Introduction to Course - Chulaoran/classes/PROMIS_resource/handout/prom… · Introduction to...
Transcript of Introduction to Course - Chulaoran/classes/PROMIS_resource/handout/prom… · Introduction to...
Syllabus Roles Motivation Pro MIS 101 Strategy
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Introduction to Course
Oran Kittithreerapronchai1
1Department of Industrial Engineering, Chulalongkorn UniversityBangkok 10330 THAILAND
last updated: November 2, 2013
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Syllabus Roles Motivation Pro MIS 101 Strategy
Outline
...1 Contact Information and Syllabus
...2 Roles and Agreement
...3 Motivation for course
...4 Basic Concepts
...5 Information & Operation Strategy
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Contact Information
Name: Oran Kittithreerapronchai, PhDOffice: Room 603, Engineering Building 4Office Hour: Wednesday 12:30-13:00 or by appointmentEmail: [email protected]: 02-218-6832WWW: http://www.ie.eng.chula.ac.th/ ̃oran/
http://orankitti.site44.com
Name: Poom LuangjamekornOffice: Room 808, Engineering Building 4Office Hour: Wednesday 12:00-13:00 or by appointmentEmail: [email protected]: 02-218-6848WWW: http://www.ie.eng.cula.ac.th/ ̃poom/
161.200.89.228/ ̃weberp
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Syllabus: Before we start
GoalsAware of roles and decisions of IT in production and operation environmentConvert business requirements into necessary inputs and suitable processesUnderstand key concepts of operation management, production control, andinformation systemDesign a basic module and analyze related data
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Grading Policy
GradingCases Study (30%)Midterm Exam (30%)Project (40%)Quizzes + Participation (5% bonus)
Grading & Scores85 and above: final grade id definitely ’A’between 50 and 85: A, B+, B, C+, . . . ,D50 and below: final grade is possibly ’F’
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Class Rules & Agreements
No class attendance, except during workshopDon’t miss workshopDon’t interrupt othersBe responsible, especially meeting time and assignmentParticipate during class; this is Master level course
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......Exam is designed to test student basic knowledge of the course.
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Code of honors
Education with ethic standards and social responsibilitiesTrust as integral and essential part of learning processSelf-discipline necessityDishonesty hurts the entire community
adapted from: Georgia Institute of Technology –The Honor Code
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......Any violation to code of honors will severely punished, especially cheating andplagiarism
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Textbook and References
Textbook• Motiwalla, L. 2012. Enterprise Systems for Management. Pearson,
New Jersey.
References• Olson, D. L. 2004. Managerial Issues of Enterprise Resource Planning
Systems. McGraw-Hill, New York• Oz, E. 2009. Management Information Systems. Cengage Learning,
Boston• Nahmias, S. 2001. Production and Operations Analysis. McGraw-Hill,
New York• McLeod, R. 2009. Management Information Systems. Prentice-Hall
International, New Jersey
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US Steel & Auto Manufacturing
Steel IndustryMedieval iron ̸= steel, labor intensive → armoryIndustrial Revolution: high grade ore, blast furnace → railwayWW II-Current: many scrap, mini-mill → vehicleAltenative: aluminum, plastic, carbon-tube
Auto IndustryBefore Model T: experimental (gas, electric, stream)Ford Model T: vertical integrated
Any customer can have a carpainted any colour that he wants so long as it is black
Henry Ford, 1923
After Ford Model T: safety (volvo), JIT & qualityOil Embargo-Current: fuel efficiency & environment
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US Other manufacturing
Textile: non-perishable by skilled workers & globally (RM, M/C, FG)1st world: near market & fashionable city, sweat shop3st world: low cost + outsourcing → quota (TAW → THA → VET)
Food & Pharmaceutical: batch, long shelf life, curving for new thingsHome: fresh, local → economy of scale (tomato)National: ’blockbuster’ + ads +R&D → safety & quality (consistency)Global: ’syrup model’ (coke, lay) → reverse (slow coke)
Pulp/Paper: process, pollutedBefore internet: growing demand, capital intensive, max utilizationAfter internet: over capacity, efficiency & quality
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Lessons from the past
Change is everywhere and ever increasing, so does competitionMarket must response to customer demandPower shifts to retailersQuality and safety are important (failures, regulations)Relationship shifts among plant-vendors-supplier
merge (new market, reduce overhead, ’right’ portfolio, quick expansion)contract manufacturer (reduce risk, core competition)
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......Effective response → Better integration & communication → Right computersystems
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Hierarchy of information
source: Computer-Integrated Manufacturing (CIM)
2010s ERP II2000s ERP1980s MRP II1970s MRP & PLC1960s BOMP
Decision structure VS Information interval
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Computational levels/history
Period Concept System Purpose1960s paper dragon payroll & inventory
mgt.speed acct & paperprocess
1970s informationfactory
MRP, facilitate sale & marketing& reporting
1980s customized mgtcontrol
MRP II decision support sys., exe.support
1990s integration,competitiveadvantage
ERP promote survival & valueof org
2000s agility & valuechain
ERP II inter- & global org
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ERP’s impact on a plants
source: AMR Research Report 2000
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Problems of adopting IT in plants
There are complex data types: e.g. vectors, matrices, pictureAnalysis is important: data mining is not well-defined → MS ExcelEach industry/factory is unique: e.g., BOM VS formula, pharmaceuticalVS chemical,Quality is not black & white: i.e., diff grade for diff customerThere are many possible processes: e.g., test → more tests,Shop floor scheduling is dynamic: i.e., bottleneck
adapted from: Ake et al. Information Technology for Manufacturing
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Macro view of manufacturing
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Mac
hine
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ergy
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Mon
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Info
rmat
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Resources
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Material
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Material
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material flow
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resource flow
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organization
source: Cecelja. 2000. Manufacturing Information & Data Systems.
