technology mgmt & wcm material updated sep. 2013

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Learning Objectives : Part – I: Technology Management •Create awareness to students on importance of Technology Management (irrespective of specialization) and capabilities of Technology. •Consider Technology Management from a holistic perspective •Provide information on Technology Cycle, Technology forecasting and appropriate Technology, Transfer of Technology (TOT) and related issues, formulation of Technology strategies. •Awareness of technology advances : Food, Agriculture, Materials, Chemical and Biotechnology, Manufacturing Technology and services (IT, Healthcare etc.); Product Development process. •National Technology Policy Technology Management 1

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Page 1: Technology Mgmt & WCM Material Updated Sep. 2013

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Learning Objectives :

Part – I: Technology Management

• Create awareness to students on importance of Technology Management (irrespective of specialization) and capabilities of Technology.

• Consider Technology Management from a holistic perspective

• Provide information on Technology Cycle, Technology forecasting and appropriate Technology, Transfer of Technology (TOT) and related issues, formulation of Technology strategies.

• Awareness of technology advances : Food, Agriculture, Materials, Chemical and Biotechnology, Manufacturing Technology and services (IT, Healthcare etc.); Product Development process.

• National Technology Policy

Technology Management

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Part II: Manufacturing

Create awareness to students on the following

• Why do we lack Manufacturing Excellence?• What is World Class Manufacturing?, World Class Performance

measures• Manufacturing Management Systems – Toolkit and Principles

Concurrent Engineering, JIT, Lean Manufacturing & Lean Tools, Agile Manufacturing, Business Process Reengineering, Total Productive Maintenance, Synchronous Manufacturing/TOC.

• Innovation in the context of ManufacturingAdvances in Manufacturing Technology: FMS, CAD, CAM, CIM.

Contd..

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• Global Manufacturing Competitiveness India vs. Other countriesIndian Manufacturing.

• Work carried out by NMCC

• World Class Manufacturing PracticesGood Manufacturing Practices along the Product Life Cycle

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National Technology Policy

National Technology Policy (NTP) implies a vision of desired future whose

realization requires long term planning, identification of priorities,

channelizing scarce resources towards priority sectors.

Macro: The macro level NTP is however, to promote continuous development

of productivity, techno – innovation within the country. NTP should

encourage firms through well designed incentive scheme and rewards.

Otherwise firms may not be able to bear R & D cost and risk of techno

innovation like market imperfection and high investment requirement. For

these reasons NTP need to be forward looking, export oriented, economically

rational i.e. insulated from politicalisation and facilitate close cooperation

between firms, academic, research and financial institutions.

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Micro:• Integrate Technology strategy with Corporate Business strategy• Respond to Competitors who are using technology as strategic

weapon• Identify & evaluate Technology options and Factors relating their

success & failures• Directing R&D including determination of Project feasibility• Monitoring Technology Obsolescence and Planning replacing• Knowledge management• Maximizing employment through appropriate technology

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Technology Policy of India

•India will compete ably and thrive in the world economy by innovating,

manufacturing and trading high quality and high technology products

across the International boundaries

• Maximizing employment through appropriate technology

• India will emerge as major proprietor of intellectual products.

• Harmonious & compatible policies for ToT

• Training her engineers and technologists to International standards.

• Encouraging them to innovate by rewarding them and their institutions with

both real (monitory) and psychic income (citation, award etc).

• Integrating technology with cultural , social, and economic development

process

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Technology Policy of India (Continued)• Harmonious and compatible policies in export, import, technology, taxation,

tariff, higher education, infrastructure. • To make Indian technology and industry internationally competitive, we do

not need trade protection. • To make India technologically so advanced that we do not export but import

talented people. • To deploy technology, to promote good quality of life by ensuring

– Good health care and education b) quality of air & water c) Free flow of information and access to knowledge.

• To use technology to – Reduce poverty b) Maximum employment generation c) self-reliance in

select areas. • To investigate and utilize indigenous technology and make India self reliance advanced nation. The broad objectives are a) productivity and innovation b) competitiveness in

global market.

