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Assignment - A
1. a) What is technology? Discuss the role of technology in the productivity
growth.
(b) Explain the concept of atlas of technology.
2. a) Why should technology be considered as a strategic resource?
(b) Why management of technology at the enterprise level important?
3. a) What is technology absorption? What are the reasons for the external
acquisition of technology?
(b) What is technology intelligence capability?
4. a) Explain the term world class manufacturing?
(b) What is JIT? Discuss the basic elements that constitute JIT.
5. a) Differentiate the terms invention and innovation.
(b) Why organizations resort to technology transfer? What are the issues
that encompass technology transfer?
Assignment - B
1.a) What is technovation? Explain the process of tehnovation.
(b) What are the principles of technology fusion?
2.a) Explain the term intellectual property right?
(b) What is the role of WTO in protecting IPR?
3. Write short notes
(a) Concurrent engineering
(b) Core competency
(c) Appropriate technology
Case Study
Managing Technology and R&D
ESAB Indian limited, Bombay is a leading manufacturer of welding consumables and
equipment. ESAB India Limited is the Indian associate of ESAB AB, the Swedish
multinational and the world's largest company in welding and cutting, with
production centers, core representation in most of the countries.
ESAB India, a Public Limited Company
employs 206 people, including 35 S&T
major manufacturing facility. It had
1991-92. It is licensed to make 1250
24020 km of welding electrodes.

with paid up capital of Rs. 50 million,

personnel, at its Kalwa unit which is the
a turnover of above Rs. 30 crores during
nos. of welding and cutting equipment and

The in-house R&D unit of the company employs about 10 persons including S&T
personnel (scientists and engineers) and is headed by a well qualified chief at
the level of General Manager directly reporting to the Managing Director. The
R&D unit is a separate entity situated within the company premises occupying a

floor area of about 300 sq. m. but closely interacts with other functional
groups. It has well equipped laboratories and pilot plant facilities for
development purposes. The annual R&D expenditure was about Rs. 24 lakhs during
1991-92, i.e. about 0.8% of the annual turnover. A good technical library having
books, journals and periodicals in the field of manufacturing is maintained. The
company also encourages close interaction with the relevant R&D organizations
and academic institutions. R&D personnel participate in technical seminars and
meetings in India and abroad. A computerized information facility has also been
built up.
The R&D unit of the ESAB India closely interacts from time to time with the
principals in Sweden and at other places on developmental needs and receives
relevant technical information which is very useful for R&D in India. In fact,
there are some products/areas which have specifically been developed to meet the
needs of India and could be relevant to other developing countries as well, but
are not covered in the product range of the principals abroad. Most of the
developments relate to highly specific applications such as for oil, power,
underwater uses and are import substitutes. There are immense export
possibilities through constant development efforts to meet the specific
requirements of other countries.
In the early eighties ESAB realized that to survive in the competitive world of
welding it had to become the biggest company and a leader in technology. As a
route to achieve this objective, ESAB acquired a number of companies active in
the field of welding and cutting. It acquired the European welding activities of
Philips electrical and electronic group, based in the Netherlands in 1985.
Subsequently, the welding business unit of Philips India Limited also became a
part of ESAB Group in July 1988. This unit was not doing well commercially. The
turnover of ESAB (India) almost tripled in three years due to active marketing
efforts. In May, 1991 ESAB India Limited acquired the welding business of Indian
Oxygen Limited (IOL), Calcutta. The turnover then approached Rs. 100 crore. The
new Indian organization now has four major manufacturing centers and has sales
outlets in all parts of the sub-continent.
TECHNOLOGY AND STRATEGY POLICY
ESAB's objective was to become a world leader in welding technology. This was to
be achieved by carrying in-house research and by absorbing the technology of
newly acquired companies. ESAB now has well established R&D facilities in a
number of countries, including India. The R&D unit of ESAB is a DSIR recognized
unit and works presently mainly for the Indian market. In setting the objective
of ESAB India, the top management of the parent company takes into account the
in-house capability and potential for further advancement through imported
technology. All possible support to R&D is extended by the management to retain
the leadership in its field.
The company's commitment to welding technology and product development is
evident from the goal of the organization which is to provide technical
solutions to the customers. Here the organization insists on the important
distinction that is to provide solutions and does not sell products.
In a world where technology dominates there are new opportunities for continuous
development. The development of low moisture absorption welding electrodes is a

