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1. Operations Management in IS Development AhmetKutluDritaRustemMetin ArabSeyhmusAtli23th May 2012
2. 10 OM Decisions in SOFTWARE Industry Design of goods and services Managing quality Process and capacity design Location strategy         Layout strategy            Human resources and job design Supply chain management Inventory management  Scheduling Maintenance
3. Software as a Service IT ServiceTraditionally IT was seen as delivering products: hardware, systems, software, PCs etc. However the high (and especially continuous) dependency of business upon IT has made it clear that this no longer is the case. Although IT uses products in the delivery of IT services it is now considered to be a typical services domain. Jon Von Bon(2007)
4. Software as a Service Differences between product and service in SoftwareServices are highly intangible- A service is not physical; it cannot be touched, weighed etc. Only the tangible components of an IT service can be felt: the hardware that is used to deliver the service, the network and the disk that carries the software or the data. But services are much more than just the combination of tangible goods.
5. Software as a Service Differences between product and service in SoftwareServices are produced and consumed at the same time-The service is consumed at the very moment it is produced. And services cannot be stored. This is why proactive quality assurance is much more important in service management than any check on delivered quality.
6. Software as a Service Differences between product and service in SoftwareSatisfaction is subjective- Services consumption is influenced by the consumer, in this case the IT user. And services can only be measured after they are delivered, not before. Products can be assessed, tested and evaluated before buying them. Services can only be judged after delivery.
7. Software as a Service IT Service Components An IT service is a service provided to one or more customers by an IT service provider. And IT service is based on the use of IT and supports the customer’s business processes. An IT service is made up from a combination of people, processes and technology and should be defined in a Service Level Agreement.
8. Software as a Service IT Service Components As TienekeVerheijen wrote in his Book (IT Service Management-2007), the composition mentions three elements.
9. Software as a Service IT Service Components Information System (IS) is the entirety of components that are required and used to compose the information processing system. It breaks down into the three main constituents of the PPTPI set: People, Process and Technology and it can be used – with Partners – to manage the final focus area: Information.
10. Software as a Service IT Service Components Support is another term in the short definition of IT service is “supported”. The Information System (IS) will have to be supported to make sure that it performs according to the agreed requirements.
11. Software as a Service IT Service Components Quality is the ability of a set of inherent characteristics of a product, system or process to fulfill requirements of customers and other interested parties. So according to the ISO definition the quality of an IT service is often expresses in practice as the specific characteristics of a service that satisfy the customer’s expectations.
12. Software as a Service IT Service Components
13. Managing Software Quality According to McCall(1999) the quality factors integrityreliabilityusability accuracy efficiency maintainability testability flexibility interface facility re-usability transferability
14. Managing Software Quality 1.EfficiencyThe volume of code or computer resources (eg. time or external storage) needed for a program.Programming languages. Selecting the most appropriate programming language for the problem has a major impact on program efficiency. For example, in 80’s business applications which require substantial volumes of reports might best be programmed in COBOL while programs requiring substantial scientific calculations might be best accommodated by FORTRAN. Operating systems. Modern operating systems have the ability to performmulti-tasking there by improving system performance by facilitating background operations.
15. Managing Software Quality Programming techniques. Typical good programming techniques and practice like: Top-down design for complex problems Sequence, selection and iteration constructs Keeping local variables within procedures Good use of parameter passing Meaningful variable and procedure names Proper documentation
16. Managing Software Quality 2.IntegrityThe extent to which illegal access to the programs and data of a product can be controlled.Oxborrow (1986) states that the aims of these controls are: -”to ensure that all data are processed -to preserve the integrity of maintained data -to detect, correct and re-process all errors -to prevent and detect fraud”
17. Managing Software Quality 3.Reliability The extent to which a program can be maintained so that it can fulfill its specific function. The mean time between failures - under pre-defined conditions, the average time between consecutive failures over a given period in the life of a system. The mean time to repair - the average time to repair or maintain equipment. The mean time to recover - the average time to return a system to operation after a failure. The time involved should include periods taken to re-instate from previous checkpoints.
18. Managing Software Quality 4.Usability The cost/effort to learn and handle a product. The whole subject of usability is very much a leading edge quality factor. It can examined in two parts according to Curson (1996). General ergonomics is concerned with equipment and the work environment.Software ergonomics is concerned with topics like how suitable is the software for the intended operations. How easy is it for users to learn and to master it.