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Action points for realizing the vision:

a) Empower academic institutions, national labs (scientists and

technologists) with adequate authority for using resources and

operational freedom. Optimum utilization of Infrastructure

b) High quality training, which is affordable.

c) Pursue high caliber persons to work in teaching and R&D. Such persons

have to be identified and guarantee attractive career.

d) Industry Institute participation in developing prototypes and lab work.

e) Loans for higher education :

f) Rewarding Industrial research (like vasavik awards)-Application oriented.

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g. New funding mechanism for basic research. Simplified proceduresh. Technology development, Transfer & diffusion. Create strong technology base

(start with IITs, IIMs & CSIR labs selected)i. Indian National Labs to collaborate with International technology laboratoriesj. Promotion of Innovation:

• Government will institute a search mechanism for talent (like what is

being done by NMCC for identifying and training visionaries in

manufacturing).

• Increase R&D budget for promoting technology development.

• Provide information on patents as public service.

• Special theme to encourage technopreneurs. (Science and Technology

Entrepreneur Park, National Science and Technology Entrepreneurship

Development Board, incubation centers).

K. Fiscal measures: Formulate strategy to attract public & private

investments in Science & Technology.

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Technology Policy of other countries

U.S.A – Present Technology Policy• Earlier policy focused primarily on military, national security. • Present policy: Economic growth is the new direction with emphasis on

commercial application of research.Objectives:• To develop high technology in all areas• To life long training of workers (like apprenticeship in Germany)• Enhance access to foreign sources of science & technology• Technology developed in Government research institutes will be made

available to SSI • Closer interaction between Government and R&D institutes• Networking: Regional technology alliances have to be promoted• Open “Manufacturing Extension Service Center” to enhance access by

weak firms

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Japan’s Policy• After the second world war , the focus was on application of already

developed technologies and not on basic research• Present policy is in developing new technologies and not import / acquire

new technologies• Intense focus on operations management• Focus on developing new technologies to cope up with increased global

competition in trade & technology

New Technologies: Photonics, Nano technology, fuzzy logic and interactive personal communication networks, energy, life sciences (health care), marine science, Fine polymers etc.

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Technology Management

Scope of Technology Management- Monitoring change &Technology forecasting

- Technology Cycle approach

- Choice of Technology

- New Product Development (In-house)

- Technology Transfer (External)

- Technology Strategies

- Technology diffusion

- Knowledge Management

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• Role of Technology

• Macro Technology Management - At National Level

• Micro Technology Management – At Firm Level

• Technology Change & Its ImplicationsAppropriate Technology

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A Five Process model of Technology Management of Gregory (1995) Identification – Selection – Acquisition - Exploitation - Protection

Adoption

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Technology Life Cycle

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Product Development Process1. Collect customer’s requirement2. Conceptual design3. Develop plans for product options and extended product family4. Set target sell price5. Assess new technologies6. Investigate feasibility of product concepts7. Develop Industrial design concept8. Build & Test Experimental Prototype 9. Industrial design & Engineering 10. Build Engineering model11. Define Parts Geometry12. Choose materials13. Complete design & engineering documentation

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14. Field & reliability testing15. Obtain regulatory approval16. Implement design changes17. Launch pilot run production18. Place early production with key customers & obtain feedback19. Evaluate pilot run production20. Update design For Manufacturability & Assembling (DFMA)21. Plan for bulk production

– Identify suppliers for key components– Assess production capacities– Perform make-by decision– Set target cost– Design & fabrication of tooling– Facilitate supplier ramp up– Train workforce– Quality assurance system

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Choice of Technology• Technology choice is an extremely important decision and one of interest to

managers in all functions. These decisions are not only technical in nature; they affect capital, human resources, and information systems.

• Aim at right technology & amount of investment• Competitive advantage through cost minimization & product differentiation /

market potential• Choice of technology has to be cross functional. Effect on customers,

employees, finance & environment need to be considered and integrated over time.

