Identifying the Factors of Technological Capability Assessment Case study Pressing parts Manufacturing Department of Iran Khodro 1

Transcription

1 Identifying the Factors of Technological Capability Assessment Case study Pressing parts Manufacturing Department of Iran Khodro 1 Seyyed Reza Salami 1, Mohammad Taghi TaghaviFard 1, Mohammad Masoud Majidifar 1 Faculty of Management and Accounting, AllamehTabatabai University, m.majidifar@bfgco.com Faculty of Management and Accounting, AllamehTabatabai University, rz_salami@yahoo.com Faculty of Management and Accounting, AllamehTabatabai University, dr.taghavifard@gmail.com Abstract Considering the increasing role of technology in competition development along with economic growth, technological assessment in developed countries has come under the spotlight. Comprehensive knowledge of firm- level technological and its proper employment is one of the most significant factors in efficient application of technology to acquire the competition advantages. Technological needs assessment is an appropriate tool by which the required capabilities for technological prioritiesimplementation are identified. Automotive industry as a technology based industry is among the significant and strategic industries in today's world. The present study is aimed at prioritizing technological capabilities assessment indicators in order to assess technological capabilities and strategic planning in pressing parts manufacturing department of Iran khodro.thus, concerning the importance of technological assessment and the issue of strategic planning and their close relation, this research identifies andprioritizes the appropriate indicators of technological assessment in automotive industry and pressing parts manufacturing department. The outcome of this prioritization is of great help to formulation of future policies in this department. In this study,subsequent to the review of literature, 36 indicators proper for the research were identified. After designing the questionnaire based on the aforementioned indicators, and verifying its validity by the experts, 123questionnaires were collected. Then the questionnaire reliability was confirmed using Cronbach s alfa and the correlation of the data for factor analysis was ensured employing KMO and Bartlett s test. Following these procedures,exploratory factor analysis was carried out and the 23 indicators under study were classified into 6 factors and prioritized according to their factor loadings. Keywords: technology, technological capabilities, technology assessment, Iran Khodro Company Introduction Since technological development in an organization has direct relationship with economic development, the level and the extent of technological development of an organization indicates its influence and authority. To acquire technological development, first the concerned technology should be attained then improved. In this regard and with respect to the significance of technological development,chief executive officers of the firms should constantly strive for the improvement of their organization s technological through proper understanding of these capabilities, identification of recent technological evolutions throughout the world, not to mentionthe consideration of the rivals attempts to acquire novel technologies (Shafaghat, 2000). One of the major factors hindering the efficient employment of technology to acquire competitive advantages in developing countries firms is lack of knowledge of the technological capabilities level of the firm andtheir employment in relative advantages (Rostami, 2011). In our country, technological assessment has got scantattention,and little cultural ground has been provided for that. Even if some organizations are inclined to set foot on this path, there are just sparse sources at hand. Accordingly, technological assessment, also known as technology assessment or technology auditing, is an essential part of technology managementand is considered as a crucial factor for profitability and development of the firm in today s competitive world (Tabrizi, 2011). 105

