INTEGRATED IT SYSTEMS SUPPORTING MANAGEMENTLecture 1

Intro

Agnieszka Stachowiak

agnieszka.stachowiak@put.poznan.pl

room 312

Lectures agenda• Integrated IT systems – definition & idea• Implementation (potential benefits and difficulties)• Modes and functions• Examples and case studies

Definition

IT system is a complex software (computer programme) or a set of software packages cooperating to realize

predefined functions

IT systems:• Systems supporting management,• Systems controlling processes,• Systems supporting professional work (f.ex. designing),• Systems searching for information,• Other (f.ex. software for robots, cell phones etc)

IT management systems

..are created as a response for developed and defined demand of managers concerning generation of exact and useful data to be used for planning, analyzing and controlling enterprise performance in order to optimize its development.

IT management systems

..realize their functions by providing data collection, storage, processing and transmission and using feedbacks to react to current and future changes in an enterprise and in its environment

Computer systems supporting management are organization, software and hardware combined to support management processes in an enterprise (sequential, multi-stage decision making).

USERS + INFORMATION/ DATA + SYSTEM ORGANIZATION + COMPUTER SYSTEM, and:

computer system = hardware + software + system

Which refers to general formula:

computer system supporting management = PEOPLEWARE (users)

+ ORGWARE (organization) + HARDWARE (computers)+ SOFTWARE (programmes)

Data processing schemes

Service concept:

based on a concept that each part of an enterprise has (generates) demand for data processing. IT systems responding to this demand perform time consuming and repeatable tasks of employees and let them perform more sophisticated or responsible jobs (f.ex. IT system in a warehouse).

Data processing schemes

Cybernetic concept:

based on system approach, according to which an enterprise is an entity with common goals, defined structure, realizing a set of processes. IT systems developed are to process data in an aera limited and defined by processes (functions) realized by an enterprise, starting from the place of their origin and finishing in the place of their exploitation (f.ex. finance system and bookkeeping system)

Data processing schemes

Management concept:

based on the idea that an enterprise is a hierarchical net of managers. Each of them needs a set of data and generates data as well. IT systems developed with such approach are called managers IT systems or managers supporting systems.

Data processing schemes

Communication approach:

based on the idea that IT systems are nets of computers, transmission lines and other devices. The nets are to manage data flows within management system. In this approach hardware issues are the most important.

Data processing schemes

Mirror (simulator) concept:

according to this cocncept IT management system is a simulator of an enterprise performance. It is supposed to reflect processes and their dynamics, thanks to which an enterprise is able to plan, control and forecast effectively and efficiently its perfromance in changing internal and external conditions (f.ex. ERP systems)

Data processing schemes

Automatic management concept:

based on data processing and regulation and control system integration. IT systems developed according to this idea does not need human operators (do not exist, theoretical)

EVOLUTION

1960 1970 1980 1990 2000

ICMRP

MRPIIERP

DEMMRP+ finances and capacity balancing

MRPII + distribution, transport

and service

ERP + automatic change

implementation

Integration

Integration of an IT system requires:• Data sets and databases integration and availability,• Processing integration ( if something is changed in one

dimension, all the others should be changed automatically),

• Integration of technical means used to process and transmit data, as well as points were information is generated and used.

Processes integrationEnterprise specifics should be considered,BPA should be performed (Business Process Analysis),Processes infrastructure should be developed (process

maps, roles maps, information and decisions flows),ERP system choice,Modeling and documenting business processes should

be performed with process modeling pronciples,Processes restructurization should provided with

reference models, best practices and scenarios,Continuous improvement methods should be developed, risk analysis should be performed for each new system

version created.

Functions integration

Function aggregation level choice (wheter it refers to one task or activity or to a process):

• Required modeling precision,• Function standardization,• Predefined modeling goal,• Experience.

Personal integration

..is supposed to lead to full acceptance of computer simulation as a method of decisive information analysis

Information integration

.. is a set of actions striving to correlation of input and output data with information capabilities of analysis and planning system of an enterprise

ERP class systems• High integration, cost-consuming, diggicult to implement;• Use shared data,• Are used by managers at all management levels;• Are used by all departments

Integrated computer system supporting managementTypical modules:

• Main register: enterprise financial records;• Sales register: records concerning customers, data concerning invoices and payments related;

• Supply register: records enabling payments connected with products (goods and services) buying management;

• assets: records enabling financial processes of assets management;

• Cash register: information concerning cash flows;

Analysis and reports: the application used to analyze information and support the company management, the information is supposed to be available in real time;

Information management: the function of simulating future facts based on data base without losing its integrity;

EDI (Electronic Data Intercharge): the paperless (electronic) exchange of trading documents, such as purchase orders, shipment authorizations, advanced shipment notices, and invoices, using standardized documents formats;

Material management: the function of collecting information concerning each material, raw material, product and good. Enables inventory control;

Locations management: defines rules of allocating and shipping goods from various locations.

• Supply management: the function supporting process of materials buying; from the moment of ordering, through warehousing to invoice related payments. Enables controlling prices and suppliers quality;

• Supply scheduling: the function connecetd with long-term agreements, automatically repeats orders when necessary;

• Supply demand: the function generating supply demand based on information from modules supporting production, distribution resource planning or on analysis of raw material, parts and goods use;

• Sales management: from the moment of the order registering, through the warehousing process documentation to making out the invoice;

• Advanced sales: includes additional functions comparing to the previous module;

• Direct sales (phone calls): the function of gathering the necessary information, enables operators work management and orders recording/ registering;

• Sales scheduling: the function connecetd with long-term agreements;

• Retrurns and complaints: manages returns of goods from customers from the moment of registering to making out the corrective invoice;

• Sales analysis: the function of creating reports;• Demand forecasting: the function of estimating of future

demand. A forecast can be determined by mathematical means using historical data, it can be created subjectively by using estimates from informal sources, or it can represent a combination of both techniques;

• DRP (Distribution Resource Planning): the extension of distribution requirements planning into the planning of the key resources contained in a distribution system: warehouse space, work force, money, trucks, freight cars etc.;

• Product configurator: used to define product when accepting order, to perform production processes as soon as possible;

• Transport planning: the function of transport management (routes, means of transport, fees);

• Production data base management: to keep homogenous data base including information and data referring to materials, semi-products, products, manufacturing methods, workstations, resources, operations and tools. Enables creating and modifying BOMs (Bills of Material) and technological processes;

• Planning (general planning): the function of generating and modyfing production and purchase plans;

• MRP (Material Requirements Planning): a set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials. It makes recommendations to release replenishment order for material;

• Production support: the process of analyzing workstations management, job assignment and work-in-process inventory;

• Capacity planning: the process of determining the amount of capacity required to produce in the future. This process may be performed at an aggregate or product-line level (resource planning), at the master-scheduling level (rough-cut capacity planning), and at the detailed or work-centre level (capacity requirements planning).

• Production control: the function of directing or regulating the movement of goods through the entire manufacturing cycle from the requisitioning of raw material to the delivery of the finished products. Enables production management.