• Choice of technology should be based on - Business strategy/Operations strategy - Technology Strategy- Financial return on Investment- Effect on Human Resources- Customer preference

• Speed of Introduction of new product• Availability / Willingness to part, If we have to import, in strategic areas• Technology gap between India & Outside

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Technology ForecastingOutline:• Technology forecasting• Technology Monitoring• Technology process assessment

Technology Forecasting

Measurement of Technology change is necessary in forecasting.

• Measures- Economic Indices- Patents- Rate of Improvement of Technology

• Methods of forecastingChoice of forecasting method depend on:a) rate of technology & market changeb) Availability & accuracy of informationc) Planning horizond) Resources available for forecasting

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Methods of Technology Forecastinga) Exploratory

- Opinion polls- Delphi- Exploratory - Technology Monitoring TechCast Method – 1)Scanning, 2)Analysis, 3)Survey, 4) Results,

5) Iterations.b) Normative

Delphi Method:Subjective (Intuitive) in nature, most popular method. Advantage – anonymity / confidentiality

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Technology MonitoringMajor steps• Scanning• Filtering• Analysis

Key aspects covered by Technology Forecasting in the Business context are:• Environmental analysis & monitoring of global trends• Set time horizon for each of the R&D activity • Compilation of information on trends• Evaluate the existing R&D strategy and suggest realignment

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Summary of Forecast Results

Source: TechCast.org

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Advances in Technologies

Information Technology

- Quantum Computing: Rely on quantum physics taking advantage

of physical properties of atoms.

- Cloud Computing: Differs from client server model. Any computer

or

web friendly device connected to Internet.

- Optical Computers: Use of optical fiber in place of metal wires.

- Bio Computers: Uses systems of biologically derived molecules

such as DNA & Proteins to perform calculations.

- E-Government: Electronic or digital government. Utilizing Internet

& Web for delivering government information & services.

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Nano Technology: Study of manipulating matter on atomic & molecular scale. Developing materials & devices.

Artificial Intelligence- Smart Robots- ASRS, AGVS

Automobiles- Hybrid Car: Petrol plus electrical motor under development- Fuel Cell Vehicle: Use of Hydrogen & Oxygen cell

Automated High Way System: - Vehicle moves on road without driver. Sensors are fitted on the road.

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Technology Vision

Technology Information, Forecasting and Assessment Council (TIFAC)Panel and Task Force approach is followed.

Objectives• Provide direction for National initiatives in Science & Technology• Provide Policy Frame Work• Development of integrated S&T Policy both at State and National

Level

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Transfer of Technology

There is greater need for proper implementation and supervision of new technologies to be competitive in the global environment.

Technology Transfer is “The spread of technology from one culture, country or region to anotherKey Strategies • Access: To gain access to world markets as company’s global strategy• Saturate: Existing markets saturated• Materials & labour: Access to cheap labour & material• Links: To benefit from foreign partner links• Barriers: To overcome trade barriers• Cost: To use standard technology more cheaply• Policy: To take advantage of favourable policies

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• Competitive: To improve competitive capability and meet Competitive pressure through development of technological capability

• Profits: To increase profits• Market: To develop new domestic markets and facilitate international

expansion.• Cost: To reduce the transaction costs, notably tax advantages • Policy: To take advantage of favourable policy• Attraction: To increase attraction to foreign investors• Government: Arranged by the government

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Assessment of Business Environment, Capabilities & Resources The following are the most important aspects to be assessed for the success of technology transfer.

