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  1. X Supporting Slides Systems for Planning & Control in Manufacturing: Systems and Management for Competitive Manufacture Professor David K Harrison Glasgow Caledonian University Dr David J Petty The University of Manchester Institute of Science and Technology ISBN 0 7506 49771 0000

  2. 05 Overview • In Two Decades, Contribution of Manufacturing to GDP has Fallen from 35% to 22% • UK Manufacturing Industry Spends More on Information Technology than Machine Tools • Key Determinants in Performance are Quality, Lean Production and Logistics • Industrial • Revolution • Materials • Information • Revolution • Knowledge • Hardware and Software • Dynamic • Business • Independent • Non-Technical • Slow • Evolution • Business • Focused Technical Conceptual Information Now Has Strategic Importance 0501

  3. 05 Evolution of IT Systems Technical DevelopmentsBusiness Developments Double Entry Book Keeping 1400 1700 Industrial Revolution Industrial Economy 1700 1800 Jacquard’s Loom 1810 Babbage's Analytical Engine 1880 Hollerith - Punch Cards 1900 Fleming Invents the Diode Mass Production 1900 1930 Wilson 's EOQ Formula 1940 Theory of Computing German Wartime Codes Cracked First Stored Program Computer 1950 Bell Labs Develop the Transistor Accounting Applications 1950 High Level Languages Centrallised IT Management 1960 Integrated Circuits Manufacturing Applications 1960 On-line, Real-Time Systems 1970 Large scale Integration (LSI) New Applications (Eg. CAD) 1970 Micro-Computers 1980 IBM PC Launched De-Centrallised IT Systems 1980 Strategic Information Systems 1990 Windows and GUIs Enterprise Resource Planning 1990 2000 WWW in common use E-commerce and E-Business 2000 0502

  4. Application of IT in Manufacturing 05 0503

  5. 05 Commercial Environment • De-Centralisation • Global Markets • Rapid Change • Maturity These Factors Are Related to Four Competition Mechanisms 0504

  6. 05 Marketing Strategies • Lowest Cost • Differentiation • Niche • Barrier Information Systems Seen as a Competitive Weapon 0505

  7. 05 Appropriate Systems • IT/IS Systems Critical • One Reason for the USA’s Resurgence • 52% of US Investment was in IT/IS in 1999 • How Do We Provide Appropriate Systems? 0506

  8. 05 Parker’s Model for System Provision User Requests Business Requirements Initial Study IT / IS Dept. Development End User Development Change Establish if the System Needs to be Changed Make Develop in House Systems Tailored to Needs Buy Purchase a Package to Meet Needs Help Allow Users to Develop Their Own Systems 0507

  9. 05 User Led Systems • Makes Use of New IT/IS Technology • Three Main Advantages • Ownership • Understanding of Needs • Eliminates Training • Conditions • Single User or Department Use • No Direct Update of Corporate Systems • Read-Only Access of Corporate Systems • Management of Personal Data • Ad-Hoc or Frequently Changed Reports • No Interface Problems 0508

  10. 05 Packaged Solutions • Increasingly Common • Advantages • Reduced Cost • Used Widely • Development Expertise • Evaluate Supplier • Deliverables (Source Code?) • Usage (No of Users?) • Support (Help Line?) • Organisation (Stable/Secure?) 0509

  11. Inappropriate Redundant Not Covered Requirement Package 05 Package Evaluation 0510

  12. 05 Options for Modification • Quick and Lowest Cost • Take-up of New Releases • Needs User Commitment • Is this a Showstopper? • Builds Knowledge In-House • Inhibits Take-up of New Releases • Also Possible to Sub-Contract • Employs “User Exits” or “Hooks” • Difficult to Show Errors in Package • Also Inhibits Take-up of New Releases • Use “As Is” • Modify Internally • Modify Externally 0511

  13. 05 In-House Solution • Expensive • Can Delay Implementation • Are Requirements Stable? • Can Institutionalise Poor Practices • Can Divert Business Focus 0512

  14. 05 Modify Existing Systems Often Seems Attractive Because of Speed and Low Disruption • Are Systems Viable Over the Medium Term? • Are the Systems Well Documented? • Are the Required Skills Available? • Does the Modification Conform to the IT/IS strategy? • Is the Modification Justified in its Own Right? • Technology • Documentation • Skills • Strategy • Justification Can be a Quick and Dirty Solution 0513

  15. 05 Should the Request be Changed? • Is the Request Consistent with Needs? • Do Alternatives Exist (e.g., Manual Systems)? • Is the Correct Problem Being Addressed? • Can Business Processes be Changed? These issues are emphasised in BPR and SSM 0514