good example. The offshore structures of the North Sea required welding
consumables (electrodes) which would produce welded fabrication free from
structural failure in a very harsh working environment. The cost of such
failures could be tremendous compared to the cost of welding consumables.
Typically, welding consumables constitute less than 1.5% of the total cost of
the structure. The cost of failure of the structures is frequently many times
the cost of the structure itself.
The early objective was to have extra low hydrogen in the weld metal. For this
purpose special low hydrogen electrodes were made and then re-packed just before
use. This costly process could be eliminated by packing the electrodes in vacuum
sealed packages (Vac Pac) at a relatively high cost. Efforts at developing the
low cost devices for packing continued. The low moisture absorption electrodes
have now been produced which reduce the cost of the solution of the welding
problem. At the same time the product was further developed to give improved
welding characteristics in order to improve manufacturability and to reduce
cost.
Expenses incurred on product and process development have to be recovered from
sales so that R&D process for continuous improvement can go on. The key words
which characterize ESAB's commitment to the continuous development of processes
and system are:
The productivity of the welder and fabricator
The quality of weld deposit
The working environment
PRODUCTIVITY
During the last decade and a half, a shift from the manual welding process to
semi and fully automatic welding processes has taken place in most of the
developed countries, mainly to achieve higher productivity and lower
manufacturing cost. Today in these markets more than half of the total
production of weld metal is derived from continuous solid and flux cored wires
processes. It, therefore, became necessary to develop consumables to meet this
challenge. Many new automatic consumables have been added.
There was a parallel development of new welding machines to match the automatic
welding processes (including welding robots). The packing standards were also
changed to suit automatic welding consumables for uninterrupted supply of
high-quality wire to the robotic processes (ESAB's Marathon Pac).
QUALITY
Products are services which do not meet the quality requirements of the
customers and do not stand the test of time. Today quality does not remain
within the boundaries of the product alone. Total quality is the need of the
hour. Introduction of a Total Quality Program is the ESAB group is a step in
this direction. While finalizing the requirement for a new product the quality
of the weld is inbuilt in the specification. Welding is not an end in itself. It
is a process to produce a structure. The most successful welds produce the base
component or fabrication at the lowest level.
ENVIRONMENT

The cost and quality of the weld very much depend on the welder who in turn is
profoundly influenced by the working environment. The welder will produce better
welds in a friendly environment or with electrodes with better welding
characteristics, a single point control (synergic control) of the welding
machines and reduce fume. Controlling the toxicity limit of the welding fume
shows concern towards the health of the welder whilst at the same time improving
the effectiveness. ESAB's R&D is in the forefront of action to make the
environment friendlier to the welder.
As can be seen, developments in welding concern while process and are realized
by improving existing products and introducing new technologies. Attention will,
in future, focus increasingly on issues relating to the internal and external
environment and economy. Combining ESAB's product, process research and
development with the customers' production experience often lead to
collaborative ventures to improve economy, quality, and productivity and safety
standards in the latter works.
The R&D department of ESAB India is the focal point of all technical activities
of ESAB in India. It also acts as the interface between the principals in Sweden
and the Indian
related to new
Indian market.
absorption and
activities.

organization. It undertakes research and development activities

products and technologies for meeting the needs of the growing
Emphasis is on continuous local technological development,
up-gradation of imported technologies for all the welding

The department is manned by a group of highly qualified persons who have the
experience in other line functions so that their perception of the problem is
realistic rather than theoretical. Members have had previous experience in
quality control, production or marketing before they joined the R&D group. They
are capable of understanding the real problems or the requirement of new
products as envisaged by the customer. All members of the department help each
other to keep expectation within feasible limits.
Technology and product is market lead in India. For instance, in a specific
nuclear project the requirements were very stringent and critical. The required
product was developed in two phases. In the beginning, the technical
requirements were first met and subsequently the cost was reduced. Initially,
market demand was not large but with time it expanded and now they have a
proprietary product with large demand.
Many such market-led developments have been successfully carried out in India.
This has helped ESAB earn the name of a technology based company. The R&D
department accordingly has established its importance in the organization and
has representation in all decisions of the group management pertaining to
technology and product management.
METHODOLOGY
If the product development is market-led, the marketing department has to
present its requirements in regard to future market demand, possible new
businesses or new applications. Once the need has been agreed the R&D department
attempts to ascertain whether the product is available within the ESAB group. If
it is, the principals abroad are contracted for details of formulation and
production data. In the event that a group product cannot be identified, then