– Level of technological development– Ability to learn – Access to capital– Infrastructure support– Access to international technical and commercial information– Quality of currently used equipment– Assessment of Business Environment: Micro environmental factors like

political & economic situation, legal regulations, and linguistic problems, cultural and institutional factors

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Macro / Micro-environmental obstacles to technology transfer experienced in the past

• InstitutionalExcessive bureaucracy Unsatisfactory management Low industrial performance

• DifferencesCommercial habits Language Technical systems

• EfficiencyTime-consuming negotiations Inconvenient communications Insufficient information

• Legal aspectsUnsatisfactory protection of technology Inadequate legal regulations Restriction of profit repatriation

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The Process of Technology TransferThe elements & stages to be taken into consideration during the process of ToT are:Elements of Technology Transfer

Elements of transfer Methods of transfer MechanismHuman resources Information

Resources Capital

Technician exchange

Patents, DrawingsTechnological &Administrative books

Trade of machinery, Test equipment and Critical materials. Joint venture Industrial co-operation

Know-how training

Design & development , & Production and marketing skills.Methods of production

Share of ownership Complying with the contract

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Stages of Technology Transfer

1. Confrontation: Sort out the similarities of new and old technologies

2. Identification of the problems: Analyze the process and write down the operation steps.

3. Design of new functions: Adopt the new principles and rules

4. Simulation of the new operating system to serve the conditions

5. Evaluation: Formulize the Transferred technology

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Technology Transfer as applied to Product life cycle

• Product cycle in developed countries is along the route: research - development - design - production.

• Product cycle in developing countries, it is along the route: production - design - development - research.Depends heavily on imported technology and internal capacity is used to absorb foreign knowledge.FDI and Licensing agreements are major channels for importing technologies.

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• Introduction / Design stage: Manufacturing in Home country and export to Foreign Countries

• Growth stage: Exploit the full potential of export market.• Maturity stage: Technology becomes sufficiently routine to be transferred

and export is threatened. Firm is induced to produce abroad (Generally in advanced countries - through JVs)

• Decline stage: Product becomes completely standardized. Production is shifted to low cost location in developing countries

• Product cycle in developed countries: Research – Development – Design – Production.

• Product cycle in developing countries: Production – Design – Development – Research.

Learning and accumulation route, based on TOT.

Contd..

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Technology Gradient (TG)Concept of Technology gradient is a tool for companies to achieve efficient & cost effective means of technology transfer.1.Push strategy2.Pull strategy3.Integration of concepts of manufacturing strategy and International technology transfer. Ex: Joint Venture

Three possible ways of technology gradient

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36Negative technology gradient

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Measurement of Technology Gradient (TG):The commonly monitored technology indicators are given below: 1. R&D as percent of sales 2. Number of patents3. Net income per R&D dollar invested4. Number of new products developed 5. Market shareBenefits TG approach:6. Companies can predetermine their TGs and position themselves in the

market7. Will enable technology strategic planning8. Phasing out existing technologies9. Decision to advance (R&D) present technologies based on the TG stand

point

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Competitive Advantage through Technology ManagementCompetitiveness is all about being different which means continuously choosing different

activities to deliver a unique mix of value. In simple words customers choose your product over your competitors.

Competitiveness is measured by • Market share• Sustainability• Profitability• Customer focus

Creating Competitive AdvantageFirms can create competitive advantage in the following ways •using the value-chain analysis / Value steam mapping• By placing greater emphasis on allocation of resources, management time and

attention) on specific activities than competitors do • By performing specific activities better or differently (using an alternative-presumably

new or improved-technology) than competitors do • By managing linkages among activities better than competitors do

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Knowledge Mapping• Mapping is considered as a process that allows one to identify the

elements of knowledge and their configuration, mutual interdependencies and interactions.

The four different methods of knowledge mapping are• Chronological mapping• Co-word-based mapping• Cognitive mapping• Conceptual mapping

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Risks in adopting new technologies• Technical Risks (obsolete, untested technologies)• Operational Risk: Distortion of operations• Organizational Risk: May call for cultural changes in respect of quality,

speed etc.• Environmental risk: CO2

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Important Points to be taken care during Transfer Of Technology (TOT) • The nature and extent of support provided by collaborators in the areas of

design, manufacture, equipment selection & stabilizing the process for specified output, adequate training of personnel, performance guarantee of the plant, productivity

• Future updated technologies will be provided • Price of technology is onetime licensing fee and / or royalty fee on

turnover• Providing scarce / critical inputs• Any restriction to export (specific countries)• Export assistance• Level of equity participation, if TOT is backed by financial collaboration • Conditions for termination of agreement and force majeure situation

(natural calamities, change of government policies • TOT Should include not only Product technologies but also process

technologies.

