagement, suppliers, and value addition in the product,

time scales, and political, legislative and seasonal effectsetc. on the company.

B. Analysis based on questionnaire

A questionnaire comprising of both open ended and

closed ended questions was given to Tesla Industries to

get an insight into the level of automation employed by

the company.

III. RESULTS

The collected data from the internet and researchpapers was analyzed and results have been presented in

the following table:TABLE I

Technology Model Framework

S.No

Dimensions EffectCA

D

CA

M

SC

M

CR

M

ER

P

R&

D

1 Development time Reduces X X X X

2 Product quality Enhances X X X X

3 Design productivity Enhances X

4 Manufacturing costs Reduces X

5 Product cost Reduces X X X

6 Strengths and defects of

design

Analyzes X

7 Virtual reality technology Improves X

8 Verification of designs Improves X X X X X

9 Quality control Automates X X X X

10 Manufacturing efficiency Improves X X X X X

11 Utilization of production

facilities

Improves X X

12 Investment in productioninventories

Reduces X X

13 Customer service Improves X X X X X14 Out-of-stock situations Reduces X X X

15 Inventory management Improves X X X

16 Plan production Improves X X

17 Sales tracking Enhances X X X

18 Payment handling Improves X X X

19 Coordination between

suppliers, distributors and

partners

Improves X X

20 Customer relationship Improves X X X

21 Cost of operation Reduces X X X X X X

22 Profitability Raises X X X X X X

23 Customer satisfaction Enhances X X X X X

24 Order processingmistakes

Reduces X X X X X

25 Planning at functional

and process level

Improves X

26 Delivery cycle Reduces X X X X

27 Interface capabilities of

the system

Enhances X

28 Data warehousing an

handling

Improves X X X

29 Work flow Automates X X X X X

30 Quality of decision

making

Improves X X

31 Cash flow management Improves X X X

32 Tax management, status

reporting

Enhances X

33 Asset accounting Improves X X



34 Material Managementand Procurement

Improves X X

35 Production planning and

control

Enhances X X X X X X

36 Interface to CAD, CAM,

CAE systems

Improves X

37 Sales and distribution Improves X X X

38 Brand & reputation of

company

Improves X X X X

39 Product reliability Improves X X X X X

* x marks a hit

In the table, an x has been marked wherever atechnology produces an effect.

Based on the results obtained, weights were

assigned to the different technologies. The following chart

shows the weight distribution.

FIGURE I

Impact Ratio of Technology on Industrial Automation

It is evident from the chart that ERP has the greatestinfluence (27%) on industrial automation, followed byCRM (19%), SCM (19%), CAM (15%), CAD (14%), and

R&D (6%) respectively.

The current performance of TESLA industries was

calculated through previously mentioned methodology.

The results have been presented in the following table:

TABLE IICurrent Performance of TESLA Industries

Dimension Percentage Score

Product quality 56%

Product cost effectiveness 64%

Reliability and durability 46%

Performance 90%

Technical errors 58%

After sales service 80%

The technologies currently being employed by the

TESLA industries were acquired through the above

mentioned methodology. Its results have been presented

in the following table:

TABLE III

Percentage use of Technology by TESLA Industries

**Total score: (0.14+0.15+0.06) =0.45=45%

The technologies being used by the Tesla Industries have

been marked with an “x” in the above table. The net

automation percentage has been calculated by summingthe weights of the technologies that Tesla Industries uses.

IV. FINDINGS

The results present a clear-cut picture of the

impact that various technologies produce on the industry.The most effective tool for industrial automation turnedout to be ERP: it scored the most hits in our technology

framework. SCM and CRM also prove to be quite

effective productivity tools. CAD and CAD techniques

greatly enhance the accuracy, reliability and costeffectiveness of the final product. Even though R&D had

the least impact in our model, but still it is essential for acompany to remain ahead in technology and to keep a

competitive edge over its rivals.

The model that we have presented incorporates sixof the most effective technologies available to the

industries today. According to our research andsupposition, if all six of these technologies are

implemented, then a company would able to attain 100%automation level according to our criteria. But in real life

it would be less than 100%. Such a level of automation

would greatly increase productivity and help attain a

competitive edge in today’s cut-throat business

environment. To achieve even greater level of

sophistication, a company should come up with newermethods of automation and technologies.

