Decision Support
Decision Making and Information Systems
Types of decisions, examples
TPS, MIS, DSS
Executive Support Systems
Supply Chain Management
Customer Relationship Management
Enterprise Resource Planning
13. Putting Decision Support All Together The 4 Major Types of Information Systems Decide where to locate new facilities Facilities location Decide when and how many products should be produced Production planning Control the actions of machines and equipment Machine control Organizational Level Description System
18. Supply Chain Management Inbound logistics Production processes Outbound logistics Sales and marketing Customer service Information Technology Upstream Downstream
24. Supply Chain Management – Haworth Case Identify the problem Haworth was facing. What alternative solutions were available to management? How well did the chosen solution work? What people, organization, and technology issues need to be addressed?
31. Enterprise Resource Planning - Background An organization’s critical business processes often cut across many of its functional units. In most organizations, each process has its own data needs and applications that operate as distinct systems. The results of this approach: - Function-Centric view in the business units - Operational Inefficiencies Example: A customer order Sales Accounting Purchasing Production Logistics
32. Enterprise Resource Planning - Background ERP evolved from MRP (Material Requirements Planning) and MRP II. The Idea of MRP Material requirements plan Inventory records Inventory transactions Bills of materials Routings Time standards MRP explosion Master production schedule Manufacturing resource plan Cost and financial data Customer orders Forecasts
33. Enterprise Resource Planning - Background “ Instead of having one set of numbers for the operating system in manufacturing and one set kept by the financial people – once the manufacturing people have numbers that are valid, the financial people can use these to get their numbers. Of course, whenever there are two systems – the numbers are bound to be different. With MRP II, everybody can be working with the same set of numbers, but that’s only the technical difference. The big difference comes in the way management uses these tools…MRP II becomes a company game plan for manufacturing, marketing, engineering, and finance.” Oliver Wright, The Executives Guide to Successful MRP II, 1982. The Idea of MRP II
36. R/3 System Functional Components R/3 System Functional Components Accounts Payable Accounts Receivable General Ledger Capital Investments Open Item Management ABC (costing approaches) Asset Management Payroll Benefits Scheduling Personnel Development Workforce Planning Travel Expense Accounting Largest and most complex Materials Management Plant Maintenance Quality Management Production Planning and Control Project Management Budgeting Customer Management Order Management Configuration Management Billing Rebate Processing Sales & Distribution Human Resources Manufacturing & Logistics Financial Accounting
49. Two More Examples Pitney Bowes Cut overall operations costs by 28%. Sales reps can quote in < 15 minutes versus hours 4% increase in sales - $160 M / year FoxMeyer Bankrupt Sued SAP AG
58. Managing the Change - Successfully 3. User Involvement & Influence Bridge the User / Designer Communications Gap What database management system should we use? How will the operation of the system fit into my daily business schedule? What is the most efficient way of storing the data? How much clerical support will I need to enter the data into the system? How can we cut down CPU time when we run this program? How easily can I retrieve the data? How many lines of code will it take to perform this function? How quickly can I access the data? How much disk storage space will the master file consume? Will the system deliver the information I need for my work? Designer Concerns User Concerns