BADM 341 Systems and Operations

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BADM 341 Systems and
Operations
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Modern Planning and Control Systems

• Enterprise Resource Planning (ERP)
• Manufacturing Resource Planning (MRPII)
• Distribution Resource Planning (DRP)
• Material Requirements Planning (MRP)

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Enterprise Resource PlanningApplications Modules
Sales And Distribution
Operations Management
Accounting And Controlling
Quality Management
Project Management
Human Resources Management
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Sales And DistributionFunctional Areas

• Marketing
• Demand Management
• Distribution Centers
• Configuration Management

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Operations Management Functional Areas

• Production
• Inventory Control
• Materials Management/Purchasing
• Engineering (Design, Production, Process)

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Quality ManagementFunctional Areas

• Quality Assurance
• Reliability
• Plant Maintenance
• Customer Service

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Human Resources Management Functional Areas

• Personnel Administration
• Labor Relations

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Project Management Functional Areas

• Project Engineering
• Project Teams

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Accounting and Controlling Functional Areas

• Financial Accounting
• Cost Accounting
• Investment Management
• Asset Management

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ERP Stages of Evolution
1990s
ERP
1980s
MRPII
1970s
1960s
DRP
MRP
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Material Requirements Planning Modules (in usual
order of implementation)

• Product structure/ BOM (input)
• Inventory transactions and records (input)
• Customer order entry (input)
• Purchase controlling (output)
• Capacity planning (output)
• Master scheduling (input)
• Shop floor controlling (output)

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Distribution Resource Planning Modules (at 2 or
more distribution Centers)

• Budgeting (labor, traffic, and fixed costs)
• Projecting (Inventory investment vis-à-vis
  customer service level)
• Order processing/shipping
• Linear programming

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Manufacturing Resource PlanningModules

• MRP (the engine)
• DRP
• Demand forecasting
• Financial planning
• Market planning
• Simulation (what-if exercises)

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Enterprise Resource PlanningModules
(multi-echelon factory/warehouse systems)

• MRPII/Relational database management
• Sales and distribution
• Accounting and controlling
• Production and materials management
• Quality management
• Human Resources management
• Project Management

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Master Production Schedule and Material
Requirements Planning

• MPS
• A plan for allocating and efficiently using the
  resources acquired during the aggregate planning
  phase
• An anticipated build schedule for independent
  demand items
• An information system that answers the classical
  inventory questions for independent demand items
• MRP
• An anticipated build schedule for dependent
  demand items
• An information system that answers the classical
  inventory questions for dependent demand items

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Implementation Problems Why the enterprise-wide
information systems are not for every one

• Managerial and/or behavioral problems
• Lack of support or commitment
• Unrealistic assessment of capacity
• Resistance to change
• Short-term perspective
• Technical problems
• Inadequate hardware or software
• Unstable BOMs
• Inaccurate inventory records
• The planning process itself
• Unrealistic fixed lead times

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IS Definition

• Information systems are combinations of hardware,
  software, and telecommunications networks, which
  people build and use to collect, create, and
  distribute useful data, typically in organization
  settings

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Data

• It is the most basic element in the IS
• It is raw material, unformatted and meaningless
• To become useful information, it must be
  converted to a useful format

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People

• They are you!
• They are the elements, which develop, maintain,
  manage, and study ISs

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Hardware, Software, and Telecommunications

• These elements represent the technology side of
  ISs
• Technology supplements, extends, or replaces
  human or manual operations