2 Among major factors in successful employment of technology to acquire competitive advantages are the knowledge of technological capabilities level of the firm and their appropriate employment. Technological needs assessment not only identifies the deficient and problematicsections of the firm but also considers and determines its relative advantages. This study intends first to define technological assessment factors and then prioritize themto improve the present situation and subsequently consider these priorities in pressing parts manufacturing department. Literature survey Nowadays, technology has a specific role in a firm s future.technology management and organization of technology activities involve optimum allocation of the existing resources and facilities and this is attainable just through assessment and prioritization of the existing technologies. This assessment and prioritization indicates the significance and effectiveness of technologies in organizations and provides the requirements for the selection of key technologies. A number of firms are dealing with challenges in reinforcing and enhancing the competition to sustain in a competitive commercialenvironment. However, just those firms resorting to key capabilities and relative advantages could gain a secure prosperity (Momeni, 2002). As mentioned above, technological assessment is of crucial significance to any firm or business aspiring to its strategic aims. Since there was no attention to this issue in pressing parts manufacturing department of Iran Khodro, the present study can be of great help to orienting the activities of this department. Therefore, prioritization of technological assessment factors could undoubtedly improve the quality of pressing parts manufactured in this department. The prominent question of the study is: What are the technological assessment indicators in productive firms? The peripheral questions are as follows: 1- What are the technological assessment indicators in production of pressing parts in Iran Khodro Company? 2- How is the prioritization of technological for production of pressing parts in Iran Khodro Company? 3- What are the suggestions to improve the technological capabilities of production of pressing parts in Iran Khodro Company? Definitions Technology: technology is all theknowledge, products, tools, ways and systems employed to present a product or a service. Technology is the process of transport and transformation of resources to products through knowledge, experience, information and tools (Khalil, 2000). Technology is the tools, procedures and ways applied in various industrial fields (Laurus dictionary). It is an essentialelement in the development of industrial firms commercial activities as well as the countries economic development.nevertheless, one of the common and prevalent definitions of technology is the commercial employment and application ofscientific knowledge (Unido, 2002). Gendron holds that technology is any systematic practical knowledge based on experience or scientific theories used in methods and skills of production, organizations or machineries (Ghazinoori, 2004). Technological capabilities: in general, a technological literally means the capabilities required for identification, acquisition, attraction, use, transformation or creation of technology. Capabilities include varieties of information and skills such as technological, management and organizational ones. Technological assessment: as a comprehensive definition technological assessment is a process in which the present technologicalcapabilities and abilities of the organization are measured both to identify the shortcomings and strong points of the organization stechnology and to compare the organization technological capabilities to its rivals in ideal level and compensate for the deficiencies (Tabatabaeian, 2004). 106

3 Classification of Different s of Technological Capability Assessment There are different models regarding technological assessment, which are classified as in the following table (Khamseh, 2011). Table1. Classification of Technological Capability Assessment s s determining technological gap Atlas Technology Porter s Panda and Ramanathan Floyd Technology Needs Management Technology Content Assessment Technology Situation Assessment Economic Value Added s evaluating gap factors Ford Lindsay Atlas Technology Floyd Technology Needs Management Technology Capability Level s providing solution for compensating the technological gap Ford Lindsay Phaal Garcia- Arrola Lane Technology Needs Assessment Science and Technology Information Management Systems Technology Needs Management Panda and Ramanathan In this model, the organization in developing value added equals the organization s technological. To this end, this model considers the following steps for technological assessment: - To define the activities developing value added - To define the required technological capabilities to do these activities - To define the calculating indicators of technological capabilities - To define the present situation of the organization with regard to each of the indicators - To compare the technological with an ideal mode - To define the technological gap This method is based on the determination of technological, with an emphasis on the organization in creating value added. In this model, the technological is defined through identification of thoseorganization sprocedures which develop value added.the general proposition of this model is as follows: Technological = organization in developing value added The comparison of the results of this model at different periods of time can yield a basis for controlling technological development activities. This model examines technical capabilities in 4 levels: -Strategic technological capabilities including creating technology, designing and infrastructure engineering -Tactical technological capabilities including producing, marketing, selling and providing services -Supplementary technological capabilities including buying and providing support -Steering including technology management and control (Panda, Ramanathan, 1997). Concerning these capabilities and theirexamination, this model can thoroughlyrecognize the technologicalcapabilities of the organization.due to comprehensive nature of this model and its employment of qualitative and quantitative assessment, it is qualified to be used in organization s technological capabilities assessment. Nevertheless, since technological assessment is indirectlymanaged in this model, and it does not proffer any specific policy, it holdsits characteristic problems: in this model, different dimensions of a single technology are roughly examined in terms of the level of development,the extent of its use and its strategic significance. Introduction of Pressing PartsManufacturing Departmentof Iran Khodro 107