the R&D department of the principals combines with their Indian counterparts for
a program for development. After establishing the basic formulation and
production data, work on adaptation to Indian condition starts. This adaptation
is necessary because of variations in the raw materials and production plant.
The formulations are broken into their basic chemical constituents and on them
the chemical composition of the indigenous raw materials is superimposed.
Imbalances are suitably adjusted to provide the correct weld metal analysis and
welding characteristics of the electrode. Theoretical knowledge and practical
experience are essential for doing this. A tentative formula is obtained which
is refined through experiment to give the final desired product. The new
formulation is first tried on pilot plant and subsequently transferred to
production. For successful development and commercialization of a product,
marketing and sales, materials management and production departments are all
involved. The R&D personnel remain involved till the product is established
commercially. R&D must also be involved in manufacturing technology to meet the
company's own demand for improved productivity, quality or to increase
manufacturing flexibility.
DIFFICULTIES ENCOUNTERED
What has been discussed above works if the situation is ideal? Reality is often
different. Some of the major difficulties encountered in actual practice relate
to:
Changes in specifications during the development period
Failure to achieve the required result by the R&D department
Unduly long response time of development
Prohibitive cost of product
In the course of development, the customers' need may change. If such a change
is not very major, it may only cause a small delay but in case of major changes,
it may mean development in an entirely new direction. Alternatively, the
specifications may sometimes be too stringent that it may not be possible to
manufacture a new product within the constraints and projected cost. It is also
possible that the targets laid down in the guidelines received from the
principals cannot be met because of non-availability of specific raw materials
at reasonable prices. These are all major handicaps in developing the desired
product.
Undue delay in developing a product may result in losing market opportunity for
which it was intended. Often development may use costly materials and the
finished available product may become more expensive than an alternative product
in the market resulting in failure to develop a commercially viable product. All
problems and difficulties described above combine into a single problem-loading
the interest of the customer. These difficulties can arise in market-led
development. However, if development is production-led, many new and good
developments never reach the market because they do not satisfy a recognized
customer need. In relation to development activity, the following observations
of general nature can be made:
1. The top management must commit itself (through the company objectives) to
render active support of development of product and technology. Often in times,

expenses incurred to development come under the microscope. The commitment of

the top management will ensure that in the long-term, investment in R&D
activities will pay off handsomely.
2. Development is not a single department's job. Active involvement from
marketing and sales, production and materials management is essential to make
the new product reach the customer at right time and at the right cost.
3. Cost of the product plays an important role in the development efforts. This
point must be kept in mind from the very beginning. A developer must be
conversant with the cost structure of the product.
4. All industrial R&D activities must have commercialization of the development
as its goal. Any development will be termed a failure if it does not improve the
bottom line of the organization.
5. Many difficulties may be faced during the R&D process, so R&D is assured of a
quick and easy success.
6. Guidelines and directions from the principals abroad are only part of the
story. Local R&D is important to satisfy local needs and constraints.
Appropriate technology is the need for all R&D effort while adapting products
and technologies from abroad.
7. ESAB India's role in future will be to develop the existing techniques and to
participate in the research and development of new techniques with a view to
maintain its leading position in the field of welding and cutting in the 21st
century.
OPPORTUNITIES OF ESAB INDIA
In the international scenario the technological developments are taking place at
a very rapid pace. India with its wealth of technical expertise should adopt
overseas technological advances for speedy commercial implementation and benefit
from them. Such adaptation will hasten the process of industrialization. Indian
R&D efforts should be directed initially towards meeting the local needs and
overcoming local constraints by suitable adaptation. But finally we must aim to
be a world competitive supplier of welding and cutting solutions.

QUESTIONS
1. What strategic route ESAB AB followed to become technology leader in the
world? What could be the reasons behind such a route?
2. What efforts were made by ESAB AB and ESAB India in the field of product
development?
3. How is the R&D function at ESAB India organized? Critically examine.
4. What difficulties ESAB has experienced in relation to product development
efforts? What would you suggest to overcome these difficulties? What
opportunities are open to ESAB India? How best can it avail of those
opportunities?

Question No. 1
What is not related to the technology reference framework of advanced countries?
Options
low rates of labor is available in plenty
labor is scare`
highly competitive economy
the defense needs
Question No. 2
Developing country and the advanced country has

technology reference frame.

Options
same
different
same as well as different
can't say
Question No. 3
Alternative technology is at the heart of development process
rrect option.

.'. Identify the inco

Options
to mitigate man's misery
to remove or reduce poverty
to create unemployment
to improve quality of life and to make man self reliant
Question No. 4
A bad technology will result in

..

Options
local problem solvig capability
creating more waste
saves energy
cost reduction
Question No. 5
development of technological capabilities does not include

..

