Page 248 - Operations Strategy

EvAluATing PRoCEss TECHnology 223
and cost. The questions listed in Table 6.2 can help to provide a framework for assess-
ing the impact of any proposed investment on each of them. In order to illustrate this,
we have applied them to a generic analysis of the effect of process technology on the
airline industry.
Although the examples in Table 6.2 were set in the airline industry, we could have
done the same for any industry. The most important point to emerge from any similar
analysis in any sector is that the market opportunities associated with process technol-
ogy are far greater than the traditional narrow focus on cost reduction. Any sensible
evaluation of process technology must include all the effects impacting on quality,

table 6.2 evaluating the acceptability of process technology investment on market criteria

Generic questions Example
Quality Does the process technology improve the An airline investing in in-flight entertainment
specification of the product or service? technology to enhance the specification of its
That is, does it provide something better or flight services.
different that customers value? An airline investing in maintenance equipment
Does the process technology reduce unwanted that keeps the performance of its aircraft
variability within the operation? Even if and ancillary systems within very tight
absolute specification quality is unaffected tolerances. This reduces the risk of failure in
by process technology, it may contribute to equipment, as well as increasing the internal
conformance quality by reducing variability. predictability of the airline’s processes.
Speed Does the process technology enable a faster The check-in technology used by airlines at
response to customers? Does it shorten the airport gates and lounges in effect allows
time between a customer making a request customers’ requests for seating or dietary
and having it confirmed (or a product requirements to be explored quickly and, if
delivered etc.)? possible, confirmed.
Does the process technology speed the The technology that allows the fast loading
throughput of internal processes? Even if of customers’ bags and in-flight catering
customers do not benefit directly from faster supplies, allows fuel to be loaded and engines
process throughput within an operation, to be checked etc. all reduces the time the
technology increasing ‘clock speed’ can benefit aircraft spends on the ground. This allows the
the operation by, for instance, reducing costs. aircraft to be used more intensively.
Dependability Does the process technology enable products Specialist navigation equipment installed in
and/or services to be delivered more aircraft can allow them to land in conditions
dependably? Although many of the causes of of poor visibility, thus reducing the possibility
poor dependability may appear to be outside of delays due to bad weather.
the control of an operation, technology may Customers benefit directly from such an
help to bring some of the factors within its increase in dependability.
control. Airlines invest in advanced aircraft
Does the process technology enhance the communications technology. Efficient
dependability of processes within the communication between aircraft and
operation? Again, even when customers control centres reduces the possibility of
see no direct result of more dependable miscommunication, which, even when
technology, it can provide benefits for the presenting no danger, can waste time and
operation itself. cause confusion. Indeed, an oft-cited concern
of many airlines is that airports around the
world do not always match their investment in
communications technology – preventing maxi-
mum productivity gains from their equipment.

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