4 pressing parts department embraces three manufacturingsections; cutting and pressing sectionof northern factory are located in an area of 8000 square meters,put into operation respectively in 1343 and In the course of time, and as the result of manufacturing of new products in addition to the rise in the quantity of products, section 3 in an area of 18000square meters in southern factory was exploited. At present, the area of this section has been expanded to This section has the responsibility of producing the main portion of large pressing partsof the body of Samand and Peugeot cars. Sections 1 and 2 include four G2 and G3 lines in which pressing parts are manually manufactured. Section 1 is comprised of two G ton robotic press line and ton manual press line and one G ton line. Section 2 consists of two G2 lines of 1000-ton and 1300-tonand two G3 lines of 600-ton and 400-ton. Section 3 comprises two blanking lines and six press lines. Blanking lines have been designed to break the coils and change them to blanks. The first blanking line was made by WiaCompany from Korea. The press tonnage of this line is 500 and processes such as washing, cross-cutting, leveling and stacking of the sheets are performed along this line. The second line has been made by Schuler Company from Germany and its mechanism is similar to Wia line. Along a single press line, blank is turned into the final piece after several processes. Technical characteristics of press lines of press section 3 are as follows: Table 2. Technical characteristics of press lines in press section 3 line G1#1 G2#1 G2#2 G2#3 G2#4 Press tonage (2000,1000, 800#1~4 ) Ton (1300,800, 600#1~4 ) Ton (1300,800, 600#1~4 ) Ton (1500,800, 600#1~3 ) Ton (1500,800, 600#1~3 ) Ton Automation level robot and % 100 ( )L/UL % 100 ( )robot and L/UL ) % 100 robot ( ) % 100robot( ) % 100robot( year of exploitation Press Manufacturing comapany Hitachi Wia Wia Hitachi Hitachi Robot manufacturing company Koka Koka ABB Koka Koka G1#2 (2000,1000, 800#1~3 ) Ton ) % 100robot( 1384 Hitachi Koka The variety of this department s products includes 33 Samand, 46 Peugeot 405, 23 Peugeot Pars, 25 Peugeot RD and 28 Peugeot 206 SD cars. This complex is capable of manufacturing pieces per day and 20 millionpieces per year. After a conversation with experts and specialists of the department, it was revealed that there has been no significant calculation regarding technological assessment. However, this issue has always been the point of consideration for the managers and authorities of this department and its significance has now become apparent in formulating future strategies and policies. Thus, it was decided that a scientific model be offered and appropriate indicators be prioritized,in order that future policies are formulated and efficient, feasible results are achieved. Research Methodology The present research is a descriptive survey study and has a practical aim. After some navigation in review of literature of the subject, the appropriate technological assessment indicators are identified. Then the attitude of the research population to these factors is assessed by questionnaires and the collected data are analyzed. Finally, the prioritization is carried out with regard to the conducted analysis. In present study, the research population comprises specialists and chief executors of the company with at least 5 years ofhaving cooperation withpressing parts department. Research population consists of 190 individuals and the sample size is determined using Morgan table. 108

5 Sampling Method and Sample Size The method used in this research is non-probability sampling (Judgmental sampling or Purposive sampling). This method is used when a limited number of individuals have specialty in the field being researchedinto and therefore those individuals who can appropriately deliver the required information are selected as samples. (Sekaran, 2003). Concerning sample size, when using factor analysis, the number of cases should be more than variables. Whenever there is not this difference, the outcomes are not significant. There are different opinions about the ratio of cases to variables, ranging from 10 to 1 to 2 to 1. The less is the ratio of cases to variables, the more factors show up. In general, the larger is this ratio, the better it is (Kline, 1994). Data Collection Tools and Methods The data can be collected at different locations and by different practical methods and from different data sources. Regarding the location, the data can be collected from anactual place where activities occur (Sekaran, 2003). In the present study, the research data were collected in terms of existing realities and it was attempted that the data be collected from an actual location. In addition, to examine the review of literature and determine the indicators,library based method was employed and to collect the experts and specialists opinionsonprioritization of the indicators, questionnaires were used. Summarization of Indicators With regard to the recommendations by the experts and specialists in pressing parts manufacturing department,some changes were applied to the indicators in Panda and Ramanathan model to be appropriately adapted to the research location and situation. Table 3.IndicatorsUsed in Questionnaire Indicators and measures Capability to carry out improvements of existing product(s)/process(es) and/or development of new ones Creation Capability to create new organizational structures strategic Technological capabilities Design and engineering Construction Capability to plan, monitor and control research and development projects Capability to evaluate the project in terms of technical, economic, financial, environmental and social factors Capability to do routine design and detail engineering of product/process Capability for adapting purchased/generated technology Capability for duplicating purchased technology Capability to plan, monitor and control design and engineering and contract activities Capability to support project feasibility studies and do site engineering Capability to perform civil construction Capability to perform erection and commissioning activities for mechanical, 109