19. Managing Software Quality 5.Accuracy The extent to which a program fulfills its specification. Accuracy is a difficult factor to pin down because of the lack of standard terminology. It is easy to use the term interchangeably with other factors like reliability and integrity. Ince(1994) calls the factor correctness. Ghezzi(2001) also prefer the term correctness and their definition is "A program is functionally correct if it behaves according to the specifications of the functions it should provide".
20. Managing Software Quality 6.Maintainability The cost of localizing and correcting errors Ghezzi(2001) divide maintenance into three categories.Corrective maintenance is concerned with removing minor bugs left after development and testing are completed. This process is also involved after other maintenance activities. Adaptive maintenance is concerned with changing the software to reflect changes in the user's requirements. Perfective maintenance seeks to improve the algorithms used in the software to enhance performance. Perfective maintenance is often influenced by technological developments
21. Managing Software Quality 7.Testability The cost of program testing for the purpose of safeguarding that the specific requirements are met. Item testing - standalone components are individually tested to ensure that they function properly. A substantial amount of item or unit testing is completed by programmers as part of their normal role. Integration testing - brings together standalone components into modules which are tested to reflect how they link in a new environment. Integration testing is also referred to as module testing. System testing - best performed as a full test run of the system that the client is about to receive but done without the client being present. It is the supplier's opportunity to confirm that the requirements specification has been fully achieved. Acceptance testing - the client running the new system to ensure that it complies with the original specifications. Acceptance testing is often referred to as Alpha testing.
22. Managing Software Quality 8.Flexibility The cost of product modification. This is McCall's second element of maintenance and over the years as the maintenance function has taken on new meaning the flexibility quality factor has been fused into maintenance. Recent interpretation of flexibility would be more associated with adaptability, ie. being able to change or reconfigure the user interface to suit users' preferences. This is a usability quality issue and is better considered in the usability section.
23. Managing Software Quality 9.Interface Facility The cost of connecting two products with one another. It is the development strategy that encourages product development in a manner that it can interact with other products. For example, word processors that can incorporate charts from spreadsheets, or graphics from CAD and graphics packages, or data from databases.
24. Managing Software Quality 10.Reusability The cost of transferring a module or program to another application. Re-usability addresses the concept of writing code so that it can be used more than once. A typical example is writing procedures or routines to receive variable parameters. The main advantage of using this approach is that once a procedure has been written and fully tested it can be used with full confidence in its accuracy thereafter. It should never need to be tested again.
25. Managing Software Quality 11.Transferability The cost of transferring a product from its hardware or operational environment to another. Transferability is the strategy of writing software to run on one operating system or hardware configuration while being conscious of how it might be refined with minimum effort to run on other operating systems and hardware platforms as well.
26. Managing Software Quality Interrelationships between quality factors
27. Software Process Design Project Life Cycle (PLC) Jack T. Marchewka(2006) states that A collection of logical stages or phases that maps the life of a project from its beginning to its end in order to define, build and deliver the product of the project – i.e., the information system.
28. Software Process Design Systems Development Life Cycle (SDLC) Represents the sequential phases or stages an information system follows throughout its useful life Useful for understanding the development of the project’s largest work product – the application system Phases/Stages
29. Software Process Design The relationship between PLC and SDLC The systems development life cycle (SDLC) becomes part of the project life cycle (PLC). The PLC focuses on the project management phases, processes, tools and techniques for effectively managing the project. The SDLC focuses on the software engineering phases, processes, tools and techniques for building and/or implementing the IT solution.
30. Software Process Design
31. Location Strategy Being in the right location is a key ingredient in a business's success. Objective: Maximize benefit of location to firm. Long-term strategic decisions. Usually expensive & difficult to reverse. Affect fixed & variable costs. Central hub concept.
32. Formulating a location strategy typically involves the following factors: Facilities Feasibility Logistics Labor Community and site Trade zones Political risks Governmental regulations Incentives
33. Company Requirements Size Traffic Population Total Costs Infrastructure Labor Suppliers
34. Industrial Location Decisions Cost focus. Revenue varies little between locations. Production separate from consumption. Location is major cost factor. Costs vary greatly between locations. Shipping costs. Production costs (e.g., labor).
35. Service Location Decisions Revenue focus. Costs vary little between market areas. Production/service together with consumption. Location is a major revenue factor. Affects amount of customer contact. Affects volume of business.
36. Location Evaluation Methods Factor-rating method. Locational break-even analysis. Center of gravity method. Transportation model.
