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Manufacturing Planning Systems Use for Strategic Planning

Manufacturing Planning Systems Use for Strategic Planning. David L. Olson, University of Nebraska-Lincoln, dolson3@unl.edu Bongsug (Kevin) Chae , Kansas State University Chwen Sheu , Kansas State University. Manufacturing Planning Systems. 1960s 1970s Continue to evolve 1990s – ERP

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Manufacturing Planning Systems Use for Strategic Planning

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  1. Manufacturing Planning Systems Use for Strategic Planning David L. Olson, University of Nebraska-Lincoln, dolson3@unl.eduBongsug (Kevin) Chae, Kansas State UniversityChwenSheu, Kansas State University

  2. Manufacturing Planning Systems • 1960s 1970s • Continue to evolve • 1990s – ERP • Integrated systems • Expensive • MANY VARIANTS • MPS specific systems can handle planning, logistics functions • Not integrated • More affordable

  3. GMRG Data • Global Manufacturing Research Group • Since 1985 • Four rounds to date • Same survey applied to manufacturers in 17 countries • Our dataset • 964 responses • 736 answered question concerning ERP system used

  4. Respondent Categories by Country

  5. Are there significant differences across systems in application to strategic planning?Degree of use of manufacturing planning & control systems for strategic planning (1-7 scale)

  6. What types of systems are used for different functions?Degree of use of manufacturing planning & control systems

  7. Are there significant differences across systems in assessment of operations benefits?Degree of operations benefits obtained (1-7 scale)

  8. Are there significant differences across systems in assessment of operations costs?Degree of operations costs (1-7 scale – 7 low cost)

  9. Are there significant differences across systems in assessment of information systems data quality?Satisfaction with IS data quality (1-7 scale)

  10. Conclusions • There are a variety of ways to get MPS • Vendor systems better for strategic planning • In-house systems not significantly inferior

  11. MPS use by Function • Manual systems or desktop used by those without formal MPS • Desktop systems used by all • Custom software more common in in-house systems • Major vendor systems move away from manual, custom software, desktop

  12. Operations Benefits & Costs • Major vendor systems provide more benefits • But not significant except against None category • Small systems have cost disadvantage • Perceived overall costs of Major Vendor systems rated as reducing cost

  13. Data Quality • Major Vendor Systems rated best • Small, In-House systems not significantly inferior

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