6 Indicators and measures Capability to plan, monitor and control construction, erection and commissioning activities Tactical technological Production Marketing and selling Servicing Capability for carrying out quality assurance, inspection and inventory control Capability to perform production planning and equipment and maintenance scheduling Capability for carrying out preventive, corrective, improving and productive maintenance Capability to identify customers, bid and negotiate the terms of product/service selling Capability to supply product/service to customers, as per contract, Capability to plan, monitor and coordinate marketing and selling activities Capability for diagnosing problems and undertaking corrective actions (including repairs, maintenance and replacements) Capability to provide technical advice to customers Capability to conduct research to determine and monitor customer needs, wants and satisfaction levels and to set service-level standards Supplementary technological Acquiring Supportive Steering Capability to identify, assess, negotiate and finalize the terms of the technology to be acquired Capability to identify, assess, negotiate and finalize the terms of acquiring raw materials, supporting facilities, spare parts and consumable Capability to identify, assess, negotiate and finalize the terms of the finance to be acquired Capability to provide training Capability to undertake strategic planning Capability for providing information support and networking Capability to sell technology Capability to adhere to high standards of safety and security Capability for decision making and implementing Capability to integrate the organization s activities electrical, and control and instrumentation items 110

7 Data Analysis Method In this research, data analysis is implemented usingexploratory factor analysis. However, before the analysis, it is required that the correlation of the data for factor analysis be examined. To do so, sampling adequacy test coupled with Bartlett s test were employed. 1. Sampling Adequacy Test: this test is measured using KMO test 1. KMO index indicates that the correlation between each pair of variables can be explained using other variables. The low value of this index means that the correlation between each pair of variables cannot be influenced by other variables. KMO is a value constantly fluctuating between 0 and1. If this value is lower than0.5, the data are not appropriate for factor analysis and if this value ranges from 0.5 to 0.69, factor analysis can be carried out. Similarly, if the KMO value is over 0.7, the correlation between the data will desirably be appropriate for factor analysis. As demonstrated in table 5, KMO value for collected data is 0.745,representing the suitability of data for factor analysis. 2. Bartlett s Test 2 : this test is used to verify the suitability of the data for factor analysis; in that the correlation matrixholding the basis of factor analysis is not 0 in research population. Bartlett s test is used to test if the existing correlation matrix belongs to a population with independent variables. For a factor model to be useful and meaningful the variables are required to be correlated; otherwise, the explanation of factor model becomes useless. The values less than 0.05for significance level in this test mean that the factor model is suitable. As table 5 demonstrates, this value equals 0. Therefore, the data are correlated and suitable for factor analysis. Table 4. KMO and Bartlett s Test results in SPSS software KMO and Bartlett s Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett s Test of Sphericity 54.7 Approx. Chi-Square Df 253 Sig..000 After verifying the data suitability for factor analysis, SPSS16 is used to conduct factor analysis with varimax rotation.varimax method identifies factors; that is it generates factors having strong correlation with a small set of variables and nominal correlation with another set of variables. In this model, factormatrix columns are simplified and through the procedure the sum of the variances of the squared factorloadings is maximized.since the number of the variables having high loading on a single factor are minimized in this model, the interpretation of factors is simpler compared to quartimax method. Thus, it is more common and more widely used (Human, 1385, 410).In this research, varimax method is used for factors rotation. It has been confirmed that varimax method as an analytical policy in implementing factor rotation is more successful than other methods. On the other hand, one of the important points in factor analysis is identifying the number of factors to be extracted. One of the widely sued features in identifying factors is Eigenvalue representing the explained variance of each factor. A number of researchers including Kaiser consider Eigenvalue of 1 as the basis of factors number. Therefore, the factors with Eigenvalue of 1 or more come to consideration. 1 Kaiser-Meyer-Olkin (KMO) 2 Bartlett Test 111