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Two inseparable parts: OM & MIS
Production and Operation ManagementWhat: how to better manage and design in production & service environmentIdea: using data & models → predictionExample: forecasting, production planning, inventory control, MRP, CRPIssues: tedious, data, calculation
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......Business Process Re-engineering (BPR), Project Management
Management Information SystemWhat: how to better communicate internally & externallyIdea: sharing information & automating some tedious tasksExample: Payroll, Web-based, Expert system
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Why a company implement computer system?
Fear & Believe: legacy system (Y2K), customer mandate (Nike, RFID–DoD& WalMart)Standardize & Platform: standard process (international), merge &acquisitionAccuracy & Efficiency & Control: operation (relay → PLC), consolidatedata (reports– accounting), eliminate tedious task (payroll– HR)Visibility & Integration: communication (Satellite–WalMart), data visibility(Boon-Tha-Worn)Process improvement: economy of scale, paperless office, reduce inventory(VMI)
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Concepts of PROMIS
Manufacturing Information System: complex (models), pitfall, unique,users (education & nature)Required Data → Information: database design , analysis , planningImplement ̸= Improvement: roles of re-engineering, reaping benefitsInformation → Integration: working around legacy system, involve end-userIT as an enables: linkage between strategy & action, reducing time,communicating across locations & organizationIT Project = Project Management: project requirement, financialevaluation, exit strategy, system & module selection
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How a company compete with others?
Price: Wal-mart, Big Cola, DensoAgility & Responsive: Zara, Dell,Superb Quality: Leica, Louis Vuitton, HermesInnovation & Flexibility: Apple, Sony, Sumsung, BMWConvenience & Presence: 7-Eleven, Starbucks, McDonaldService & Coverage: Facebook, CitiBank
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......Information technology is strategic advantage, not strategic necessity
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Terminology
Strategic information system: an information system that helps seizeopportunitiesStrategic advantage: using strategy to maximize company strengthsCompetitive advantage: having maximized an organization’s strengths tobeat its rivalsSwitching costs: expenses incurred when customer stops buying from onecompany and starts buying from anotherFirst mover: one offers the first new product or service.Critical mass: clients that is large enough to attract other clientsProduct differentiation: persuading customers that your product is betterthan competitorAffiliate program: linking to other companies and rewarding
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Business strategy: Five forces model
cost leadershipdifferentiationfocusstrategic positioningcustomer service
source: www.vectorstudy.com
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Porter’s model → Generic strategy
source: www.vectorstudy.com
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Generic strategy
source: Oz, E. Management Information Systems. pp. 43
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Strategic IS questions
..Can IS changebusiness competition?
.Can IS changesupplier’s power?
. Can IS build inswitching cost?
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Can IS create barriersfrom new entry?
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Can IS generate newproduct/service?
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• reduce costs• identify alter. sources• improve quality
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• increase buyer knowledge• reduce service cost• discover more buyers
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• differentiate product/service• preemptive strike• establish new market• create new channel
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new entrants
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substitute product
.power of suppliers
.power of buyers
source: Cecelja, F. 2002. “Manufacturing Information and data Systems”
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Porter and Millar’s Framework
Industry structure and rules of competition has changed (e.g., ATM machine)Firms have outperformed competition using IT (e.g., K-mart VS Wal-mart)Firms can spawn a new business (e.g., UPS 3PL)
How much/urgent to invest in IT?: Five-Steps ProcessAccess information intensityDetermine the role of IT in businessRank how IT can create competitive advantageInvestigate how IT might spawn new businessesPlan to take advantage of IT
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Operation Strategy and IT
Classical StrategyStrategy Technology Infrastructure Marketing & SalesLow cost • Dedicated
equipment• RM planning • Economy of scale
Service level • Reservecapacity
• FG inventory • Dependability
Product variety • Flexiblemachines
• Skilled workers • Customerresponsive
• Reservecapacity
• Flexiblescheduling
Productinnovation
• Generalpurpose
• R&D • Market leadership
• Team skills • New segments
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