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A Novel Technique for Measuring the Technology Application on

CNG Industry of Pakistan

N. Sharif1, J. Hassan2, M. Asim3


1
School of Electrical Engineering and Computer Science,
National University of Sciences and Technology, Islamabad, Pakistan
naeha.sharif@seecs.edu.pk,
2
School of Electrical Engineering and Computer Science,
National University of Sciences and Technology, Islamabad, Pakistan
jawwad.hassan@seecs.edu.pk
3
School of Electrical Engineering and Computer Science,
National University of Sciences and Technology, Islamabad, Pakistan
a007pk@yahoo.com

The industries in today’s world employ different


Abstract - This paper proposes a new model for technologies to improve their productivity, quality, and
Technology & Automation Evaluation of an industry. The cost effectiveness and efficiency in order to maintain a
method involves measuring the effect of different technology competitive edge. The most effective of the various
elements on various dimensions of an industry. As proof-of- technologies currently being used are Computer-Aided
concept, the Technology Ratio of a sample (Tesla Industries)
Design (CAD), Computer-Aided Manufacturing (CAM),
has been calculated using this method. It has been found that
this technique may be applied to analyze the Technology Customer Resource Management (CRM), Supply Chain
application of any industry, thus indicating the areas that Management (SCM) and Enterprise Resource Program
may be automated to improve performance and efficiency. (ERP).
Pakistan is the world’s third largest user of
Keywords - Automation, Technology, TESLA Compressed Natural Gas (CNG) after Argentina and
Brazil [3]. Currently there are 3,085 CNG stations in
I. INTRODUCTION Pakistan serving 2.5 million vehicles and employing over
128,000 jobs [4]. The CNG industry has seen a manifold
Industry is the back bone of any country. growth in the CNG usage over the last decade because
Pakistan’s economy is still largely based on the low-tech, CNG is cheaper than gasoline and also creates lesser
low-value industries that have long been fully mechanized pollution. In spite of growth, the CNG industry is largely
and running very efficiently in developed nations [1]. not technology oriented. The aim of this paper is to
The importance of technology cannot be analyze the technologies currently being used in the
underestimated; it is probably an understatement to Pakistani CNG industry and study their effects.
suggest that technology has changed the way that business In this paper, the effects of these technologies (CAD,
is done in today's world. So many technological CAM, CRM, SCM and ERP) on the industry would be
advancements have occurred in the last couple of decades, analyzed. Another important factor that is necessary for a
and even greater innovations seem to be on the horizon. In company to be on the cutting–edge of technology is
order to help improve communications and to maximize research and development, therefore R&D would also be
efficiency in the workplace, businesses are more than ever a part of our technology analysis. Then, the paper would
reliant on technology in the today’s world. The increased focus on the impact of technology on the CNG industry of
use of the internet, email and other mobile technologies Pakistan. The company selected for the technology
have revolutionized the way companies operate and made analysis is TESLA industries. Tesla Industries is a private
IT a critical factor in building and maintaining a limited company formed in 1992. It has an established
successful company. With the increased importance of network of production and supply in more than 30 cities
working remotely and the need to make sure all staff work around Pakistan. Currently TESLA is the Pakistan’s
as effectively as possible, the companies have no choice largest manufacturer of CNG equipment, electrical control
but to embrace technology; otherwise they would be devices and regulation equipment [5].
easily overcome by their competitors.
In the last decade or so, there has been a huge II. METHODOLOGY
increase in the use of technology in businesses. The
keeping the past trends in mind, in can be easily said that The data regarding the latest technologies used
in the next decade, this shift towards technology will only now-a-days in the progressing world was collected
increase further. The sooner a company integrates through the internet. The collected data was analyzed and
technology into its functions, the more successful it would an appropriate framework for the impact of technology on
be [2]. the industry was devised.
The main components of the analysis model are the B. Analysis based on questionnaire
following technologies: A questionnaire comprising of both open ended and
closed ended questions was given to Tesla Industries to
1) ERP (Enterprise Resource Program) get an insight into the level of automation employed by
2) CAD (Computer Aided Design) the company.
3) CAM (Computer Aided Manufacturing)
4) SCM (Supply Chain Management)
5) CRM(Customer Resource Management) III. RESULTS
6) R&D (Research and Development)
The collected data from the internet and research
Although other technologies also exist; but these are papers was analyzed and results have been presented in
the ones that have made the most impact. These the following table:
technologies have greatly influenced today’s industries. In TABLE I
fact, they have completely revolutionized the functioning Technology Model Framework
of the companies. Our model caters the degree of impact C C S C E R
these technologies have produced on the industry. S.
Dimensions Effect A A C R R &
No
We have kept our model flexible, so that D M M M P D
technological analysis of any industry/company can be 1 Development time Reduces X X X X
done using it. 2 Product quality Enhances X X X X
The following steps were taken to devise the 3 Design productivity Enhances X
framework for our model:
4 Manufacturing costs Reduces X
1) The impact of each technology on the industry 5 Product cost Reduces X X X
was analyzed. 6 Strengths and defects of Analyzes X
2) Weights were assigned to each technology on the design
basis of the impact that a technology produced 7 Virtual reality technology Improves X
on the industry. 8 Verification of designs Improves X X X X X
3) The population for our survey was decided; in 9 Quality control Automates X X X X
this case it was the TESLA industries. 10 Manufacturing efficiency Improves X X X X X
4) The survey was conducted through interview 11 Utilization of production Improves X X
facilities
with the TESLA employees and also through a
12 Investment in production Reduces X X
questionnaire. The questionnaire comprised of inventories
both open and closed ended questions. 13 Customer service Improves X X X X X
5) Based on the results of the survey, the company 14 Out-of-stock situations Reduces X X X
was given scores for each technology in our 15 Inventory management Improves X X X
model. 16 Plan production Improves X X
17 Sales tracking Enhances X X X
In this paper the technology analysis of the CNG 18 Payment handling Improves X X X
industry of Pakistan is being conducted. Therefore, the 19 Coordination between Improves X X
data on the CNG industry in Pakistan was collected. suppliers, distributors and
Currently, there are about 10 firms manufacturing CNG partners
Equipment in Pakistan. Since it is difficult to analyze the 20 Customer relationship Improves X X X
whole industry, the research has been restricted to one 21 Cost of operation Reduces X X X X X X
particular firm. As Tesla Industries is a big firm thus it 22 Profitability Raises X X X X X X
can safely be assumed that research work give the general 23 Customer satisfaction Enhances X X X X X
trend of the CNG industry. 24 Order processing Reduces X X X X X
mistakes
25 Planning at functional Improves X
For data collection, the following methods were and process level
adopted: 26 Delivery cycle Reduces X X X X
27 Interface capabilities of Enhances X
A. Interview with TESLA team the system
The interview was based on matters such as 28 Data warehousing an Improves X X X
handling
Marketing strategy, Development procedures, Product
29 Work flow Automates X X X X X
Quality, employees’ attitude, mechanical structure, data
30 Quality of decision Improves X X
management, suppliers, and value addition in the product, making
time scales, and political, legislative and seasonal effects 31 Cash flow management Improves X X X
etc. on the company. 32 Tax management, status Enhances X
reporting
33 Asset accounting Improves X X
34 Material Management Improves X X mentioned methodology. Its results have been presented
and Procurement in the following table:
35 Production planning and Enhances X X X X X X
control