37. Service vs. Industrial Location Service Location Techniques Regression models to determine importance of different factors. Factor rating. Traffic counts & demographic analysis of drawing area. Center of gravity. Assumptions Location is major determinate of revenue. High customer contact issues dominate. Costs are relatively constant for a given area. Industrial Location Techniques Linear and Integer Programming (Transportation method). Factor rating. Breakeven and crossover analysis. Center of gravity. Assumptions Location is major determinate of cost. Costs can be identified for each site. Low customer contact allows focus on costs. Intangible costs can be objectively evaluated.
38. Telemarketing and Internet Industries Require neither face-to-face contact with customers (or employees) nor movement of material. Keys are: Labor costs and productivity. Information systems infrastructure (including training and management). Government incentives (including taxes).
39. Geographic Information Systems - GIS New tool to help in location analysis. Combines spatial (locational) data and attribute data (for example, demographics). Uses spatial analyses to identify best or satisfactory locations. Allows intuitive graphical display using maps.
40. Layout Strategy Developing an economical layout which will meet the requirements of: -product design and volume (product strategy) -process equipment and capacity (process strategy) -quality of work life (hr strategy) -Building and site constraints (location strategy)
41. Types of Layouts Office layout - positions workers, their equipment, and spaces/offices to provide for movement of information Retail Layout - allocates shelf space and responds to customer behavior Warehousing and Storage Layouts - addresses trade-offs between space and material handling Fixed-Position Layout - addresses the layout requirements of large, bulky projects such as ships and buildings Process-Oriented Layout - deals with low-volume, high-variety production (also called job shop or intermittent production) Work Cells - a special arrangement of machinery and equipment to focus on production of a single product or group of related products
42. Types of Layout Repetitive and Product-Oriented Layout - seeks the best personnel and machine utilizations in repetitive or continuous production Assembly-Line Balancing
43. Strategic Importance of Layout Decisions The objective of layout strategy is to develop an economic layout that will meet the firm’s competitive requirements
44. Layout Design Considerations Higher utilization of space, equipment, and people Improved flow of information, materials, or people Improved employee morale and safer working conditions Improved customer/client interaction Flexibility
45. Human Resources The objective of a human resource strategy is to manage labor and design jobs so people are effectively and efficiently utilized People should be effectively utilized within the constraints of other operations management decisions People should have a reasonable quality of work life in an atmosphere of mutual commitment and trust
46. Process strategy Technology Machinery and equipment used Safety Product strategy Skills needed Talents needed Materials used Safety Procedure What Schedules Time of day Time of year (seasonal) Stability of schedule Individual differences Strength and fatigue Information processing and response HUMAN RESOURCE STRATEGY When Who Location strategy Climate Temperature Noise Light Air quality Layout strategy Fixed position Process Assembly line Work cell Product How Where Constraints on Human Resource Strategy Figure 10.1
47. HR and Job Design Labor Planning Employment-Stability Policies Work Schedules Job Classifications and Work Rules Job Design Labor Specialization Job Expansion Psychological Components of Job Design Self-Directed Teams Motivation and Incentive Systems Ergonomics and Work Methods
48. The Visual Workplace Ethics and the Work Environment Labor Standards
49. Work Schedule Options Job sharing- practice of two or more people splitting .Normal 40-hour-a-week job. Flextime Schedule -Employees work during a common core time period but have discretion in forming their total workday from hours around the core. Compressed workweeks Part-time employment
50. Job Classification and Work Rules Specify who can do what Specify when they can do it Specify under what conditions they can do it Often result of union pressure Restricts flexibility in assignments and consequently efficiency of production
51. Job Design Specifying the tasks that constitute a job for an individual or a group Job specialization Job expansion Psychological components Self-directed teams Motivation and incentive systems Ergonomics and work methods Visual workplace
52. Labor Specialization The division of labor into unique tasks First suggested by Adam Smith in 1776 Development of dexterity and faster learning Less loss of time Development of specialized tools Later Charles Babbage (1832) added another consideration Wages exactly fit the required skill
53. Enriched job Planning (participating in a cross-function quality-improvement team) Enlarged job Task #3 (lock printed circuit board into fixture for next operation) Present job (manually insert and solder six resistors) Task #2 (adhere labels to printed circuit board) Control (Test circuits after assembly) Job Enlargement
54. Psychological Components of Job Design Human resource strategy requires consideration of the psychological components of job design
55. Academy of Management Review 13, 1988, Lengnick-Hall & Lengnick-Hall Core Job Characteristics
