Reg. No. ________
Karunya University
(Karunya Institute of Technology and Sciences)
(Declared as Deemed to be University under Sec.3 of the UGC Act, 1956)
Supplementary Examination – July 2010
Subject Title :
Subject Code:
TECHNOLOGY MANAGEMENT
09MS342
Time : 3 hours
Maximum Marks: 100
Answer ALL questions (5 x 20 = 100 Marks)
1.
Case Study : (Compulsory)
The Case of Mini-Mills
Until the 1970s, steel had generally been manufactured in very large “integrated” mills by
using iron ore processed in blast furnaces. However, the competitive pressures at that time
made this industry ripe for a change. Market shares of U.S. firms continued despite attempts by
these firms to encourage import quotas. Demand had fallen to levels and material costs
continued to rise. In turn, little profit or capital was available to modernize existing plants.
It was into this environment that the first “mini-mills” were introduced in the 1970s. These
facilities were much smaller than the traditional integrated mills and relied on electric arc
furnaces to process scrap steel. They thus took advantage of the wide availability of electricity,
the power source, and scrap steel, the raw material needed to feed the process. Further these
plants were able to incorporate highly automated facilities. As a result, the average cost per ton
of steel produced by a mini-mill was approximately one half the cost of a ton produced by an
integrated facility. Corporation of America (NUCOR), were able to achieve additional
reductions in cost through further re-engineering efforts. By the end of the decade, mini-mills
had captured a 17 percent share of domestic steel shipments, and this percentage was expected
to rise in the 1980s.
Mini-mills were not, however, immune from competitive forces. During the 1980s,
international competitors continued to put downward pressures on prices. The large integrated
mills, recognizing their threatened positions, began large-scale plant modernization projects
and worked toward renegotiating labor contracts. Many of the mini-mills could not remain
competitive and were forced to close. Further, the technology employed in mini-mills
production limited the types of steel products that could be produced (primarily bar steel). Flat
rolled steel, the thin sheet steel used in such products as automobile bodies and refrigerators,
represented the largest U.S. market for steel products at approximately 50 percent. Mini-mills
technology did not permit the production of this type of product, and thus this market appeared
to remain a safe haven for the large, integrated mills. But this also was to change.
NUCOR, the company considered to be the leader in mini-mills technology, set out to
attack this market. Using high tech German casting equipment and sophisticated computer
control technology, the company opened the first mini-mill foe manufacturing flat-rolled steel
in 1989. This mill produced a 2” –thick ribbon of steel, which required much less processing to
achieve the 1/10th sheets sold to customers than the conventional 10” –thick slabs produced in
integrated mills. As a result, mini-mill production costs for flat-rolled steel were approximately
25 percent less than steel produced in integrated mills. Further, by some estimates NUCOR,
which did not open its first steel mill until 1968, will become the 4th largest steel producer in
the United States by 1997.
Questions:
a. What made NUCOR to be competitive?
b. Suggest how NUCOR has to overcome the challenges due to technological change.
c. What are the consequences of technological change that a company can expect?
[P.T.O]
2.
a.
b.
3.
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b.
4.
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b.
5.
a.
b.
6.
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b.
7.
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b.
8.
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b.
9.
a.
b.
Define technology and importance of managing technology.
(5)
What are the factors that favor innovation and discourage innovation? Explain in brief.
(15)
(OR)
Write short notes on technology strategy.
(5)
Discuss the nature and role of research and development in strategy implementation.
(15)
What are the primary activities of R&D department?
(5)
Explain in detail how you choose the best R&D strategy for a company.
(15)
(OR)
What is technology absorption?
(5)
With a suitable example explain the S-curve of technological progress in relation to limits
of technology and market volume.
(15)
Write short notes creative thinking.
(5)
Explain the creativity characteristics that one should posses for organizational
development.
(15)
(OR)
What is diffusion of innovation?
(5)
Explain the dynamics of diffusion of innovation over time .
(15)
Write four examples of new technologies.
(5)
Explain the selection and implementation process of new technology in an organization.
(15)
(OR)
What are the external sources of financing available for technology-related projects? (5)
Explain in detail the factors to be considered in allocation of resources of project.
(15)