Options
engineering capabilities
manufacturing capabilities
political will power
capabilities in erection and commissioning of industrial projects and systems
Question No. 6
technology management is the management of ...
Options
appropriate technology
costliest technology
cheapest technology
none of the three

Question No. 7
which is incorrect about technology management
Options
TM creates value
TM generates new markets
TM creates new opportunities
TM does not creates value
Question No. 8
.is the backbone of quality aspects in a product.
Options
Technology
finance
Human resource
Finance
Question No. 9
Technology includes
Options
quality
Price
a combination of quality, price and quantity
quantity
Question No. 10
Three primary areas of Technology
Options
Product Technology
Process Technology
Information technology
all of the above
Question No. 11
Identify the correct option?
Options
technology
technology
technology
technology

is
is
is
is

not transferable
not marketable
important for progress
not negotiable

Question No. 12
Technology generation indigenously without making use of existing imported or in
digenous technologies is
.
Options
easy
expensive
inexpensive
efficient
Question No. 13
which is incorrect?

Options
importing technology is a short cut
imported technology provides technology suitable to the environment of the coun
try where the same is in use
imported technology is always less costly
imported technology is not based on the requirements of local region
Question No. 14
technology has been used more and more for ..
Options
material gains
want
exploitation
alienation call for alternative development and alternative technologies
Question No. 15
development of man does not mean
Options
increasing his resourcefulness
to be self competent
live in harmony
removal of his poverty
Question No. 16
lauching of satellite is
Options
technology
technology
technology
technology

transfer
development
selling
buying

Question No. 17
which is technologically backward country?
Options
United States
U K
CHILE
INDIA
Question No. 18
innovation is the key for survival in a competitive environment
Options
correct
correct to some extent
correct to a great extent
incorrect
Question No. 19
technology has a great influence on productivity
Options
correct

correct to some extent

correct to a great extent
incorrect
Question No. 20
Technology adoption typically occurs in an

. curve

Options
S
L
U
R
Question No. 21
Encourage creativity, entrepreneurship and innovation-based productivity in all
sectors of the economy to
.
Options
increase profits
to make a plan
invest in projects
get subsidies
Question No. 22
Businesses need to be
petitive.

.. and constantly innovate and adapt technology to remain com

Options
flexible
rigid
quick
slow
Question No. 23
... is not a problem in acquiring technology?
Options
correct quality
correct quantity
effective utilization of the technology
availability of manpower to use the technology
Question No. 24
Acquisition and use of a new technology is
Options
complex
inexpensive
expensive
risky
Question No. 25
...does not attract new technology and turn into profitable and useful innovations?
Options

prosperous environment
expanding economy
shrinking economy
buyonent economy
Question No. 26
The degree to which a person believes that using a particular system would enhan
ce his or her job performance is ...
Options
Perceived usefulness
Perceived ease-of-use
Both of the above
none of the above
Question No. 27
.process that comes ito physical contact with the product will be delivered to an ex
ternal customer.
Options
Production process
Business process
Both of the above
none of the above

Question No. 28
Roger s Innovation Decision Process theory proposes that innovation adoption is a
process that occurs over
. through five stages: Knowledge, Persuasion,
Options
time
cost
quality
efficiency
Question No. 29
A
..is an interconnection of components forming a system configuration that will pro
vide a desired system response.
Options
Design system
Control system
MIS
DSS
Question No. 30
Types of control are

Options
Open-loop control
Closed-loop (feedback) control
Both of the above
none of the above
Question No. 31

The degree of market openness, achieved through deregulation and trade and inves
tment liberalisation, has played a key role in the
...performance
Options
innovation
Invention
development
discovery
Question No. 32
...Funds scan innovative start-up
Options
Venture
Mutual
bank
institutional
Question No. 33
. and technological progress are key determinants of economic growth.
Options
Innovation
Invention
development
discovery
Question No. 34
Clusters can be seen as one of the main conveyors of innovation for companies: t
hey facilitate co-operation, learning and technology transfers between larger an
d smaller companies
Options
TRUE.
FALSE.
Inadequate information
can not say
Question No. 35
Investment in
... is a major source of technological progress and innovation,
Options
R&D
HR
Finance
Production
Question No. 36
Test automation means we have intelligent robots doing
Options
our
nobody
everybody
their
Question No. 37

... work for us.

When thinking about the

hat the software does

... context, think of what the people need, not necessarily w

Options
social
cultural
political
rural
Question No. 38
Automation relies on testable interfaces that
Options
Societal Context
Financial context
systems context
Research context
Question No. 39
Moving from a social context to the less
Options
boring
challenging
easy
peaceful
Question No. 40
When the user is a machine, the testable
Options
Societal Context
Financial context
systems context
Research context
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