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Manufacturing Technologies

• Technology development is critical for improving productivity, efficiency, and competitiveness of an industrial sector.

• Growth in productivity has come from the application of operations technology. Factor cost advantages like raw material, labor and proximity are being replaced by technology related factors such as zero-defect product quality, quality assurance systems, patents generated by the firm in determining the international competitiveness. Competitiveness is the ability of the enterprises to respond quickly and effectively to the changing demands of the domestic and global market.

• Technology advances in manufacturing can be categorized intoa) Hardware systems b) Software systems

Productivity improvement in services comes primarily from soft technology— information processing. In manufacturing it comes from a combination of soft and hard (machine) technologies.

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• Recent advances that took place in manufacturing technology are more of software (IT related) and not in the hardware technologies (machine related). Manufacturing technologies like Electro- discharge machining, laser cutting & such other advanced machining technologies. (Developed 40 to 50 years) have now been put to use / practice in industries for the last 10 years. Not much of advances in process technology have taken place except those in experimental scale like EDM etc. have been productionized/commercialized.

• Hardware technologies have generally resulted in greater automation of processes; they perform labor intensive task orginally performed by humans.

• Software-based technologies aid in the design of manufactured products and in the analysis and planning of manufacturing activities. These technologies include computer-aided design and automated manufacturing planning and control systems.

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Hardware systems:– NC machines– Machining centers– Automated material handling systems– Flexible manufacturing systems

Software systems:– Computer aided design– Computer aided process planning– Automated manufacturing planning and control

systems– Computer integrated manufacturing

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• However, IT has contributed a lot to face the challenges in manufacturing industry by way of - Increasing productivity through MIS, ERP and SCM etc.- Supply Chain Management - Better manage new product introduction - Customer Relationship Management (CRM)

• Computerization assisted manufacturing in several areas like

Inventory Management, Production Planning & Control, CAD, CAM, ERP and Database Management Systems etc.

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Technology Strategies

Key tasks involved1. Integrate technology strategy with business strategy.2. Technology as a tool for achieving competitive advantage and not for

improving efficiency3. Internal & External technology sourcing4. Deploying technology in product & process development5. Using technology in technical supportive activity6. Select appropriate technology (Not necessarily state of the art)

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Process Improvement techniques

• 5 why

• Work simplification (methods & motion study)

• Continuous improvement (Kaizen)

• Stretch goal (Six sigma)

• TQM philosophy

• Total Productive Maintenance (TPM)

• Cross functional Task Force approach

• Quality Circle

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Intellectual Property Rights (IPR)legal protection of the invention to enable commercial benefits in lieu of the full disclosure of his invention to the humanity adding stock to the existing knowledge for the betterment of society.

• Copyright may subsist in creative and artistic works (eg. books, movies, music, paintings, photographs and software), giving a copyright holder the exclusive right.

• A patent may be granted in relation to an invention that is new, over the existing when the application was filed. A patent gives the holder an exclusive right to commercially exploit the invention.

• A trademark is a distinctive sign to distinguish the products or services of one business from those of another business.

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Institutional Mechanisms in India1. Department of Science & Technology (DST) - Established in May 1971.

Major responsibilities:– Formulation of policy statements and guidelines on science and technology.– Support to basic and applied research in national institutions.– Support to autonomous research institutions with wide specialization range.– Support knowledge-based and innovation driven entrepreneurship.

2. The Technology Information, Forecasting and Assessment Council (TIFAC) - Established in 1988 with the following objectives:– Undertake technology assessment and forecasting studies in selected areas.– Watch global trends and formulation of preferred options for India.– Promotion of key technologies.– Provide information on technologies.

3. Council of Scientific & Industrial Research Laboratories (CSIR):