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

1. Decision Support Day 2 – Module 5 Text Materials Chapter 4 – Decision Support Chapter 7 – Enterprise Infrastructure

3. Types of Decisions

6. MIS – Management Information Systems

8. DSS – Voyage Estimating System

10. Executive Support Systems

11. Executive Support Systems

12. Putting Decision Support All Together The 4 Major Types of Information Systems

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

14. Supply Chain Management Systems

15. Supply Chain Management Systems – Nike Example

18. Supply Chain Management Inbound logistics Production processes Outbound logistics Sales and marketing Customer service Information Technology Upstream Downstream

19. Supply Chain Management Yes No

20. Federal Express

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?

26. Customer Relationship Management - CRM

27. Sample CRM System Infrastructure

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

34. Enterprise Resource Planning – Background Timeline

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

37. London Health Sciences Centre http://www.lhsc.on.ca/casecost/drilldwn.htm

38. London Health Sciences Centre

39. London Health Sciences Centre

40. London Health Sciences Centre

41. London Health Sciences Centre

47. ERP Integration

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

50. Hillerich & Bradsby About Hillerich & Bradsby

52. Additional ERP Resources

53. Additional ERP Resources

54. Managing the Change

55. Managing the Change - Successfully 1. Economic Feasibility Tangible Benefits Intangible Benefits Implementation Costs Operational Costs

56. Managing the Change - Successfully 2. Address the Organizational Change Involved!

57. Managing the Change - Successfully 3. User Involvement & Influence

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

59. Managing the Change - Successfully 4. Management Support

60. Managing the Change - Successfully 5. Project Management