  16. 05 Manual Vs Computer Systems Advantages - Computer Advantages - Manual • Effort in Complex Systems • Unique Reports • Security (Backup) • Distributed Access • Speed of Access • Intolerant of Poor Design • Effort in Simple Systems • User Understanding • Security (Access) • Flexible • Speed of Access • Tolerant of Poor Design Which Method is Best Will Depend Upon the Circumstances 0515

  17. 05 Symptoms of Poor Design • Symptoms • Redundancy • Duplication of Effort • Data Replication • Re-analysis • Transcription • Problems May be Unavoidable • Should be Checked 0516

  18. 05 System Justification • Initiation • Existing Capacity • Cost • Better Information • New Opportunities • Forced Changes • Image Think Carefully: System Implementation is Usually More Expensive than Originally Thought 0517

  19. 05 Review of System Provision Issues • Different Approaches for System Provision • Advantages and Disadvantages • Business Processes Can be Changed • This Can Yield Large Business Benefits 0518

  20. 05 SSA - Principles • Objective: Building a Battleship • What Approach Should be Taken? • Start Welding Plate Together? • Produce a Design? • Objective: Developing an IT/IS System • What Approach Should be Taken? • Start Keying into MS Access? • Produce a Design? 0519

  21. 1 Scope and Terms of Objectives Reference 2 Feasibility Investigation and Feasibility Study Study 3 Systems Logical Analysis Model 4 Systems New System Design Outline 5 Detailed Detailed Design Specification 6 Implementation New (Programming) System 7 Changeover New System (Operation) Operation 8 Evaluation and Evaluation Maintenance Report 05 Development Methodology – 1 0520

  22. Objectives Evaluation Requirements SOUR Specification Spec. Program Changeover 05 Development Methodology – 2 0521

  23. 05 Software Development Costs Cost Time 1 2 3 4 5 6 7 Scope and Investigation and Systems Systems Detailed Implementation Changeover Evaluation and Objectives Feasibility Study Analysis Design Design (Programming) (Operation) Maintenance 0522

  24. Personnel 05 • End User of the System • Responsible for Moving from One System to Another • Team of Senior Managers to Oversee an Implementation • Determines the Requirements and Overall System Design • Defines the System Design • Develops Actual Program Code • User • Implementation Team • Steering Committee • Business Analyst • Systems Analyst • Programmer 0523

  25. SSADM - Overview (1) 05 • Structured Systems Analysis Design Methodology • Developed by the UK Government • A Structured Systems Analysis (SSA) tool • Complex and Comprehensive Methodology 0524

  26. Physical Design Step 6 Physical Design Technical System Options Logical System Design Steps 4 and 5 Logical Systems Specification Requirements Definition Step 3 Requirements Specification Business System Options Study Current System Steps 1 and 2 Requirements Analysis Feasibility Study Step 0 Feasibility Study 05 SSADM Overview (2) Sequence 0525

  27. 7 + 2 05 Systems and Analysis Concepts Resolution into Smaller Elements • Analysis • System Boundaries • Human Understanding • Hierarchy • Functional Decomposition • Emergence 0526

  28. Summary 05 • Systems are Crucial • Two Aspects to Systems Design • System Design is Expensive • The Consequences of Failure are Serious • Good Planning is Usually Rewarded • Lack of Planning is Usually Punished 0527

  29. 1 Scope and Terms of Objectives Reference 2 Feasibility Investigation and Feasibility Study Study 3 Systems Logical Analysis Model 4 Systems New System Design Outline 5 Detailed Detailed Design Specification 6 Implementation New (Programming) System 7 Changeover New System (Operation) Operation 8 Evaluation and Evaluation Maintenance Report 06 Terms of Reference • Often Not Clearly Defined • Need to Obtain an Overview First • Re-visit Terms of Reference • Define the System Boundary 0601

  30. 06 Sources of Information • Documentation • Observation • Questionnaires • Objective Measurement • Interviews 0602

  31. 06 Interviews – Good Practice • Explain Purpose • Put Interviewee at Ease • Prepare Questions • Never Criticise • Never Criticise the Firm • Summarise Points • Take Notes • Short Interviews • Follow-up • Discuss Analysis 0603

  32. 06 Observation Test – Start The Cat Sat on The The Mat 0604

  33. 06 Observation Test – Times-Up! The Cat Sat on The The Mat 0605

  34. 06 Patterns 0606

  35. 06 Patterns - Revealed 0607

  36. 06 Interviews - Pitfalls • Non-Cooperation • Users May Try to Please Analyst • Users Find Expression Difficult • Easy to Jump to Conclusions Initial Findings Should be Summarised in a Report 0608