8 Factor Interpretation Applied mathematics in Engineering, Management and Technology 3(3) 2015: For factor interpretation it should be clarified which of the factor loadings should be consideredas significant values. According to researchers, factor loadings over 0.3 are significant. Factor loadings greater than 0.4hold a high significancelevel and loadings over 0.5 are considerably significant. Thus, the greater is the factor loading, the higher is the level of their significance in factor matrix interpretation. In addition, the employment of this measure is suitable just when the number of cases is more than 50. In the present research, the factor loading significance basis 0.5. Therefore, if a variable not having factor loading higher than 0.5 is omitted, according to the analysis, factor loading of 13 assessment indicators isleft out. And these factors are excluded because the factor loading significance base has been determined 0.5.However, since other variables have factor loading of higher than 0.5 on a specific factor, none of the variables is eliminated. According to the conducted calculations, 23 variables (indicators) under study have loading on 6 factors. Table 6 precisely demonstrates these variables according to their corresponding factors. Table6. classifying and prioritizing indicators priority first factor Design and engineering Indicators in terms of their priority Capability to identify, assess, negotiate and finalize the terms of the technology to be acquired Capability to integrate the organization s activities Capability for duplicating purchased technology Capability for adapting purchased/generated technology Capability to plan, monitor and control design and engineering and contract activities Capability to identify, assess, negotiate and finalize the terms of acquiring raw materials, supporting facilities, spare parts and consumable second Servicing Capability to provide technical advice to customers Capability to adhere to high standards of safety and security Capability for providing information support and networking Capability for diagnosing problems and undertaking corrective actions (including repairs, maintenance and replacements) third fourth fifth Production and supportive Creation steering Capability for carrying out preventive, corrective, improving and productive maintenance Capability to undertake strategic planning Capability to perform production planning and equipment and maintenance scheduling Capability to provide training Capability to plan, monitor and control research and development projects Capability to evaluate the project in terms of technical, economic, financial, environmental and social factors Capability to do routine design and detail engineering of product/process Capability to carry out improvements of existing product(s)/process(es) and/or development of new ones Capability to plan, monitor and control projects Capability for decision making and implementing Capability to conduct research to determine and monitor customer needs, wants and satisfaction levels and to set service-level standards 112

9 Table6. classifying and prioritizing indicators priority sixth factor production Indicators in terms of their priority Capability for carrying out quality assurance, inspection and inventory control Capability to identify, assess, negotiate and finalize the terms of the finance to be acquired Factor analysis yields the best results just when the extracted factors explain an acceptable level of total variance. In social science and humanities researches, the explanation of %60 of the variances suffices. Table 8 illustrates the explained variance of the factors. As clarified before, these 6 extracted factors explain more than %76 of the total variances. The outcome of SPSS software (percentage of explained variance accounted for each factor along with its cumulative percentage) has been delivered as the attachment. Factors Summing up and Conclusion Table 8. factors Eigenvalue Eigenvalue Percentage of Eigenvalue Percentage of total factors Factor % Factor % Factor % Factor % Factor % Factor % total As illustrated in table 7, the first factor, which is design and engineering, has acquired the highest level of priority and among the indicators of this factor, the to identify, assess, negotiate and finalize the terms of the technology to be acquired and the to integrate the organization s activities have the highest factor loading. The first factor signifies the number of major contracts concluded, without any external assistance, for the technology acquisition activities during the last 5 years and also the extensiveness of database for major utility related technologies. The second factor represents the efficacy of informational communications as well as the efficacy of higher management. Recommendations Relying on the outcomes of this research, it is recommended to pressing parts manufacturing department of Iran Khodro that, regarding the prioritization of technological assessment factors, they more focus on the indicators with high priority in order to formulate their future policies, assess their technology and have strategic technological planning. It is also suggested that they augment their capabilities in terms of the priorities of these factors. References [1] Saboktakin, Shafaghat (2000). Technological assessment in metal industries by technology needs assessment model, Master thesis, Industrial Management Organization of Markazi Province. [2]Rostami (2011). Technological assessment in ISACO Agencies, The first international conference on management of technology. 113

10 [3] Tabrizi (2011). Technological assessment with the use of Technology Atlas in Poura Food Industries Factory, The first international conference on management of technology. [4] Azar, Momeni (2002). Statistics and its application in management, The organization for researching and composing university textbooks in the humanities (SAMT). [5] Tarek M. Khalil (2000). Management of Technology: The Key to Competitiveness and Wealth Creation. [6]Unido, (2002). Innovative Technology Transfer Framework, LinkedTo Trade For Unido Action. [7] Ghazinoori (2004). Technology assessment: a policy intelligence tool. [8] Tabatabaeian, Mohammadpoor, Najafi (2004). Technological assessment for firm level. [9] Khamseh et al. (2011). Technological assessment in metal industries by technology needs assessment model, The fourth national conference on management of technology. [10]Panda, H. and Ramanathan, K.(1997). Technological assessment as an input for strategic planning: case studies at Electricitd de France and Electricity Generating Authority of Thailand. [11] Omasekaran (2003). Research methods in management. [12] Paul Kline (1994). An easy guide to factor analysis, Psychology press. 114