56. Benefits of Teams and Expanded Job Designs Improved quality of work life Improved job satisfaction Increased motivation Allows employees to accept more responsibility Improved productivity and quality Reduced turnover and absenteeism
57. Ergonomics and Work Methods Ergonomics is the study of the interface between man and machine Often called human factors Operator input to machines Feedback to operators
58. Visual workplace The work environment Illumination Noise Temperature Humidity
59. Self-directed teams Increasing reliance on employee’s contribution and increasing responsibility accepted by employee Empowerment Enrichment Enlargement Specialization Job expansion Job Design Continuum Figure 10.3
60. Final thought Two stonecutters were asked what they were doing, The first said ‘’I’m cutting this stone into blocks.’’ The second one replied, ‘’I’m on a team that’s building a cathedral.’’-
61. Supply Chain Management Integrated approach PlanningControl of materialslogisticsservices information stream from suppliers to manufacturers end user
62. Benefits of SCM Improve efficiency and/or Productivity Reduce operating costs Improve customer service Target SCM contributions to Improve corporate profitability Align supply chain with corporate Business Target SCM contributions to drive business growth
63. Supply Chain Planning Strategic planning Tactical planning Operational planning
64. Supply Chain Optimization and Design
65. Networked Organizations
66. Top 20 SCM
67. Inventory Management The reasons for keeping stock Time Uncertainty Economies of scale
68. Inventory Management Software Maintaining a balance between too much and too little inventory. Tracking inventory as it is transported between locations. Receiving items into a warehouse or other location. Picking, packing and shipping items from a warehouse. Keeping track of product sales and inventory levels. Cutting down on product obsolescence and spoilage.
69. Advantages Cost savings Warehouse organization Updated data Time savings
70. Disadvantages Expense Complexity
71. How do we control inventory There are No Great Deals Out With the Old A Place for Everything Keep on Tracking Calculating Quantity Order Fulfillment Issues Sharing the Control
72. Scheduling Scheduling: aims to allocate the available resources to activities so as to find the shortest duration of a project within the constraints of precedence relationship. (Nikotan et al 2011) Importance: in China it was reported that more than 40% of unsuccessful software projects failed because of inefficient planning of project tasks and human resources. (Ding and Jing 2003)
73. Scheduling Steps of Scheduling: Allocating Resources to the Tasks First step is to identify the resources required to perform each of the tasks required to complete the project Identify Dependencies Once resources are allocated, the next step in creating a project schedule is to identify dependencies between tasks.
74. Scheduling Steps of Scheduling: • Create the Schedule Once the resources and dependencies are assigned, the software will arrange the tasks to reflect the dependencies. The most common form for the schedule to take is a Gantt chart.
75. Scheduling Problems and Solutions for Scheduling: Problems: Deciding who does what during the software project lifetime. System used for scheduling is not optimized and cause crashes sometimes. Delivery time disambiguation. Inefficiency and lack of productivity. Solutions: Expert Systems Neural Networks and DSS Genetic Algorithms Overall = Computer Based Project Management and Scheduling
76. Scheduling Last Comments: Scheduling is the most important part of OM. When you do it correctly, you will maximize your time and decrease the amount of mistakes you have. You cannot get rid of all the mistakes you will experience, and a good well-prepared scheduling can help you to efficiently complete the task within the deadline.
77. Maintenance Maintenance: is described as the modification of a software product after delivery to correct faults, to improve performance or other attributes. (ISO/IEC 14764:2006) Importance: Enormous sums of money are expended annually by organizations in maintaining production software. The maintenance process dominates the activities of many MIS organizations. On an average, 70% of MIS software budgets are devoted to maintenance. (Dishaw and Strong 1998)
78. Maintenance Categories of Maintenance: (ISO/IEC 14764:2006) Corrective Maintenance Reactive modification of a software product performed after delivery to correct discovered problems Adaptive Maintenance Modification of a software product performed after delivery to keep a software product usable in a changed or changing environment. Perfective Maintenance Modification of a software product after delivery to improve performance or maintainability. Preventive Maintenance Modification of a software product after delivery to detect and correct latent faults in the software product before they become effective faults.
79. Maintenance Factors of Maintenance: Change Diffusion The most influential factor. More files changed, more structural complexity and more effort for maintenance Software Size Second influential factor. Size increase, effort increase. Developer Experience Least significant one. More experienced staff less effort. (Chavez and Cruzes 2012)
80. Maintenance Last Comments: Businesses need to have an active maintenance team to ensure the safe sailing of the creative software. They will learn about the problem, examine its effect and create a possible solution. Once done, they can work on the software to give updates and learn a few new tricks to prevent another disaster from coming.
81. THANK YOU FOR LISTENING! Any Questions?