  37. 06 Organisation Charts J. Astle Managing Director R. Taylor A. Hartford C. Suggett B. Robson Technical Finance Production Sales Director Director Director Director L. Cantello E. Maresca C. Regis J. Osbourne R. Robson L. Cunningham D. Howe R. Moses Chief Technical Commercial Management Works Production Electrical Materials Designer Sales Sales Accountant Manager Engineering Design Manager 0609

  38. 06 Block Diagrams 0610

  39. 06 Reporting Guidelines • Who Does the Work? • What Information is Used? • How is Information Communicated (Forms)? • Limitations of Systems • New Methods of Operation - Possibly with Alternatives • Recommendations for Moving Forward • Detail is Important in System Description 0611

  40. Early Stages - Review 06 • Early Stages are Important • Tempting to Omit • Time Spent is Usually Rewarded 0612

  41. 1 Scope and Terms of Objectives Reference 2 Feasibility Investigation and Feasibility Study Study 3 Systems Logical Analysis Model 4 Systems New System Design Outline 5 Detailed Detailed Design Specification 6 Implementation New (Programming) System 7 Changeover New System (Operation) Operation 8 Evaluation and Evaluation Maintenance Report 06 Systems Design – Analysis • How Will Requirements be Met? • Representation and Modelling • Logical, Formal, Graphical Techniques • Not Related to Hardware/Software • Flow Charts, DFDs, RFDs and IDEF0 Models 0613

  42. 06 Systems Design - Two Philosophies Old Physical Emulation System New Physical System Additional Factors Abstract Model Abstract Model of New System of Old System New Integrated System 0614

  43. 06 Flow Charts – Basic Symbols On Page Connector Flowline Manual Operation Off Page Connector Document Collate Activity Generalised Sort Activity Off-Line Storage Generalised Decision Input/Output 0615

  44. Stock Available 06 Flow Charts – Example Sales Sales Order Customer Order 4 3 2 1 Internal Order Form Prepare Order Form Yes Credit 4 O.K. 3 2 1 Internal No Credit Order Form Control 4 3 2 1 Internal Sales Order Order Form Determine Processing Catalogue Number Letter to 4 Customer 4 3 3 2 2 1 1 Internal Internal Order Form Order Form Despatch Product Despatch Dept. No Letter to Yes Customer Invoice 0616

  45. 06 Flow Charts – Pros and Cons • Advantages • Simple • Intuitive • Easy to Explain • Disadvantages • Cannot Cope with Complexity • Does not Correspond to Real Systems • Not Easy to Turn into a System 0617

  46. 06 Representation of Data Flows (1) The Relationship of Activities within a System and the Data that is used • External Entities • Must Be a Noun Customer Identifier Name • Data Store Supplier Details • D = Computer Store • M = Manual Store • T = Transient Store • T(M) = Transient Manual Store D1 Identifier Location 1 Payroll Clerk • Process • Must be a Verb Enter Payroll Details Name • Data Flow • To or From a Process • Between External Entities • Should Not Cross 0618

  47. Purchasing 06 Representation of Data Flows (2) • Information Flows to or From a Process • Data May Flow Between External Entities Title: Invoice Payments Supplier Cheque Invoice 2 Payments Clerk Goods Inwards Produce Cheques GRN Invoice Queries GRN File M1 Invoices for Payment 1 Purchase Clerk Authorised Invoices GRNs Match Invoices, Purchase Orders and GRNs Accounts Payable Details D2 PO Details PO Details PO Purchase Order Details D1 0619

  48. 06 Representation of Data Flows (3) Supplier 1 Match Invoices, Purchase Orders and GRNs Purchase Order Details D1 Invoice PO Details 1.1 Purchase Clerk Match Documents Invoice Queries * Pending Queries List GRN TM1 GRN Goods Inwards GRN File M1 Queries 1.2 Purchase Clerk Act on Matching Outcome * Authorised Invoices • Different Levels Must be Consistent Accounts Payable Details D2 0620

  49. 06 Representation of Data Flows (4) • DFDs Can be Functionally Decomposed • DFDs Should Follow the 7 2 Rule 1 2 3 4 5 6 3.2 3.1 3.3 3.5 3.4 3.3.1 3.3.2 3.3.3 3.3.4 3.3.6 3.3.5 0621

  50. 06 Use of DFDs • DFD Types • Current Physical • Current Logical • Required Logical • Required Physical • Avoid Unnecessary Complexity • Use Functional Decomposition • Even if Formal Methods Not Used 0622