36 Interface to CAD, CAM, Improves X TABLE III


CAE systems Percentage use of Technology by TESLA Industries
37 Sales and distribution Improves X X X
Technology Weights Is used?
38 Brand & reputation of Improves X X X X CAD 0.14 X
company
CAM 0.15 X
SCM 0.19
39 Product reliability Improves X X X X X
CRM 0.19
ERP 0.27
*x marks a hit
R&D 0.06 X
In the table, an x has been marked wherever a
technology produces an effect. **Total score: (0.14+0.15+0.06) =0.45=45%

Based on the results obtained, weights were The technologies being used by the Tesla Industries have
assigned to the different technologies. The following chart been marked with an “x” in the above table. The net
shows the weight distribution. automation percentage has been calculated by summing
the weights of the technologies that Tesla Industries uses.
FIGURE I
Impact Ratio of Technology on Industrial Automation 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 turned
out 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 cost
effectiveness of the final product. Even though R&D had
the least impact in our model, but still it is essential for a
company to remain ahead in technology and to keep a
competitive edge over its rivals.
The model that we have presented incorporates six
of the most effective technologies available to the
It is evident from the chart that ERP has the greatest industries today. According to our research and
influence (27%) on industrial automation, followed by supposition, if all six of these technologies are
CRM (19%), SCM (19%), CAM (15%), CAD (14%), and implemented, then a company would able to attain 100%
R&D (6%) respectively. automation level according to our criteria. But in real life
The current performance of TESLA industries was it would be less than 100%. Such a level of automation
calculated through previously mentioned methodology. would greatly increase productivity and help attain a
The results have been presented in the following table: competitive edge in today’s cut-throat business
environment. To achieve even greater level of
TABLE II sophistication, a company should come up with newer
Current Performance of TESLA Industries
methods of automation and technologies.
The findings on the Tesla Industries not only apply to
Dimension Percentage Score
this particular sample (Tesla Industries) but they give the
Product quality 56%
general trend of the CNG Industry of Pakistan. First of all,
Product cost effectiveness 64%
there is lack of automation in the manufacturing processes
Reliability and durability 46%
and manual work results in loss of material and time.
Performance 90%
Tesla Industries have only incorporated CAD, CAM and
Technical errors 58%
R&D in their processes while SCM, CRM and ERP are
After sales service 80%
not implemented. Their ignorance towards the importance
of automation is reflected in their product quality (56%),
Product cost effectiveness (64%), Reliability and
The technologies currently being employed by the
TESLA industries were acquired through the above durability (46%) and Technical errors (58%).According to
our set criterion the automation level attained by the Tesla which we would not have been able to complete our
Industries is found to be 45%.This level of automation is project.
indeed very low, and if they want to maintain the
competitive edge in the industry then they should
concentrate on improving their automation level. REFERENCES
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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 long
term 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. Amir


CEO TESLA industries for his co-operation without

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