The findings on the Tesla Industries not only apply to

this particular sample (Tesla Industries) but they give the

general trend of the CNG Industry of Pakistan. First of all,

there is lack of automation in the manufacturing processes

and manual work results in loss of material and time.

Tesla Industries have only incorporated CAD, CAM and

R&D in their processes while SCM, CRM and ERP are

not implemented. Their ignorance towards the importance

of automation is reflected in their product quality (56%),

Product cost effectiveness (64%), Reliability and

durability (46%) and Technical errors (58%).According to

Technology Weights Is used?

CAD 0.14 X

CAM 0.15 X

SCM 0.19

CRM 0.19

ERP 0.27

R&D 0.06 X



our set criterion the automation level attained by the Tesla

Industries is found to be 45%.This level of automation is

indeed very low, and if they want to maintain the

competitive edge in the industry then they should

concentrate on improving their automation level.

The aforementioned method can be used to evaluate the

technological prowess of any industry. Each of thetechnologies that have been studied in this paper

contributes a certain percentage towards the level of

automation of an industry. The obtained percentages of

the technologies were used to evaluate the automation

level of the Tesla Industries.

The same method can be applied for the technology

analysis of other industries as well.

V. CONCLUSION

The model proposed in this paper can be used to

evaluate the technological abilities of an industry. Basedon the analysis, it can be easily judged how effectively the

industry is performing. The areas that need improvement

can be identified and rectified; this in turn helps to make

the industry more efficient and also improves its

performance.

The firms here in Pakistan keep following the

traditional methods of running the trade and do not

incorporate the latest techniques of Production and

Operations management in their organizations. This

results in less efficient running of the organization.

Moreover, most CNG equipment manufacturers in

Pakistan are not vertically integrated so they rely on their

suppliers, rather the whole supply chain. The model

points out the weaknesses and strengths in an industry. On

the basis of the obtained results, changes can be made to

the technological base to further improve productivity in

any industry.

For the improvement of the proposed model, a larger

sample size is required. The current sample size is not

adequate for large scale evaluation. More research and

data is required in order to get more accuracy in the

model.

The bottom line is that companies that are not paying

attention to the importance of automation are going to be

passed by those that view technology as the key to longterm profitability and it may be concluded that one of the

reasons of limited growth in the CNG sector in Pakistan

may be the lack cybernetics and automation. But the

presented technique may be applied to analyze the

Technology application of any industry which would lead

the industry to more growth and productivity.

ACKNOWLEDGMENT

The authors would like to acknowledge Mr. AmirCEO TESLA industries for his co-operation without

which we would not have been able to complete our

project.

REFERENCES

[1] http://www.khwarzimic.org/takveen/infotech_pakistan.pdf

[2] Olaf Eulenstein, “The Importance of Technology in a

Changing World” in <<ezinearticles.com>> [3] Statistics by International Association for Natural Gas

Vehicles (IANGV)[4] Statistics by All Pakistan CNG Association

[5] Tesla Technologies, <<www.tesla-tech.com>>[6] Swamidass, P. (1998), Technology on the Factory

Floor III: Technology Use and Training in US

Manufacturing Firms, The Manufacturing Institute,

Washington, DC

[7] Best Manufacturing Practices Center of Excellence

(1996), Report of Survey Conducted at Nascote Industries, Inc, Marshville, Illinois, Best Manufacturing

Practices.

[8] Baldwin, W. L and Scott, J.T. 1987. Market Structure

and Technological Change. Chur:

Harwood Academic Publishers.[9] Achanga, P.; Shehab, E.; Roy, R. and Nelder, G.

(2006), “Critical success factors for lean

implementation within SMEs”, Journal of Manufacturing

Technology Management , Vol. 17

No. 4, pp. 460-71.[10] <<www.nickmutt.com>>

[11] <<www.bestpricecomputers.co.uk/>>

a novel technique for measuring the technology application on cng industry of pakistan

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